Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Relationship of Information Technology to Organizational Performance
Enterprises have continually invested in information technologies (IT) to gain competitive advantages by improving their business processes, integrating and aggregating diverse databases, and then transforming the data into a competitive advantage. The paradox of how to invest in IT for an optimal return however has been elusive (Brynjolfsson, Hitt, 1998). Traditional measures of Return on investment (ROI), metrics and key performance Indicators (KPIs) have failed to scale from the operational sides of a business to the data- and knowledge-based processes and functions (Ko, Osei-bryson, 2008). Analysis of information technology investments and their contributions to a firm's financial performance illustrate that the selective use of IT to supplement strategies, not its en masse adoption, is a critical success factor (Osei-Bryson, Ko, 2004). Studies have shown that in a market duopoly characterized by slow to moderate growth, the automating of processes and strategies has the potential to deliver higher ROI compared fragmented industries (Quan, Hu, Hart, 2004).
Productivity, business profitability and consumer surplus all have implications on the ROI any enterprise attains from their IT investments (Hitt, Brynjolfsson, 1996). The healthcare industry is one where all three of these factors combine to create a measurable platform for determining the impact of IT technologies and firm performance (Thouin, Hoffman, Ford, 2008). These three factors of productivity, business profitability and consumer surplus form the foundation for knowledge-based innovations that transform data, customer and financial information into the competitive...
In healthcare, this has occurred due to the well-defined and orchestrated processes used for managing the patient lifecycle process (Osei-Bryson, Ko, 2004). The stability and rigor with which the patient lifecycle process is managed provides these businesses with the necessary foundation to automate processes, increase compliance levels and transform their businesses. The transformation of businesses is not purely being accomplished through manually-based workflow or process management techniques however. The emergence of context and role-based knowledge continues to act as an accelerator to the process and strategy-based efforts of enterprises to become as competitive as possible using IT investment. The transition from measuring production efficiency purely on an output basis vs. value-add based on insight and intelligence began over a decade ago (Dewan, Min, 1997).
Knowledge, not pure efficiency, is the new competitive force and differentiator all enterprises, regardless of industry, seek. Investments in IT had solidified and created strong siloes of information in many companies, which led to internal efficiency yet a lack of agility and flexibility in responding to market conditions and customer needs. The growth of demand-driven supply networks (DDSN) and the re-orientation to IT systems away from being purely myopic and internally focused has shown potential to also deliver higher levels of ROI as well (Barrett, 2007). Studies indicate that just integrating data into a master system of record is not enough; there needs to be a focused series of business objectives, plans and strategies that serve to unify the data into a relevant knowledgebase (Quan,…
References
Barrett, J.. (2007, November). Demand-Driven is an Operational Strategy. Industrial Management, 49(6), 14-19,5.
Brynjolfsson, Erik, & Hitt, Lorin. (1996). Paradox lost? Firm-level evidence on the returns to information systems spending. Management Science, 42(4), 541.
Erik Brynjolfsson, & Lorin M. Hitt. (1998). Beyond the productivity paradox. Association for Computing Machinery. Communications of the ACM, 41(8), 49-55.
Sanjeev Dewan, & Chung-ki Min. (1997). The substitution of information technology for other factors of production: A firm level analysis. Management Science, 43(12), 1660-1675.
Law and Policy Case Study Overview of legal environment of Washington, DC Washington, DC is among the U.S. states that hold most of the U.S. economy. The central location of Washington, DC, provides it with strategic business opportunities and other related economic activities that contribute to the overall economy of the U.S. The strategic location of Washington, DC, implies that it has various legal regulations that influence the execution of different activities
It is possible to avoid becoming a victim of such crimes through some basic precautionary methods. Firstly, it is essential to store or discard personal information in a careful manner. This means personal documents should not be left lying around or shared through internet. All personal information should be stored in a secure place. All sorts of old receipts, expired cards, bank statements and checks should be disposed of
Organization Performance Assessment Organizational performance assessment can be defined as a process of evaluating the performance of an organization against some well defined goals and targets. It lays much emphasis on the accomplishments of an organization in relation to its mission and the stated objectives. In the situation of a government department, the assessment would check the major mandates, ambitions, priority and the performance schedules and evaluates the advancements that have
Nanotechnology attempted to show the potential of this new technology and included the wide range of fields that are connected to the concept of the nanometer scale. These include machining, imaging, metrology or measurement, micromachines, instrumentation and machine tools, scanning probe microscopy, fabrication of components, nanoelectronics, molecular engineering, among others. (Journal Review: Nanotechnology) Another important step in the development of this technology in both a practical and theoretical sense was
And this money is required to be raised from the market as the company does not generate this amount of revenue either from profits or from internal accruals. (DeHayes, 2003) 5. What should Tim do now? After taking into account all the known and understood pros and cons, there are some points on which Tim has to take action. These are (i) the manner in which to raise capital needed either
For example, it is no longer advisable to use a paper-based payroll, as apart from being more likely to become subject to fraud, it is an environmental hazard. Imagine the filing needs for a payroll for 100 people in one year only. Also, there's the consideration that almost everyone has and uses email. Electronic mail enables immediate correspondence between separate entities and quicker responses to urgent matters. More than this,