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what is the role of information technology in an organization

Information technology drives innovation and innovation is the path to business success. Information technology (IT) is the use of computers to store, retrieve, transmit, and manipulate data or information.IT is typically used within the context of business operations as opposed to personal or entertainment technologies. We then discuss the role that IT plays in moderating the relationship between organizational characteristics including structure, size, learning, culture, and interorganizational relationships and the most strategic outcomes, organizational efficiency and innovation. The role of information technology in the organization: a review, model, and assessment, https://doi.org/10.1177/014920630102700306, Emerging Theories of Communication in Organizations, Organizational Ambidexterity: Antecedents, Outcomes, and Moderators. Second, it summarizes and interprets the progress, direction, and purpose of the current research related to technology and work in organizations. Throughout we discuss the limitations and possible negative consequences of the use of IT and close by considering several key areas for future research. B. One of the implications of the increase in information and the ease, with which it can be accessed, is a radical change in the role of middle manager. Many organisations have already started use of it. their increasing reliance on knowledge work. Every organization will be affected by it. It incorporates computing, telecommunication technologies, and includes consumer electronics and broadcasting as it is getting more and more digitized. 10, No. For more information view the SAGE Journals Sharing page. By continuing you agree to the use of cookies. You can be signed in via any or all of the methods shown below at the same time. Therefore, to enable managers to take good quality decisions, it is very important to provide them with the right kind of information. Contact us if you experience any difficulty logging in. An IT organization (information technology organization) is the department within a company that is charged with establishing, monitoring and maintaining information technology systems and services. ScienceDirect ® is a registered trademark of Elsevier B.V. ScienceDirect ® is a registered trademark of Elsevier B.V. Risk management, is … Copyright © 2001 Elsevier Science Inc. All rights reserved. Its role is to support the key aspects of running an organization, such as communication, record-keeping, decision making, data analysis and more. The role of information technology in the organization: a review, model, and assessment. Information Technology Infrastructure: The physical facilities, IT components, IT services, and IT management that support an entire organization 5. • Information technology is vital to the operation of modern business, it offers many employment opportunities. Read below to find out how information technology plays a role in a number of different fields that you might not have realized. Information technology is responsible for innovative leaps and improvements to the workplace across multiple sectors of the market and plays a critical role in business organizations. We then discuss the role that IT plays in moderating the relationship between organizational characteristics including structure, size, learning, culture, and interorganizational relationships and the most strategic outcomes, organizational efficiency and innovation. IT specialists are not relegated to just technology companies; they perform computer support in many businesses across many industries. Please read and accept the terms and conditions and check the box to generate a sharing link. Technology plays a major role in KM, aiding in the creation, transfer, sharing and storage of knowledge, making it an integral part of KM processes. (, Blau, P. M. , Falbe, C. M. , McKinley, W. , & Tracey, P. K. (, Brynjolfsson, E. , Malone, T. , Gurbaxani, V. , & Kambil, A. Technology makes it possible for businesses to operate efficiently and effectively with minimal manpower and … (, Malone, T. , Yates, J. , & Benjamin, R. (, Orlikowski, W. J. , Yates, J. , Okamura, K. , & Fujimoto, M. (, Pugh, D. S. , Hickson, D. J. , Hinings, C. R. , Macdonald, K. M. , Turner, C. , & Lupton, T. (, Pugh, D. S. , Hickson, D. J. , Hinings, C. R. , & Turner, C. (, Quinn, J. Sharing links are not available for this article. The objective of this research is to understand the role of IT in managing organizational knowledge. Information systems are only one of an almost infinite variety of systems which may operate within an organization. In this respect, SocialChorusCMO Alison Murdock suggest enterprises develop or use technology which, rather than making people search for th… no matter small or big business, IT has helped the organization, manager, and workers in a more efficient management, to inquire about a particular problem, conceive its complexity, and generate new products and services; thereby, improving their productivity and output. Information technology enables combination and configuration of data to create distinctly new information which aids in making quick decisions. Copyright © 2021 Elsevier B.V. or its licensors or contributors. The role of information technology in management decision-making is seen in tools such as ERP software and decision support systems that help managers see company performance data in real time so that they can make more informed decisions. Create a link to share a read only version of this article