Abstract: been witnessing the emergence of economic globalization, a

 Abstract:

This paper insight
a step by step process of how the information technology impact in developing
the organizational strategies and processes. This is not the one day process it
takes many decades of implementation and still the process of influencing the information
technology in businesses is continue. Information Technology has always been a
wild card in business, a source of opportunity and uncertainty, advantage and
risk. The last decade has added considerably to the mystique and magic of
information technology. Something dramatic happened to technology in the
1990s,although it is too early to discern the full impact. IT has burst forth
from its safe containment in the basement of organisation. Technology has
become a core enabler and in some cases the primary channel through which the
business done. As time passed the new era of information technology become a
key element of success of new organisation. So most of people has given the
name of this era as The Era of Information Technology, when the organizations
has depended on technology its simply mean that IT has also highly impact on
business strategies and processing of these strategies in organisation. This
impact has been discussed in this article along with its significance that how
slowly and steadily IT take much more importance in making business strategies.
Nowadays due to globalization, the world become so small to connect with
different organizations in just one click. It has become the era of competition
since the market is also globalized and now the competitors are all over in the
world. The organization should make strategies to compete with other
organisation to cope themselves up in the market. This paper also investigate
the impact of new trends and developing on the new era of marketing. Keywords:

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Information
Technology, Strategies, Implementation, Inventions

Introduction:

This is the world
of technology day by day new inventions and discoveries are creating the new
era of businesses. It is clear that the last decde of this century has been
witnessing the emergence of economic globalization, a phenomenon where
different economies are merging into a unified global market. Once the upper
level management defines the company vision they must develop an organizational
structure to accommodate the strategies that will achieve this vision.
Organizational structures evolve over time. What exists today often is the
cumulative result of multiple changes made over many years. Therefore as
executives seek to build a more agile organisation, they often find themselves
shackled to organizational designs which are not in alignment with their
selected strategies to achieve the company’s vision. The businesses are based
on good strategies and its proper implementation. The evolution of the company
and its maturity level have a direct impact on the design of its organizational
strategies. For developing the strategy there is also a need to focus
competitors reaction and also consider the culture and capabilities of the
organisation. From the last decade, business models evolve in businesses has
created the new world of developing the organizations’ and its culture and
style of management that just possible due to new invention in information
technology. We can say that due to advancement of information technology the
scenario of the organizations has been completely changed and work is done
within the stipulated time without any distortion of external and internal
environment. The problems can easily be diagnosed and solved fastly and also
give help in preventing the same in future. In this paper we will discuss all
the benefits that IT is providing in making of organizational strategies,
defining its implementation processes and also to check from new technology
that whether the strategies has been implemented properly.

Purpose of
Organizational Strategy:

The purpose of
organizational strategy is to achieve the goals of the mission statement. This
is done by developing a logical plan for utilizing the organization strengths
and resources. An organizational strategy provides directions for the
organization’s activities and its human resources within the context of its
mission statements objectives. The resulting strategies contain:

1. A clear purpose

2. Measureable expected outcomes

3. Fall back plan in the event where primary strategy cannot be
implemented

4. Cost
and benefits developing an organizational strategy using the SWOT analysis

SWOT analysis is
the main factor of making strategy of an organisation, by the analysis we can
know about the factors that are harmful or useful for the organisation. So in
simple words we can say that SWOT analysis is the key factor of strategy
development whereas strategy is the key factor of organizational development.
Any organisation can never ever denied the importance of the strategies
development. The strategy also define the culture of the organisation and the
business model, from the last decade the new development of information
technology change the environment and structure of the organizational
strategies. The new era brought new style of making strategies. Business
Models become common in the organizational structure. So without strategies
the leaders of the organisation never set the direction, mission & vision
of the organisation.

The Evolution
of Business Model:

Before discussing
the evolution of business model first of all we have to know that What is
business model?

