Information Technology Strategy Assignment: Impact of IT on Companies

Question

Task: You need to investigate the topic selected and provide detailed discussions using literature research, relevant examples of companies, key concepts, and evidence to support your discussion. You are also required to include a Table of Content, introduction, conclusion, and a full reference list.

Answer

1. Introductionto the case scenario of information technology strategy assignment
There are many organisations like corporate, non-corporate, non-profitable ones and the government ones are dependent on information system strategies. The dependence is increasing on the sectors of telecommunication, entertainment, finance, and media and gambling. The products are being digitalised increasingly. The applications of IT systems are being used too. Most of the business aspects and the ones that are online are being conducted through the usage of technology (Davis and Yen 2019). The companies store their files and documents in the IT system. The employees get easy access to the information through this system. There is a proper flow of information between the low-level employees and the management.

The success of companies is possible when there is consistency in management. Hence, through an efficient information system, all this can be managed. There is hardly any other alternative which can provide the reliability and the accuracy to the companies. The research on information technology strategy assignment illustrates that it is essential for the companies to develop or innovate the system through which information can be accessed quickly, depending on the demands. It helps in the process of decision making and planning so that desired results can be achieved. In this report on information technology strategy assignment, the main focus is on the importance of IT strategy in companies and the impacts that happen when such a strategy is not involved in the management.

2. IT/IS Strategy
There is an increasing demand for mobile devices and social media handles among the customers. All the information can be accessed easily and the speed of response also increases. There is an opportunity for new products and services through smart connected devices. This also further helps in different types of business models and operational efficiencies. The study developed in the information technology strategy assignmentstates that there are many such organisations which are having information system from beforehand. This is even before the advent of IT. The technologies which come under IT are software, hardware and different types of telecommunication networks. It includes cables, phones, computers and sensors. There are many times when the term Information and Communication Technologies (ICT) is used instead of IT. It helps in recognising traditional telecommunications and computer technology. IS provides the organisations with some opportunities for utilizing the technology, process, gathering and using of the information (Barton et al. 2016). There are some IS which is automated by IT. Some of the examples noted in the information technology strategy assignment are comparison websites, airlines, public agencies and banks.

Figure 1: Pillars of Digitalisation
(Source: Skog, Wimelius and Sandberg 2018)

It is evident in the information technology strategy assignmentthat the speed of digital disruption is rapidly increasing (Skog, Wimelius and Sandberg 2018). Most of the companies are immune to the impacts of IT. Most of the companies are moving from marketplace to marketspace. This means they are moving from physical presence to the virtual presence. There are many physical products which are becoming digitalised. Analytics is being used and the retail organisations are predicting which customers are going to demand about which products or services. The companies are not waiting for an approach from the customer. They are influencing and proactive with the demands of the customers. There is a certain development of open standards. The world is adopting technologies and innovation is being accelerated at a high speed. There are many competitors who are developing their standards so that benefits can be gained through market expansion.

Factors of success through IT/IS Strategy
It is essential to have an external focus rather than an internal one. This means looking after the competitors, suppliers, customers and industries. Checking of the outside world includes both social and business. IT strategies help in adding and not on the reduction of cost. There are extra amount needed when there is business expansion. However, the companies are trying to reduce their marginal costs. The benefits are being shared by the organisation with the customers, competitors and suppliers. The companies are trying to understand the consumers and their work with the products and services. There is more opportunity for innovation which is driven by business and not technology. The pressure of marketplace development is increasing. There is an opportunity for incremental development. Business can be developed through information from the system.

What are the strategies related to IT/IS noted in the information technology strategy assignment?
Information strategic planning is having some activities which are defined by Boynton and Zmud. Firstly, the opportunities of the organisation are found by using IT. All the requirement of the resources is done so that the opportunities can be exploited. Further, the strategies are developed and action plans are made for realizing all the opportunities and looking after the needs of the resources. Long-term management can be planned and thought strategically through IT and IS. The main concern is not about the proactive search for the opportunities for applying in case of competitive advantage.

Figure 2: IT/IS Strategies
(Source: Laudon and Laudon 2017)

However, the companies need to adopt some strategic approaches for all investments in IT and IS. There are two important terms outlined in the information technology strategy assignment which are quite important for IT strategies. One is an infusion which means the dependency of the company on IT for carrying out all the core operations and management of the business. The next one is diffusion. This means that IT/IS are having distribution throughout the company. There are four different environments in which infusion and diffusion can be plotted and these are mentioned below within the information technology strategy assignment.

