The Widening Scope Of Information Systems Information Technology Essay

In this literature review work has been carried out in my chosen field by concerning different books, electronic journals and other web resources to conduct this literature review.

Introduction to Information Technology

The term information technology is widely used to describe an industry; in reality by information technology I mean the use of different hardware and software for protecting, assembling, utilizing and controlling information. The use of computers and different software for information management is also refers as “MIS”, management information system or just information system in different companies. Large company’s MIS are responsible to carry out following activities:-

Storing information

Protecting information

Processing the information

Transmitting the information as necessary

Retrieving information as necessary

To accomplish its complex task Information technology department is required to utilize computers, computers, servers, database management systems, and cryptography. The modern IT department would be comprised of several System Administrators, Database Administrators and at least one Information Technology Manager. Normally the whole team is suppose to report to the Chief Information Officer (CIO).

Source : MSc Information Systems& Computing. Latest Theory Meets Latest Technology. www.Brunel.ac.uk/IS

The widening scope of information systems

According to Lauden & Laudon,( 2004) The widening scope of information system is the new relationship between organization and information system, there is a growing interdependence between business strategy, rules and procedures, on one hand and information system software, hardware, database and telecommunications on another. A change in any of these components often requires change in other component. These relationships become critical when management plan for future. What a business would like to do five years often depends on what its systems will be able to do. Increasing market share becoming high-quality or low -cost procedure, developing new procedures and increasing employee productivity depends more on the kinds and quality of information systems in the organization.

A second change in relationship between information system and organization results from the growing reach and scope of system projects and application. Building and managing system today involves a much larger part of the organization than it did in the past .as the firm become more like “digital firms” the system enterprise extends to customer, vendors and even industry competitors. where early systems produced largely technical changes that effected only a few people in the firm .contemporary systems have been bringing about managerial changes (who has what information about whom when, and how often)and institutional “core” changes (what product and services are produces ,under what conditions ,and by whom)as companies move towards digital firm organization ,nearly all the firms managers and employees as Ill as customers and vendors-participates in a variety of firm systems tied together by a digital information web. for instance ,what a customer does on a firms web site can trigger an employee to make an on the spot pricing decision or alert a firms suppliers of potential “stock out” situations.

Approaches of Technology

Lauden & Laudon,( 2004) has presented two approaches to describe IT systems ;-

Technological approach: the technological approach to information system emphasizes mathematically, based models to study information system, as Ill as the physical technology and formal capabilities of these systems. The disciplines that contribute to the technical approach are computer science, management science and operations research. Computer science is concerned with establishing theories of computability, methods of efficient data storage and access .management science emphasizes the development of models for decisions making and management practice. Operations research focuses .on mathematical techniques for optimizing selected parameters of organization such as transportation, inventory control and transaction cost.

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Behavioral approach: an important part of the information systems field is concerned with behavioral issues that arise in the development and long term maintains of information systems. Issues such as strategic business integration, design, implementation, utilization and management cannot be explored usefully with the method used in the technical approach .other behavioral disciplines contribute important concepts and method. I-E sociologist study information system with eye towards how groups and organization shape the development of system and also how system affects the individuals groups and organizations. Psychological study information systems with an interest in how humans decision maker perceive and use formal information. Economist study information system with an interest I what impact system have on control and cost structures within the firm and within markets. (Lauden & Laudon)

The behavioral approach does not ignore technology .indeed information system technology is often the stimulus for a behavioral problem or issue .but the focus of this approach is generally not on technical solution .instead in concentrates on change in attitude ,management and organization policy and behavior .

IT Production & Global market

Information technology is software producing sector, hence it possess greater potential for brightening up the economy of any country. It is evident fact that IT has a unique cost structure, I all are aware of the fact that producing information is an expensive act but reproducing information in extremely inexpensive. This leads towards attaining extraordinary economies of scale and increasing returns to investment. Tremendous export opportunity exists in world global market for this labor intensive industry’s products. This industry has rapidly found a place in global market and progressively increasing its share. From 1997 the information technology has expanded its market has significantly. International penetration of software exports is expected to increase by 200 percent over the coming few years. Offshore tailored applications and packaged applications to the United States and Europe will be influential factors that supported and lead this growth, US’s market place possess more than half of the consulting chances. Due to soft nature of domestic markets, several IT firms seek to get place in international market.

Presently in the Middle East, most IT spending goes to Enterprise Resource Planning (ERP) (about 60-70%). Somewhere between $ 100-200 million is also spent by GCC countries alone a year on ERP. Moreover, Customer Relationship Management (CRM) solutions have become an important and critical success factor in this business CRM applications are expected to witness a sharp rise in the next few years, especially among banking, telecomm, and utilities sectors (American Chamber 2000). There exist a large room for capitalist and opportunist to take considerable advantage of current situation. It is also counted among very important industries in the Indian economy. The IT industry of India has registered huge growth in recent years. India’s IT industry grew from 150 million US Dollars in 1990-1991 to a whopping 50 billion UD Dollars in 2006-2007. In the last ten years the Information Technology industry in India has grown at an average annual rate of 30%.

Source : Nagla Rizk , 2001, “Information Technology and Growth” publication of The American University in Cairo: web source: http://www.luc.edu/orgs/meea/volume4/RizkRevised.htm)