There are
different approaches of defining the business model but the most favorable and
latest approach is given by Alt and Zimmermann they said that business model
has most common and discussed terminology and aspects of E-business, E-commerce
and E-markets. Despite an intuitive understanding that seems to be widespread,
a more thorough analysis reveals a confusing and incomplete picture of the
dimensions, perspective and core issues of these business models. Linder and
Cantrell show that the term is often used when really only one aspect of a
business model is intended to be conveyed: the pricing model ( e.g. free
model), the revenue model ( subscription or cable model), the organizational
form and so on. The probably best definition is given by Timmers: in his 1998
article he defines a business model in respect to its architecture for the
product, service and information flows the various business actors, and the
sources of revenues. In addition, he defines that “systematic approach to
identifying architectures for business models”. But the differentiation of the
models by examining 1) the degree of innovation and 2)the functional integration.
Business Models terminology is become so common in this era, In past when we
ask the director of the organisation that which can’t say anything about it
that just because they have limited knowledge about it or no knowledge. They
even didn’t know about the system of their organization that it centralized or
decentralized and which structure they follow. Now the advancement in
technology make it possible to make it easier to know about the different
structures of organisation and it also make new and new business models. Day by
day new inventions create new phenomenon and their solution. In contrast,
emerging networked technologies enable us to create new business models and
redefining existing one. Technology can provide a flexible channel for making the
strategies and its processing. As well as the tools to create and package
contents in all its many forms including data. This highly interactive and
engaging channel offers new opportunities and enables the development new
capabilities that are difficult to achieve in commercialization of internet.
When an organisation utilize the information technology system in their
organisation they must make sure that it will be beneficial for their
organisation and make it systemized they also make sure about the security of
their system this is also include in their strategies that who will be included
in their network system and who can not allow to take access in their system.

Strategy Versus
Structure:

Structure and
strategies are defining each other they are very much relate to each other
without making strategies we can’t define the structure of the organisation
basically while making the strategy we are defining the structure of the
organisation. They are neither contradict each other nor have separate individuality.
In strategies we make the structure of the organisation likewise; in making
strategies we define the culture of organization that whether it will be
democratic, autocratic or beaurocratic, and also mention the system of the
organisation that whether it will centralized or decentralized system.
Strategies are made by the owner of the organizations and implement on the
management and the manager is responsible to check that every one in the
organisation follow the rules made by the owners but sometimes the
organizations follow the agency theory and give this right to the manager of
the organisation and the manager is all in all of the organisation and the
owner is act as sleeping partner of the organisation as he has not much
knowledge about the business mostly stock exchange organizations follow this
rule/ Agency theory. Strategies are defining each and every thing of the
organisation, we can know about the organization by its value chain analysis
that started from the beginning of the supply chain and end with the consumer
who consume the product manufactured by the organisation. The department that
involve in strategies implementations are suppliers, manufacturing, HR
department, Finance department, Marketing department and Distributors who
distribute the product in market and consumer who consume the product and also
after sales services procedure and method include in the strategies of the
organisation and its implementation. The organization implement information
technology system in their strategies an now strategies can not be done or
fully implemented without this system. So the organizational leaders always
keep at an eye on the new advancement in information technology system so that
they can satisfy and retain their customers as well as win back their existing
customers by improving their management style and scenario relate with customer
satisfaction. The main purpose and main focus of the strategy making and its
implementation is customer satisfaction as they enhance the business of the organisation
so always the customer become focal point of every organisation not just to
increase the market but globally distribute their products. Mostly
multinational organizations have many distributors across the world so that it
is hard for them to manage all of them but they due to their strong strategies
it is now much easier for the organizations to handle them due to latest
technology. The main office of these type of multinational organisation can now
in touch with every distributor companies with many means.