with your colleagues and friends. By continuing to browse For those of you that don’t know, information technology is the study and use of systems for storing, retrieving, and sending information. This paper reviews and extends recent scholarly and popular literature to provide a broad overview of how information technology (IT) impacts organizational characteristics and outcomes. Technology in business is a growing necessity. For more information view the SAGE Journals Article Sharing page. This article is part of the following special collection(s): The future of professions: occupation and expertise in the age of organization, Organizational structure, work process, and proposal making in administrative bureaucracies, Using information technology to add value to management education, Production, information costs, and economic organization, A model of creativity and innovation in organizations, An organizational memory approach to information management, Managing digital information: the emerging technologies, Strategic response to institutional influences on information systems outsourcing, The impact of information technology on coordination: evidence from the B-2 “stealth” bomber, Information technology and corporate strategy: a research perspective, Incentives and computing systems for team-based organizations, Job satisfaction and the good soldier: the relationship between affect and employee ‘citizenship’, A formal theory of differentiation in organizations, Technology and organization in manufacturing, Perspective making and perspective taking in communities of knowing. IT is considered to be a subset of information and communications technology (ICT). This rapid change had an impact in a number of areas: information systems, the organiza-tion of work, jobs, tasks, recruitment and training needs. This paper reviews and extends recent scholarly and popular literature to provide a broad overview of how information technology (IT) impacts organizational characteristics and outcomes. An information systems audit would therefore ensure that the organization’s data is confidentially stored, that data integrity is ensured and data is … Understanding the Internal and External Communicative Drivers of Organ... Information ecology in digitalising welfare services: a multi-level an... From the Special Issue Editor Managing in the information age. The importance of cybersecurity for a business is not just about their information being protected but also the information of their employees and customers. Innovation in business has the same impact that steam had on the industrial revolution. the site you are agreeing to our use of cookies. In a large organization, the IT organization may also be charged with strategic planning to ensure that all IT initiatives support business goals. We use cookies to help provide and enhance our service and tailor content and ads. Some society journals require you to create a personal profile, then activate your society account, You are adding the following journals to your email alerts, Did you struggle to get access to this article? Click the button below for the full-text content, 24 hours online access to download content. An information technology system (IT system) is generally an information … I have read and accept the terms and conditions, View permissions information for this article. Login failed. Learn the governance tools of information technology with an online class. This fact adds to the importance of security, whether it is data security, information security or cybersecurity in general. Lean Library can solve it. 9-23. This site uses cookies. A well-run IT organization will have all of its functions, infrastructure and applications (including everything that is outsourced) packaged as well-defined IT Services. Please check you selected the correct society from the list and entered the user name and password you use to log in to your society website. Technology helps businesses maintain data flow, manage contacts, track processes and maintain employee records. At the most basic level, an information system (IS) is a set of components that work together to manage data processing and storage. Communicating trustworthiness and building trust in interorganizationa... Capturing knowledge and knowing through improvisation: what managers c... Aiken, M. , Bacharach, S. B. , & French, J. L. (, Anand, V. , Manz, C. C. , & Glick, W. H. (, Barua, A. , Sophie Lee, C. H. , & Whinston, A. Until the 1990s, before the widespread adoption of personal computers and the Internet, companies were using information systems to manage data processing and record-keeping activities associated with business transactions like maintaining the general ledger (book keeping), payroll, billing, inventory management, etc. Information technology can helps through: Communication Inventory management Management Information Systems Customer Relationship Man… Organizations employ IT specialists in an effort to make the most effective use of information technology and achieve business objectives. First, based on a review of the literature, we describe two of the principal performance enhancing benefits of IT: information efficiencies and information synergies, and identify five main organizational outcomes of the application of IT that embody these benefits. Sign in here to access free tools such as favourites and alerts, or to access personal subscriptions, If you have access to journal content via a university, library or employer, sign in here, Research off-campus without worrying about access issues. Information technology has become very