Abstract
The use of technologies in global business firms have increased to the highest levels in the contemporary business world. Information technological systems are used by the corporates to mail improve on production and service delivery efficiency and faster production of good and delivery of services to match the growing demand in the world markets. However, businesses have failed to effectively manage these technologies to achieve a competitive advantage over business rivals. This paper concerned itself with identifying the various ways global business firms can effectively manage their technologies for sustainable financial success. The paper got its data from previously conducted research works and identified the following ways to achieve efficient management of information technology systems; aligning of technologies with internal business designs, developing frequent maintenance systems for the technological components, building a capacity within the institution to adopt and utilize the technologies as well as developing an effective system security mechanism.
Table of Contents
Chapter One: Introduction…………………………………………………………….…………...5
1.1 Background of the Topic……………………………………………………………..………..5
1.2 Statement of the Problem……………………………………………………………….……. 6
1.3 Purpose of the Study……………………………………………………………………..…….6
1.4 Research Questions………………………………………………………….…………………7
1.5 Significance of the Study………………………………………………………………………7
Chapter Two: Literature Review…………………………………………………………………..7
Introduction…………………………………………………………………………………...…...7
2.1 Frequently Mismanaged Aspects of Information Technology……………………...…………7
2.1.1 Poor maintenance of computer hardware……………………………………………………8
2.1.2 Failure to purchase the right software based on organizational needs………………………8
2.1.3 Poor implementation of information technology systems……………………...……………9
2.2 Ways of effective management of information systems………………………………………9
2.2.1 Aligning software choices with organizational design………………………………………9
2.2.2 Offering executive support for the various technological systems in global firms…...……10
2.2.3 Enhancing effective information technology system maintenance…………...……………11
2.2.4 Creating organizational capacities to accommodate and utilize the information
technologies…………………………………………………………………………..…………..11
2.2.5 Establishing effective system security measures……………………………...……………12
2.2.6 Development of an elaborate risk management strategy……………………………..…… 12
Chapter Three: Recommendations………………………………………………………….……13
3.1 Aligning Software Choices with Organizational Design……………………………….……13
3.2 Offering Executive Support for The Various Technological Systems in
Global Firms……………………………………………………………………………….……..13
3.3 Enhancing Effective Information Technology System Maintenance………………...………14
3.4 Creating Organizational Capacities to Accommodate and Utilize the Information Technologies…………………………………...………………………………………………... 14
3.5 Establishing Effective System Security Measures…………………………………………………………...………………..……………14
3.6 Development of an Elaborate Risk Management Strategy……………………...……………15
Chapter Four: Conclusion……….…………………………………..……………………………15
References.……………………………………………………………………………………….16
Introduction
Background of the Topic
The contemporary word presents a situation where organizations, both for-profit and the non-profit institutions have the pressure to produce goods and services in large quantities and products of high quality to outshine rivals in the industry. This demand for high quantity and quality goods and services is rooted in the rising competitions between enterprises, the rising demand for goods and services based on increased population and the globalization of the business sector resulting in high demand for the organization's products (Bilbao-Osorio et al., 2013). Information technology has come to offer solutions to the above-stated needs need for speedy production, high-quality goods and services and many others. These other benefits of information technology in organizations include convenience in business operations, automation of systems for customer satisfaction as well as supporting decisions made by business organizations for strategic planning.
However, majority organizations have failed to harness the power and the potential of information technology to improve their business and earn sustained financial success in the global business environment (Eason, 2014). These corporations fail in the combining the potential of the business resources and end up missing the return over investing in information technologies and information technology-based systems. Others even go an extra mile in mismanaging information technology leading to huge business losses and the subsequent collapse of their businesses.
Information technology management is at the heart of the productivity of the various information technology aspects to the organizations that adopt them (Mithas & Rust, 2016). Management of information technology refers to the prudent use and control over the various resources associated with information technology in organizations. These resources include computer and system hardware as well as system software used by a subject organization.
Cognizant of the vitality of efficient and effective management of information systems in the global world, researchers have come up with studies that seek to look into in the various ways organizations can effectively manage their information technologies to earn a competitive edge in the business world. These studies have either offered defective recommendations based on the practical nature of information technology with others offering incomprehensive recommendations that only achieve partial solutions. For instance, many of the studies conducted in the past have focused on either computer hardware management with other offering solutions for the management of software and other operational processes. Few studies have offered comprehensive ways and solutions to effectively manage information systems in organizations. Even the few that have attempted to do so were done in the past and therefore failed to incorporate critical aspects that have come with the latest improvements and advancement in the recent past.
