Decision Making Process - Impact on Increase Use of IT

What impact is the increasing use of information technology (IT) having on organizations?

Ans:

The increasing use of information technology (IT) is dramatically affecting how organizations operate and how they interface with their environments. In terms of internal organizational aspects, IT has had the following effects:

•       Individuals and teams can communicate more easily and can electronically share information.

•       The organization can operate with fewer middle managers.

•       Organizations can be flattened and operate with fewer levels of management.

•       The speed of decision making can be increased.

•       Coordination and control among decision makers can be increased.

        In terms of relationships with their external environments, IT has helped organizations manage more effectively in the following ways:

•       IT helps with customer relationship management by providing information regarding customer needs, preferences, and satisfactions.

•       IT helps organizations in all aspects of supply chain management.

•       IT helps organizations to monitor outsourcing and other business contracts.

Source: Management, 11th Edition - John R. Schermerhorn