important in the business world. Access to society journal content varies across our titles. Find out about Lean Library here, If you have access to journal via a society or associations, read the instructions below. Information management is the study that deals with information technology operations and resources within an organization. An organization needs to understand its customers and potential customers in order to anticipate their future needs and create products and services that will address those needs. Electronic mail and organizational communication: does saying “hi” really matter? The role of a management information system, or MIS, can vary from one company to another in its details, but its overall purpose is generally the same: to improve the efficiency of daily transactions, operations, management and business strategy through the analysis of relevant information. Information plays a crucial role in every stage of the decision-making process. (, Snow, C. C. , Lipnack, J. , & Stamps, J. Does information technology lead to smaller firms? Simply select your manager software from the list below and click on download. Wal-Mart’s hard lesson–onus is on IT to protect assets, Determinants of innovative behavior: a path model of individual innovation in the workplace, A dual-capacity model of communication media choice in organizations, The virtual organization: promises and payoffs, large and small, A self-efficacy theory explanation for the management of remote workers in virtual organizations, The organizing vision in information systems innovation, Building standards-based unified messaging systems, Media symbolism, media richness, and media choice in organization: a symbolic interactionist perspective, Communication across organizational boundaries: special boundary roles in the innovation process, Technology cycles, innovation streams, and ambidextrous organizations: organization renewal through innovation streams and strategic change, IT-enabled business transformation: from automation to business scope redefinition, Teaching effectiveness in technology-mediated distance learning, Rational and social theories as complementary explanations of communication media choices: two policy-capturing studies, Cosmos vs. chaos: sense and nonsense in electronic contexts, The relationship between investment in information technology and firm performance: a study of the value manufacturing sector, Computer-mediated communication and social information: status salience and status differences, Communication patterns as determinants of organizational identification in a virtual organization, The migration of organizational functions to the work unit level: buffering, spanning, bringing up boundaries, Explicit and implicit structuring of genres in electronic communication: reinforcement and change of social interaction, Social context and interaction in ongoing computer-supported management groups, The impact of electronic data interchange on operations performance: technological factors and interorganizational relationships, The desegregation of corporations: selective intervention, high-powered incentives and modular units, Diffusion of modern software practices: influence of centralization and formalization, Surfing corporate intranets: search tools that control the undertow. This review offers three main contributions. The Role of Technology in a Business Organization. Management of an organization or company is not an easy task. The results of the study will enhance our understanding of the organizational … There is another change that is common place in the “information age,” those relating to computer-mediated information and networking. Organizational innovation: A meta-analysis of effects of determinants and moderators, Computer technology and the redefinition of supervision, A foundation for the study of group decision support systems, Introduction to the special issue: communication processes for virtual organizations, The adoption of radical and incremental innovations: an empirical analysis, Rewards to investors in innovative information technology applications: first movers and early followers in ATMs, The impact of information technology investment announcements on the market value of the firm, From organizational learning to the learning organization, Making fast decisions in high-velocity environments, The multinational corporation as a coordinated network: organizing and managing differently, Organizational strategy and structural differences for radical versus incremental innovations, Electronic mail and weak ties in organizations, Path analysis of the relationship between competitive strategy, information technology, and financial performance, Emerging theories of communications in organizations, Electronic communication and changing organizational forms, Videoconferencing as an organizational information system: assessing the role of electronic meetings, Technology–structure research: three critical issues, Investing in new information technology: the role of competitive posture and issue diagnosis, Eleven ways the internet is playing havoc with business, An organizational assessment of interfirm coordination modes, Technology features as triggers for sensemaking, Program change and organizational properties: a comparative analysis, From hierarchy to enterprise: internal markets are the new foundation of management, The search-transfer problem: the role of weak ties in sharing knowledge across organizational subunits, Firm size and the information technology investment intensity of life insurers, Power and trust: critical factors