Impact of IT on Business - Essay Example

IMPACT OF IT ON BUSINESS By Student’s name Course code+name Professor’s name University name City, State Date of submission Impact of IT on Business Introduction The innovation path in business implies doing something different, smarter, and better in order to create a positive impact concerning value, efficiency, quality and enhancing productivity through the application of emerging or proved technologies (Quinonez 2014). Information technology is a modern phenomenon that has changed the daily lives of individuals and organisations in different sectors of business across the world (Bolden 2015). In this report, the paper discusses the impact of IT on business organisations. The report will focus on the healthcare sector by evaluating how IT applications have enhanced success in two health care organisations in Australia. Does business need IT? Information technology plays an integral role in every sector as it helps to deliver fundamental organisational goals and objectives. Effectively, businesses need IT to improve enterprise processes, achieve cost efficiencies, drive their revenues, and maintain their competitive advantage in the market place (Quinonez 2014). A look at the health care management strategy of one organisation in the country reveals that businesses need IT for success and efficient delivery of services to the clients. In 2012, Scalabrini Village started rolling out its iCare Health Management software across all of its villages. According to the organisation’s clinical information manager, Tershia Bunsee, the health care provider worked with iCare Health to develop and deliver an efficient IT-based solution in a short period. The software has enhanced the delivery of quality care to their clients (Bolden 2015). Tershia posits that the use of electronic medication management system has improved communication between each village and their pharmacies. The software; pharmacy messenger, has enabled the organisation to strengthen pharmacy relationships and streamlined communication. Additionally, the software allows the organisation to generate electronic profiles of its residents. Initially, Scalabrini Village had to rely on the pharmacies to generate these profiles (Bolden 2015). The manager opines that the move has enabled the care staff to take ownership of the profiles, as an aspect that has greatly contributed to effective communication between the organisation and the pharmacies. Secondly, the group states that the medication management software consists of different features that have changed how it conducts its daily practices. One of these aspects has been the mobility of the software as they can use it on mobile devices for administration purposes (Bolden 2015). The software has eliminated the use of paperwork, carrying of folders, and manual way of keeping records. An outstanding feature of the software, according to Tershia, is its ability to allow their staff to view and record resident information at the point of care. Another distinct feature in the Scalabrini Village case study is the issue of signage. Before the implementation of the software, the organisation relied on paper work and residents signed on these papers (Bolden 2015). The manager states that it used to be a huge challenge for the health care provider when tracking missed signatures and medical errors, especially for auditing purposes. Therefore, in developing the system, their priority was to eliminate such challenges so that they could offer the highest level of care and safety to their residents (Quinonez 2014). Effectively, the implementation of the medication management system eliminated the issue of non-signage. Fundamentally, the organisation posits that there is transparency and accountability across all their villages, an aspect that was impossible before the rolling out of the electronic system. The implementation has enhanced the visibility of the business as the management can monitor, audit and streamline processes and activities across their villages (Tran et al. 2013). The manager posits that rolling out the electronic medication management system has offered Scalabrini Village the critical instruments to improve the level of care for its clients. For instance, the staff at the establishment state that having information on a portable device at the point of care has promoted safe practice, especially data concerning patient allergies and particular instructions on the administration of medications. The Scalabrini Village case is a demonstration that businesses need IT to improve a variety of issues, especially performance, efficiencies and knowledge acquisition among its employees. According to Tran et al., (2013), improvements in information technology have enabled healthcare organisations to transform in different avenues. For example, a majority of medical offices can now send and receive digital medical information from one’s past physicians. Such transformations lower the cost of medication and increase the amount of time available for doctors to spend on a patient as compared to paperwork (Drnevich & Croson 2013). Furthermore, security improvements as a result of technology have enhanced the storage of medical information in a more secure manner than before. Why IT is important for business survival? The survival of business, especially in a competitive environment, cannot be overemphasised. One of the ways to remain competitive in the business environment is to integrate information technology in the management and production processes within the organisation. An enterprise that focuses on the integration of IT with its business processes achieves growth (Lehoux et al. 2014). Several studies of many international companies demonstrate that the IT capacity of a firm has a close correlation with the growth of cost-effectiveness of the enterprise. The information from these studies shows that IT applications accelerate enterprise growth