Test Essay

2624 Words Feb 15th, 2016 11 Pages
Information technology (IT) is a critical resource for today’s businesses. It both supports and consumes a significant amount of an organization’s resources. Just like the other three major types of business resources—people, money, and machines—it needs to be managed wisely.
IT spends a significant portion of corporate budgets. Worldwide IT spending topped $3.7 trillion in 2011, a jump of almost 8% from the previous year. It’s projected to continue to increase.5 More than 350 companies each plan to invest more than $1 billion in IT, particularly in cloud, social, mobile and big data. Companies in a Gartner study reported that cloud services will grow five times faster than overall IT enterprise spending annually through 2015.
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Companies are reaching out to individual customers using social technologies such as Facebook, Twitter, YouTube and numerous other tools. In fact, the term Web 2.0 describes the use of World Wide Web (the Internet) applications that facilitate, information sharing, user-centered design, interoperability and collaboration among users. Technology facilitates the work that people do and the way they interact with each other. Appropriately incorporating IS into the design of a business model enables people to focus their time and resources on issues that bear directly on customer satisfaction and other revenue- and profit-generating activities.
Adding a new IS to an existing organization, however, requires the ability to manage change. The skilled business manager must balance the benefits of introducing new technology with the costs associated with changing the existing behaviors of people in the workplace. There may be choices of technology solutions each with different impact and a decision must incorporate a clear understanding of the consequences. Making this assessment does not require detailed technical knowledge. It does require an understanding of what the short-term and long-term consequences are likely to be, how to mitigate the risks associated with and why adopting new technology may be more appropriate in some instances than in others. Understanding these issues also helps managers know when it may prove effective to replace people with

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