Strategy and information technology: Difference between revisions
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'''Information Technology (IT)''' is critical in strategic management as it helps organizations to improve their operational efficiency, gain a competitive edge, and make better decisions. IT systems provide access to real-time data and analytics, facilitate communication and collaboration among employees, and support automation and process improvement. In short, IT enables organizations to make better strategic decisions, improve performance, and achieve long-term goals and objectives. | '''Information Technology (IT)''' is critical in [[strategic management]] as it helps organizations to improve their operational [[efficiency]], gain a competitive edge, and make better decisions. IT systems provide access to real-time data and analytics, facilitate communication and collaboration among employees, and support automation and [[process]] improvement. In short, IT enables organizations to make better strategic decisions, improve performance, and achieve long-term goals and objectives. | ||
One of the main question asked by managers is: how '''information technology''' can contribute to the implementation of '''business [[strategy]]'''? The following are the possibilities offered by [[information]] technology in the case of the implementation of various [[management]] strategies. | One of the main question asked by managers is: how '''information technology''' can contribute to the implementation of '''business [[strategy]]'''? The following are the possibilities offered by [[information]] technology in the case of the implementation of various [[management]] strategies. | ||
Revision as of 02:37, 21 January 2023
| Strategy and information technology |
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| See also |
Information Technology (IT) is critical in strategic management as it helps organizations to improve their operational efficiency, gain a competitive edge, and make better decisions. IT systems provide access to real-time data and analytics, facilitate communication and collaboration among employees, and support automation and process improvement. In short, IT enables organizations to make better strategic decisions, improve performance, and achieve long-term goals and objectives.
One of the main question asked by managers is: how information technology can contribute to the implementation of business strategy? The following are the possibilities offered by information technology in the case of the implementation of various management strategies.
Strategy of lowest production cost
The strategic value of information technology is manifested in this strategy in the following ways:
- Allows for a significant reduction in employment in the manufacturing and administration positions
- Improves the use of the means of production by improving synchronization, planning, scheduling, etc.
- Allows to reduce inventory, improve control of accounts receivable
- Enables better use of materials and reducing waste
- Gives managers the ability to differentiation, raising the value of the product in the eyes of consumers
Differentiation strategy
- Information technology is a key component of the value chain of a product.
- IT tools can significantly shorten the production preparation period (testing, computer aided design, CAD/CAM, etc.)
- Modern technologies allow to adapt the product to the consumer's needs
- Allows to elevate customer service and increase customer satisfaction
Niche market strategy
- IT tools allow to better identify the specific needs of customers.
- Key success factor is the close contact and understanding of the customer possible by using communication technologies.
See also:
References
- Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard business review, 72(1), 107-114.
Author: Krzysztof Wozniak
