IT Systems Case Study

IT Systems Case Study

Introduction

Private industry has long recognized information technology's power to reduce costs. By effectively using information technology (IT), companies have increased efficiencies in their management and operations. These efficiencies often lead to an increase in the fiscal bottom line, which is a benefit for the shareholders of the corporation. The technology tools used most often encompass computer hardware, software, and networks, including the Internet.

Technology has a positive impact on the economy and productivity of organizations in the private sector. A report by McKinsey Global Institute reveals that although it is complex and varies across industries, information technology enables and contributes to economic growth (2002). Technology gains have allowed private industries to keep a competitive edge over their rivals, develop new products and services, realize substantial increases in output and productivity, and ultimately provide fiscal savings. Non profit enterprises are increasingly incorporating information technology into their operations. The impetus often comes from other nonprofits, individual donors, foundations, government requirements, and performance and accountability pressures. Those nonprofits seeking to grow and expand have taken a cue from private industry with the goal of achieving comparable efficiency gains and growth in support of their missions.

While there is interest from the nonprofit sector to incorporate information technology into operations, nonprofits struggle with information technology implementation, whether it is for internal operational purposes or for service delivery. The struggles that nonprofits face centre on the capacity of the organization or the ability or lack of ability of the organization to integrate technology into their organizations as well as the lack of support from the IT sector (Hitt & Brynjolfsson, 1997).

Discussion

Specific challenges faced by organizations

Investment in internal human capital remains a challenge. Universities face three key barriers related to the human capital investment. The first two barriers are related to staff members of the organization. First, they are not provided enough time to work with technology, and second, they are often unwilling to use technology. Finally, unrelated to general staff, often information technology professionals are uninterested in working in the universities (Kahn, 2000).

Barrier one: Staff time

There are three main issue areas related to staff time: staff training, project management, and information management. First, regarding staff training, most organizations provide little or no time for staff to receive training, and yet most feel that the lack of staff training and expertise are key barriers to successful information technology implementation. The ability to experience and learn through failure is limited and often education is provided only as the staff members work on specific projects. They are also not provided enough formal education or training on information technology thus leaving gaps in their skill set.

Second, regarding project management, many organizations provide little if any time for management or development and implementation of key projects for an organization. Typically, there is no one assigned to lead a project, and if there is someone assigned, they are not provided enough time to truly manage the project. Often, these projects are doomed to failure as no one is ...