The Role of the Information Technology in the Organization Research Paper

The Role of the Information Technology in the Organization - Research Paper Example Information systems are applied at all business sizes, i.e. from multinational corporations to small businesses. Some of the roles played by information technology in organizational development include productivity enhancement, improvement in profitability, cost reduction, inventory management and the establishment of a competitive advantage.   Information technology (IT) is made up of a wide array of communication and media devices that link information systems and people. Information systems encompass software programs and databases. Such technologies include voicemail, video conferencing and e-mail among others. IT consists of all forms of technicalities used to create, store, utilize and exchange information in various forms. The process entails processing, acquiring, storing and distributing information. It also includes manipulation, distribution, and processing of information. Information has formed the perfect replacement of the conventional methods of information dissemina tion at an organizational level. The innovative technological tools that have been brought in the organizational management through current technology include e-commerce and computers. Information technology is viewed as the most convenient and effective factor for performance improvement in the business world. Technology allows organizations to work more efficiently and improve their productivity. Most organizations have fully become dependent on information systems for performing their functions.   The most prominent role of information systems in an organizational setting is communication. Information devices act as a medium of verbal interaction between employees, staff, and suppliers (MacKechnie par. 1). Communication role of information technology is largely a product of the Internet whereby the organizational workforce interacts and communicates through e-mail. However, the recent advancement in information dissemination has led to the application of live chat systems and v ideo conferencing systems. Efficient communication ensures that the necessary information is shared among employees as well as external stakeholders. Marketing is also enhanced through the application of information systems whereby the geographical barrier has been eliminated. Organizational Role. Most organizations are currently undergoing the complex transformation. Many industries are changing the culture of mass production through large, vertically-integrated and hierarchically-organized production forms into flexible forms of both internal and external organization.