Organizational Impacts of IT Use in the field of IT
Abstract
This paper is set to identify and analyze various impacts associated with the organizational use of information system. It begins by first focusing in the two business organizations which include Metcash Australia and company A. The paper begins by giving a brief summery of literature concerning the topic. The paper also engages in brief overview of history concerning the two companies which were involved in the interview, analysis their responses and also dos a comparative analysis. The paper goes further to identify the issues studied and analyzed by making conclusions and brief recommendations regarding the topic on the organizational impact on the use of information technology.
Introduction
In the current corporate world information technology is proving to be a very crucial element in success of any business organizations (Rainer, & Cegielski,2010,24) . Implementation of advanced technology has lead to replacement of older systems. This has raised the opportunities of business organizations establish distinct core competence from its competitors and thereby increase sales revenues nd profitability. Organizations are maximizing on using technology to it maximum potential in order to achieve the largest benefits offered by the digital innovation.
Organizational impacts on the use of information technology have various impacts some of which are positive and others negative. Well integrated use of information technology has been associated with reduction of production waste, increased profitably and establishment of magnificent competitive advantage. However there is various negative impact of organizational structural use of information technology. In some circumstances implantation of technology has been associated with increased operational costs, delay in the period o production and regular system maintenance.
Organizational background
Metcash
Metcash is the leading wholesale distribution company and marketing company of grocery, fresh produce, liquor, hardware and many other fast moving products in I Australia. The company was established as a family business in 1920 by the late Joe David who was known as a visionary thinker. The company was first established as a food store in at woolloomoolloo, New South Wales and later expanded to other regions in 1935. The Company has four major categories of output known as the business pillars and this include food and grocery, liquor marketers, camp bells and mitre 10. Major consumers of the company’s output are predominantly independently owned grocery and liquor stores.
The company operates via three businesses which include the Independent Grocers of Australia, Campbell’s and Australia Liquor Marketers. The Independent Grocer of Australia are specialized in supplying both branded and non branded grocery stores in New South Wales, the Australian capital region, Victoria queens land and western Australia. The Australian liquor marketers are specialized in supplying more than fifteen thousand hotels, liquor stores restaurants and other licensed business premises both in Australia and Newzealand. Campbell wholesalers on the other hand serve more that one hundred thousand consumers and have about twenty two cash and carry warehouses and eighteen regional wholesale distributions that over a variety of groceries liquor, confectionery and food services.
The company operates under the Australian stock exchange. The corporate governance of the company is undertaken by the board of directors and senior management which is responsible for establishment of standards of operation. The management of the company ensures that business operations are directed, overseen and monitored under high standards which leverage the company’s competitive advantage.
Company A
Company A has flat organizational management structure with a maximum of three levels which include divisional staff. The task of the senior manger is to is to report to the executive committee and managers. The company experiences high levels of intergartion between are structure and information technology systems. Company A also follows a lean methodology in planning. This has elevated the company’s capability to respond to corporate goals and reduce the payback period. The company also does outsourcing of some of its activities as a way of building its competitive advantage. Some of the activities that have been outsourced include things such as firewall, email vetting and cleaning f traffic. Other outsourced services include the printing and scanning hardware. This approach enables the company to cut down operation costs since outsourced services in many cases tend to be much more expensive when done internally(Reddick, 2011, 63).
Comparative Analysis
Literature analysis
The magnificent level of advancement in technology has created a wide variety of impacts within business organizations. However these effects have so far been identified to neither be necessarily guaranteed for success nor are they trivial. Information technology is dramatically changing the face of global business. Even though such aspects as culture and business strategies have been identified to shape the utilization of information technology in business organizations, more influent the shift has been found to be much more influential on the other way round. This means that information technology has shaped the culture and business strategy more than it has occurred in the other way round.
Business strategy is one area where organization use of information technology experiences an impact. This is normally created by the fact that information technology brings non existing opportunities for innovation in products and services (Khnosrowpour,2002. 197) . Information technology has enable distribution of once localized goods and services to other areas which are delivered through various networks
There has also been various implications on the culture of the organizations. This is has been observed due to the fact that use of information technology through such services as electronic mail and groupware has altered the way in which data flows across the organization in various departments and individuals (Hunter, & Tan, 2007 ,96). There has also been alteration in communication between internal and external stakeholders particularly for customers and suppliers. Use of information technology has enabled organizations to hasten development and open doors to innovative cultures.
Information technology has also altered the phases of organizational structure. This is where new forms of information technology enable magnificent spans of governance and flattering of group ware. Information technology has facilitated existence of aspects such as business processes reengineering and the drive to cut costs. Information technology enabled existence of a wide variety of organization structure which may either be centralized or centralized. However its quit evident that information technology enable strictures that are flexible and fluid since it allows existence of dispersed teams through virtual corporation.
Organization impact on the use of information technology has also been experienced in the management process. This is mainly due to the fact that information technology is rapidly paving its way to support unstructured processes o management as well as rountinalized business process (Kaplan,1997,62). It also creates effective ways of retrieving information from various sources which can either be external information data base and the internet. Consequently information technology has also altered the nature of professional work. In contrast to traditional system offices currently used computer and many tasks now involve the extensive use of information technology. Organizational work performance has largely drifted to the technologically informed based work where employees as required to be well informed on matters concerning information technology. In order to be effective an individual not only requires traditional skills of organizing, thinking, writing etc., but knowing how best to use the power of IT for researching sources, accessing information, connecting to experts, communicating ideas and results, and packaging(Conner, & Clawson. 2004 ,316).