because they provide businesses with scalability. Scalability is an enterprise’s capacity to manage successfully the increase in the complexity of the organisation and its business model (Quinonez 2014). Organisations that have business processes scalability are better positioned to mitigate obstacles, differentiate themselves from competitors and can seize arising business opportunities. Effectively, organisations need IT as an essential component of their long-term success. A case analysis at one of the not-for-profit organisations in the country demonstrates the importance of IT to a business’s survival. Silver Chain Group is a large community care and health organisation that offers a wide range of services that helps people in their homes. The group focuses on helping its clients to achieve long-term independence (LeMay 2014). The group has over three thousand employees and over four hundred volunteers, serving over eighty-seven thousand clients every year. The survival of such a large organisation needs systematic approaches to the implementation of their goals (Cresswell, Bates & Sheikh 2013). Therefore, efficiency and effectiveness of their practices is the most practical way to survive and offer quality services. The group realised that to help their staff prepare better and be informed on a client’s health or the potential risks to their safety; there was need to develop and implement an IT system. The organisation established EOS Technologies as a social initiative that would develop and implement Comcare. The ComCare is an enterprise healthcare solution based on a mobile application that is designed for the direct care staff (LeMay 2014). Effectively, the organisation rolled out the software programme that has seen it improve efficiency, social benefit and secure mobile access to a client’s health care information. Furthermore, it has improved communication, especially in remote areas. Nurses and other medical staff can easily monitor data and respond to it immediately they receive it (Quinonez 2014). For instance, the survival of the group depends on positioning itself as a preferred aged health care provider that focuses on the provision of quality health solutions to make their clients comfortable. Requirements for applying IT into business? The implementation of information technology in business requires organisations to formulate IT strategies that align with their goals and objectives. Imperatively, organisation must consider several factors so as to implement a successful information technology strategy (Grabara, Kolcun & Kot 2014). In this part of the report, the paper examines salient factors that are required in applying IT into a business. The first factor that a business must consider is the cost of the IT plan. The health care sector is considered a high-end user of information technology. According to independent studies, high-end IT users spend about ten percent of their revenues on information technology systems. The cost of implementing IT solutions is a critical factor that organisations must consider. For instance, when Silver Chain Group decided to implement their ComCare model, the cost of the project was appraised to ensure that the investment would provide long-term solution to the organisation (LeMay 2014). Therefore, entities must consider the initial cost associated with training, procurement of software and hardware of the IT solutions. They must also consider the ongoing cost that may include maintenance of the systems, licenses for proprietary software, hosting and support. Other costs that must be considered include upgrade costs, value proposition for the organisation, opportunity cost and the risk associated with the implementation of the program. Secondly, to implement IT in business, enterprises must plan. The case of Scalabrini Village provides a perfect example of how the organization planned for the roll-out of the program (Bolden 2015). The organisation took a partnered approach, as it collaborated with iCare Health Implementation Consultant to implement its program within a tight schedule. In planning for a rollout, organisations must seek partners that will accept their plans and help them realise such plans in a successful way. Thirdly, the design of the application must meet organisational needs (Quinonez 2014). For example, the Scalabrini Village case study demonstrates that having a knowledgeable partner enhances the design of a plan that captures the aspirations of an enterprise. When Scalabrini Village partnered with iCare Health Implementation Consultant, they designed software that provided solutions to the challenges the organisation had in different areas like communication, pharmacy relationships, and improved quality care and visibility (Bolden 2015). Fourthly, implementation of successful IT into an organisation requires necessary training of the staff. According to Tershia of Scalabrini Village, to successfully integrate the software among the staff, the two organisations had to train the employees, especially in necessary computer skills (Bolden 2015). The cost of training is a pre-requisite for a health care provider that seeks to rollout an electronic system to enhance their service delivery. Training ensures that employees adapt to the new system and allow them to horn necessary skills and knowledge to help a group deliver quality services (Cresswell, Bates & Sheikh 2013). The Silver Chain Group case study provides a good demonstration on why employee training is a critical requirement for a successful implementation of IT solutions in business. Before the initiation of the ComCare model, the health care provider faced challenges on how to keep patient data safe and secure because of the paperwork (LeMay 2014). However, the implementation of the model has increased efficiency and delivery of services because the employees have been trained and have adapted it. How does business use IT? The use of IT in a business enterprise is