Benefits of Information OK

8/2/2019 Benefits of Information OK

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Information Technology Architecture

IT Architecture is a high-level map or plan of the informationassets in an organization, including the physical design ofthe building that holds the hardware. On the Web, IT

architecture includes the content and organization of thesite and the interface to support browsing and searchcapabilities.

IT architecture is a guide for current operations and blueprint for future directions. It assures managers that theorganization's IT structure will meet its strategic businessneeds.

Creating IT architecture is a cyclical process, which isdriven by business architecture. It is the businessarchitecture, which describes organizational plans, visions,objectives, and problems, and the information required to

support them. The potential users of IT must play a criticalrole in the creation of business architecture, in order toensure the business architectures are properly linked andmeet the organization's long term goals.



What are some of the key benefits of an IT

Architecture?

It will help to insure interoperability inside and outside IT and

the Department.

It's a way to inform developers of Department directions.

It will help in making planning, development and purchase decisions.

It will be useful in aligning information technology providers for

the Department.

It is a way to communicate direction (and changes) both inside

and outside IT.

It will reduce the maintenance and support requirements.

It will help in planning migration to new technologies.



What is Strategy? Strategy is the component that defines how to achieveour mission, goals and objectives. It specifies thenecessary plans, budgets, and resources. Strategyaddresses fundamental issues such as the company’s position in its industry, its available resources andoptions, and future directions. A strategy addressesquestions such as:What is the long-term direction of our organization?What is the overall plan for deploying ourorganization’s resources?What trade-offs are necessary? What resources will itneed to share?What are our unique positioning vis-à-vis competitors?How do we achieve sustainable competitive advantage

over rivals in order to ensure lasting profitability



Information Technology:

Information technology refers to the technical (as opposed

to the social) side of an information system includinghardware, software, networks, and other devices.

Information Technology has become the major facilitator ofbusiness activities in the world today. IT is also a catalyst offundamental changes in the strategic structure, operations,

and management of organizations due to the capabilities.These capabilities support the following six businessobjectives:1) Improving productivity2) Reducing costs3)Standardized processes

4)Improve workflow and communications5)Improve risk control mechanisms6)Improving decision making



Information Technology(Contd)..7)Facilitating collaboration8)Enhancing customer relationships

9)Developing new strategic applications10)Gain Competitive advantage by exploiting newtechnology (A competitive advantage is the ability toproduce, sell or service consumer goods better thanother companies in the economic market. IT

companies often develop these strategies to ensurecustomers continue to patronize the companythrough multiple purchases or upgrades. Strategiescan include customer service, low price leadershipor added benefits for consumer products. ITcompanies typically spend copious amounts of time

and effort developing these strategies since thisindustry can be a cutthroat business environment).



Accounting Major The internet has vastly increased the number oftransactions(especially global)in which modern businesses engage.Transactions such as billing customers, preparing payrolls, and

purchasing and paying for materials provide data that theaccounting department must record and track. These transactions,particularly with customers and suppliers, now usually take placeonline.

Finance Major The modern financial world turns on speed, volume, and accuracyof information flow. Information systems and networks make thesethings possible. You invest in stocks and get a confirmation in lessthan a second. Finance departments use information systemssuch as business intelligence to monitor world financial marketsand to provide quantitative analyses (e.g. for cash flow projectionsand budgetary control). They use computerized analysis to supportfinancial decision making (e.g. portfolio management). Financial

managers use data mining software to analyze information in datawarehouses. Finally, large-scale enterprise information systems(e.g. enterprise resource planning packages)tightly integratefinance with all other functional areas.



Human Resources Management Major Information systems provide valuable support for human resourcesmanagement. For example, personnel record keeping has greatlyimproved in terms of speed, convenience, and accuracy as a result

of technology. Further, disseminating HR information throughoutthe company via intranets enables employees to receive consistentinformation and handle much of their personal business (e.g.configuring their benefits) without help from HR personnel. Theinternet revolutionalized recruiting (e.g. online and in socialnetworks) and training, moving them online; better selection can bemade as well as personnel development

IS major The IS department directly supports all other functional areas in anorganization. The overall objective of IS personnel is to help usersincrease performance and solve business problems using IT. TheIS function is rapidly changing its role from computer programmingto that of major strategic player.While some IS employees still write computer programs, they also

act as analysts, interfacing between business users on one handand the programmers or vendors on the other.



