Information Technology and Organizations’ Success

Essay by katib_1980 July 2011

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Information Technology and Organizations' Success

Today companies cannot ignore the importance of Information Technology to get competitive benefit. Firms can be said that they are heavily relying on IT for processing their work because IT has a power to change the entire organization such as size, net-profit, competitively, productivity, human activity efficiency and customer satisfaction. Companies always have to search for new ideas, processes, and methods that will make their company more effective and efficient. Investing right technology, which makes a company unique and effective, is not that easy to be decided due to measuring the process of IT is invisible in some manner. Also, it is hard to figure out its effects and future benefit to an organization. Because the use and knowledge of IT cannot be seen at once but decision of choosing a new technology must be faster than knowing well about the technology itself to be an winner among competitors who also seek a new and unique technology.

However, even if investing a new technology would have pretty much risk one the other hand it also would be able to result in a sustainable advantage. To gain competitive and sustainable advantage, it would not possible to avoid the risk of investing a new technology.

IT governance and cloud computing are defined as the structures, processes and relational mechanisms for the IT decision making in an organization. The concept IT organization is used in this paper to represent everybody that is involved in IT-related decision making, so be it an IT department employee or a business manager acting as a stakeholder for IT. The highest decision making authority in an IT organization is called IT management.

There are IT governance and cloud computing in every organization that deals with IT. However, the quality of the IT organization...