UNIT 5 DISCUSSION

Information Systems in Business Settings

According to the video, it is factual that the reliance on information technology has augmented significantly in the current business sector where different businesses use it strategically for competitive advantage. Therefore, in order to use information technology effectively, business owners should consider factors such as;

• The size of the business
• Overall cost of IT
• Computerization applications
• Goals that will be achieved after IT implementation
• Location of the business

After considering these factors, the business benefits from IT implementation in terms of efficiency of the operations, fast and effective processes, and improved working environment.

The differences that will exist between the business using IT and the others are based on the fact that the business will enjoy variety of benefits from information technology. To start with, communication in the business will be fast and effective. Additionally, the business will benefit from effective process since IT promotes automation of processes such as decision making (Passerini, Tarabishy & Karen, 2012). The other benefit is information protection and storage which is enhanced by IT. The last benefit is increasing competitive advantage as the business is able to make quick and effective strategic implementations. Thus, IT can be used in different areas within an organization such as product development, cost efficiencies, communication, competitive advantage, shareholders integration, globalization and process improvement (Passerini, Tarabishy & Karen, 2012). However, despite the variety of benefits that an organization can enjoy from IT, there are corresponding drawbacks associated with using IT in the business. They include the following;

• High implementation cost
• Security issues
• Employment elimination
• System failures and other related distractions (Passerini, Tarabishy & Karen, 2012)
• Long working hours for the employees

It is factual that implementing information technology is an expensive strategy especially for small and medium organizations (Passerini, Tarabishy & Karen, 2012). Additionally, the benefit of information technology appears to be more valuable in service organizations than in manufacturing companies. This is based on the fact that IT in a business is projected to enhance communication which translates to fast and effective customer service. Therefore, in this case, it might take long for the manufacturing organizations to adopt information technology than service organizations. In fact, service organizations will implement information technology earlier. However, for the multinational organization, information technology is more ideal especially in communication between the subsidiaries in different markets. Thus, multinational organization requires a fast implementation process for information technology in order to promote effective organizational operation. Generally, these contentions are based on the fact that information technology focuses more on services rather than production. Therefore, service organizations will have more interest on IT than manufacturing organizations.

Reference    

Passerini, K. Tarabishy A. El, & Karen, P. (2012). Information Technology for Small Business: Managing the Digital Enterprise. New York, NY: Springer. Internet resource.