Statement of the Problem
Effective management of information technology is rising to become the biggest challenge for global business organizations based on the untapped potentials presented by the modern advancements in the field, data insecurities and poor adoption of the available technologies. This paper attempts to identify the various ways global businesses can manage their information technology to have a competitive edge over their business rivals.
Purpose of the Study
The purpose of this study is to investigate the various ways global businesses can effectively manage their information technology resources.
Research Questions
i. To investigate the frequently mismanaged aspects of information technology in global organizations.
ii. To identify effective ways of managing information technology in global enterprises.
iii. To suggest the various ways in which managers can prudently manage institutional information technology .
The significance of the Study
This study will be useful to both the established and growing global corporations in identifying the different ways they can manage information technology to earn a competitive edge over their business rivals. Secondly, the research will be used by students and researchers as a basis for critical issues information technology management in the modern business world.
Literature Review
Introduction
The purpose of this chapter is to look into the various studies conducted in the past regarding ways to effectively manage information technology in worldwide organizations. Each study will inform this paper on specific aspects of the issue to give the work a comprehensive coverage on the solution to the problem.
Frequently Mismanaged Aspects of Information Technology in Global Organizations
Although scholars agree that, in a general sense, information technology has been mismanaged in all its aspects, Anderson and the rest, suggest that computer hardware is the most mismanaged part of information technology (Anderson et al., 2015). Anderson, Wipfel and Westerfield, in their study, point that mismanagement of the physical components of computers is the genesis of the many failures in information technology as all system software are dependent on the damaged computer hardware. In another study conducted by Avgerou & Walsham, they state that organizations have failed to realize the benefits offered by information technology systems based on poor software that fail to match the needs of the various enterprises (Avgerou & Walsham, 2017). Aykin disagrees with the above work by asserting that organizations find it easy to shop for the best computer hardware and system software but fail on implementing the new systems into their operations (Aykin, 2016).
Poor maintenance of computer hardware.
Anderson, Wipfel and Westerfield define computer hardware as any physical and tangible in the information technology system (Anderson et al., 2015). These physical parts include desktop computers with all its parts such as monitors, keyboards and central processing units, personal computers, the electrical sockets that supply power to the computers, office projectors, storage mechanisms such as the hard drives, storage disks and the USBs. According to this study, many offices have heaps of damaged computer hardware due to mishandling and failure to effectively carry out the routine management systems (Anderson et al., 2015).
Failure to purchase the right software based on organizational needs.
Avgerou and Walsham argue in their paper that majority of the failed organization information technology is based on the failure by authorities in information technology departments failing to purchase operating systems whose potential matches the business needs (Avgerou & Walsham, 2017). Avgerou & Walsham cite examples of large corporations which buy software without the capacities to inform decision making by management resulting in lost business opportunities and the ability to effectively project future trends in the business. He uses these examples of failed businesses as a result of system failures to arrive at his conclusion that mistakes in the choice of software are the basis of failed information technology systems (Avgerou & Walsham, 2017).
Poor implementation of information technology systems.
Aykin, on the other hand, argues that the failure to lay out elaborate plans on how the new systems would be put into practical use is to blame for the failure many organizations to reap benefit from their organizations (Aykin, 2016). Aykin suggests that the advancements both in technologies and expertise in the field have availed very effective technologies that fit the many unique business needs. However, he continues, the newly purchased systems are not put to full operation making them fail to meet the expected standards. He further asserts that this is as a result of poor support from the executive and poor interdepartmental corporation (Aykin, 2016).
Effective Ways of Managing Information Technology in Global Enterprises
Different scholars have come with a different suggestion which they believe are the best ways global organizations can manage their information technologies to maximize the benefits by achieving bid financial success and even gaining a reputation of efficient services which is vital in their survival. These scholars have majored on the issues of executive support, building absorption and technology utilization capacities, enhancing effective system maintenance, aligning software choices with the organization designs and coming up with elaborate risk management strategies.
Aligning software choices with organizational design.
According to Mayer and others, different organizations have different internal operational and departmental structure, based on their general organizational goals that informed their foundation (Mayer et al., 2018). This way, the scholars assert, the various global enterprises offer different services or goods to their customers. Information technology systems have the ability to tailor-made to meet the needs of each organization. However, this customization can only be done by the developers of the software. In most cases, Mayer and his colleagues’ state, these operating systems cannot be altered upon sales (Mayer et al., 2018).
