IT AND THE 21st CENTURY BUSINESS INDUSTRY:
Why is it important for Managers to understand the Realm of Information Technology? What technological advances are changing the way business is accomplished in the 21st Century?
CHAPTER 2: Literature Review
Background of the Issue
The importance of management enhancement among business facilities and organizations around the world is indeed a serious issue to consider when it comes to realizing the different impacts of IT [Information Technology] procedures is being discussed about. The growing developments that technology and communications have taken so far have been an essential part of the growing system of technological applications. Along with the technological advancements, the social living of humans also is further enhanced. Both economic and social lifestyles were advancing but there was no rest in incurring the best possible progress that the developers of technological systems wanted. With the introduction of computers to the society, the easier way of living and completing everyday tasks has become a trend for many industrial workers. However, as mentioned earlier, the development in the eyes of the ones who are in charge of the enhancement of the operating systems is never ending. Hence, although there were already some great achievements in terms of the developed operating systems, things got better each time there are new innovations introduced. As for this paper, much of the advancement shall be focused upon the implementation of the .NET technologies on the existing operating systems at present.
Information Technology started to boom and take over the business industries during the early 20th centuries. This development has highly alleviated the status of commerce in the society. This has also been the reason why many companies worldwide choose to invest so much on IT processes for their businesses. Mainly to ensure their company’s capability of remaining in existence, they tend to put so much attention to how their firm keeps up with the fast-paced changing world of technology. However, is this all that there is? This paper shall be a discussion on how IT really affects the business industry as to how useful it still is for the world of commerce.
Facing the Issues of the Importance of Information Technology
Investing in a company’s Information Technology sector has long been a source of argument from the very beginning of time when IT was introduced to the business industry. Many owners of big company’s would of course like to have an edge against other business venture to be able to attain leadership in their own fields of commercial business. This is why these companies tent to invest so much along with the fast paced changing systems of technology. Indeed, they view information technology as one source of insurance for their company’s lengthened existence. However, is this claim really true? Especially when it comes to the efficiency and accuracy of information processing and data security that Information Technology promises to ensure each business company of? This is what Nicholas Carr argues with in his articles, “IT Doesn’t Matter” and “The end of corporate computing”.
In these articles, Carr enlists the ways in which IT cannot sufficiently provide the companies with the competitive advantage it aims to have against other business firms by outlining several reasons on the said topic. In the paragraphs to follow, these reasons shall be discussed as well as to the Pros and Cons of Carr’s arguments.
The Pros of Carr’s Arguments on Information Technology
Nicholas Carr’s articles, which were mentioned earlier, mainly points out how the fast changing world of technology makes it hard for companies worldwide to consider IT as a measure of competitive advantage against others. This is because Information
Technology programs could be easily copied, changed and re-distributed due to the advanced technology itself. In this way, no company could be considered at an edge when it comes to IT.
However, the question is, how does IT really affect the business activities of a certain company? The act of generating information usually belongs to the management. However, through the integration of new technologies to this task, things could be done in a lot more easier way. The said information generated by the management through IT includes the flow of money in the company, the business operations and current market updates. These kinds of information are vital for a company’s growth. This is also the reason why IT is considered to be among the most important sector of a certain company. On the other hand, the real task of generating or using these informations still belongs to the management. This is why Nicholas Carr argues that the IT sector is for no use at all. Indeed, the labor force from the management is the key vital element in making the informations obtained by a company useful for the business. In addition, with the fast changing Information systems recreated through the new technologies, old IT systems may even be considered obsolete after a matter of time. In addition, since IT is already available for corruption or recopying through the net, Carr considers it useless to actually invest on this sector of any company. Instead, he reiterates that the intellectual ability of the management is still the most important factor in making company informations work for the benefit of the business itself.
