The global trend towards an increasingly competitive market place has forced companies to find new ways of gaining competitive advantage. The potentially critical role Information Technology (IT) can play in achieving this goal is well recognized.
IT can be broadly defined as the convergence of computer technology and communications technology. Many organizations’ activities have been enhanced through the use of computers.
How computers contribute to efficient operations and management of an organization.
• Computers have improved the level of efficiency and accuracy of information.
• It has increased the volume of information that can be processed.
• The speed at which information becomes available to more people.
• The use of computers have eliminated cumbersome manual operations e.g. in accounting department where clerks have to deal with so many records.
• Computers can reduce the cost of operations to the management in terms of space and the number of record clerks to be employed.
• Complete computerization of organizational activities have made operations more efficient by making for it easier not only for users but also for managers to access virtually all information pertaining to activities of other departments and other sections of the organization. Hence there is improved communication between the various functional units.
• IT results in better customer service especially since staff can handle customer queries by accessing the organization data files.
• The planning and control of the production department is enhanced with systems such as ‘Just-in-Time’ (JIT), ‘Materials Requirements Planning’ (MRP), ‘Computer Aided Design’ (CAD) and ‘Flexible Manufacturing System’ (FMS). Stock control is likely to be easier as well.