Impact of IT in
Developing the Organizational strategies:

Now the main focus
point of this paper is to how the information technology impact on developing
the organizational strategies? We discussed earlier that the strategies are the
key factor of any organisation as it make the organisation systemized, every
one knows about its duty and work that assign to him/her. When we talk about
the strategies that doesn’t mean that we specifying only the management
department while making strategies we discussed each and every department of
the organization or within the organisation (e.g Marketing, Finance, R
etc). So when the owner of any organisation make strategy He/She will make the
strategies that cover the whole organizations department and give them
direction set the goals for each department to make them able so that they
achieve their goals. If we study the last decades of the organizations it will
came in knowledge that the huge changes occur in the business sector
traditionally every one use hierarchical way to accomplish its goal and make
position in the market but now network economy take its place. As far as the
world become globalized the market competition is also increase/high. The
organisation leaders must know about the product and its manufacturing
procedures, also know about the new technology developed day by day how to use
them? Which means use for the communications and how to communicate with each
other? All these types of question arises than the strategies should be
modified those who are rigid in their business strategies are fail to save
their businesses from declining stage. The companies use technology and its
different ways while making strategies the biggest impact on making strategies
is networking/information technology. Information technology impact in strategy
making in that sense that strategy changed when new technology come HR, Finance
and Marketing as well. When new software’s come it tells the organisation how
to maintain the customer data and deal with them so the leaders must make their
customer relationship management according to the new software’s and data
storage methods, similarly when the machinery came in market the instant way to
know about this new manufacturing machine is advertising in market . The organizations
can watch its features and prices through e-marketing and than the
management should arrange meeting of the owner of the organization and brief
detailed about the machine that will helpful for manufacturing the product in
lower cost than with the suggestion of finance manager the owners will take
decision whether that particular manufacturing machine can beneficial for the
organisation or not? The finance manager can calculate its cost and
depreciation cost and the manager is define about the product manufacturing
process that it will reduce the production cost and increase profit and the
marketing manager told about the demand and supply condition of the product so
by the mutual consideration they may decide to buy the particular manufacturing
product. The manager of the organisation also make analysis of the machine by
knowing that the other competitive organizations also use the new and advance
machine to compete them and which type of machine increase productivity within
less time and this information also easily available on internet so the
decision will be more easy to take action. After taking the decision of
purchasing the manufacturing machine the organisation again use the new and
advanced way of communication with the seller. They may e-mail them to send the
quotation and when the quotation came with them via e-mail or fax machine they
may further take action. The above decision making process clearly defined the
use of Information Technology in the organisation decision making. Some organizations
use the IT for making strategies of customers satisfaction they make
easy ways for the customers like in 2002 the circuit city advertisement
displayed in which a young man is trying to get the warranty card of the
product that he buys from the city circuit organisation suddenly a voice of the
customer services agent came he says “Don’t worry, we save your information-
the date , the dollar amount you paid for the product and the item purchased-
just in case you lose the receipt” and the store is putting a bit of
satisfaction into the warranty process. This example depicts if the
organisation wants to make the strategy about the customers satisfaction they
have to use the IT system to achieve their target customers not only
just satisfying them but also delighting them with the best services from their
competitor that will increase their customers loyalty to delighting them the
organisation use the software form which they just enter the name of customer
and find out the whole purchase of the customers along with the purchasing date
to time and also the product’s warranty duration. It will reduce the customers
time and the organizations as well. This decision will made just to give better
facilities to customers as on 19th century the customers have plenty of
products warranty card it become hard for them to save them properly most of
the customers lost these warranty cards and when their product has some fault
occur they waste them and and buy other product who provide much better
services but as the advancement increase in information technology it gives
chance to the organizations to modify their strategies and include the new
technology for achieving their goals in time or can say before time. Simply
when an organization owner set the strategy of the organization he should have
to know about the market positioning and the way how to achieve these goals and
brought changing in the organizations. So there is need of information
technology and the information technology helps a lot while developing the strategies.
Stock Exchange markets are the best example of this scenario every individual
who involve in stock exchange business can only make decision by information
technology the buy and sell procedure of the shares are made by the internet,
the person who wants to purchase the shares should watch the rates of the
shares on daily basis and took decision of purchasing the shares of some
popular organization. He / She become the share holder of any organization. Its
just done by the information technology.

