Use of information technology in strategic management. Information technology management 2022-11-07

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Information technology (IT) has become increasingly important in the field of strategic management, as it can provide organizations with a competitive advantage in today's rapidly changing business environment. IT can help organizations to improve efficiency, reduce costs, and increase productivity, which are all critical factors in achieving long-term success. In this essay, we will explore some of the ways in which IT is used in strategic management and the benefits it can bring to organizations.

One of the key ways in which IT is used in strategic management is through the implementation of enterprise resource planning (ERP) systems. These systems integrate all of the different functions of an organization, such as finance, HR, and operations, into a single platform. This allows for better communication and coordination within the organization, as well as more efficient data processing and decision-making. ERP systems can also provide organizations with real-time data on their operations, allowing them to make more informed decisions and respond quickly to changing market conditions.

Another important use of IT in strategic management is through the use of data analytics. With the proliferation of big data, organizations are able to collect and analyze vast amounts of data on their operations and customers. This allows them to identify patterns and trends, which can be used to make more informed strategic decisions. For example, data analytics can be used to optimize pricing and inventory management, as well as to better understand customer behavior and preferences.

IT is also used in strategic management through the use of social media and other digital platforms. These platforms can be used to engage with customers, gather feedback, and build brand awareness. They can also be used to monitor and analyze the online conversation about an organization, allowing for the development of more effective marketing and communication strategies.

In addition to the benefits mentioned above, IT can also help organizations to reduce costs and increase efficiency. For example, the use of cloud computing can allow organizations to reduce their IT infrastructure costs, as they do not need to maintain their own servers and data centers. IT can also be used to automate various business processes, such as invoicing and payroll, which can save time and reduce the risk of errors.

Overall, the use of IT in strategic management is essential for organizations that want to remain competitive in today's rapidly changing business environment. It can provide organizations with a range of benefits, including improved efficiency, cost savings, and the ability to make more informed decisions. As such, it is important for organizations to stay up-to-date with the latest IT trends and technologies, and to invest in the tools and systems that will help them to achieve their strategic goals.

10 Benefits of Using Technology in Strategy Management

use of information technology in strategic management

The other use of Information technology is consistency. Moreover, information technology systems are a tool for executives that must be aligned with the organizational setup in order to eliminate the barriers to use the system effectively. Now, however, customer loyalty is far less important and difficult to maintain as new brands and products emerge all the time. Lower service quality than other full service airlines. In 1973, Henry Mintzberg found that senior managers typically deal with unpredictable situations so they strategize in ad hoc, flexible, dynamic, and implicit ways. Such internet usage leads to live in a global village in which computers and peoples are linked within companies, countries, and continents resulting easy communications in reducing the time and geographical barriers.


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Strategic Information Management: Theory and Practice

use of information technology in strategic management

Building Digital Capabilities: How Lego Built the Foundations and Entreprise Capabilities for Digital Leadership O. Such luck of attention is related to a number of factors. Metadata can also help track who should have access to data. The main points on the above statement intended to address the capability of information technology to transform corporate data into meaningful and actionable information that helps the strategic management process of a business. These will guide improvements based on updates to processes, and will hopefully increase benefits.

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What is IT strategic plan (information technology strategic plan)?

use of information technology in strategic management

Navigating digital transformation: How Big Old Companies Navigate Digital Transformation I. Typically senior managers have been asked how they go about making strategic decisions. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. Recognizing the above described benefits currently, most business organizations are using information technology by allocating huge investment so as to equip the management information system for the attainment of the business objectives. Moreover, in some survey locations we distributed it to the customers of Air Asia who were just went back from traveling during the Songkran holiday as because our period of data collection was during Songkran Holiday. The manager works in an environment of stimulous-response, and he develops in his work a clear preference for live action.

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Information technology management

use of information technology in strategic management

This part of the paper presents conclusions illustrated in the main text body. Create maximum value to customer as a one stop for all travel relates activities. Otherwise the managers may face the problem of information overload. Lower operational cost than the other air line, by having a single aircraft type. Nicolás Majluf is professor of management at the School of Engineering, Catholic University of Chile, Santiago. This relates to expanding the organization's market position, another goal of strategic management. Knowledge If you look at technology as knowledge, employees are both producers of knowledge and keepers of knowledge.

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Information Management Best Practices

use of information technology in strategic management

For a review of the use of portfolio matrices, see: Hax and Majluf 1991 , pp. By designing for the whole ecosystem, teams can share, leverage, and reuse information most effectively. Clean record of plane accident or plane broke down 9. There should be better synergy between the company and outside consultants. For example, they help enable visitors to share the content of the website on social media platforms, watch videos, use auto-fill option on forms, etc. Lean Distribution System Offering a wide and innovative range of distribution channels to make booking and traveling easier. Furthermore he emphasized on the need that information technology is to be left to the sole discretion of information professionals.

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How Technology Affects Strategic Management

use of information technology in strategic management

If a company uses an order tracking system to manage customer orders, it must meet the needs of the company in a changing market and in a stable market. A more complete review of the literature for different methodologies that view information technologies as a source for changing the industry structure can be found in: A. Missed Alarms and 40 Million Stolen Credit Card Numbers: How Target Blew It. If taken for granted, serious implications can arise for organizations. Our academic experts are ready and waiting to assist with any writing project you may have. Here, it is very important to emphasize on the role of experienced computer programmers and system analysts in developing Management information systems to meet the business objectives.

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Six Stages of IT Strategic Management

use of information technology in strategic management

But they may not be able to clearly communicate the processes that are supported without friction. Full service airlines have or planning to create a low cost subsidiary 4. They are essential for the website to function properly and cannot be disabled if you choose to continue using Corporater website. Strategic management focuses on building a solid underlying structure of a business and through combining all efforts in the business. Here are some key areas where information management can make the biggest impact: Projects: Track the effectiveness of projects and apply the lessons learned to future projects.

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The use of information technology analysis

use of information technology in strategic management

The budget carriers Thai Air Asia expand its operations in year 2009. The stated findings also indicate the importance of information technology in business strategy. The individual and organizational processes are not independent however. In industries with high technology content, technical standards become established and this gives the dominant firm a near monopoly. In addition, awareness creation method has to be established in order to provide information to all employees regarding on the usage and benefits of information technology and information system. It is a matter of art rather than science.

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Strategic Management and Information Systems

use of information technology in strategic management

From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Consistent with the above justification, in the developed country, almost all transaction has been undergoing electronically through internet infrastructure called electronic commerce e-commerce. The keepers of data are not allowed to remove or delete data, even if the data is old and no longer required from a legal or business perspective. We have grappled with these issues many times as we have tried to help organizations apply the vast array of suggestions. . Stewart, for example, uses the term intellectual capital to describe the investment an organization makes in knowledge. Organizations must acknowledge the importance of devoting resources to maintain and improve information management systems, so that they can grow and react to changes in evolving processes.

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