It Significance in a Business Environment
TABLE OF CONTENTS
Topic: Page:
1. EXECUTIVE SUMMARY 2
2. INTRODUCTION 3
3. THE BACKGROUND OF IT IN BUSINESS 4
4. THE CONVERGENCE OF IT AND BUSINESS IN THE DIGITAL ECONOMY 6
5. INFORMATION TECHNOLOGY 'S SIGNIFICANCE IN STRATEGIC BUSINESS PLANNING 11
5.1 THE STRATEGIC ALIGNMENT OF ICT AND BUSINESS STRATEGY 11
6. CONCLUSION 13
7. REFERENCES 14
Information technology significance in the business environment
1. Executive Summary
A central tenet of network based technologies is their ability to eliminate geographical, distance and time constraints that have traditionally manifested themselves as boundaries encapsulating and protecting local business institutions from the more harsh realities of global competitive forces. The convergence of information and communication technologies in the Internet is not only of technological relevance, but also holds substantial implications for business in removing traditional boundaries and barriers to business operations. The Governor of the South African Reserve Bank, Mr TT Mboweni, in addressing the Black Management Forum Conference on 13 October 2000, brought home the true consequences of this reality in stating that;
“Financial markets around the world are being integrated into a single global market and, whether we like it or not, emerging and developing countries are being drawn into this process. The growing economic interdependence of countries worldwide can be seen in the greater volume and variety of cross-border transactions and in the faster and more widespread diffusion of technology ... Another consequence of globalisation, is increased competition. Financial liberalisation, the removal of controls and the breakdown of international barriers, make it possible for new entrants to participate in markets which were previously closed to them.”
This statement gives meaning to the fact that South Africa is no longer an island unto itself, but that it has become part of the so called global village. It is
Topic: Page:
1. EXECUTIVE SUMMARY 2
2. INTRODUCTION 3
3. THE BACKGROUND OF IT IN BUSINESS 4
4. THE CONVERGENCE OF IT AND BUSINESS IN THE DIGITAL ECONOMY 6
5. INFORMATION TECHNOLOGY 'S SIGNIFICANCE IN STRATEGIC BUSINESS PLANNING 11
5.1 THE STRATEGIC ALIGNMENT OF ICT AND BUSINESS STRATEGY 11
6. CONCLUSION 13
7. REFERENCES 14
Information technology significance in the business environment
1. Executive Summary
A central tenet of network based technologies is their ability to eliminate geographical, distance and time constraints that have traditionally manifested themselves as boundaries encapsulating and protecting local business institutions from the more harsh realities of global competitive forces. The convergence of information and communication technologies in the Internet is not only of technological relevance, but also holds substantial implications for business in removing traditional boundaries and barriers to business operations. The Governor of the South African Reserve Bank, Mr TT Mboweni, in addressing the Black Management Forum Conference on 13 October 2000, brought home the true consequences of this reality in stating that;
“Financial markets around the world are being integrated into a single global market and, whether we like it or not, emerging and developing countries are being drawn into this process. The growing economic interdependence of countries worldwide can be seen in the greater volume and variety of cross-border transactions and in the faster and more widespread diffusion of technology ... Another consequence of globalisation, is increased competition. Financial liberalisation, the removal of controls and the breakdown of international barriers, make it possible for new entrants to participate in markets which were previously closed to them.”
This statement gives meaning to the fact that South Africa is no longer an island unto itself, but that it has become part of the so called global village. It is
References: BEINHOCKER ED. 1997. Strategy at the edge of chaos. McKinsey Quarterly, (1):24-39. CAMPBELL A & ALEXANDER M. 1997. What’s wrong with strategy? Harvard Business Review, 75(6):42-51, November-December. COURTNEY H, KIRKLAND J & VIGUERIE P. 1997. Strategy under uncertainty. Harvard Business Review, 75(6):67-79, November-December. HENDERSON JC & VENKATRAMAN N. 1999. Strategic alignment: leveraging information technology for transforming organizations. IBM Systems Journal, 38(2/3):472-484. HOPE J & HOPE T LUEHRMAN TA. 1998. Strategy as a portfolio of real options. Harvard Business Review, 76(5):89-99, September-October. LUFTMAN JN, LEWIS PR & OLDACH SH. 1993. Transforming the enterprise: the alignment of business and information technology strategies. IBM Systems Journal, 32(1):198-221. MARTIN J. 1995. The great transition: using the seven disciplines of enterprise engineering to align people, technology, and strategy. New York: Amacom. MBOWENI TT. 2000. Global competitiveness - is South Africa ready? (Address at the Black Management Forum conference, Sandton Convention Centre, Johannesburg, 13 October.) Mitchell, M Morris, M. (2000, May 15). Expert commentary: Fighting the knowledge curse. CIO, 13(15), 162. O’Brien, J. A. (2000). Introduction to information systems: Essentials for the internetworked enterprise. New York: Irwin/McGraw-Hill. OECD. 2001. Understanding the digital divide. Paris: OECD Publications. (A copy of the document can be downloaded from the OECD web site Internet: http://www.oecd.org) Schermerhorn J SOUTH AFRICA. 1996. White paper on science and technology - preparing for the 21st century. Pretoria: Internet: http://www.dst.gov.za/legislation_policies/white_papers/Science_Technology_White_Paper.pdf) Varon E