Marketing major Marketing major now uses customer databases,decision support systems, sales force automation,

business intelligence, and data mining software tobetter performs its functions. The internet has createdan entirely new global trading environment andextensive internet marketing. It also has dramaticallyincreased the amount of information available tobuyers and seller, who can now compare prices

quickly and thoroughly. As a result, shoppers’ buyinghabits and strategies are changing. In turn, marketingmanagers must work harder to acquire and retain thewell-informed customers. To accomplish this goal theynow use customer relationship management softwareand special online promotions. The internet helps,

because it provides for much closer contact betweenthe customer and the supplier, as well as one-o-oneseller/buyer relationship. Of special interest are thenew advertising approaches in social network services.



Operations management major Organizations are competing on price, quality,time()speed), and customer service-all of whichare concerns of productions and operationsmanagement. Every process in a company’s operations that adds value to a product orservice(e.g. purchasing inventory, qualitycontrol, receiving raw materials, and shipping

products)can be enhanced by the use of Web-based information systems. Production ischanging from mass production to on-demandmass customization. Further, informationsystems have enabled the OM function to link

the organization to other organizations along thefirm’s supply chain. Performance inmanufacturing can be significantly increasedwith IT support.



IT Support of the Upstream Supply Chain. Themajor IT support of the upstream supply chain(between a company and its suppliers) is to improve

procurement activities and relationships with vendors.E-procurement is becoming very popular as it results inmajor savings and improvements in buyer-sellerrelationships. Relationships with suppliers can beimproved by using a supplier portal and other supplierrelationship IT tools. Also, wikis and blogs can be

helpful.IT support of the Downstream Supply Chain: ITsupport of the downstream segment of the supplychain (between and its customers) is done in twoareas. First, IT supports customer relationshipmanagement (CRM) activities, such as providing a

customer call center. Second, IT also supports ordertaking and shipments to customers.



IT support of other systems Industry-Specific System- These are systems that are designedto serve an industry such as banking, retail, transportation, oil,utilities, or universities. The systems can be specific for one or two

applications, or they can be suites that cover multiple needs.Supporting E-Commerce Business Models- The use of e-commerce implies using business models such as e-auctions,exchanges, e-[procurement, or the use of electronic meetings. Alarge number of software vendors are developing IT softwaresupport for such business models.Supporting Online Search- Searching the entire Internet or even

the files of one company and to do it in seconds, require thesupport of IT hardware, analytical programs (search algorithms)and other IT tools. Searching photos, videos, and audio can beeven more complex, and it cannot be done efficiently without ITsupport.Supporting Social Networking: Social Network Services such asFace book and MySpace have multimillions of members and a very

large number of daily visitors. To accommodate such traffic, theyneed an extensive network of services, security protection, manyservers, and a large number of software based applications whichlargely depend on IT support



Some disadvantages of information technology include:Unemployment - While information technology may havestreamlined the business process it has also created jobredundancies, downsizing and outsourcing. This means that a lot of

lower and middle level jobs have been done away with causingmore people to become unemployed.

Privacy - Though information technology may have madecommunication quicker, easier and more convenient, it has alsobought along privacy issues. From cell phone signal interceptionsto email hacking, people are now worried about their once private

information becoming public knowledge.Lack of job security - Industry experts believe that the internet hasmade job security a big issue as since technology keeps onchanging with each day. This means that one has to be in aconstant learning mode, if he or she wishes for their job to besecure.

Dominant culture - While information technology may have madethe world a global village, it has also contributed to one culturedominating another weaker one. For example it is now argued thatUS influences how most young teenagers all over the world nowact, dress and behave. Languages too have becomeovershadowed, with English becoming the primary mode ofcommunication for business and everything else

Benefits of Information OK

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