Information Technology and Information Systems

2340 Words Jan 30th, 2011 10 Pages
The Information technology industry, where nothing is predictable and constant change has become a usual trend, is now on its new phase of its evolution stages. According to Richard L. Nolan, MBA Class of 1942 Professor of Business Administration: “Information Technology is no longer being used as just a tactical resource, it’s now fundamentally influencing business strategy and competition” (http://www.alumni.hbs.edu/bulletin/1997/april/text/theory_text.html 04.02.06). This paper will examine and analyze the issues and challenges like the one that has been raised by Professor Richard L. Nolan. The essay will be based on the case study of the company called Canon, which automated all its documentation and information flow procedures by …show more content…
In these organizations, managers rely on instant information to deliver mass-customized products and services uniquely suited to the targeted markets. The decentralized structure allows the managers to persuade informal commitments and networks to establish goals. In these kinds of organizations, managers appeal to the knowledge, learning, and decision making of individual employees to ensure proper operation of the firm. Once again, Information technology can perform these activities in the best manner. High usage of Internet since the mid-1990s caused significant organizational redesign and has contributed the emergence of new phenomenon – Digital Firm. This is the fourth factor of environmental change which forced companies to introduce new information technology, and can be described as the firm where the most processes are enabled digitally, as well as relationship with customers, employees and suppliers. This is flattened organization where, any information required could be gained any time, anywhere in the firm. The level of technology in such firm enables the managers to ‘sense and respond’ to its customers far more rapidly. For such managers, Information is not a simple handmaiden, but rather it is the core of the business and primary management tool.

Although the advanced technology and efficient Information Systems bring many exciting opportunities such as: speed of processes and calculations, learn and information obtaining,
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