Friday, March 5, 2010

Chapter 1- Q1 Explain information technology’s role in business and describe how you measure success?



Q1) Information Technology is mainly an enabler, and a facilitator of various business functions. Moreover, It has developed to transform into a global tool of linkage of various data, to optimize business technology's efficiency and effectiveness.
IT, on its own, is worthless, but when put in a context; it creates a web of successful interdependencies. Consequently, IT needs to be aligned with specific business goals and criteria. IT systems are controlled through the below mentioned means to ensure satisfactory compliance with set goals, strategies, and objectives of the business:

-Key Performance indicators (KPI): measures the synchronization of internal operation of IT with business set goals.

-Efficiency IT metric: measures the actual performance of the system; and Effectiveness IT metrics: measures the impact of IT on the daily business operation.

-Benchmarking/ baseline metrics: which is a continuous process that measures system results or benchmarking values , compares them, and identify improvements.

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