IT for Creating Value Essay Example | Topics and Well Written Essays - 1000 words

IT for Creating Value - Essay Example This paper shows how information technology plays an important role in creating business value. Competitive advantage through innovation At the present, organizations could be able to get a competitive advantage by renovating their business processes through information technology based arrangements. In fact, the new technology based systems are more effective and accurate for the management of business issues and aspects. In addition, the information technology based system offer an excellent support for effective business processing and operational management. Moreover, the innovation brought by new technology based systems offers superior competitive edge to businesses. In this scenario, businesses are able to market, sell, and take decision by means of these IT based systems (Ramkrishnan R, 2004). Financial Value In more formal words, a primary description of the concept of value could be that each economic actor desires to increase their business profits. Thus, in this scenario, the value is recognized as financial worth, could be built by increasing profits. Consequently increasing the business value through information technology based could be determined by augmenting the business earnings. In addition, increasing the business investment in information technology offers an excellent support to the business as a result it increases business value and performance. Moreover, the use of information technology allows the organizations to reduce overall corporate manual processing operations that also leads to better performance (Stahl, 2002). Enhancing Business Value The new technology based systems also offer an excellent support for business decision making. These decisions are foundational upon the values and decisions about the IT are no immunity to this rule. Though, the most important and valuable thing in company is money or economic value. However, yet in business decisions a lot of values apart from money perform a vital role and indeed yet financia l value could typically be assessed to have a moral side to it. The same can be stated for IT. In addition, the design and use of information technology are extremely reliant upon on fundamental value that could be of an economic or moral or some other nature. It is able to be stated that the diverse values are exchangeable to a confident degree. Moreover, the complexity about the decisions foundational on values comes into view when there are numerous values that have to be recognized however these values do not provide similar results that is when values approach in conflict. In this scenario, one usual reason of clash happens between financial and moral values. Though, it is not seen that moral and financial values conflict unequivocally. Typically these issues could be stated as conflicts between moral or between financial values also (Prasad, 2008). References Prasad, A. (2008). Information Technology and Business Value in Developing Economics: A Study of Intangible Benefits of Information Technology Investments in Fiji. The Electronic Journal of Information Systems in Developing Countries, Volume 34 Issue 2, pp. 1-11. Ramkrishnan R, S. (2004). Information Technology: Value Creator or Commodity? Retrieved October 27, 2011, from http://knowledge.wharton.upenn.edu/article.cfm?articleid=948 Stahl, B. C. (2002). The Moral and Business Value of Information Technology. Retrieved October 26, 2011, from http://www.cse.dmu.ac.uk/~bstahl/publications/2002_Moral_and_Business_Value.pdf Sward, D. (2011).