The Cons of the Arguments of Carr on Information Technology
The article “The End of Corporate Computing” mainly depicts the situation of information technology in today’s business industries. He then claims that because of the similarities and the common characteristics of each IT systems within every company, IT can never be considered as an edge to being highly competitive against others. Yes, this is true, but then saying that IT itself does not matter at all could be considered as an exaggeration of the matter. As said earlier, IT has alleviated the business industries so much. Today, the data of companies as well as their market could be viewed through the Internet making it possible to attract more customers at that. In this way companies who are able to catch up with the latest IT systems available for their company gains an edge against those who cannot have even an access to the said IT systems. True, with the fast-paced life of people today, the idea of being left behind because of lack of necessary IT systems for the business may prove to be a fatal situation for a certain business venture. This then thus conclude that both the IT systems of a company along with the intellectual abilities of its management sector should work together to attain the aimed development for any growing business firm. However, there are still some business individuals who are not able to recognize the fact that too much of everything is also dangerous. As for example, McAfee’s “Do you have too much IT” pinpoints that the existence of too much computer or electronic drive systems in the business industries have also caused problems especially with regards to the security of different matters that are displayed by the company through the Internet. This is mainly because of the fact that there are a lot of people that are able to visit the Internet freely and are not bounded by any certain hindrances. Thus, making it possible for some computer experts to perform illegal theft activities, which could be incurred through the Internet applications provided too by the worldwide web. Certainly, there is a big reason why there are still many experts who are not amiable to making full use of IT as a generator for business transactions especially with regards to money matters. However, it should always be considered by the said experts that with ample control, security measures and other points of consideration that could be carried on through by the companies operating within the Internet systems, an expected good result could still be predicted in the future. Hence, this means that IT does matter, although there are some measures of concern that should be considered during its operation.
Living in a high tech society requires of so much advancement especially in the field of commerce. Being able to market ones products or services to a bigger number of customers might mean that a company must be able to obtain the most advanced technology there is. Indeed, taking advantage of what technology has to offer, such as Information Technology, is a vital part of a company’s growth in today’s internationalized industries. Remember though that it must also be always taken into account that these IT systems would never work without the efficiency and effort of human labor such as the
management. The integration of these two sectors in a business firm would surely bring a company to its peak state. No, Information technology is not yet dead. In the business industry, it is still and will continuously be a part of any emerging company’s growth in the globalization of the business industries.
The E-Business Strategies and their Growth in the Business Industries
Globalization has long been opening a wide array of challenges to the business industries around the world. At all costs, many global corporations opted to continuously cope up with the challenges of the business systems offered through globalizing strategies. Then, just when the global companies have already adjusted to the needs of the global systems, another challenge opens up as the Internet systems enter the scenes of the business world.
Today, one of the trends in the business marketing strategies is the invasion of the cyber industry. Hence, the systems of globalization have offered more and more challenges for business organizations. The competition among industries with regards to how fast and how vast their consumer relations are has grown ever tighter.
In this regard, the necessary strategies to make a successful cyber business shall be discussed in this paper, which would be mainly based upon a major company, which is involved in computer manufacturing activities. Hence, through this, the essential factors making up a successful online business would be introduced and closely examined.
Benefits of E-Business
As mentioned earlier, the Internet has mostly invaded the entire human activities, and in this manner, even business transactions became a new approach of the Internet to invite surfers to appreciate the business services available through the cyber space. As an example, a common resource provided by the Internet is a worldwide system for sending and receiving electronic mail, known as E-mail. In fact, E-mail represents a large portion of all Internet traffic and is for many the only Internet resource they use. In this manner of transferring data, many business companies are able to transact with their consumers from other parts of the world simply by posting the details of their company through the net for international viewing. After which, the consumers who are interested in their products or services are able to have options of ordering for services and products offered by the said company and pay for the provisions through wire transfers and other bank to bank transactions.
