IT THE NEXT FIVE YEARS

IT: The Next Five Years

IT: The Next Five Years

Task 1: Methods of Enquiry

Introduction

Information technology (IT) can play a major role in improving efficiency and effectiveness in logistics processes. Through these improvements IT can provide a competitive advantage to both users and providers of logistics services.

Need for an information system strategy: Due to the multitude of technological developments over the past two decades many areas within an organization can now take advantage of cheap user-friendly processing power. Information needs of users have increased and can be met in many different ways.

To prevent the proliferation of unique independent information systems developing within an organization, an overall information system strategy needs to be considered. IS needs an effective strategic plan Because IS consumes a portion of the organization's finite resources.

IS must accommodated rapid technological changes. IS must enable the business to function effectively. Therefore, IS strategy will ensure that IS will cost effectively deliver strategic systems.

Aims of the IS strategic plan: Clearly identify where IS is going within the organization therefore avoiding the dangers of taking actions that do not contribute to the overall mission provide a formalized set of benchmarks so that progress of the plan can be monitored. (Acs, Z.J., and D.P. Audretsch. 1990, 45-76)

Information System Strategy

The information system strategy is derived from the business strategy which itself is evolved from the strategies of all the sub-systems. Once an information strategy has been decided upon EG. Providing a better service or information to the customers about organization products, then a tactical plan for setting up the system can be devised. This will include, where it will be located, what hardware and software will be used, what training is required.

Although it is necessary to consider the information sub-system as an integral part of the overall business system, it is also important to consider it in its own right. That is, the information sub-system must be concerned with new techniques and technologies, which could benefit the organization.

All business strategies must be responsive to the external environment. Most of the companies are enjoying the advantages of IT in the implementation and acquiring the strategic goals, State Street Corporation is one of them. (Acs, Z.J., and D.P. Audretsch. 1990, 45-76)

The basic strategy of the Company is to serve as the hub of money and information circuit generated by security trades. This is the strategy, which differentiate state Street Corporation from its competitors. For the purpose the company needed a global information system to provide better and easy communication between the branches in different countries.

Founded as a bank in 1792 in Boston, Massachusetts, State Street today offers a broad and flexible product line, leading-edge technology, and 21000 employees focused on providing our clients with state-of-the-art service, anywhere, in any currency. With $6.2 trillion in assets under custody and $763 billion in assets under management, the Company has focus, experience and Information technology to support the daily needs of its customers and the beneficiaries and shareholders they ...