Essays on Business Value of Information Technology Essay

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The paper "Business Value of Information Technology" is a good example of an information technology essay.   The first value-added function in an organization is Inbound Logistics. This involves the processes of procurement and obtaining the input materials required for the process of manufacturing, putting them together and making an output product. Data is the major input used by several organizations and the process of data collection is done intensively with information technology skills. This function adds value in information organizations since it enables procurement processes such as supply chain management, electronic data interchange, E-procurement and just-in-time approaches to manufacturing.

This function can also add value through cost reduction since it enables organizations to participate in E-market places (Association of Consulting Engineers New Zealand, 1998). The other value-added function in organizations is Operations. This looks at all the major processes in an organization. When all the processes are IT enabled this will have an impact on various value parameters. The function of operations adds value through redesign of the processes which can lower the costs and can make the processes to be faster. The other function is Outbound Logistics.

This refers to the manner in which products and services are being delivered to the customers. Through the use of IT, it has been possible to separate the content from the medium in information-rich products and passing those products through the internet. IT-enabled changes in outbound logistics have been in areas such as online flight and hotel reservation and automatic teller machines. This has led to increasing in an organization's value. Another function is on Marketing and Sales. This function looks at the way companies promote and sell their products.

IT has increased business value by reducing the costs incurred during sales and marketing since it has enabled the distribution of information through the internet. Through the internet, the customer can access the information about the products in a faster way and be able to learn about them. A real-time inventory control system has also enabled the companies to keep a track of how their products are selling and also large scale modification of the products.


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Egan, G., (1998).Adding value: a systematic guide to business-driven management and leadership. New York: Jossey-Bass Publishers.

Lientz, B., & Larssen, L., (2004).Manage IT as a business: how to achieve alignment and add value to the company. Oxford: Butterworth-Heinemann.

Shi, N., (2003).Creating business value with information technology: challenges and solutions. Hong Kong: Idea Group Inc.

Devaraj, S., & Kohli, R., (2002).The IT payoff: measuring the business value of information technology investments. New Word: FT Press.

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