Information Technology and compamy leaders
Information Technology (IT) always changes but each year, it is getting faster and faster. The trend is clear that more companies are using IT than ever before. Today business cannot operate without IT and IT cannot grow without business. Companies that recognize this change and adopt it early will benefit most. Unfortunately, few people have fully understood this relationship, and as a result, the adoption of IT in some places appear as random rather strategic. Even today, many leaders are having difficulties to understand the important of IT due to the traditional “business as usual” attitude rather than changing the way they do business to take advantage of IT.
Today IT is essential part of every business. Have you ever asked how many companies are still using typewriters and post office mails? Computers and emails have changed office operation forever because they are faster, better and cheaper. Have you ever asked how many companies are still using accounting books and calculators? Computer softwares such as Excel or Quicken have changed accounting processes because it is faster, easier and more accurate. How many companies are still paying for their advertising in printed newspapers? Company websites and online advertising have changed everything because they are up to date and much cheaper. The question company leaders often ask is “Why do I need to change?” There are benefits of using technology in business such as reduce operating costs, improve efficiency, maximize profits, minimize waste, reduce bureaucracy, provide better service to customers, reach more potential customers, and expanding the business and growth. And if you do not do it, somebody will and they could put you out of business.
Of course, many leaders do not see the urgency of using technology in their company. Some may not see any threat as they are comfortable when the company is doing well. That is naïve because with globalization, things can happen very fast. When large global companies expand into new market, unprepared local companies often surprise and it is too late. As local company leaders are stuck in their thinking at local level, they are not ready to deal with global competition in a strategic way. For example, when fast food companies like McDonald, KFC, Taco Bell, Starbuck, Burger King, Pizza Hut etc. expanded into Asia market (Japan, S. Korea, India, China etc.) more than 75% of restaurants, coffee shops, food stores disappeared. When Wall Mart, Costco opened hundreds of their giant stores across China, over 85% of local retails closed. When Amazon.com expanded its online book business worldwide, most bookstores went out of business. When global banks and financial companies opened business in a country, most local banks and local finance companies shutdown. To survive this type of competition, company leaders must rely on their ability to understand and serve their customers. Only by continually designing and delivering affordable appropriate products and services, they can ensure survival in the constantly change market. And to do that, they need IT to stay competitive by having high quality products and services, low cost, and maximize efficiency.
To integrate business with IT requires a new thinking, new strategy, and new concept of operation. Leaders must understand that Cloud computing, Mobile platforms, Big Data and Social networking are key drivers of change in the current global business. These drivers are forcing company leaders to come up with new strategy to take advantage of these technologies because without change they will not be able to compete. For example, Cloud Computing can help company reduces IT cost by moving many things into the cloud provided by external service company. It helps drives agility and flexibility in company’s structure so people can focus on the main business without have to worry about IT problems. Mobile platforms allow workers to stay in touch with their company, regardless where they are, thus they can quickly response to urgent need when it happens. Big Data allows company to analyze massive number of both internal and external data to keep management stays current with the market changes and competitors’ activities. Social Networking allows workers to collaborate and share information quickly with others to improve company’s efficiency.
The challenge is to adapt to these technologies fast enough to keep pace with market trends and customers’ expectations. Being able to adapt to change is critical to any companies’ success, so it is important that all leaders and every level of company management must receive training about IT so they can understand the four fundamental principles of business in the 21st century: Simplification, Standardization, Security and Integration. By applying these principles in daily work they can lay a new foundation for their company that will meet the demands of their customers and thrive in this competitive global market.
With globalization competition is fierce and companies without IT will not be able to compete. It also means demand for graduates in science, technology, engineering, and mathematics (STEM) will be rising faster than any other fields. As the automation of company’s work increases, the organization structure will be flat because computers will handle a growing number of tasks performed by workers, some management levels will no longer be needed and will be displaced by skilled workers who can make their own decisions. More than ever, training and recruiting skilled workers will be a key strategy of every company and STEM education will be critical priorities for every government leaders to drive economic growth and set their country apart from others.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
