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Information Technology's Role in Business Organizations’ Performance

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Today, the world  is enduring evolution  in universal economies and they  are going  forward quickly. These revolutions are due to the change of manufacturing-based economy into information-based one. On  the  other  hand,  business  globalization  among  countries  is  expanding  quickly. 

National  markets have  been  influenced  by  foreign  and  international  (multinational)  companies. Trading  companies trying  to  survive  and  maintain  competition  with  other  countries and  companies  must  globalize  their commercial  thoughts  and  instruments. One of these  competitions are as  is  using  the  information technology.

Information Technology

However, it is clear that  IT  by  creating  a  wide  web  for  information  which  records  the  smallest  events  and  information helps decision maker managers to make decisions and plan by analyzing the updated data in the web to make a bright future for themselves and their organization. IT enables managers to quickly control and  coordinate  the  organization’s performance  with  the  management  with  a  quick  feedback  and solidarity using the quick process of information.

Information Technology’s (IT) Advantages:

IT has many capabilities in solving organizations’ problems. Some of IT’s advantages are mentioned below:

1. Improving  the organization’s performance

2. Ability  to  do  computations  which  were  not  possible before 

3. Decreasing activities and paperwork, improving the quality and accuracy of tasks 

4. Improving the decision   making   

5. More   relationship   and   coordination   in   the   institution   level  

6. Improving costumers’ services, making a linkage between costumers and goods suppliers 

7. Decreasing the time of work processes,  supporting  the  organizations’  strategies,  improving the  competition,  and  improving the  redesign  of  work  process.

The basic points of view in implementing IT:

There  are two basic points  of  view  in  implementing  IT  in the  organization  which  are  necessary  and correlative and organization’s management and IT management should consider it:

A) Engineering and Technical Point of View:

In the engineering and technical point of view, there are  5  dimensions  which  should  be  considered:  Software  (computer  programs  in  order  to  achieve, process  and  produce  information),  hardware  (process,  storage  and  retrieval  of  information),  human resource  training  (training  involved  forces  and  technological  products’  consumers),  raw  data  and information  (data  is the  raw  material  of  IT  which  should  be  reliable,  precise  and  new),  and communication  systems  (creating  a  connection  among  computers). 

In  this  section,  prioritization of successful  components from time  and  selection  of  cases  points  of  view  are  the  most  important elements in the IT structure.

B)  Managing  Point  of  view:

In  managing  point  of  view,  designing  and  implementing  information systems  including  DBMS,  EIS,  OA,  DSS,  MIS, are  considered  which are  implemented  and performed. Erl  mentions  five  different  views  in  planning  IS/IT  which  indicate  the  maturity  and process  time. 

Diagram  2-2  shows  that  in training,“first” organization’s  maturity  proportional  to planning   in   IS/IT   increases.   According to   his   belief,   in   the   first   stage   (circuit technology), organizations  do  not  have  a  clear  planning  in  using  IS/IT.  

Progressive  establishment of  systems  and information  technologies  in  the  organization are done  with  the  aim  of  managerial  cognition  and  the main actors in establishing these systems are IT specialists.In the second stage (circuit method), it is recognized that using IS/IT should be done through analyzing business procedures and recognition of business needs.

Conclusions and Suggestions:

IT is not used widely in some companies and different organizational areas, and it is proposed to be expanded by personnel of  IT  in  order  to  improve organizations’ performance and  decrease  human  error and  increase  the speed   and   accuracy   of   doing   tasks. Nowadays,   managers who   understand   the   necessities   of organization correctly and dare improving their management are successful managers. 

Because in the current  difficult  economic  situation,  they  are  more  responsible  for  directing  the  limited  resources in order to  achieve  the  highest  results  and  their  mission  for  realizing  the  country’s  advancement programs  is  great. Information  technology  (IT)  as  a factor  in  creating  competitive superiority can overshadow the company’s objectives and changing of business procedure

 

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