multiple. Information technology is gradually becoming the backbone of operations in a majority of sectors, especially the high-end users like the health care providers. Businesses use IT at both internal and external levels. For example, the Scalabrini Villages case provides a perfect example on how an enterprise can use the IT applications. According to the clinical nursing manager of the group, they use the application to communicate with their pharmacies (Quinonez 2014). Furthermore, the software is used to collect data and resident profiles by the nurses, especially at the point of care. Additionally, the organisation uses the application for internal administration, especially the elimination of paperwork and use of folders. The management of the organisation has been able to monitor, audit and streamline processes across the villages because of the new system. Again, the Silver Chain Group posits that they use the IT solution in video conferencing among the staff and clients at different locations (LeMay 2014). Accordingly, both the staff and their clients use these mobile devices to key in critical information. Moreover, they use the device to access client’s health records securely and communicate in remote regions. What benefits and advantages does IT bring to business? A host benefits and advantages present themselves to businesses that integrate IT in their strategies and operations. Information technology improves communication. For instance, video conferencing, electronic data analysis and secure storage of data allow different departments within an organisation to streamline communication (Bolden 2015). As posited by Davis of Silver Chain Group, IT improves communication with clients. On their part, Scalabrini Village states that IT has improved communication between their villages and pharmacies. Secondly, IT improves efficiencies and effective delivery of services, particularly in the healthcare sector (Quinonez 2014). For instance, the two organisations in this report demonstrate that IT is an integral part of improving employee’s efficiency. Before the implementation of the IT solutions, these organisations had to deal with myriad challenges emanating from employees’ effectiveness, especially secure storage of patients’ information and dealing with administrative issues like paperwork (LeMay 2014). However, with the use of IT systems, they have been able to leverage of their competencies, and improved their overall knowledge. Thirdly, the use of IT improves mobility in organisations. As demonstrated by the two cases, technology has eliminated constraints of time, place and even space (Grabara, Kolcun & Kot 2014). The Silver Chain Group CEO posits that his nurses can use video conferencing to reach clients and fellow employees. Furthermore, they have gained unexpected social benefits that include the mobility solution (Cresswell, Bates & Sheikh 2013). For instance, the organisation states that most of its clients are comfortable using the device for personal use at home, an aspect that improves quality delivery of services to them. Imperatively, information technology has enabled businesses to improve customer support, marketing, and making of better decisions (LeMay 2014). Again, it has ensured that businesses can solve complex problems and improve the management of their resources with applications like cloud computing. What type of risk does IT bring to business? While IT creates new positive leverage for businesses, it also comes with its share of challenges and risks. Among these risks, security is perhaps the biggest concern for most users, at institutional or individual levels (Cresswell, Bates & Sheikh 2013). Businesses must ensure that their systems are secure so that they are not compromised and expose critical information, especially in the health care sector. Information technology offers Enterprise Resource Planning solutions that are cloud based (Österle 2013). Therefore, a system must be secure enough to ensure that confidential information is not exposed. Furthermore, the information must remain confidential and only authorised access permitted in any circumstance. How can business maintain and monitor IT? Enterprises, both for-profit and not-for-profit, can maintain and monitor IT based on their operations, needs, and their scope of services (Österle 2013). Effectively, maintenance of the IT applications needs organisations to continuously upgrade their systems and seek value proposition by enlisting the services of qualified experts. Again, they can monitor IT based on the benefits that they derive (Österle 2013). Furthermore, IT can be monitored consultancy services by using available applications. Conclusion This report demonstrates that IT solutions have become the backbone of effective business processes. Therefore, organisations, especially in the health care sector must integrate IT solution to achieve success and improve quality delivery of services. Bibliography Bolden, S., 2015. Medication Management Software enhances quality of care at Scalabrini Village. Accessed on 28th May 2016 from http://www.icarehealth.com.au/blog/medication-management-software-enhances-quality-of-care-at-scalabrini-village/ Cresswell, K.M., Bates, D.W. and Sheikh, A., 2013. Ten key considerations for the successful implementation and adoption of large-scale health information technology. Journal of the American Medical Informatics Association, 20(e1), pp.e9-e13. Drnevich, P.L. and Croson, D.C., 2013. Information Technology and Business-Level Strategy: Toward an Integrated Theoretical Perspective. Mis Quarterly, Vol.37, No.2, pp.483-509. Grabara, J., Kolcun, M. and Kot, S., 2014. The role of information systems in transport logistics. International Journal of Education and Research, Vol.2, No.2, pp.1-8. 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How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and IT managers. Mis Quarterly, Vol.39, No.2, pp.497-518. Read More