We previously defined management as the process of planning, organizing, leading, and controlling people in the organization to effectively use resources to meet organizational goals. Therefore, a typical business structure always possesses three levels. When it comes to medium or large organisation, it is very hard for the top management to manage all the resources manually. Role of Information Technology in Business Improved Organizational Communication. Business success depends on knowing its customers needs, trends, behaviours and satisfaction level. IT also makes it easier to provide a good customer experience through improved customer service, easier customized marketing and e-commerce. But I will briefly explain digital marketing here which was the dream in the past without Internet technology. Companies can also take advantage of fully featured enterprise resource planning software to make it easier to do accounting tasks, manage human resources, monitor the supply chain, generate invoices and make supply purchases. Customers also benefit from being able to purchase products and services from the company's website, and this also increases the potential for more revenue and growth for the company. These resources may include tangible, financial or human resources etc. Digital Marketing is a modern phenomenon which let you promote your products or services all over the world. A CIO who provides leadership on both the demand and supply sides of their role. Information technology can helps through: Communication Inventory management Management Information Systems Customer Relationship Management Select Accept cookies to consent to this use or Manage preferences to make your cookie choices. Many types of marketing can help you reach your potential customers. Currently online shopping, digital marketing, social networking, digital communication and cloud computing etc are the best examples of change which came through the wave of information technology. Bolted on to the business strategy, rather than forming an integral part of it. It’s easy to apply for a strategy role, expecting one type of work, and find yourself engaged in something completely different. Rather than only being able to reach the company during business hours, customers can conveniently interact with the company on its website and through social media, email and custom instant messaging services. The good news for anyone interested in corporate strategy is that the positions are often multi-faceted, so firms may be … Can you think of any more area where IT is helpful in business success? Setting out a well-planned business strategy will ensure your entire organisation is working towards the same goals and instills a sense of shared responsibility amongst employees. Gives direction – One of the biggest benefits of a business plan is the direction it can give your organisation. Currently Big data, Google Analytics and Microsoft CRM Dynamics are also great tools to extract useful information which can impact on decision making. A critical assessment of the current and historical performance of your business and factors impacting it … The right CIO in … One of the greatest barriers to alignment is that IT and business units tend to talk different languages, Strategic BAs sit between the business and IT playing the role of translator! Expectations are rising, yet changing industry landscapes, emerging disruptors and well-funded startups with aggressive business models puts significant pressure on the role. And thanks to the cloud computing and modern communication which enable you to form a global organisation, manage and monitor its virtual offices all over the world. Strategy has never been more challenging, or more important, than in today’s environment of global competition, in which, corporate strategies must transcend the borders of nations and markets. It also plays a role in helping companies expand globally and in providing staff access to company information wherever and whenever they need it. Market research can be done in many ways through online surveys, forums, blogs, group discussions using World Wide Web and of course through in-person interviews as well. Due to the strategic management company receives the following type of economic and non- economic importance. It also provides you many tools which can solve complex problems and plan the scalability (future growth) of your business. The companies have to bear a reasonable cost to achieve this success because using an innovative approach in business strategy, employing highly trained IT professionals and making right decisions at right time are the prerequisite of business success. Such software presents an online dashboard with information about the company's finances, customers, sales and marketing trends and inventory levels. Reviewed by: Jayne Thompson, LL.B., LL.M. The importance of IT in Business Decision Making. Windstream Enterprise: The Important Role of IT in Modern Business, LegalNature: How Various Companies Are Using Technology to Help Businesses, INTEQNA: Why Information Technology Is More Important Than You Think, The University of Scranton: 10 Ways Enterprise Systems Affect Your Business, Moulton: OLAP and OLAP Server Definitions, Funding Universe: Dell Inc. - Company History, Best Price Computers: Business Performance Management Software Explained. Having eight years experience running all aspects of her small business, she is knowledgeable about the daily issues and decisions that business owners face. The path of innovation in business means doing something different, smarter or better that will make a positive difference in terms of value, quality or productivity by using emerging or proved technologies of the world. Its strategic goals should mirror business projects (aka business alignment) and take into account the needs of key stakeholders including employees, customers and business partners. In other words, it helps maximize the return on IT investments. Enterprise organisations normally use customer relationship management systems (CRM) to hold valuable data for understanding customer behaviours and future needs. Thanks to the Internet Technology that has enabled us to communicate with millions of potential or existing customer in the real time. Nature of Business Strategy. The rest of strategy comprises the choices we make to deliver our novel approaches to meet our customers’ needs in a profitable and sustainable way. Now, the managers can manage or monitor their organisational resources virtually anywhere in the world by using their personal computer, laptops, tablets or Smartphone. Today, however, IT is much more focused on overall business strategy and how to help employees use data to drive growth in the organization. Information technology has played a vital role in automating such complex problems by introducing user friendly solutions. Now I will briefly explain how information technology plays a vital role in different phases of business. This is often because IT is seen as a separate entity. This concept has introduced the idea of globalisation. Information technology has become very important in the business world. Importance of Strategic Management. Strategic Uses of IT in Business. Innovation is the great way to success in this digital age. The importance of business strategy In order to best determine the future direction of your business, it helps to understand where you are positioned in the market. IT provides many channels to communicate with the customer without going out in snow or rain. At the same time, employees can access and share information and collaborate on their work regardless of location; employees can even work remotely so that the company can save on costs. It has dramatically changed the lives of the individuals and organisations. September 26, 2014. Managers can use the data to decide which products to promote or stop selling, where to cut expenses, which customers need support and when to place supply and materials orders. Resource management plays a crucial role in business success. We and third parties such as our customers, partners, and service providers use cookies and similar technologies ("cookies") to provide and secure our Services, to understand and improve their performance, and to serve relevant ads (including job ads) on and off LinkedIn. Freelock: Information Technology in Business: The Big Picture. Corporate Strategy: The role of strategy in business is a video that is part of our MBA in a Box training on Udemy.Hope you will enjoy the video! Connecting projects to organizational strategy can improve projects in several areas including preparation of business cases, request management, planning, and resource allocation, risk management, budget control, and collaboration. Monkey Business Images/Stockbroker/Monkey Business/Getty Images. By: Jeff Schein: People will always stress that having a well researched business plan is key before you start your business. Research from the last two decade has proved that those organisations that do invest in technology and choose the path of innovation increase their market share, financial figures and overall competitiveness. Now accurate business planning, effective marketing, global sales, systematic management, real time monitoring, instant customer support and long term business growth cannot be achieved at the optimum level without IT. They outline the strategies and specific tactics they will implement and show how they fit into the core business … According to Richard Rumelt, author of the book Good Strategy, Bad Strategy, a strategy is a cohesive response to an important challenge. What is the importance of IT in your organisation? Unlike a standalone decision or goal, a strategy is a coherent set of analyses, concepts, policies, arguments, and actions that are in response to a high-stakes challenge. Direction – one of the resource management solutions were desktop based dream in business! 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