How does this benefit the company? In a vivid description, the company is able to advertise and reach a vast number of consumers around the globe, making it possible for them to accumulate more and more sales revenues from their Internet marketing strategies. Through the animated presentations, the company is also able to make a clear presentation of its missions and visions which makes its reputation more acceptable for the consumers as well. Aside form this; the company is able to ensure its consumers with fine service without actually having to personally deal with them. Thus, this paves way to a more effective consumer communication since all the necessary details they need to know about the company or the product they ought to have is available within a click of the finger. Thus, the company is able to give its consumers a fine service at their own convenience. Knowing this, since the manufacturing company named B&H Incorporated is a computer manufacturing company, it is indeed necessary for them to upgrade to becoming a click and mortar type of business organization. Many consumers needing computer paraphernalia and other products in connection to computers usually check the Internet for necessary information. This is the reason why B&H Incorporated should be able to innovate their business systems through the use of e-business strategies.
Changes in Marketing
Since the business approach is sure to change, the marketing strategies are also sure to take large adjustments. Thus, this means that additional training should be catered well by the company as they take the necessary steps in entering the e-business industries. As for example, the old advertising systems used by the company is based upon catalogue posts, newspaper announcements and television commercials. The new approach of marketing in the e-business approach would be mainly based upon flash animations, computer effects and further more innovations applied through computer skills in making the company program, which would be used in the company’s Internet website, which would be created for its e-business transactions.
The Success and Failures of dot.com Companies
The dot.com dot. bomb issue has long been plaguing the Internet world as it has been open to investors and stockholders. What actually happened to this phenomenon? The companies, which were established as dot.com organizations failed to see the need of adjusting to the cyber systems as far as their employee skills are concerned. Certainly, even though there is an Internet assistance offered through the websites, there should still be some personnel assigned to meet the customer’s needs through live chats and other means of communication. This would mean that their employees should undergo extra training processes regarding this matter. The successful companies on the other hand such as Amazon.com provides fine service through support services from crews of the company available through the Internet at almost any time. Their transactions too were highly secured that made their consumers feel at ease as they take the option of dealing with the company through the net.
The Differences between E-business and the
Certainly, for e-business organizations, the costs may be much less since the only expense they have to pay would be the Internet services and the website fees. However, their inability to deal personally with their consumers hurt their organizations in a service based evaluation. On the other hand, the integrated organizations having a physical establishment along with a website established through the cyber space have bigger chances of catering to more consumers while catering to their needs at the best possible way there is. Expenses may be higher but the return for these companies sure are worth enough for risking. True, the globalization of business systems has been a cause for advancements in the business systems created for both the business organizations and the consumers as well. The latest fad of entering the e-business has also helped in making the necessary changes in the business industry a worthwhile form of adjustment for profit and service oriented business companies.
The internet is mainly the interconnected networks of web-based locations that are globally and publicly accessible. This network transmits remits and exchanges massive amount of informations using the packet switching system through the employment of the standard Internet Protocol. The internet is composed of networks of smaller networks with more specific domains, which are characterized by their respective natures and characteristics such as commercial, education, government, and domestic networks. Among the many modern day use of the internet manifest primarily on the aspect of online messaging or chat, electronic mail, electronic business conducted through the use of secured networks and bank networks, and advertising. The internet primarily employs the packet switching communication system wherein informations are transferred through series of packets as the main unit of information carriage. These packets are routed between nodes over data links, are stored, and access in the domain database of the respective servers of each networks that are connected in the internet. As the information clusters are transferred and exchanged in the series of networks, they are constantly buffered causing variable delays based primarily on the geographical nature of the information exchange. In simple terms, informations are transferred in the internet through arranging the data into cluster and then transmitting them into the networks nodes and servers until it reaches its target network or unit and then decoded into its basic form. To maintain the flow of clusters inside the network system and server mainframe, the system of Internet Routing Registry, which is the database of protocols determining the route objects and their respective paths, is used. Thus, the technology of the internet is born answering the need of the modern society in their telecommunication aspect.
