Looking at the current situation concerned with the implementation of the IT technologies throughout the companies it is vital to note that the significance of such procedures inside corporations outlines, in fact, their place on the market and their effectiveness in comparison with rivals. Modern world of business is directly dependent on the use of information systems, so that to support business with ideas for effective communication within employees in a company and within customers and partners as well. In this respect the use of knowledge, collaboration, customer relationship management straightforwardly props up against the use of IT.
A versatile structure of such mechanisms for the contemporary companies presupposes weighty and highly motivated intentions of the administrations within corporations to use the newest innovative decisions for the working process. Furthermore, the researchers provide every now and then newly updated versions of different information devices and supplements needful for an organization.
In this respect the tendency of IT departments and their CIOs for making innovative changes of the information systems, if needed, makes CEOs keep a strict eye on the confidence of such specific branch inside a company. Thus, the urge for newly created and implemented hardware and software balanced with the appropriate sphere of a company’s activities and the structural units of it is proved due to a strict competitive situation in the world economy of today’s post-industrial society, where the main product is considered with information.
Stated previously analysis of theoretical background does not contradict to the realities of information systems implemented in the internal framework of major companies in the world. As it was stated, the need of education concerned with IT for the personnel is a core element of the management teams within corporations. In fact, old methods of work are being immediately replaced by the new objectives. It is concerned mostly with the domains of security, effectiveness of communication realized inside a company, and points on productivity of the work process. Furthermore, the experts prove the idea of a very fast development of new high technologies, that what was new and modern yesterday and today may be nothing for tomorrow. It is reckoned with the high tempos of the scientific and technological thought in the world.
CIOs are devoted to work out every single problem considered with the information systems and their update due to the flow of operation plans within the major producers of different IT appliances, such as IBM, HP, Oracle etc. Thus, as Laudon and Laudon (2009) admit the expenditures of major international corporations for software are rather high due to rational approach toward the current strategies outlined with shares in the market.
Thus, it is known that General Motors spent $7.5 billion for purchasing and updating of new software throughout all company’s subsidiaries (Laudon & Laudon, 2009). Thereupon, even the expensiveness, for example of the ERP systems does not stop main leaders in business. Of course, such initiatives prop up against strong leadership skills of CEO and the senior management team, in particular.
The dimension of IT specialists is extremely increasing at the moment and there is no surprise, that the world business and infrastructure of it becomes more and more dependent on the use of effective information systems with straightforward direction toward communication skills development. It is emphasized with a popularity of Web 2.0 technologies and networking, on the whole. Information Resources Management Association (2001) outlines that in contemporary start of high technological perspectives there are different agreements for necessary initiatives as of successful and improved systems development.
In this case a great drive of managerial intentions to make the work process more productive and competitive is estimated by the analytics according to a proper use of IT within its branches. Suchlike position of many corporations describes also their presence in the web. Internet and social networks of both local and international format are considered to be of great importance for provision of a company’s information as for the line of products, services, and just pieces of information shared within employees and customers as well.
The personal background of CIOs plays a great role for using and controlling information systems in practice. This is why the frameworks for the IT departments are grounded on deep knowledge and experience base. Moreover, a standardized character of ERP systems and processes concerned with the implementation of information systems should obligatory contemplate the adaptation period and current peculiarities and problematic situations inside the organizational structure of a company. In practice such necessity is seen to be of great importance due to a perpetual presence of rivals’ actions toward improvements and innovations in the domain of work process.
Thus, there is no company today which wants to lag behind the competitors in the IT approach, particularly. Also the responsibility and awareness of a CEO are taken into account in today’s situation due to really high costs for exploiting information systems. As it is outlined on Australian IT news site many of the banks in Australia won the procedure of respite regarding to a periodic overhaul of IT systems. Nonetheless, the awareness of companies and structures of various kinds in making IT a significant segment of strategic design is underlined with the concernment of further steps and perspectives.
