Information Technology Management If u need my materials let me know, chapters 1-4 thanks Essay Example

14Management Involvement with Information Systems

MANAGEMENT INVOLVEMENT WITH INFORMATION SYSTEMS

Management Involvement with Information Systems

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Introduction

Information Technology is a dynamic field, which has grown to affect every facet of management. The information systems implemented are integrated such that it is a challenge to decide that a system is more important than others. However, Enterprise Information Systems, Project management and Strategic management are truly at the heart of management involvement with Information Systems.

Enterprise Information systems which are comprehensive, large scale application-software packages are critical in the interaction between the Management and the Information systems because they offer substantial benefits to the management, which to enable the management perform their core function. These interaction benefits include supporting processes, reporting, data analysis and information flows. Furthermore, Enterprise systems provide an integrated organizational system, where the management can be able to get a graphic view of the entire organization at the click of a mouse according to Castells, (2003). Enterprise result to improved efficiency through the development of an integrated system which aids in synchronizing organizational workflow and processes. Furthermore the systems offer improved planning which enables the managements to have a comprehensive view of the organization’s receivables, sales and inventory hence offering delivery of better plans. Enterprise information systems fosters the flow of information whereby there is sharing of information between all organizational sectors, hence attaining better performance in terms of interdepartmental communication. This therefore makes the systems the nerve of management’s interaction with the Information systems.

Having a clear strategic direction and employee management is an imperative demand from the management. The management interacts with the systems through utilization of Enterprise Systems which interact with all the modules in an organization, enabling the organization to have a more cohesive and focused direction, and ensuring that there is higher employee accountability and morale and expanded skills. Enterprise systems offer both specialized and organization wide functions, hence being the heart of management and Information systems involvement. In terms of operational functionalities Enterprise systems offers improved customer service, quality improvement, productivity improvement, cycle time reduction and cost reduction. The management benefits include performance improvement, monitoring of operations, control of organization’s resources, support for strategic decision and enhanced management decision-making. Enterprise systems therefore enables the management to achieve their core function, through providing several benefits, hence are the heart of management involvement with Information Systems. The management has to interact with these systems so as to realize the aforementioned benefits.

Strategic management also is the core of Management’s involvement with Information Systems. Strategic management and information systems share a bi-directional relationship, in that Information systems serve as tools for attaining strategic management, while at the same time, strategic management enables organizations to acquire and develop superb information systems. Strategic management includes making intelligent budgeting decisions where by the managers utilized the systems to prepare clear budgets and focus on minimizing future damages, the system enable the management to identify the risks and consequences of future inflations and other natural effects. Furthermore the strategic management enables the management to interact with the systems through provision of clear guidelines for day-to-day decision making, and enabling the management to improve the decision making abilities such as motivating the employees. Furthermore, by interacting with the information system, the management can establish realistic and achievable goals as well as have a clear organizational purpose, which agrees with the organization’s mission. Moreover, with strategic management, the Management interacts with the systems to enhance efficiency and effectiveness which increases productivity. Among the imperative focuses of strategic management is to ensure that the organizations’ resources are effectively used, the management has to utilize information systems such as stock management systems to ensure optimal resource utilization.

Organizations thrive in a collaborative environment, where the stakeholders and employees understand their roles. Strategic management enables the organizations to build strong teams, and gauge performances as well as offer a basis for clarifying individual responsibilities. Information systems offer an environment to establish a mechanism for which progress can be gauged, while enabling the management to have up to date reports and records as presented by Wiles, (2007). To foster organizational communication and collaboration, strategic management plays a vital role in creating a framework for internal and external communication. Information systems such as Content management system, teleconferencing, Collaborative drafting, and collaborative environments enables the organization to achieve timely communication, which is a function of strategic management, hence being the heart of the interaction. To attain strategic management objectives, the Management has to use communication systems. Moreover, strategic management involves change; the management has to utilize information systems in empowering the employees to improve their skills, knowledge, services and productivity while reducing the negative consequences associated with resistance to change.

Project management is another key element, where the management interacts with information systems. Project management requires managerial input, as well as the utilization of information systems to ensure that the project’s objectives are realized, Mochal, (2007). Information systems enable the Management to have better flexibility since it allows the project team and project individuals to strategize on quality, timely and on cost completion of a project. The systems also serves to eliminate project conflicts, failures and delays which may result to organizational dissatisfaction and loss. This may always lead to drastic loss to the company of not taken care of. Project management involves communication across all sectors and improves teamwork in all departments so as to have a smooth running of the organizations activities; the Management requires information systems so as to achieve this function. In addition, the Management requires interacting with information systems during project management in order to identify projects which may be lacking directions and not meeting the required standards, or even identifying the activities in the project which may not in any way, either directly or indirectly lead to the realization of the project’s objectives. Hence there is need for utilization of information systems to realize the satisfaction of the project customers and other stakeholders as presented by Trent, (2007).

