An organization’s success relies on information technology. The latest IT applications make it easier to manage large data sets and make decisions based on that information. With the help of smarter applications, businesses can do more with less data, which allows for better decision making. The following are some of the ways IT improves organizational operations. – It eliminates the need for middle managers. – It improves employee engagement. By leveraging technology, organizations can increase employee motivation.
– It creates competitive advantage. With the help of information technology, an organization can coordinate activities and unlock the power of a broader geographic scope. For example, Dow Jones, publisher of the Wall Street Journal, has pioneered page transmission, linking 17 printing facilities in the U.S. and Asia. It also started an Asian Wall Street Journal, as well as the Wall Street Journal-Europe Edition. All three of these publications use the same editorial content.
– It creates new business opportunities. Information technology has the potential to change the fundamental cost drivers and improve the relative cost position of an organization. For example, one company, Louisiana Oil & Tire, has reorganized its sales force and made all ten salespeople telemarketers. Its reorganization of sales and marketing processes has created new businesses. Companies with sensitive information technology can use the added scale to create new revenue streams.
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