The use of databases worries today many companies in respect with the points on general protection of information and prevention of its possible leakage (Laudon & Laudon, 2009). Many modern companies urge for better security methods provided by IT and are interested in making all attempts to improve databases on a day-to-day basis. Thus, communication provided between CIO and the executives of a company should also have an appropriate grounding of the activities and interests toward their implementation throughout the company. Stan Gibson (2009) makes up his mind over the statement that above mentioned Web 2.0 tools obtain enterprise acceptance and serve as a mechanism for the company’s policy of verification.
Furthermore, as the researches of Keen (1991), Moriarty (2001), Barua et al (2007) and others are based not on the hypothetical point of view, then there are ample grounds to state the present concernment of the companies in IT and their direct use for better and successful work. Current practice presupposes the use of newly updated information systems not in all companies because of the high costs for purchasing and overhaul.
The processes of information delivery and everything which is related to it are core elements for companies’ excellent functioning in the framework of today’s flow of the business and economic elaboration. The concept of workers’ acceptance of a definite software, for example, is determined today as a mandatory feature of the contemporary workspace. Modern society is intended to be closer to the information systems.
Such idea is rather emphasized today for yesterday’s leaders in various sphere of activities, so that not to lose their positions in sharing market. The IT organization structure for a modern company is, in fact, an element which is paramount in its use and importance. Contemporary analytics tend to think that the winners in the world business dimension are supposed with the internal well-structured coordination of actions between CIOs and executives of every level in a company. Such tendency is described previously in its flow during the second half of the twentieth and since the start of the twenty-first century.
Comparison of Literature and Current Practice
When analyzing the thoughts about the organization structure of IT departments underlined by many eminent researchers and scholars in the past it is necessary to make a remark of contemporary information grounding of corporations. Literature analysis showed the intentions of the authors to evaluate current at the time and possible advantages and limitations of processes concerned with information systems implementation.
On the one hand, such trend of discussion had actually a mere extent of hypothesis and was related to less research and achievements of mankind in this sphere of technological approach. On the other hand, every piece of literature analysis is supported with statistical data of relevantly latter researches and their evaluation. In this respect the correlation of literature analysis between the contemporary situation concerned with the issue of discussion and the current practice of information systems has many features in common. Thus, as Burns and Stalker (1961) previously stated, for more cooperation and increase of effectiveness and productivity there should be an appropriate way to provide such communication.
Now it is seen that IT technologies are straightforwardly used in companies and really promote better readings of productivity in comparison with the experience of the past. Keen (1991) outlining the cooperative spirits inside a company insisted on the provision of direct relationships between the IT department with its CIO, other executives, and the staff on the whole. In reality suchlike trend in corporations provides strong background for cultural and organizational traditions and peculiarities in companies, which serve to be effective for the spread of further areas of influence. The IT prospects should be grounded on the appropriate perfect conditions of organizational structure. Mintzberg (1979) predicted such necessity for today’s business in five configurations, so that to outline, that modern companies should build their IT potential on the organizational framework.
To sum up, the research was dedicated toward the IT technologies in a framework of modern times, so that to depict and point out what was learnt earlier and what is used today in terms of information systems. The points on the role of CIO and their subordinates along with the influence of CEO go in a separate line of problem evaluation. Thus, the analysis of literature dedicated to different views as of organization structure and IT approach is seen to be valuable in the research.
Moreover, the significance of current practice serves as a fundamental approach in order to prove the ideas of various researchers in previous times considered with the flow of information technologies development going together with business relations inside companies. In fact, a company with well-structured organization is a great background for the implementation of IT technologies and for sharing technological experience inside the company’s IT department.
Current business environment cannot be recognized without the use of high technologies in the prospects of the scientific progress. That is why the research is built on the ideas maintained earlier and their evaluation for contemporary IT organization structure. All pros and cons are counted to outline the problem.
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