Project management allows the managers to make more informed decisions and predict the costs of the products and services. A function of information systems in project management is the forecasting of future trends of the company and allows opportunities to expand services to other areas, while increasing the productivity of the project team through focusing on critical and high-value activities. Project management is therefore the heart of the Management’s interaction with information systems, since the management has to regularly consult the systems, in order to ensure that the project objectives are realized.

There are therefore various ways that management gets involved with Information Systems/Information Technology, however there are core functionalities, areas or skills that demands ultimate utilization of information Technology/systems to ensure that they succeed. The management interacts with Information Systems/Technology through Enterprise Information Systems, Strategic management and Project management.

Knowledge and skills required of Information Systems/Information Technology Managers.

The field of management has minimum general requirements, which every manager has to posses so has to become effective, regardless of the specific area of management. However, there are specific academic, professional and personal attributes in terms of skills and knowledge that is required of persons to be appointed to managerial positions demanding the use of Information Technology. The persons should posses’ skills on organizational implementation and administration of technology. The managers should have knowledge on project management and administration, since most organizations implement IT centered projects. Moreover, they should understand cyber security as well as systems security, as well as Risk Management and mitigation, since organizational systems are exposed to security concerns as well as risks associated with system failures.

Good managers should have skills on network management, considering that most of the systems currently are network based, moreover they should posses knowledge of software systems development and systems analyses. Excellent knowledge of emerging trends and computing developments is also a requisite since Information Communication Technology is a dynamic field, with regular changes. Information systems/ Technology managers should therefore have multiple skills and diverse knowledge.

Strategic Importance of E-Business

The field of Information Technology is dynamic, such that new innovations are emerging at an increasing speed. The business environment globally is also dynamic. Information Technology and Commerce share a bi-directional relationship. Information Technology influences commerce to a great extent, while at the same time, is a subject of business pressure. Globally, e-business and E-Business have gained popularity and recognition as important modules of organizational and an important medium for economic development.

The utilization and implementation of computers and computing devices in the trading environment has revolutionized business relationships between the business and their customers as well as with other businesses. Utilization of Information Technology has offered diverse benefits such as decreasing costs, individualized service and goods provision, fostered productivity, as well as fostering customer satisfaction. The innovation and advancement of Web-based and interne technologies has altered the market dynamics such that the traditional markets, are being altered such that the world is becoming a global village in terms of business. There is therefore need for the businesses to strategically alter their organizations through strategic positioning where businesses can establish emerging opportunities and makes the best of the opportunity, through utilization of appropriate capital. And important way an organization can take advantage of the dynamism in the changing business and Information Technology environment is through Electronic commerce.

Electronic Business (E-Business) also referred to as E-Commerce is defined as diverse collection of online business activities for products and services. E-Business entails electronic carrying out of business transaction as opposed to physical interaction. Electronic Business in most cases is related to buying and selling over the Internet or through Information Communication Technology driven network. There developments in the computing industry has however resulted emergence of diverse definition of electronic commerce, such that a globally agreed definition cannot be comprehensively offered. Currie, (2004) defines E-Business as the utilization of electronic communications and processing technology to generate, alter, and redefine relationships in commercialization transactions to create value between the organization and its customers, and amongst or between firms. Electronic Business has been touted as the ultimate game changer in the business environment where small and medium enterprises have grown to challenge big and established organizations.

Schneider, (2009) argues that E-Business is among the most important components that have emerged with the internet in the recent past. Businesses have several benefits from adopting E-Business model in business transactions. Electronic Business would be strategically important to an organization due to various associated benefits, both to the purchasers and to the consumers.

Electronic Business permits the buyers and suppliers to contact business without being bound by barriers of distance. The business can be able to sale its products and offer services to clients and to potential customers who are located at distant geographical sites. Customers can utilize the internet anywhere and be able to buy the organization’s products or communicate with the organization. The varied models such as Business to Consumer (B2C) commerce, Business to Employee (B2E), Government to Business (G2B) and Government to Citizen (G2C), Business to Business (B2B) commerce, Peer to Peer (P2P), m-Commerce and Consumer to Consumer (C2C), overcomes the challenges associated with traditional business, while offering strategic collaboration advantage to the communicating parties.