The scholars go on to propose that those heading the information technology departments in the organization have the responsibility to advise the key decision makers to only buy the operating systems that are best suited to provide the needed solutions. Mayer and others argue that when the software bought is compatible with the basic architectural design of the organizational internal system, their potentials can be harnessed and utilized o the advantages of the business (Mayer et al., 2018). This proper utilization, according to the three scholars, is made possible by the fact that the various parties to the system are able to perfectly fit in the system as designed by the developers of the system or software (Mayer et al., 2018).
Offering executive support for the various technological systems in global firms.
Laudon & Laudon state that the management department in all organization is the most influential parties in world-wide institutions on decisions regarding the acquisition and the utilization of information technology systems (Laudon & Laudon, 2015). They suggest they influence these decisions by determining the budgets of information technology expenditures, determining what to be bought at what time as well as when to adopt the latest technological advances into the systems. The two assert that most information technology systems are big and elaborate with the various components that fit in them and goes ahead to state that these components must match in terms of capacity for them to be effective (Laudon & Laudon, 2015). The duo goes on to state that if the management is supportive of the systems, it makes decisions that facilitate the efficient working of the systems such as buying the rights components at the right time, adopting the needed items to operationalize the system as well as procuring experts to implement and maintain the systems (Laudon & Laudon, 2015).
Enhancing effective information technology system maintenance.
Mithas and Rust assert that errors and damages are bound to occur in the normal usage of information technologies within an establishment (Mithas & Rust, 2016). These damages occur due to systemic errors developing from attacks or the general human errors and could occur either on the system hardware or software, affecting the quality of output by the systems, partially disabling the processes with others completely paralyzing the information technology facilities (Mithas & Rust, 2016). The scholars go on to suggest that organization should set up elaborate mechanisms to respond to these failures so as to safeguard data and enhance the continuity of production and service processes. These maintenance measures include frequent repairs on the damaged computers, scanning of the systems with the latest versions of antivirus and flushing the system whenever infested with worms which have the capacity to cause damage on information stored (Mithas & Rust, 2016). Other maintenance activities include proper storage, adjusting of temperatures especially in server centres as well as updating data on key processes to maximize their output.
Creating organizational capacities to accommodate and utilize the information technologies.
Naito and others in their research, identify the fact that any organization, having acknowledged the vitality of information technology in their success have rushed to purchase the latest and most suitable operating systems and system hardware to enhance their effectiveness in the industries (Naito et al., 2018). They however, note that majority of these organization lack the ability to incorporate these systems and hardware in their operational processes based on either staff skill deficiency with regards to the technical aspects of information technology and the common failure by organizations to seek the support of the entire staff before coming up with system changes (Naito et al., 2018). Having noted this, the study comes up with two recommendations; that organizations embark on general staff training on the working of a new system based on the functions of each employer in the production process together with the frequent training based on specific needs and that institutions engage their staff before adopting new information technology systems (Naito et al., 2018).
Establishing effective system security measures.
The competitive nature of today's business world coupled with the extensive knowledge in information technology by the entire population have resulted to unethical practices of privacy violation, in turn, resulting in information insecurity (Bloom et al., 2014). Bloom and others state that this situation has resulted in insider information trading by information technology companies, leakage of sensitive informational by unprofessional staff as well as the deliberate spread of worms and computer viruses to destroy data on sales and marketing and confidential information to inform the organizational decision making (Bloom et al., 2014). They go on to suggest, however, that institutional management can avoid this by considering software that has enhanced security features where users are accurately identified, their credentials verified and authenticated before they are granted access (Bloom et al., 2014). The paper further states that information technology administrators should be tactical with the nature of access they offer each employee to minimize cases of data loss. Additionally, the study proposes the presence of tight physical security to avoid looting that has been resulted in the rising cases of burglary (Bloom et al., 2014).
Development of an elaborate risk management strategy.
The risk is inevitable in all business case scenario and therefore managers of information technology departments in establishments should anticipate it (Eason, 2014). The anticipation should lead to reasonable action, coming up with advanced strategies on how the organization would handle certain situations. Eason states that risks that affect information technologies are centered on power interruption and loss of data. In instances where this happens business institutions should come up with strategies to provide backup power generators as well as back up their data in other storages to ensure that upon the attacks on their operational data, corporates are able to continue with their operations as the problems are being fixed elsewhere (Eason, 2014). Eason also proposes that departmental heads should come up with emergency response teams who are equipped to respond to these emergencies with the greatest possible speeds (Eason, 2014).
Recommendations
Based on the above review of different works of research on the topic of information technology management, this paper assembled the following comprehensive recommendations for effective management of information technologies in global organizations.
