Importance of IT in Organizations

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Questions and Answers

Which aspect does IT primarily aim to improve in organizations?

  • Quality of Business Processes (correct)
  • Customer Satisfaction Metrics
  • Sales Revenue Growth
  • Employee Satisfaction Scores

What is an essential element in the decision-making process when implementing IT systems?

  • Reducing Workforce Size
  • Defining Decision Procedures and Rules (correct)
  • Increasing Profit Margins
  • Outsourcing IT Support

Which factor is associated with achieving operational excellence through IT?

  • Minimal Technological Investment
  • Cost Leadership (correct)
  • High Employee Turnover
  • Reduced Market Share

Which of the following is NOT one of the three broad aspects of organizational change supported by IT?

<p>Profitability (A)</p> Signup and view all the answers

How can organizations gain a competitive advantage using IT?

<p>Through product differentiation and leadership (A)</p> Signup and view all the answers

Flashcards

IT's impact on business

Information Technology (IT) systems are increasingly shaping business models, often driving major organizational changes.

IT's organizational impact

IT improves business processes by changing people, processes, and technology within an organization.

People changes in IT

IT impacts people through training, education, and helping users understand new systems.

Process changes in IT

IT enables better business processes by introducing new ways of working, decision rules, etc.

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IT competitive advantages

IT helps organizations succeed through operational efficiency, unique products/services, and strong customer relationships.

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Study Notes

Importance of IT in Organizations

  • IT systems are increasingly influential on business models, often driving major organizational changes.

  • IT aims to enhance business processes through coordinated changes across three key areas:

    • People: Training and education for system users are crucial.
    • Processes: Implementing improved business processes using the new system, along with revised decision-making procedures and rules.
    • Technology: Setting up new IT systems and infrastructure, including technical and help desk support.
  • IT systems facilitate the execution of business strategies and enable competitive advantages in several ways:

    • Operational Excellence and Cost Leadership: Improved efficiency can reduce costs.
    • Product Differentiation and Leadership: Innovation through the system can create new/improved offerings.
    • Customer Intimacy and Focus: Enhanced understanding and service can improve customer relationships.

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