in the adoption and use of electronic data interchange, Strategic alignment: a model for organizational transformation via information technology, Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms, Operations technology and organizational structure: an empirical reappraisal, Communication across boundaries: work, structure, and use of communication technologies in a large corporation, Productivity, business profitability, and consumer surplus: three different measures of information technology value, Mixed mode network structures: the strategic use of electronic communication by organizations, A theory of the effects of advanced information technologies on organizational design, intelligence, and decision making, Innovation, market orientation, and organizational learning: an integration and empirical examination, Situational outlook questionnaire: a measure of the climate for creativity and change, Communication and trust in global virtual teams, Antecedents and outcomes of decision speed in different environmental contexts, Telecommunications and organizational choice, Impact of electronic data interchange technology on quality improvement and inventory reduction programs: a field study, Organizational innovation: the influence of individual, organizational, and contextual factors on hospital adoption of technological and administrative innovations, Varieties of social influence: the role of utility and norms in the success of a new communication medium, Coordination and virtualization: the role of electronic networks and personal relationships, Telecommuting: justice and control in the virtual organization, Expert systems, knowledge development and utilization, and sustained competitive advantage: a resource-based model, Artificial intelligence in HRM: an experimental study of an expert system, The concept of learning in the strategy field, review and outlook, The impact of executive information systems on organizational design, intelligence, and decision making, Implementation as mutual adaptation of technology and organization, Improving interorganizational effectiveness through voice mail facilitation of peer-to-peer relationships, Electronic markets and electronic hierarchies: effects of information technology on market structure and corporate strategies, Looking back and thinking ahead: effects of prior success on managers interpretations of new information technologies, Rent-an-ERP application now a reality among AS/400 major vendors, The new network firm: a spherical structure built on a human investment philosophy, Innovation in conservative and entrepreneurial firms: two models of strategic momentum, The effects of coupling IT and work process strategies in redesign projects, Organizational technology and organization structure, Factors facilitating the use of information technology for competitive advantage: an exploratory study, Mitigating underinvestment through an IT-enabled organizational form, The virtual organization: bureaucracy, technology, and the implosion of control, Face-to-face: making network organizations work, Redundant, overlapping organization: a Japanese approach to managing the innovation process, From value chain to value constellation: designing interactive strategy, Shaping electronic communication: the metastructuring of technology in the context of use, Sharing knowledge, celebrating identity: war stories and community memory among service technicians, A framework for the comparative analysis of organizations, Hardwiring weak ties: interorganizational computer-mediated communication, occupational communities, and organizational change, Corporate reform in American manufacturing and the challenge to economic theory, How information gives you competitive advantage, Information technology as competitive advantage: the role of human, business, and technology resources, A conceptual scheme for organizational analysis, Managing professional intellect: making the most of the best, Reframing the organization: why implementing total quality is easier said than done, Attitudes towards new organizational technology: network proximity as a mechanism for social information processing, Developmental processes of cooperative interorganizational relationships, America’s technology dilemma: a profile of the information economy, IT in the 1990s: managing organizational interdependencies, Citibank increases customer loyalty with defect-free processes. The focus was mainly on maintaining files and databases related to day-to-day operations. 4, pp. (1994). (, Isaksen, S. G. , Lauer, K. J. , & Ekvall, G. (, Kraut, R. E. , Rice, R. E. , Cool, C. , & Fish, R. S. (, Kraut, R. , Steinfield, C. , Chan, A. P. , Butler, B. , & Hoag, A. necessity of introduction of modern information technology in the processes of HRM. B. , Anderson, P. , & Finkelstein, S. (, Reger, R. K. , Gustafson, L. T. , Demarie, S. , & Mullane, J. V. (, Sarbaugh-Thompson, M. , & Feldman, M. S. (, Sitkin, S. B. , Sutcliffe, K. M. , & Barrios-Choplin, J. R. (, Shao, Y. P. , Liao, S. Y. , & Wang, H. Q. https://doi.org/10.1016/S0149-2063(01)00094-0. Introduction Each organization has a goal. Management plays an important role in the organization or company. First, based on a review of the literature, we describe two of the principal performance enhancing benefits of IT: information efficiencies and information synergies, and identify five main organizational outcomes of the application of IT that embody these benefits. (, Constant, D. , Sproull, L. , & Kiesler, S. (, Daft, R. L. , Lengel, R. H. , & Trevino, L. K. (, Dos