Moreover E-Business offers flexibility in terms of time as presented by Turban et. al, (1998). The business can be able to sale items any time of the day, moreover Electronic Business is relatively faster than the traditional buying and selling, since in most cases serves that do order processing, are in the same network as the systems which store client orders, hence complete transaction can be done conveniently at the click of a mouse. The Internet never closes; hence the Electronic Business alternative offers the capability to perform business, outside the conventional business hours.

E-Business model offers customer outsourcing, where businesses are able to save on time, employees and salaries since the customer does most of the work for themselves. Moreover, E-Business enables the businesses to achieve strategic competitive advantage through cost reduction, since the E-Business enables the business to deliver products at a lower price to the consumer, when compared against the traditional means of business since there is limited human interaction during the internet based purchase order process. Hence, it is the cheapest means of doing business. Fundamentally, E-Business decreases the number of personnel necessary for the completion of business processes, therefore substantially decreasing the strain on other resources.

E-Business also offers the businesses and the clients the advantage of flexibility in terms of choice of the products. The sellers are required to post the relevant information in a compelling and clear manner in the internet, without the need to employ sales persons, since the website can serve multiple purposes to the business as an advertising, marketing and an informative tool, salesperson as well as point of sale, while in some instances such as sale of software and music, E-Business serves as a delivery agent.

The E-business approach could also be strategically important to the business since it offers the business various models of contacting the business. With e-business, the organization could adopt various business models such as having the business environment working on the same platform with the collaboration and communication system. Business model is defines as the strategic organization of business components for the benefit of all stakeholders; while e-business model is the approach an organization acquires to attain profitability on the Internet, Currie, (2004). The organization has an option to adopt varied E-business models such as electronic payment only, e-auctions portal, online catalog and electronic payment, e-shops, e-marketing electronic order taking, fully integrated e-business and collaboration platform.

The company can adopt an e-business collaboration platform which is concerned with providing the customers with an effective communication platform. E-Business is strategically important since it offers the organization virtual workplaces which fostering exchange of information through being integrated with technological developments such as online chats, videoconferencing, internet based conferencing and collaboration which enables the organization to be strategically competitive through prompt and informed decision making, enhancing organizational knowledge availability as well as reducing operation costs as presented by Tan, (2003).

E-Business is also strategically important in marketing and advertising of the organization’s products. E-Business can be blended with other facets of the customer’s life such as social computing, which assists the business in informed decision making, risks, opportunities and projections therefore gaining strategic advantage, through innovation utilization, increased potential to reach more clients, functional agility and cost reduction.

The organization can also benefit through adoption of the e-shop portal model, where it could over diverse services such as content management services, security services, user services, presentation services, subscription and notification services, dynamic components and publishing services which offer strategic advantage through customized customer services, and relevant and timely notifications to the customers.

However, E-Business has some challenges that the business has to overcome in order to be successful. E-Business has technical and non technical limitations. Technical limitations include difficulty to integrate Electronic Business infrastructure with existing organizational Information technology systems. Moreover, the organization may face challenges in combining digital and non digital information, and limitations of the internet such as limited internet reach, insufficiency of bandwidth, hacking and security concerns as well as lack of proper E-Business laws in some countries.

It is therefore of paramount importance that the organization adopts E-Business since it offers diverse opportunities such as unlimited business hours, business not being bound by geographical locations, personalized services, reduced direct cost-of-sale, elimination of processing errors, faster and more convenient for the consumers therefore enabling the organization to attain strategic competitive advantage. The limitations of E-Business are manageable and short term; therefore the organization is strategically placed to realize more benefits through the adoption of E-business.

References

Castells, M. (2003). The galaxy of the internet: reflections on the Internet, business, and ERP systems. London: Oxford University Press.

Currie, W. (2004). Value creation from e-business types. London: Butterworth-Heinemann.

Mochal, T. (2007). Lessons in Project Management. New York: Apress.

Schneider, G. (2009). Electronic Commerce. Boston: Cengage Learning.

Tan, P. (2003). Success with Online Retailing: For Small Businesses. Indianapolis: iUniverse.

Trent, R. (2007). Strategic Supply Management: Creating the Next Source of Competitive Advantage. Conyers : J. Ross Publishing,

Turban, E., Lee, J., King, D., & Chung, M.H., (1998), Electronic Business – A Managerial Perspective. New York: Prentice-Hall.

Wiles, M. (2007). Strategic Planning for the Chiropractic Practice .London :Jones & Bartlett Learning.