• Low diffusion/low infusion: This is having the traditional environment of the companies which is used by IT for improvement of efficiency on an application basis.
• High diffusion/low infusion: This is having decentralised control and is providing the business managers with the ability to satisfy their local needs and also enable some investment opportunities.
• Low diffusion/high infusion: Both IT and IS are critical to the control and operations of the business (Marakhimov and Joo 2016). There can be some serious disadvantages if the system is failing. This will lead to high centralised control.
• High diffusion/high infusion: This is having a complex environment for management. The central is having control so that poor investment could be avoided. This is limiting innovation and there are chances that the strategic opportunities will be missed and the core systems will disintegrate.

The starting point of the business value is done by building IT and IS strategies. There is a requirement of proper optimisation of IT/IS. Within the strategy examined in this section of information technology strategy assignment, there is a requirement of proper investment, selection and authority. The selection is based on capability through which the investment benefits and objectives can be delivered. For the strategy, there is a need for proper justification. The projects and programs will be scoped and managed. The investment of IT will fail is there are no changes in the practices and processes of the business (Laudon and Laudon 2017). When the changes are delivered then applications will be used the effective way so that business value can be created.

3. Importance of IT/IS Strategy
The concept of strategic planning process mentioned in the information technology strategy assignment is quite important in most of the organisations. There are times when the planning goes well and at other times it does not work. The core business goals can be achieved through strategic planning. The planning process for IT strategy is a bit different. IT is playing an integral role in various parts of the company. It includes marketing, human resources, sales and many more. Hence, the companies are in need of an overall IT infrastructure. The needs of the business are identified from bottom to top by IT strategies. Given below is the importance of these strategies in day-to-day operations of the companies.

The process of decision making is dependent on strategic planning. This is one of the major challenges which are faced by the managers. According to the employees, there is hardly any efforts being put and the thinking process is the same (Kitsios and Kamariotou 2016). However, the IT strategic plan creates a path for the teams in the companies. It is like providing a framework for the process of decision making. The employees get empowered through the plan and try to push the initiatives forward. Although they are not involved in each and every decision-making process, the plan helps in moving the organisation in a faster way. IT strategies help in responding to the changes. It is essential for the companies to be prepared so that advantage can be taken from the change. There is the encouragement of planning and this is the best way through which organisations can be successful. The plans allow the companies to be prepared for all the unexpected changes. All the emergencies can be expressed through IT strategies. There is provision for the creative thinking process. One of the biggest challenges faced by companies is to develop certain solutions (Beynon-Davies 2020). Once the company is having a plan then the proper conversation can take place. The needs of companies start to take shape. All the problems can be addressed quickly when the employees are having a basic understanding of what needs to be done. According to the investigation on information technology strategy assignment, there are some sessions which allow the people to have a focus on the capabilities so that larger goals can be impacted. The strategy helps in addressing Shadow IT. In most of the companies, there is a rise in Shadow IT. This evolves in the company because there are times when the IT department is not agile for meeting the needs of some small departments. The strategic planning helps in discovering the existence of Shadow IT and it is incorporated in the overall goals (Mallmann,Maçada and Oliveira 2018). The needs are acknowledged and support is gained by the IT department in the company.

All the intentions can be communicated to senior leadership through the IT strategy. A plan is known as the single most essential tool needed for communication (Sun, Strang and Firmin 2017). The main area of concern which the senior leaders are having is on high-level strategy. There is a need for a documented plan which will allow the conversation with the executives about all the goals. The senior leadership gets an opportunity for redirecting all the efforts. Proper establishments on what the IT department is doing on their daily basis areneeded. IT can fit everywhere. It helps in charting the path of the companies and all the departments. Like marketing and sales is there for managing a large amount of customer data. With the help of IT, all the planning can be done on the storage of data, like moving to the cloud or boosting the capabilities of the team. The job of the IT consultant is to outsource the tasks. The security of the business is dependent on IT strategy(Inuwa, Ononiwu and Kah 2020). IT is known as the top two strategic areas of interest. This is important when the company and customer data is collected and stored in a digital manner. The findings obtained in the information technology strategy assignment mentions that the solutions for IT are expensive and most of the companies are not having experts for handling all the cybersecurity. When the business is collecting some sensitive data, then IT becomes quite important and this is the key concern when strategizing comes in some years.