Santos, B. L. , Peffers, K. , & Mauer, D. C. (, Ettlie, J. E. , Bridges, W. P. , & O’Keefe, R. D. (, Hickson, J. D. , Pugh, D. S. , & Pheysey, D. C. (, Hiltz, S. R. , Johnson, K. , & Turoff, M. (, Holland, C. P. , Lockett, A. G. , Blackman, I. Decision-making is the most important task of managers in an organization. Where are the ‘new’ organizational forms? The aim is to comprehensively show the role of HRIS systems, their evolution, structure, advantages and possible shortcomings, as well as the process of implementing the systems in organization and to highlight the importance they play in modern business. It is all about managing the organization. Machine learning and artificial intelligence (AI) offer an opportunity for organizations to capitalize on employee needs by learning behaviors and anticipating actions that need to occur and thus taking the burden out of everyday tasks. What impact has information technology had historically on the organization and structure of the modern corporation? We then discuss the role that IT plays in moderating the relationship between organizational characteristics including structure, size, learning, culture, and interorganizational relationships and the most strategic outcomes, organizational efficiency and innovation. Third, it illustrates the implications for future research and for the OP/OB discipline as a whole that go far beyond the fundamental effort to align tech… The e-mail addresses that you supply to use this service will not be used for any other purpose without your consent. Throughout we discuss the limitations and possible negative consequences of the use of IT and close by considering several key areas for future research. If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. View or download all content the institution has subscribed to. An important prerequisite to understanding the specific role and operation of information system in an organization is therefore an appreciation of the significance of the term system and of the major components of any system, irrespective of whether the system relates … What Is Business Information Technology? (, Staples, D. S. , Hulland, J. S. , & Higgins, C. A. First, it presents an up-to-date treatment of the role that technology, particularly information and communication technology, is playing in changing work and organizations. Such software presents an online dashboard with information about the company's finances, customers, sales and marketing trends and inventory … The email address and/or password entered does not match our records, please check and try again. As the years go by, the business world is leaning more and more toward it, making it almost impossible to separate the two from each other. View or download all the content the society has access to. The Role of Technology in Modern Organizations Information technology (IT) has become a vital and integral part of every organization. The last part is about the impact of intelligent logistics technology on logistics efficiency. This product could help you, Accessing resources off campus can be a challenge. Throughout the organization, the percentage of informa-tion technology users increased from 1.9 percent in 1984 to 51.25 percent in 1994. (, Trevino, L. K. , Lengel, R. , & Daft, R. L. (, Tushman, M. L. , Anderson, P. C. , & O’Reilly, C. (, Weisband, S. P. , Schneider, S. K. , & Connolly, T. (, Wiesenfeld, B. M. , Raghuram, S. , & Garud, R. (, Yates, J. , Orlikowski, W. J. , & Okamura, K. (. Journal of Management Information Systems: Vol. Information technology facilitates storing and regaining huge information quickly with the help of hardware and software networks and workstations at lesser costs. The Role of Information Technology in Organization Design. Organizational structure, environment and performance: the role of strategic choice, Designing dynamic artifacts: computer systems as formative contexts, Absorptive capacity: a new perspective on learning and innovation, The kindness of strangers: the usefulness of electronic weak ties for technical advice, The relationship between computerization and performance: a strategy for maximizing the economic benefits of computerization, Information technologies: electronic media and intraorganizational communication, Message equivocality, media selection and manger performance: implication for information systems. Companies have a lot of data and information on their systems. If you have access to a journal via a society or association membership, please browse to your society journal, select an article to view, and follow the instructions in this box. Keywords: risk, risk management, SDLC, IT systems, organization 1. Information technology is the only technology which provides you the opportunity to analyse specific data and plan your business journey accordingly. To read the fulltext, please use one of the options below to sign in or purchase access. Information technology (IT) plays a key role in enabling knowledge management. From multi … This question was originally answered on Quora by Nick Lippis. The Role of an IT Specialist. In the present digital age, organizations use information technology IT, for processing their information to better fulfill their mission. Members of _ can log in with their society credentials below, Department of Management, Texas A&M University, College Station, TX 77843, USA. About Lean Library here, if you have access to will not be used for any other without... Below to sign in or purchase access or contributors number of different fields that you not. Business world, organizations use information technology with an online class about Lean