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needed on a day-to-day basis for the efficient running of operations.
What so many people forget to prioritise is information. It is very unusual for managers to consider information an important resource and yet it is.
We are in the midst of a swiftly moving river of technology and business innovation that is transforming the global business landscape. An entirely new Internet business culture is emerging with profound implications for the conduct of business.
This can be seen everyday on how business people work using the high-speed Internet connection for e-mail and information gathering, portable computers (tablets, iPad) connected to wireless networks, cellular telephones connected to the Internet.
The emergence of Internet business culture has set expectations that we all share.
We no longer have boundaries defined, we have now been exposed to online services to purchase goods and services, we expect friends and business colleagues to be available by e-mail and cellphone, and we expect to be able to communicate with our suppliers, customers and employees anytime of the day or night over the Internet.
Information technology has become so important to the point of providing a fundamental foundation of doing business.
In fact, productivity has been known to increase by exploiting the options available in communication technology.
It should provide a strategic opportunity and advantage for the thriving enterprise.
Capital management
Information technology has become the largest component of capital investment for firms globally.
Investment in information technology has doubled as a percentage of total business investment and now accounts for more capital investment in the world.
It is difficult, if not impossible to manage a modern business without at least some knowledge of information systems.
Information is now an important asset. That is why knowledge of information technology is a necessity for every manager.
You might recall the business modus operandi in the past when the boss could hardly type or use the typewriter or even operate or turn off the computer. Such managers have become obsolete.
Benefits for the organisation
Powerful computers, software and networks have helped organisations become more flexible.
It is possible now to eliminate layers of management, separate work from location and restructure workflows, give new powers to line workers and management.
What a business would like to do in five years is often dependent on the systems at its disposal.
Increasing market share, becoming the high quality or low cost producer, developing new products and increasing employee productivity depends more and more on the kinds and quality of information systems in the organisation.
Financial systems
Financial systems are the basic computerisation of the accounting, budgeting, and finance operations of an organisation.
The computer has proven to be ideal for financial systems.
Take, for instance, the financial importance of the headcount control and payroll of a company.
You cannot operate without an adequate financial system in your organisation. In fact, it should be one of the basis of all other systems because it gives a common, controlled measurement of all operations and projects, and is a reliable indicator of departmental project success.
You cannot plan your organisation without financial analysis.
More opportunities to develop other strategic systems can be put in place if figures can be readily retrieved from them.
A computer person is trained to reduce systems to their components, look for the best application for each component, and then put together an interrelated system.
Information technology is also quite prominent throughout all parts of the value chain.
Information technology can be embedded in every activity that the firm performs because it involves information processing.
Gone are the days of repetitive transaction processing in the value chain.
Till next week, May God richly bless you!
Shelter Chieza is an advisor in management issues. She can be contacted at [email protected]
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