Information technology is “the study, design, development, implementation, support and management of computer based information systems”[1] including software programs and computer hardware. IT has expanded into almost every facet of business, which, today, allows the IT specialists to perform an array of complex tasks which includes the designing of intricate computer networks and information databases. This spider-web of IT advancement has grown into every business function, such as sales and marketing, where the use of IT forecasting products and associated information databases, creates an accurate picture of the information to be established for a marketing campaign. Furthermore, within the finance sector, IT provides the necessary technological capability through the use of specific hardware and software to enable electronic banking transactions to be stored, analysed and transmitted securely. This fact among many others permits Information Technology to become an enabler of business success, further, IT in itself may become an obstacle for the business in so far as maintaining the currency of the IT hardware and software is essential to ensuring that the value chain is retained. To measure how beneficial IT is for a business and whether or not it is succeeding, an executive should question whether the internal IT operation is performing adequately. To verify this, the business should implement ‘Key Performance Indicators’, where they can align business objectives to KPI’s and though a continuous revision of this alignment, changes can be made in the appropriate sector to fix any failings or to identify improvements. The success of IT isn’t only measured in comparison to achieving its goals, but also how effective and efficient it achieves them. An efficient IT system may consist of high transactions speeds and ‘around-the-clock’ availability. A high response time and precise information are also factors of an effective IT system. The usability and customer satisfaction are characteristics of an effective IT system.
[1] ^ ITAA.org, p30, Accessed March 5, 2010
2)List and describe each of the forces in Porter’s Five Forces Model?
A broad cost leadership strategy makes a low budget product but targets a wide industry where a broad differentiation strategy also targets a wide industry but produces unique merchandise. A focused strategy however targets a narrow market but manufactures both a low cost product and unique product. The latter also being known as the focus strategy by differentiation
Once a business has chosen its strategy, it can verify the success or failure though the use of such implements as the Value Chain Analysis. The creation of value is the direct outcome of effective business process and efficient value chains. Furthermore Business Process is a set of standardised activities that accomplishes specific tasks whereas the Value Chain regards a business as a succession of processes, each adding value to the product or service.