The concept of e-Commerce is very much similar to the nature of business in the nature though this system is basically conducted over the internet. In this field, all of the transactions and events pertaining to the business are contracted through internet communication though added with encryption for security purposes. Others events relevant to the business transaction such as the freight delivery of the product are manifested through courier organizations and the money transfer are commonly made through the banking system. Indeed, this innovative system in the business aspect modernized the mode and norm of the transactions in the said aspect through making the process more convenient, wider and more efficient for both parties involved. One common conceptual manifestation of the benefit of the e-Commerce technology is that conducting business and other commercial chores are now possible without even leaving the comfort of one’s home. A webpage is basically management system for resource information that is suitable for the internet network. A webpage is commonly designed for two specific purposes, which are for displaying informations that are present in the internet and for navigation purpose through providing links and search options to other WebPages of network domains. WebPages are commonly designed through the HTML or XHTML format with different designs and creativity ranging from incorporating animation systems or multimedia characteristics or others. For e-Commerce transaction, WebPages that are used in this nature are commonly encrypted for security purposes so the informations relevant to the transactions can only be seen by the parties involved. WebPages can either be from a local computer unit of the database of the network server granting the control over access of the webpage to the private network or the administrator.
WebPages can be accessed and viewed through the use of a Web browser, which is a software application that is intended for retrieving, viewing and accessing pages over the internet. The browsers mainly control the HTTP system for retrieving and accessing WebPages and converting the HTML format into human readable forms, which are the ones that people see while surfing the internet. Web browsers are constantly updated and upgraded to cope up with the rapid innovation of the Webpage design technology enabling this software to display efficient and effectively the creative design and technology advancement of page creators thus, multimedia and animated WebPages can be fully enjoyed by the people.
In the present economy market, competition against different organization for consumer shares is becoming much more stiffer thus business managers are developing new ways and strategies to win over the interest and patronage of the public. In this aspect, the concept of “Sticky Bricks” business manifests to be an effective approach. This business strategy is basically the combination of the idea of actual retail shopping business and the e-Commerce aspect of retail shopping. In this field, the BlueLight.com becomes an evidently successful business organization. The said business organization conduct their transaction is primarily two ways namely the actual shopping of their consumers in their stores and through their user-friendly websites where eCommerce transactions can be conducted. Through this two-way approach, the organization of BlueLight.com becomes a leading and successful pioneer in their innovative and ingenuine business approach of combining technology advancement and actual retail shopping to expand their business scope and better serve their customers for their fullest satisfaction.
With the introduction of the computer technology to the human society during the 19th Century, the works or the tasks of people have been further created with ease. With the implementation of computer systems within the existing systems of completion for human tasks, the jobs of people, which can be merged with technological arrangements, were enhanced to becoming easily completed. Today, 95% of the whole population of man all around the world utilizes the computer systems for their everyday application. Even ordinary appliances are now compiled with complex operating systems based upon computer arrangements to be able to meet the best possible performance that they could render the human society. (Tanenbaum, 2006, 15)
Now, even more complex role is played by the application of operating systems in the daily dealings of people has been introduced. With the development of the communication systems such as the internet, learning from home, using top of the art facilities and technologies became possible for many students who cannot attend universities because of some unavoidable circumstances. Through the existence of the emerging technological innovation on communication and information transfer, everything became possible and available through the Internet. As of the present situation, there are still other innovations that have been affected by the developing Operating Systems. The world trade systems has become more easy for the traders since the Internet systems allow them to connect with others easily and effectively transact with their business partners abroad. (Tanenbaum, 2006, 19)
This fact certainly brings about the fact that managers of different business organizations should recognize the possibilities that put their responsibilities to the business at a certain height that requires them to adjust with the changes. These changes are considerable in line with the globalization procedures that are bound to increase the capability of business organizations to expand world wide thus giving the managers a larger scale of responsibilities that they need to face with in their profession. True, the challenge is serious, however, accomplishing victory on it would naturally bring forth progress in the world’s business industries and world economy.
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