Managerial Application Of Technology 2012 Argosy University

Managerial Application Of Technology2012 Argosy Universi

The assignment requires developing a comprehensive business case for an information technology (IT) project, focusing on the evaluation, justification, and strategic alignment of the chosen technology with organizational goals. It involves using various financial techniques such as break-even analysis, net present value (NPV), and return on investment (ROI), as well as applying the balanced scorecard approach to determine the project's value and strategic fit. The task emphasizes understanding the critical role of human resources in the effectiveness of information systems, identifying the most beneficial system for an organization (such as ERP or CRM), and aligning the technology choice with the organization's business strategy and processes. A detailed proposal demonstrating how the selected IT solution supports organizational objectives, improves processes, and offers a competitive advantage is required.

Paper For Above instruction

The integration of information technology (IT) within organizational frameworks has transformed modern businesses by enabling increased efficiency, enhanced decision-making, and competitive advantage. Developing a solid business case for IT projects is crucial to ensuring strategic alignment and justifying investments. This paper explores the methodologies for assessing, justifying, and selecting IT initiatives, emphasizing the importance of strategic fit, financial analysis, and human resource capabilities.

Strategic Importance of IT in Organizations

Contrary to popular belief that the most critical information systems are operational tools like email or data repositories, the core value often lies in leveraging the human element. As Kaplan and Norton (1996) emphasized in their balanced scorecard framework, organizational success depends on aligning IT investments with strategic objectives and enhancing the capabilities of employees. When organizations choose systems such as Enterprise Resource Planning (ERP) or Customer Relationship Management (CRM), they must consider how these systems will augment human skills and support strategic goals.

Methods of Financial and Strategic Evaluation

Evaluating IT investments requires a combination of financial and strategic analysis. Techniques such as break-even analysis help determine the point at which the benefits of the system offset the costs (Keen & Scott Morton, 1978). Net Present Value (NPV) considers the value of future cash flows discounted to present value, enabling firms to assess long-term profitability (Brigham & Ehrhardt, 2016). Return on Investment (ROI) provides a straightforward percentage measure of financial returns relative to costs (Shi et al., 2004). These analyses support selecting systems that deliver tangible financial benefits aligned with organizational strategy.

Aligning IT Projects with Business Strategy

The key to selecting the appropriate IT solution is understanding how it supports strategic objectives. For example, if a company's strategy aims to enhance customer satisfaction, a CRM system like Salesforce can improve customer interactions and loyalty (Nguyen et al., 2020). Conversely, if internal process efficiency is prioritized, an ERP like SAP can streamline supply chains and inventories (Davenport, 1998). In some cases, integrating multiple systems, such as both CRM and ERP, creates comprehensive benefits that support broader strategic goals (Chong et al., 2017).

Human Capital as the Most Critical Asset

While technology is a vital enabler, the human element remains central to success. Effective implementation and utilization depend on employee capabilities, training, and organizational culture (Bhattacherjee, 2001). As Purvis et al. (2013) argue, systems that empower employees to make better decisions and collaborate efficiently generate the most significant competitive advantage. Therefore, IT projects should include training and change management strategies to maximize their impact.

Case Study: IT Justification in Practice

Consider a manufacturing company aiming to improve order fulfillment. The selection of an ERP system such as Oracle NetSuite might be justified through a detailed analysis showing reduced inventory costs, improved production scheduling, and faster customer response times (Laplante et al., 2020). Financial metrics would confirm the investment's viability, while strategic considerations, such as agility and customer satisfaction, would guide system selection. Additionally, involving employees in the planning process ensures the system enhances their capabilities rather than merely automating tasks.

Conclusion

Successful IT projects require a balanced approach that combines rigorous financial analysis with strategic alignment and attention to the human element. Evaluating systems like ERP and CRM against structured criteria ensures investments support broader organizational goals and deliver sustainable competitive advantages. Ultimately, the most effective information system is one that aligns with the company's strategic vision, enhances employee capabilities, and provides measurable business value.

References

• Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice. Cengage Learning.
• Chong, A. Y. L., Lo, C. K. Y., & Weng, X. (2017). The business value of IT investments: The case of China. Journal of Strategic Information Systems, 26(2), 97-118.
• Davenport, T. H. (1998). Putting the enterprise into the enterprise system. Harvard Business Review, 76(4), 121-131.
• Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press.
• Keen, P. G. W., & Scott Morton, M. S. (1978). Decision Support Systems: An Organizational Perspective. Addison-Wesley.
• Laplante, P. A., Radice, D., & Sharm, M. (2020). Enterprise Resource Planning and Organizational Benefits. MIS Quarterly Executive, 19(2), 85-99.
• Nguyen, B., Simkin, L., & Canhoto, A. (2020). The dark side of customer relationship management implementation: The case of Salesforce. Journal of Business Research, 119, 444-453.
• Purvis, R. L., Merlyn, K. R., & Robinson, S. (2013). ERP systems, strategic flexibility, and organizational agility. Journal of Business & Industrial Marketing, 28(6), 422-433.
• Shi, J., Yeo, G. H., & Lee, J. (2004). ROI approach to evaluating IT investments in logistics. Journal of Business Logistics, 25(2), 231-249.
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