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Technology and globalization go hand-in-hand. Globalization unleashes technology, which in turn drives firms to plan production and sales on a global basis. Technology changes the work we do and in nearly all cases, the jobs created by it demand more education and training. It also changes the way business operates by transforming relationships between suppliers, producers, retailers and customers. (Ross, 1993, p. xii)
Globalization and the information age are changing the way companies do business. IT departments can no longer operate in isolation from an organization’s key business drivers and strategic objectives as businesses become more interdependent - both internally and externally - and more reliant on the linkages and efficiencies that information technologies enable. To better understand, support, and exploit these interdependencies, IT departments have necessarily become more knowledgeable about how business operates in general. These days, many CIO’s are business strategists first and IT technologists second. This is increasingly important as companies grow and introduce middle management roles to facilitate communication and integration between business units and functions. As the complexity of an organization evolves, the CIO will utilize the IT department to successfully implement technologies that must be managed in concert with the multiple business objectives that they impact.
With a more strategic perspective being brought to bear on IT decisions, technologies that provide operational efficiencies and improve overall productivity are often being identified before start up and are being built into business launch strategies. At the same time, existing companies are re-examining significant internal and external business relationships; often outsourcing key functions to expert third party service providers to capture productivity gains, or integrating valued suppliers into strategic alliances that increase both the efficiency and interdependence of both parties.
In many cases, a specific technology or an integrated bundle of information technologies is identified as a critical component of the business’s ability to compete in a given arena. Once identified, these key line of business applications essentially become IT pillars for the organization, and will factor into the company’s IT Strategy. In other circumstances, while no individual technology has been identified as a “make or break” proposition, taking a best practices approach to all common IT issues has a demonstrated positive impact on continued business success.
To discuss how Data Perceptions can help you remain competitive through effective and strategic application of information and communications technology, please call 1-877-749-9319 or contact us today.
