FREE online courses on Information Technology - Chapter 4 IT AND CORPORATE
STRATEGY - INTEGRATING TECHNOLOGY WITH BUSINESS ENVIRONMENT
One of the most significant management challenges during the
coming decade will be to integrate business and technology. It is no longer
adequate to think about technology after other business decisions have been
made. Instead, Managers must consider how technology affects their decisions and
how their decisions affect the technology.
Figure shown below is framework for managing information
technology. The arrows in the figure show the relationship between actions in
the boxes for managing and controlling technology. For example, a senior manager
first looks at how technology can contribute to the structure of the
organization using the IT design variables. The structure of the organization
influences and is influenced by corporate strategy. Strategy, structure, and the
integration of IT into the firm help generate a plan for technology. This plan includes a structure for the IT
subunit(s) in the organization along with a hardware/software network
architecture for the firm. The plan describes what new applications and what
resources are needed to operate existing technology. It also describes the
sources of services, for example, from within the firm or from an outside
source. Finally, the plan contains information on how management will control
the technology effort.
Figure to be inserted
Figure : A framework for managing information technology
Table shown below summaries the actions for management in
each of the areas discussed below. Where possible, we offer recommendations for
management policy. When the recommendations depend on circumstances unique to
the firm, Table below lists some of the factors that should be taken into
account when developing a policy.