4. Examples of companies using IT/IS strategyexplored in the information technology strategy assignment
Amazon is one of the best examples among the companies which make use of IT strategies for their operations. The company did not rise by introducing new products to the market. They followed a systematic approach for taking down the existing industry. Amazon is the only one which is using a strategic approach in their business. Other companies are having occasional strategic moves but most of their behaviours are coming from internal compromises and competitive anxiety. Amazon is having multiple moves ready. The company is organised like a game of chess and each asset is there onboard. The company has taken each part of the supply chain apart from the retail ones. The beginning of Amazon did not just take place with an idea but there was also some data-driven decisions (Forbes.com 2020). The company is having the option of one-click shopping, free shipping and many more. There was a wholehearted commitment given by the company.

Apple is the next example used in this section of information technology strategy assignmentwhich makes use of information technology strategy. The company is finding its way to making its products more interesting. The company determines the sales of their products and who all could be benefited from the items. The strategies of IT-enabled the managers of the company to be competent in the functions of the business and this also helped to make the departments of the organisation more effective. The usage of computers can be controlled through information technology along with computer software (Pearlson, Saunders and Galletta 2019). According to the CEO of the company, it is stated in the information technology strategy assignment that the main thing to control was the primary technology that is available in everything. All the designs of Apple are distinctive and the devices are supported by standard technologies. The success of the company is dependent on the decisions of strategic IT. These examples show the importance of IT strategies in companies and their operations.

5. Impacts on the organisations without IT/IS Strategy
If there is a lack of strategic alignment then there is the failure of the organisation and there is a realisation of values from IT investments. The goals of the companies cannot be fulfilled if there is no IT strategy. It is because the companies are not going to having proper security for collecting the data and then representing it. It will be difficult to organise the data and employees waste a large amount of time looking for information. Productivity is being impacted due to this reason. There is no such thing called quick solutions and the execution of the business process is not going to improve. The readings used to prepare this information technology strategy assignmentdetermines that almost all the companies are in need of some database so that information storage can be done. Without a management information system organising, data can be difficult (DeLone and McLean 2016). It will be creating some additional problems and the needs of the clients will not be fulfilled. The future of the company is in a dark state because there is no such broader perspective. There is a lack of tracking in the company and the independent processes cannot be managed properly. IT strategy comprises of some work activities so that valuable products and services can reach the customers (Peppard and Ward 2016). However, this is not the case if the strategy is not applied. Negative impacts are going to be faced by the companies because they will not be following the latest trends of the business. The progress of the company will be a slow and large amount of money will be wasted. This is especially in case of some unnecessary activities.

The managers generally start losing patience and hence, competing with other companies will be difficult. There is not going to be any convenience in storing of information without an IT strategy (Gronwald 2016). It is going to be tough for handling the situation of crisis as noted in the information technology strategy assignment. It is because the demand for high-quality information will be needed. There will be no tracks for the profits and margins on data of the company. There will be a huge impact on the process of decision making. The managers will not be able to make essential decisions due to a lot of confusions. Proper conclusions will not be reached and the employees are going to waste time and energy in unnecessary things. Lastly, there is not going to be any control over the data.

6. Conclusion
Information Technology or system strategy is one of the most important parts of the organisations. This report on information technology strategy assignment has shed some light on usage and working of IT strategies in business. The trends in the world are changing at a rapid speed and hence, it becomes difficult to work without an IT strategy. Further, two examples, one of Amazon and the other of Apple showed that their success was not completely dependent on new products. They tried to bring in some changes in the management through the strategies. Lastly, from the information technology strategy assignment it was understood that without an IT strategy the organisation will have to constantly face some negative impacts and the overall goal will not be fulfilled.

Reference List
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Forbes.com. 2020.Amazon IT strategies. Available at: https://www.forbes.com/sites/venkateshrao/2011/12/14/the-amazon-playbook/#26afc6df3bcb[Accessed on 30th July 2020]

Gronwald, K.D., 2016. Integrated Business Information Systems (Vol. 20).Springer, http://www.springer. com/us/book/9783662532904. Accessed.

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