Strategic value of information systems Essay Example | Topics and Well Written Essays - 2000 words

Strategic value of information systems - Essay Example The ultimate goal of Information Systems Management is to assimilate the utilization of information technology into business models and business processes to scrutinize its potential to attain business goals. Todays in the scenario of globalize market, which is full of large enterprises; the competition is getting tougher and tougher. As a result, IT departments are ponderous to become more aligned with business. There are lot of models for calculating the profitability with the incorporation of information technology but they all are trying to explore the conjunction between IT investments and the company's financial result .The process of introducing and use of new information technology in organizations is based on the skills and knowledge of experts who has the ability to master a series of interdisciplinary skills. Other factors like organizing and managing human resources, long term planning, employment, training, motivation, encouraging creative work and proper stimulating are also significant. Psycho-sociological and managing processes also depend on the working conditions, type of work and area of work, availability of human resources and skills available, working atmosphere, and other factors. It is imperative that the development of information technology department is the responsibility of information technology management and should offer the effective ways and leadership qualities to manage the human resources efficiently. Following are the issues that executives must consider, examine and evaluate while making decisions regarding the strategic value of information systems. Business And Knowledge Management Organizations are facing ever-increasing challenges, brought on by marketplace pressures or the nature of the workplace. Many organizations are now looking to knowledge management to address these challenges. Such initiatives are often started with the development of a knowledge management strategy. To be successful, a KM strategy must denominate the basic necessities and issues within the organization, and furnish the architecture for incorporating all these factors. Every organization has a specific environment and different set of requirements, signified by various factors like size of organization, its aim and activities of the organization, overall strategic direction, accessibility of resources, geographical situations and many others. As a result knowledge management strategies follow either top-down or bottom up approach for the organizations. This main emphasis of these strategies is to provide the architecture for the selection and prioritization of individual projects and activities. Again this strategic focus depend on the number of factors that include: Organizational strategy documents, such as the corporate plan or annual report Involvement of Senior management Results of other strategic research projects, such as staff satisfaction surveys. External market research. 2. Psychological Factors According to psychological aspect factors that leveraged factors of IT development are as follows: Professional contributions of each individual Level of personal professional development and satisfaction at work Communication whether formal or informal, also plays significant role in the development of