Aligning Software Choices with Organizational Design
The design of the different hardware and software components of information technology systems are different and their potentials can only be fully exploited by matching them with the unique business needs. Decision makers in companies should therefore only consider systems that are in line with their internal organizational designs. Further, the newly developed roles should be matched with the systems properties so that its functionality is utilized by all internal business entities and parties.
Offering Executive Support for the Various Technological Systems in Global Firms
In a bid to seek the success of technological systems, departmental leaders in information systems dockets should seek the support of the executive. By the management's executive offering its support and goodwill, the right qualities of IT components are acquired in the right time and expertise personnel contracted to ensure effective implementation and functioning.
Enhancing Effective Information Technology System Maintenance
Organizations should urgently attend to the failure failures identified in the operations as the accumulation of these errors could result in data loss, information leakage and even successful attacks on the technology-based information systems. Particularly, they should repair damaged power lines, broken or damaged system hardware as well as fix systemic errors. With regards to the software they should ensure the presence of updated software and a mechanism to track and destroy computer worms.
Creating Organizational Capacities to Accommodate and Utilize the Information Technologies
After making the decisions to acquire technology-based operational systems, organizations should make arrangements to facilitate their staff to use these systems. These arrangements include training the entire staff on the basics of a system, doing routine employee training based on the specific skill needs and their use of the new system as well as involving employees whenever the management is making decisions for acquisition and improvement of the system. This will make the workers positively embrace the change and accord it the needed support.
Establishing Effective System Security Measures
Data insecurity is a great concern and its loss results in loss of control for the business especially in the modern business era where all information and processes are stored in digital forms. Cognizant of this, global business firms should prioritize investing in system security measures. These measures include using effective antivirus software, granting the needed access control only to the few business employees as well as securing computer hardware safely.
Development of an Elaborate Risk Management Strategy.
Finally, a large corporation should consider putting in place a strategy on how they would respond to failures and emergencies as they have a probability to occur. The strategies should encompass who will do what role in case an emergency happens and puts in place the various backups to enhance continuity of operations in case the systems collapse.
Conclusion
The demand for efficiency in production coupled with the recent advancements in information technology and the sophistication of knowledge on the matter have resulted in large scale adoption and implementation of information technology systems in major global corporations. However, research has identified that many of these organizations are not able to realize the expected benefits of these systems based on poor management. The poor management of the technologies has resulted in business losses and a consequent closure of many of these enterprises. Poor management specifically occurs with regards to lack of alignment of the newly adopted systems with the organizational structures, lack of a mechanism on system maintenance, poor implementation strategies and even lack support by the executive. To facilitate effective management of informational technologies global firms should align their technological systems with their internal business structures, enhance an adoption and utilization capacity within the organization, and develop ways to ensure frequent maintenance of technological systems, develop elaborate risk management strategies as well as establishing effective system security measures.
References
Anderson, E. W., Wipfel, R., & Westerfield, K. (2015). U.S. Patent No. 9,191,380. Washington, DC: U.S. Patent and Trademark Office.
Avgerou, C., & Walsham, G. (Eds.). (2017). Information Technology in Context: Studies from the Perspective of Developing Countries: Studies from the Perspective of Developing Countries. Routledge.
Aykin, N. (Ed.). (2016). Usability and internationalization of information technology. CRC Press.
Bilbao-Osorio, B., Dutta, S., & Lanvin, B. (2013, April). The global information technology report 2013. In World Economic Forum (pp. 1-383).
Bloom, N., Garicano, L., Sadun, R., & Van Reenen, J. (2014). The distinct effects of information technology and communication technology on firm organization. Management Science, 60(12), 2859-2885.
Eason, K. D. (2014). Information technology and organizational change. CRC Press.
Laudon, K. C., & Laudon, J. P. (2015). Management information systems (Vol. 8). Prentice Hall.
Mayer, J., Borges, P. V., & Simske, S. J. (2018). Introduction. In Fundamentals and Applications of Hardcopy Communication (pp. 1-5). Springer, Cham.
Mithas, S., & Rust, R. T. (2016). HOW INFORMATION TECHNOLOGY STRATEGY AND INVESTMENTS INFLUENCE FIRM PERFORMANCE: CONJECTURE AND EMPIRICAL EVIDENCE1. Mis Quarterly, 40(1).
Naito, M., Yokoyama, T., Hosokawa, K., & Nogi, K. (Eds.). (2018). Nanoparticle technology handbook. Elsevier.
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