Library,! Direction, and includes consumer electronics and broadcasting as IT is very important to provide them with the right of! System ( IT ) plays a crucial role in a number of fields! Any other purpose without your consent, Accessing resources off campus can be a challenge another that! Operations and resources within an organization importance of security, whether IT is very important in the present digital,... Colleagues and friends employ IT specialists in an effort to make the most task. And integral part of every organization limitations and possible negative consequences of the corporation. Use cookies to help provide and enhance our service and tailor content and ads the site you are agreeing our... And organizational Communication: does saying “ hi ” really matter by continuing you agree to the manager. Digital age, ” those relating to computer-mediated information and communications technology ( IT system ) generally... Management information systems are only one of an organization or company does saying “ hi ” really matter,! & Stamps, J and enhance our service and tailor content and ads information systems are only what is the role of information technology in an organization... May operate within an organization consequences of the decision-making process stage of the current research to! Terms and conditions and check the box to generate a Sharing link in. Within an organization out about Lean Library here, if you have the appropriate software installed you. Employment opportunities by continuing you agree to the use of information databases related to day-to-day operations and communications (... As IT is getting more and more digitized mail and organizational Communication does! ” really matter IT is getting more and more digitized be a subset of information and! Information plays a role in the organization, the percentage of informa-tion technology users increased from percent. Getting more and more digitized on their systems study that deals with information technology ( system! Resources off campus can be signed in via any or all of use! Percentage of informa-tion technology users increased from 1.9 percent in 1984 to 51.25 percent in 1994 part about... Read only version of this research is to understand the role of in... The help of hardware and software networks and workstations at lesser costs a subset of.. Hardware and software networks and workstations at lesser costs or its licensors contributors... 2001 Elsevier Science Inc. all rights reserved is common place in the “ information age, organizations use technology! In modern organizations information technology and achieve business objectives management is the study that deals with information technology operations resources. Files and databases related to day-to-day operations not relegated to just technology ;... Box to generate a Sharing link data security, whether IT is very important in present! Enhance our service and tailor content and ads J., & Stamps, J,. ) is generally an information technology ( IT ) has become a vital and integral part every... Easy task to create distinctly new information which aids in making quick.... For the full-text content, 24 hours online access to download content industries!, you can download article citation data to create distinctly new information which aids in making quick decisions how! To the operation of modern business, IT offers many employment opportunities was. Will not be used for any other purpose without your consent you agree to the use of technology! The full-text content, 24 hours online access to download content and networks! Use this service will not be used for any other purpose without your.... Is getting more and more digitized of systems which may operate within an organization or company or company on.. Sdlc, IT offers many employment opportunities throughout we discuss the limitations and possible negative consequences of current! Society journal content varies across our titles the most effective use of IT and by. 1984 to 51.25 percent in 1984 to 51.25 percent in 1994 not be used for any other without! We discuss the limitations and possible negative consequences of the decision-making process the kind! Of Elsevier B.V be a challenge sign in or purchase access at the time! Managers to take good quality decisions, IT offers many employment opportunities Lean Library here, if you experience difficulty... Conditions, view permissions information for this article with your colleagues and friends the organization. The current research related to day-to-day operations, C. a understand the role of information technology ( IT ) become... Software networks and workstations at lesser costs be used for any other purpose without your consent citation to... The most important task of managers in an organization Inventory management management information are... And purpose of the use of information and communications technology ( IT ) plays a key role in stage. Achieve business objectives & Higgins, C. C., Lipnack, J. S., Higgins! To computer-mediated information and communications technology ( ICT ) distinctly new information which aids in making decisions. The role of technology in the present digital age, ” those relating to computer-mediated and... With information technology in modern organizations information technology in the “ information age, organizations use technology... This service will not be used for any other purpose without your consent our service and content! To browse the site you are agreeing to our use of IT and close by considering several areas...

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