Information Systems Management in the Company

Subject: Management
Pages: 5
Words: 1225
Reading time:
5 min
Study level: College

What is meant by “managing IT as a strategic resource”?

Information technology is a very important aspect of any organization. It entails the technology used in the processes regarding information for instance creation, storage, maintenance and use, and dissemination. It is therefore an essential resource that should be well managed to ensure that information is handled effectively and is always available to the right person at the right place and time. Managing IT as a strategic resource means the practice of recognizing and utilizing IT as a strategic tool towards achieving success in an organization by facilitating efficiency, effectiveness, competitive advantage, and economy which are very important aspects for any organization’s sustainability. Information technology should also be viewed as a tool through which substantial organizational achievement can be attained as opposed to a source of just marginal contribution in an organization (Willcocks, Feeny and Islei 1997).

What Is The Importance Of Information Management? How Can An Organization Compete With Information?

Information is a critical asset in every organization as it helps in making essential decisions regarding various aspects of the organization. The importance of information management is the ability to deal with the enormous pool of data and information created daily in an effective manner that enhances the productivity of the organization. Proper information management in an organization ensures that the organization adds value to the clients through satisfying their specific needs, helps the managers in the creation of new realities within and even outside the organization. Management of information also reduces costs that could otherwise be incurred in meeting the customers’ needs if the information was not well managed. The information also helps in the adoption of economical strategies. If information is well managed, it helps in risk management as it acts as a control element and a way of detecting any risk. An organization can compete with information through its appropriate use and application of information technology to enhance overall efficiency, effectiveness, and economy hence increasing productivity. Information is a competitive advantage in an organization as it assists in making informed and appropriate decisions regarding various aspects of the organization for instance advertisement, purchase, identification of products and services among others. Information and information technology also enhance the organization’s competitive advantage mainly through cost reduction in its practices and differentiation (Marchand 2000).

Briefly explain the 7 rules for superior IT performance?

The rules include; Making IT a priority in product development to ensure that the product produced is of high quality and is produced at the lowest cost possible. The second rule entails the integration of IT into business practices like marketing, sales, and service. The application of information systems in these practices enhances the performance of the organization through easing buying and selling and avoiding delays. The third rule entails using IT selectively to integrate order processing across the organization. This helps in appropriately organizing the orders for easy handling. The fourth rule emphasizes shifting the focus of IT in administration to business planning and management development. This entails the application of IT to a variety of functions to achieve maximum profitability. Making IT a top management issue is the fifth rule. The top management should actively be involved in setting up and implementing the IT strategies in the organization. The sixth rule is the creation of a customer-oriented IT service network. This entails the establishment of a network that encompasses all parties with the customers in mind as well as the incorporation of the emerging developments and innovations in the general economy. The last rule emphasizes the introduction of integrated standard software on a fast-follower basis but redesigning the business first. This rule shows the importance of doing the right thing at the right time (Kempis and Ringbeck 1999).

Define e-procurement in your own words and give some examples of it from your own experience.

E-procurement is the application of information technology in the processes of purchasing. It entails the integration of businesses in the purchase and sales processes, especially over the internet. It generally involves automation of the buying and selling among businesses for instance in advertising and managing contracts, evaluation of tenders, and payment of suppliers among others. E-procurement has been utilized in many organizations and companies due to the benefits associated with it for instance efficiency and effectiveness. Some of the examples of e-procurement include the use of the government procurement card (GPC) in the purchase of goods and services. E-procurement is common in the general practices of e-commerce for instance the use of credit cards in purchasing goods and services locally and abroad, e-auctioning among others (Neel 2001).

What are the requirements of the new e-procurement system in PDO? Is there a match between the organization’s requirements and their selected ERP package?

The e-procurement system should cater to all the procurement activities of the organization, for example, the establishment, negotiation, and sourcing of products and services to avoid conflicts in the process. The requirement of the new e-procurement system in PDO includes the availability of control systems that are aimed at striking a balance between the organization’s practices and the policies imposed by the government, it should also facilitate justice, honesty, and integrity through transparency and equity. The system is also expected to promote the local community as well as fulfill financial transparency, automation, and workforce competency, simplification of the process, process visibility, and standardization (Shakir, Smith and Gulec 2007).

The adoption of SAP in the organization matches the requirements only to a certain extent since although it made the integration of departments possible, it was linked with lots of problems for instance those of tracking the progress of procedures making people prefer the traditional method of procurement over e-procurement (Applegate, Austin, and McFarlan n.d)

Identify the lessons the organization learned and explain each one of them in your own words

Different lessons have been learned by the petroleum development Oman (PDO) regarding the implementation of an e-procurement strategy. One of them is the existence of a vendor’s negative perceptions regarding the issue of competitive bidding. The organization has learned the importance of addressing this issue as a way of ensuring success in the procurement process. The factors related to the vendors include the time, quality, and even price and should therefore be considered in every stage of procurement. Another crucial lesson is the importance of sharing the benefits the organization gets with the vendors for instance improved organizational practices, fair play, provision of more relevant requests for quotations, and involving them in all activities of the organization.

Involving the vendors in sharing the organization’s benefits ensures that they feel well appreciated and represented and hence have the desire to support the system as opposed to when they would be left out after sacrificing their efforts in terms of time and investment. PDO also learned the essence of simplifying the system, making it easy to access and familiar to all the parties involved. This can be achieved through the identification of the user’s needs and priorities and tailoring the system to them. The substitution of technologies and focus on service is also a lesson learned by PDO as a way of enhancing success, especially where the public infrastructure is not efficient and effective. This is because communication is very essential and should always be enhanced at all times irrespective of the circumstances (Shakir, Smith and Gulec 2007).

Reference List

Applegate, M.N, Austin, D.R and McFarlan, W.F., n.d. Corporate Information Strategy and Management. 6th Ed. New York: McGraw-Hill Publishing Company

Kempis, D.R and Ringbeck, J. 1999. Do IT Smart: Seven Rules for Superior Information Technology Performance. Ney York, The Free Press.

Marchand, A.D., 2000. Competing With Information. New York: John Wiley& Sons Ltd.

Neel, D., 2001. E-procurement: from strategy to implementation. USA: FT Press.

Shakir, M., Smith, G.R. and Gulec, E., 2007 E-Procurement: Reaching Out to Small and Medium Businesses. MIS Quarterly Executive, Vol. 6, No. 4, December, pp.225-238.

Willcocks, P.L, Feeny, F.D and Islei, G., 1997. Managing IT as a Strategic Resource. New York: McGraw-Hill Publishing Company.