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MBA (General) - IV Semester, Information Technology and E-Business, Unit 5.2

Managing Information Technology and Infrastructure

   Posted On :  07.11.2021 08:18 am

Information technology is an essential component of business success for companies today. But information technology is also a vital business resource that must be properly managed.

Managing Information Technology

Information technology is an essential component of business success for companies today. But information technology is also a vital business resource that must be properly managed. Managing the information systems and technologies that support the modern business processes of companies today is a major challenge for both business and IT managers and professionals. Led by the CEO and CIO, proposals are developed by business and IT managers and professionals for using IT to support the strategic business priorities of the company. This business/IT planning process aligns IT with strategic business goals.

Managing the development and implementation of new business/IT applications and technologies. This is the primary responsibility of the CIO (chief Information officer and CTO (Chief Technical officer). This area of IT management involves managing the processes for information systems development and implementation, as well as the responsibility for research into the strategic business uses of new information technologies.

Managing the IT Organization and the IT Infrastructure

The CIO and IT managers share responsibility for managing the work of IT professionals who are typically organized into a variety of project teams and other organizational subunits. In addition, they are responsible for managing the IT infrastructure of hardware, software, databases, telecommunications networks, and other IT resources, which must be acquired, operated, monitored, and maintained.

Managing the IS Function

Managing the IS function in organizations has become a very complex task. Organizations have moved from the having a centralized structure towards a decentralized structure, back towards more centralization control over the management of the IS resources of a company. Three things have influenced these shifts in structure

The Internet boom

Development of company intranets

Maintaining PC’s on a network is very expensive.

Organizing IT

Modern computer-based information systems can support either the centralization or decentralization of information systems operations and decision-making within computer-using organizations

The Internet and globalization have promulgated a trans-national business culture. Though volumes have been written about the differences in how business is conducted in various cultures around the world, very little has been said about the similarities. Clearly, the Internet has been very instrumental in bringing us closer together. The World Wide Web (WWW) is in reality a global electronic bazaar where all sorts of goods and services are being bought and sold. Some businesses have obviously recognized that the changes brought about by globalization and the Internet presents some extraordinary business opportunities. Many others, however, have not only failed to take advantage of these opportunities but continue to struggle with the enormity of the changes.

This trans-nationalization of business culture, which is most clearly apparent on the World Wide Web, is for very many enterprises a double-edged sword; it cuts both ways. While presenting opportunity, at the same time it requires that businesses ingest and process extraordinary quantities of information that is being generated in all of the media. Sources of information include, but are not limited to the following

Newspapers

Magazines

Journals

Industry newsletters

Radio and television broadcasts

Special reports from think tanks

E-mail and Usenet discussion groups

Websites on the World Wide Web

Managing information, especially the information generated by the Internet, is now becoming a very important function in the business enterprise. Some business executives argue that this is just another ploy to create a new category of highly paid “specialized” employees. Others point out that much of this information has very little relevance to their business. Still others advocate that the only information of any real value to the business enterprise is the database that has the names of customers and those who could become customers. While all have valid arguments to support their viewpoints, the marketplace marks such discussions as being insignificant. So, how can one’s company develop an information management strategy? Following are some guidelines that just might help

Decide what information is relevant to business. This is extremely important. Some companies, especially those in mature industries, do not find industry trend news or advances in technology to be important. Others are not as concerned about foreign news. Each business has different needs. What is important is that decides to evaluate information needed. Merely thinking about needs will probably change the way that one look at information entirely.

Reorganize the company to assimilate information better. Somebody has to really be on top of making sure that critical information gets to the proper people in the company. This may require some changes in duties and responsibilities of various employees. The most important thing to consider here is the knowledge and skill level of the person pushing information to decision-makers. In some cases, it will be very important to make certain that there is no duplication of effort. If an executive regularly reads certain publications, the person in charge of gathering for him/her can monitor other sources.

Develop information channels. Vendors, customers and service providers all have access to information that is vital to making decisions within the business. Sometimes, due to the informal nature of the contacts between employees, very critical information is lost. Companies that closely monitor this type of information often adjust better to changing marketplace conditions.

Monitor the Internet carefully. This is also essential. So much of the new and interesting information is being broadcast via the Internet, either by e-mail, Usenet and e-mail discussion lists or websites on the World Wide Web.

Seek outside assistance when appropriate. Such things as clipping services can be a valuable business tool.

Periodically reviews the information gathered and assess its value as compared to the effort in collecting it and do some kind of cost-benefit analysis.

Managing information is no longer optional. Developing a strategy to manage information will provide other benefits to your business as well because you will enhance inter-departmental communications. Companies are often amazed at how they are able to save money on the costs of doing business by merely getting their employees to communicate with each other in a professional manner about issues that are relevant to every employee. Those companies who fail to develop such a strategy will pay a very serious price failure.

Tags : MBA (General) - IV Semester, Information Technology and E-Business, Unit 5.2
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