Information Technology and Organizational Needs:
Though technology is an important criterion in implementing information systems in the organization, it is not the foundation on which the IT infrastructure is built. Managements have to recognize that technology is only a factor in the implementation of information systems, and that the most important part of implementation is to organize and structure the information resources and ensure that they are put to work in the most effective manner.
For an organization to implement and use IT, it is necessary to understand the business environment as well as the information environment. Understanding these environments helps it to understand the organizational needs better and identify the need for the usage of IT. Organizations must develop information systems keeping in mind their impact on their employees, tasks, technology, culture, and structure. The challenge lies in developing information systems which result in strategic improvements in the way organizations manage these factors.
People
The informational needs of managers and knowledge workers differ to a great extent. Also, they possess diverse capabilities for effectively utilizing the information provided to them. Information systems must provide information which suits the managers' individual needs. This would help them in taking effective decisions.
Tasks
IT can help deal with organizational complexities by supporting radical changes like ‘Business Process Reengineering.' Developments such as Electronic Data Interchange (EDI) eliminate the need for several departments to prepare, authorize, check, and send official paper documents. It also greatly encourages the communication and strategic cooperation between organizations.
Technology
The technology of computer-based information systems is constantly evolving. However, before introducing a new technology, due consideration must be given to the management culture and structure of the organization. For example, intranet-based business systems have gained wide acceptance because of their easy-to-use browser-based graphical interfaces and the value they provide.
Culture
Every organization has a culture that is unique to it and this is shared by the managers and other employees in the organization. Therefore, while designing information systems, it is essential to ensure that it does not disturb the cultural environment in the organization.
Structure
Generally, organizations structure their management, employee, and job tasks into various organizational subunits. IT should essentially aim at quick and easy communication and collaboration among individuals, business units, and other organizational workgroups. It should therefore support a decentralized, collaborative type of organizational structure which has systems development resources distributed to business unit and workgroup levels.
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