Response from organization
Metcash Company Limited Australia
Metcash Company limited Australia operates under a hierarchical form of organization. the company has three layers of management with approximately two hundred and fifty people in the information technology department. However hierarchical organization structure of the organizations has various implications on the IT performance which have both a positive and negative effects. The company has been able to establish a massive integration between its systems and information technology. This is because there have been massive file transfers and real time web service calls which has been enhanced by integration teams
However the level of integration is not congruent with the structure of the organization, rather it matches the wok process such as the B2B, finance, ERP, web, warehouse management and integration management. The company is going through a legacy replacement project , replacing a mainframe system with new solutions so as to reorganize its information technology system. The company has also attempted to outsource some of its services in so as to leverage its competences in the organizations use of information system
Company A
Company A has a flat management organization structure with three levels. Mangers are granted operational autonomy in order to control their fiefdoms within a particular budget and incorporating external resources when necessary. The organizations structure has a positive impact on the IT organization and has enhanced the organization’s reaction to alterations in business requirements in the corporate world. The company has been able to establish high levels of congruence with the information technology systems
The capacity of integration with the information technology systems matches the organization structure since it has been able to establish links among groups through 3G wireless. Employees can no easily access any authorized piece of relevant information device across all groups in the company. In order to reorganize Systems Company A has ensured that its information technology systems are undergoing constant evolution to keep track of the current alterations with technology. This reorganization has ensured, improved levels of effectiveness and efficiency
Comparative analysis
Organization of Metcash is different from company A in the sense that it has a hierarchical organization structure where as company A has a Flat management structure. However each of this organization has three layers of management. These two organizations have massive levels of integration between the organization structure and the information technology systems. the organizations are also trying to Make various attempts to keep track of changing technological business environment and improve efficiency an effectiveness
ISSUES STUDIED
Metcash Organization
Organizational use of information technology has been accompanied with both negative an positive impacts. For instance the organizational structure seen to work ok but some challenges associated with interterm functioning are experienced. This show that when organizations incorporate information in their business operations, success guaranteed in all case since there are challenges accompanied as well.
Advantages of organization use of information technology in Metcash
There is improve levels of efficiency since due to the improved capacity of file transfers, improved real time web service calls and improved integration of teams in various departments. Information technology also matches the work process such as B2B, ERO warehouse management and integration management. Another positive impact of the use of information technology is that is flexible and allows system constant upgrading in order to track changes in technology.
Limitations
Information technology has also been accompanied with various limitations in Metcash and this has mainly been due to he fact that the organization has experienced some decencies in the functioning of teams to improve productivity. Consistently the use of information technology is not congruent with the organizational structure. Finally system requires constant monitoring, replacement and reorganization. This process elevates the cost incurred in operation leas to decline in revenue and profitability.
Company A
Organization impacts on the use of information technology for company A just like Metcash is associated with various advantages and disadvantages.
Looking on the advantages, information technology has enabled company A to gain a quick way of responding to alterations in the business environment. The company can now easily meets its requirements as a multi divisional organization since divisions can be bought, sold or merged as required. The company has also been able to experience high level of integration of the information technology systems which much the originations structure. However the company also experiences a challenge in reorganizations systems to keep track of the level of technology. This process is costly and time consuming and leads to negative impacts on the use of technology within the organization.
Conclusion
The current state f global business operation requires about all business organization to employ technology in order to cope with the laved levels of competition both locally and internationally. Therefore the management should try and understand the changing context of information technology and maintain a breast of developments about the business impacts. Consequently the management should also try and dress cultural issues associated with information technology especially on the organizations information culture. Business organization should also be concerned with experimenting the latest structures which would help the leverage their strength and attain a high completive advantage.
Biliblioraphpy
Beard, J. W.2004. Managing Impressions With Information Technology. Greenwood Publishing Group
Conner, M. L.& Clawson. 2004. Creating a Learning Culture: Strategy, Technology, and Practice. Cambridge: Cambridge University Press
Hunter, M. G. & Tan, F. B.2007. Strategic Use of Information Technology for Global Organizations. Idea Group Inc
Kaplan, R. S, 1997.Cost & Effect: Using Integrated Cost Systems to Drive Profitability and Performance. Harvard Business Press 201
Khnosrowpour, M.2002.Issues & Trends of Information Technology Management in Contemporary Organizations. Idea Group Inc
Mackenzie, L. , Gottlieb, R. & Proietti, L. M.2008. The directory of business information resources. Grey House Pub
Rainer,R.K & Cegielski,C. G.2010. Introduction to Information Systems: Enabling and Transforming Business.New Jersy. John Wiley & Sons.
Remenyi, D. & Brown, A.2001. Eighth European Conference on Information Technology Evaluation: Oriel College, Oxford, United Kingdom, 17 – 18 September 2001 ; a Conference Managed by MCIL. Academic Conferences Limited
Surry, D. W., Stefurak, J. R. & Gray, R. M. 2011. Technology Integration in Higher Education: Social and Organizational Aspects. IGI Global
Reddick,C.2011. Public Administration and Information Technology. Jones & Bartlett Publishers
