CHAPTER 11: APPLICATION OF IT
APPLICATIONS OF IT
The need for a strategic perspective: new technologies
• Early adopters get ahead of competitors:
- can learn how best to deploy new technologies before their rivals.
- enables them to potentially increase market share.
• Improve performance:
- New technologies may lead to a better use of resources
- Create a better understanding of customer needs
• Quantity of data available:
- Use to exploit opportunities
- Analyse and store the data they have
• Good for stakeholders:
- May boost for commercial entities
- Reduce cost/improve efficiencies for NFP organisations.
SMART TECHNOLOGY, MOBILE TECHNOLOGIES AND CLOUD COMPUTING
Smart technology
An abbreviation of ‘self-monitoring, analysis and reporting technology’. Usually refers
to any technology that is able to connect to a network to share and interact with its
user and other smart devices.
Can be categorized into 3 main groups:
• Smart devices – automated and can be programmed by the user without
network connectivity.
• Smart connected devices – controlled remotely by using network
connectivity such as Wi-Fi or Bluetooth.
• Internet of Things (IoT) – physical devices with internet activity enabling
them to interact with many other devices via internet as well as remote
control by user.
ROBOTICS AND ARTIFICIAL INTELLIGENCE (AI)
Process automation: The use of digital technology to perform a business process or
function.
Robotic Process Automation (RPA): software, acting as a ‘robot’ captures and
interprets existing IT applications to enable transaction processing and data
manipulation.
Benefits or RPA
• Faster handling time – a higher volume of transactions can be processed.
• Reduced errors – no longer subject to human error.
• Reduced costs – number of staff need to be employed may be reduced
• Staff focus on value-adding work – humans can focus on more complex, value-
adding tasks.
Artificial Intelligence
The ability of a machine to perform cognitive functions we associate with human
minds, such as perceiving, learning, reasoning and problem solving and acting in a
way that we would consider smart.
Applications of AI:
• Transportation
• Route optimization
• Personalized recommendations
Ethical concerns of using AI:
• Unemployment
• Wealth inequality
• Security
• Mistakes
BIG DATA
A popular term used to describe the exponential growth and availability of data, both
structured and unstructured.
The Vs of big data
• Volume – the vast volume of data generated
• Veracity – concerns the truthfulness of captured data
• Velocity – the speed at which ‘real time’ data is being streamed into the
organization
• Variety – the diversity of source of data
DATA FOR DECISION-MAKING
New product development, marketing and pricing
New product development decisions:
• What are the potential costs of launching new products?
• What are the potential benefits of launching new products?
• Will new product development help organisations achieve its onjective?
INFORMATION SYSTEM CONTROLS FROM A STRATEGIC PERSPECTIVE
An information system consists of the systems, processes and procedures involved in
collecting, storing, processing and distributing information.
Information systems (IS) strategy: long-term plan for systems to exploit information in
order to support organizational strategies or create new strategic options.
