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Information Technology in an Organization's Management

Essay by   •  June 17, 2011  •  Essay  •  531 Words (3 Pages)  •  1,091 Views

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Information Technology plays a significant strategic role in the management of organizations. Information Technology is the processing and distribution of data using computer hardware and software, database management, telecommunications, and digital electronics. Information Technology makes it easy for an organization's decision making because they have information at hand. Management, in business, the term is used to describe the techniques and expertise of efficient organization, planning, direction, and control of the operations of a business. With the aid of information technology managers have more information, at their reach than ever before, modern IT improves good organization and usefulness at each stage of the strategic decision-making procedure.

A great potential for added value lies in the proactive linking of information systems development activities to strategic business planning in the management area. Effective use of the information systems function to aid in the process of surfacing organization wide tacit knowledge and actively integrating it into the existing organizational culture are explored. There is an importance of IT participation in the planning of organizational strategies. Technology-mediated communications and learning as the keystones of the knowledge building process are also used in the strategic role of IT in management.

The role of IT in achieving the organization's strategic development goals has been an area of constant debate. Top management staff was crucial for the successful transition to the new technology. Through the development of an intranet and database system there is now greater management control, all departments have greater access to information, this enables them to function more effectively and efficiently, and since projections are more accurate or now available, management can make long-term strategic plans. These improvements and developments to the business system will improve operational efficiency, turnover and profitability of an organization.

Information systems are designed to provide information needed for effective decision making by managers, they are called management information systems. MIS is a formal system for providing management with accurate and timely information necessary for decision making process. The system provides information on the projects that are past, present and future and on relevant events



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