Question

IT& the Core Competency: Give us your thoughts, your perspective. Do you agree with this “innovative” way of doing business, by “merging” IT with the business in the decision-making process? Is IT viewed as a partner, decision maker, enabler or a service provider, does IT affect the core competency of your company?

Answer 1

In today's business environment, change has become the only constant element. So, in order to gain competitive advantage, innovation has become one of the key element. Information system within an organisation helps the senior managers to make effective decisions. A system based on software known as Decision support system is widely available. This helps the managers within the organisation to churn out related information from a chunk of raw data as well as documents. The managers can solve necessary problems and make decision more effectively with the help of DSS or Decision Support Systems. Thus, it can be said that merging IT in the process of decision making is one of the innovative way of carrying out business operation.

IT is viewed as business partners, decision maker, enabler as well as service provider.

If IT gets aligned to the leaders of the organisation, it helps the organisation to carry out development of strategy, management of risk, relationship management more effectively. For example, integration of advanced technology in the formulation of strategy within an organisation has helped the organisation to gain competitive advantage in a significant way.

IT is also viewed as decision maker because it helps the business leader to take out related information from a chunk of data. IT also helps the managers to solve problems within the organisation and make effective decisions.

IT also works as a strategic enabler within the business.

Finally, IT also works as a service provider. IT deliver service of information technology to several organisation.

Effect of IT on the core competency of an organisation

Physical assets, skills and abilities are considered as core competency of an organisation. IT has an effect on the core competency of an organisation. IT helps the managers and other team leaders within an organisation to make decisions effectively. It also helps the senior managers and business leaders to develop effective strategies within an organisation to gain competitive advantage. Thus, it can be said that IT has a great role to play in the core competencies of any organisation.