Based On The Assigned Materials, Write A Paper Answering The

Based On The Assigned Materialswrite A Paper Answering The Following

Based on the assigned materials, write a paper answering the following questions. How can an IT system initially help a company advance but later become a requirement for that business to stay competitive? You may want to consider weaving all or some of the Case Learning Outcomes into your response by addressing the following: Describe how information technology (IT) has brought radical changes to industry and societies. This topic can be addressed by articulating how a company from the past executed business processes without Information Technology (and especially information systems/software), then talk about how a present company uses IT and complex software systems. Describe the concept of software total cost of ownership (TOC) and its association for investment decision making.

In other words, how does a company figure out that investing in software will make it more efficient or more effective and then stay on the path? Review the software alternative of cloud computing. Why might it make sense not to host software applications locally? What benefits does cloud computing bring? What possible negative effects are there?

What does it mean to be competitive? Explain how IT/information systems might make a company competitive. What happens in companies that cause the mindset to change from implementing IT and especially software systems to become efficient, to believing that IT and information systems/software are “must-haves” to stay at par or get ahead of the competition?

Paper For Above instruction

The advent and evolution of information technology (IT) have profoundly transformed industries and societies worldwide. Historically, companies operated with manual processes—paper files, manual record-keeping, and face-to-face communication. For example, a traditional manufacturing company in the early 20th century relied on manual labor, physical inventories, and paper-based accounting systems. The introduction of IT, such as enterprise resource planning (ERP) systems, automated supply chains, and digital communication tools, revolutionized these processes by increasing efficiency, accuracy, and connectivity. Today, modern companies leverage complex information systems and software to streamline operations, analyze big data, and enable real-time decision-making, leading to a competitive edge in global markets.

Initially, IT systems serve as catalysts for organizational advancement by automating routine tasks, reducing operational costs, and enhancing information flow. Early adopters gain strategic benefits such as improved productivity, better customer service, and innovative product development. However, over time, investments in IT can become a baseline requirement—what was once a strategic advantage becomes a necessity for survival. This shift occurs because competitors also adopt similar systems, and society's expectations evolve. For example, customer expectations for digital engagement and fast service force companies to continuously update their IT infrastructure, or risk obsolescence.

The concept of total cost of ownership (TCO) is crucial in investment decisions regarding software and IT infrastructure. TCO encompasses not only the purchase or licensing costs but also ongoing expenses such as maintenance, upgrades, training, and support. Calculating TCO helps companies determine whether investing in particular software will yield long-term efficiencies or competitive advantages. A company assesses potential gains—such as increased productivity or better data analytics—against these costs to stay on a sustainable growth path. For example, shifting to cloud computing solutions may reduce hardware and maintenance expenses, making ongoing costs more predictable and potentially lower than traditional on-premises systems.

Cloud computing presents an alternative to local hosting, providing scalable, flexible, and cost-effective access to software applications and data storage. It makes sense not to host applications locally when the company seeks to reduce capital expenditure on hardware, simplify maintenance, and enhance mobility. Cloud services also offer rapid deployment, ease of scalability, and disaster recovery benefits. For instance, IBM's strategic expansion into cloud solutions underscores how cloud computing enables organizations to innovate quickly and efficiently.

Nevertheless, cloud computing has potential drawbacks, including security concerns, data privacy issues, dependency on internet connectivity, and possible vendor lock-in. Organizations must weigh these risks against the benefits. For example, sensitive customer data stored in the cloud might be vulnerable to cyberattacks if not properly secured. Moreover, reliance on external providers raises concerns about data sovereignty and compliance with regulations.

Being competitive in today’s digital economy means more than just efficient operations; it requires leveraging IT and information systems as vital tools for innovation and market differentiation. Competitive companies use IT to enhance customer experiences, optimize supply chains, and develop innovative products faster than their rivals. For example, firms that integrate big data analytics can better understand consumer preferences, tailoring marketing campaigns and product offerings accordingly.

The shift from viewing IT as a tool for efficiency to a strategic 'must-have' stems from circumstances like technological advancements, market pressures, and disruptive startups. Companies recognize that failing to adopt current technologies risks falling behind. The rise of e-commerce, mobile platforms, and social media has made digital presence essential. Firms such as Amazon revolutionized retail by integrating logistics, data analytics, and customer-centric IT systems, illustrating how technology becomes core to competitive advantage.

In conclusion, the role of IT systems evolved from enabling initial business improvements to becoming indispensable for maintaining competitive parity or gaining an edge. The ongoing digital transformation necessitates continual investment, innovation, and adaptation to new technological landscapes. Companies that understand and strategically leverage IT—through impactful investments, cloud computing, and innovative use of information systems—can sustain growth, profitability, and competitive advantage in an increasingly digital world.

References

  • Gallaugher, J. (2012). Information Systems: A Harnessing Guide to Information Technology. FlatWorld Knowledge.
  • Laudon, K., & Laudon, J. (2012). Essentials of MIS (10th ed.). Pearson.
  • IBM. (2011, November 3). IBM turns change into opportunity in North Carolina.
  • Arlin, M. (2014). Cloud computing: Benefits, risks, and recommendations. Information Systems Management, 31(2), 99-106.
  • Marston, S., Li, Z., Bandyopadhyay, S., Zhang, J., & Ghalsasi, A. (2011). Cloud computing—The business perspective. Decision Support Systems, 51(1), 176–189.
  • Selvaraj, J., & Rajaraman, V. (2018). The impact of cloud computing on business organizations. International Journal of Business and Management, 13(3), 56-69.
  • Choudhary, V., et al. (2019). Cloud computing adoption and challenges among small and medium enterprises. Information Technology & People, 32(3), 703-716.
  • Anderson, C. (2018). Digital transformation and competitive advantage: Strategic implications. Harvard Business Review.
  • Rittinghouse, J. W., & Ransome, J. F. (2016). Cloud Computing: Implementation, Management, and Security. CRC press.
  • Huang, Q., & Rust, R. T. (2021). Engaged to a Robot? The Role of AI in Service Innovation. Journal of Service Research, 24(1), 30-41.

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