Impact of IT in
Implementation/ Processes Of Strategies:

As the IT strongly impact on
strategies making its clearly depict that information technology helps on its
implementations. As all the strategies made on keeping in view of its
implementation Process. The organisation owner not just play roll in making
strategies but also responsible for its implementation and also check fully
that all the members working in the organisation follow those strategies or
not?Like above the example of the circuit city is describe the implementation
of the strategies. The implementation of the strategy by using the new
technology make the work more easy and the working environment is no more
burden for anyone in organizations. For the personnel working in the
organization the work is no more hectic and for the customers got best services
ever. The implementation of technology helps the personnel to achieve their
goals set by the owner of the organization efficiently and effectively. The
impact of information technology. Fred David says that only 10 % of utilization
include in strategies there is no way out that its implementation will fail.
Most of us thinks that technology increase the expense of the organization but
that’s not the clear picture of the utilization of technology. Technology is
used just to increase the productivity and efficiency of the organization. The
work which was done in weeks now due to implementation of the technology done
within few days. The basic discussion is that the usage of technology in implementing
the strategies. For this we have many examples to discussed likewise the above
circuit city example shows the implementation of marketing strategies to
satisfy the customers. In this example the management makes strategy for the
satisfaction of customers to increase their market position or achieve their
target market for attaining their goals they use data mining process. Nowadays
many software’s design that facilitate the user to insert data of customers,
interpret it and utilize it when necessary as in circuit city example the agent
utilize the customer data when he lost his warranty card and wants to repair it
by the organization. By this implementation the organization gain customer
satisfaction level and the customer also become their natural referrals who
admire everywhere about the services of the organization. It increases the
customers and the target also. The new technology give the facility to the
sales person or distributor that wherever they are can connect with
organizations through networking and gives daily detail about their sales of
product to the organization management. Same as advanced technology impact on
implementation of the strategy on other sectors of the organization. In fact;
strategies are made by keeping in view of technology and its advancement.
Different organizations use different systems to increase their efficiency to
compete the competitors in global world and make its position in global market.
The increase in efficiency of the productivity also effect on international
trade that is beneficial for both the organisation and the country in which the
organisation situated not only this they can also open their branches in other
countries and increase their profitability by enhancing their boundary of
business. Nestle is the multinational organization who have their offices
around worldwide they are using the new and advanced technology to increase
their efficiency and their products available in market just in time. All the
branches are connect with main office are in Switzerland. The main office
control all the branches and take reports on daily basis. So the technology is
more important to send the command and took the reports. Than make the strategy
according to these reports and make sure that these strategies implemented on
branch properly. So not only Information Technology impact on making strategies
but also utilize these latest technology on implementing these strategies.

 

 

 

 

 

 

 

 

Conclusion:

As the above all the discussion is
define that slowly Information Technology become part of the organizations and
all the work done through utilization of technology. Day by day latest
technologies invented and they are created relaxation in office work and make
the office environment competitive. Organizations make strategies according to
the new technology and implement it by utilizing the technology. Every
organisation set goals depend on the structure of organisation that they are
yearly basis or more than a year and assign the duties of their employers and
facilitate them with new method of doing work so that they can achieve their
goals timely. An example of circuit city can show that organisation provide the
customer service agent the facility of data storage and provide training to
utilization of data. The whole article is observation based and the analysis
done on this observation many multinational organisations as well as small
compoanies also used these new technology to enhance the profitability. It
reduce the cost and increas the efficiency and profitability so the conclusion
of this whole discussion depicts Information Technology highly impact on
making strategies and its implementation/ processing. The whole article
discussed the day by day developing in Information technology processes in
organisations and this discussion based by doing observation in different
sectors of businesses.

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