The Role of Information Technology in Business Success
Innovation is the great way to success in this digital age. The path of innovation in business means doing something different, smarter or better that will make a positive difference in terms of value, quality or productivity by using emerging or proved technologies of the world. It has dramatically changed the lives of the individuals and organisations. Currently online banking, shopping, digital marketing, social networking, digital communication and cloud computing etc. are the best examples of change which came through the wave of information technology. Now accurate business planning, effective marketing, global sales, systematic management, real time monitoring, instant customer support and long term business growth cannot be achieved at the optimum level without IT.
The importance of IT in Business
The success of every business depends on certain factors. Some of which are accurate analysis, choosing the right technology and the future vision. Research from the last two decade has proved that those organisations that do invest in technology and choose the path of innovation increase their market share, financial figures and overall competitiveness. Information technology is the only technology which provides you the opportunity to analyze specific data and plan your business journey accordingly. It also provides you many tools which can solve complex problems and plan the scalability of your business. In the modern age, it is proved that digital marketing is a great tool which let you promote your products or services to the global market while sitting in the comfort of your remote office or home.
It is impossible to attain long term business success without leveraging the benefits of information technology in this digital age. The companies have to bear a reasonable cost to achieve this success because using an innovative approach in business strategy, employing highly trained IT professionals and making right decisions at right time are the prerequisite of business success. As IT solutions continue to increase the productivity, efficiency and effectiveness of business operations and communication, business will continue to rely on Information Technology for success.
Quite often, companies see the main role of the IT department as creating the applications that serve its core business needs. The right applications allow a business to be innovative, more productive, efficient, and to move ahead of its competitors. In many ways, this makes the IT department crucial to the success of a business.
The expertise necessary to create the applications that can set a business apart from the others requires an IT department with programmers, analysts, interface designers, database administrators, testers, and the business known professionals. These employees become quite knowledgeable about the operations of the business itself. As a result, they become valuable to other departments outside IT.
To avoid disasters, top Management needs to assign business executives to take responsibility for realizing the business benefits from IT. The project management team needs authority to assign resources to project and time to oversee the progress. They should meet regularly with IT personnel, arrange training for users, and work with the IT department to establish clear metrics for determining the initiative’s success.
Information technology in the banking sector:
Technology and Banks Transformation
Computers have given banks a potential they could only dream about and have given bank customers high expectations. The changes that new technologies have brought to banking are enormous in their impact on officers, employees, and customers of banks. Advances in technology are allowing for delivery of banking products and services more conveniently and effectively than ever before – thus creating new bases of competition. The bank gains a vital competitive advantage by having a direct marketing and accountable customer service environment and new, streamlined business processes. Consistent management and decision support systems provide the bank that competitive edge to forge ahead in the banking marketplace.
Human Resources Problems
Banking industry is heavily depending upon information technology that needs professionals for development, implementation and support. Despite the programs performed by many banks to develop their local expertise in IT, there is still a real shortage of qualified personnel.
Strategy for the future
Nevertheless, technology alone will not solve issues or create advantages. This technology needs to be integrated in an organization, with the change management issues linked to people resisting new concepts and ideas. It also needs to support a clearly defined and well communicated business strategy.
In a book of Steve Jobs, it describes, he saw the IT team as artists. It is a combination of team work of all segment of experts. The People working on the Macintosh were musicians, artists, poets, zoologists and historians who also eventually happened to be the best computer scientists. The whole team worked together and brought the dream in a liberal arts attitude which went to a success.
It is a challenge for IT in banks that the team should consists of well conversant business people who are the good problem handler as well as see the impact of business in the process flow. In other words, if you do not know the business you will always be underhand developing the control mechanism.
When the question comes to convert the old system to a new one, a business team within IT is a prerequisite. Round the year there are some projects as well as change request comes from the business segment. To analyze the requirement, the business group within IT should assess whether the change is legitimate or required, what would be impact in the business, the system analyst can design the changes, coder can then modify the necessary changes. After successful threadbare testing, the business unit can certify and ensure that the required changes being accommodated. The live system then becomes altered with new changes.
The business unit within IT is essential in banks, without the existence it will be a collision of kind of situation with business units. To turn the illogical requirement to a logical mode the business team can negotiate. They will act as a bridge between these two entities. By getting accustomed with the system the business people will gain the IT logics and become as techno-business expert in long run. The industry is lack of this kind of unit. They can be a real asset for a bank. In first sight, if someone from business is asked to come to IT, the bright faces will not be interested, just because they think it will be a blocked of his career. But for some cases, if the business knowledge is blend with IT, will bring a huge success in his career. The other advance countries they have created a demand of this kind of group. The business is no longer a business without an IT infrastructure and IT tool can uplift the business to a certain height that will give competitive advantage over the competitors.
The institution should encourage the bright business talented ones to post them to IT and they should take this period as challenge. After his proper training and involvement, he could turn into a genius and an asset to the organization. He can understand the beauty of the products, constrain and advantage of the system. If they are assured to get their upgradation in due time, their contribution will be remarkably visible and it will pave the way to attract the other business people to come to IT team as contributor, only then the IT will get synergy.