Literature Review of Informalism Essay
The telecommunication industry is developing rapidly. In the meanwhile, E-business is in the development stage and our supervisors attach importance to the construction of information technology. So now it’s a good time to promote informatisation. However, we may come across some obstacles in the process. First of all, enterprise information and computer resources are not fully utilized because of lacking of overall planning. Secondly, management infrastructure is relatively weak.
A lot of work is still manual and management efficiency is relatively low. To be specific, order plan, procurement plan and production plan are out of touch; logistics control is weak; basic date management system has improvement space; CEOs cannot control the enterprise. In addition, financial analysis and accounting is neither timely nor accurate enough. Offers are not made timely, which affects the competitiveness of the enterprise. Finally, new product has a long development cycle and a high cost.
My project specifically focuses on on optimization of management diagnosis and business processes and on construction of basic informatisation. There is a lot of research on the effect of informatisation in general, and whether it is an appropriate focus area for a corporation. Is having a focus on informatisation the right thing to do? Is informatisation a responsible strategy for a corporation? Defining the Concept In order to address these questions, we must first define the concept of enterprise informatisation.
Enterprise informatisation has no exact definition. In general, it means the enterprising use of advanced information technology (including computer technology, communication technology and automation technology) and modern management methods to optimize product lifecycles, including market demand analysis, product definitions, study and development, design, manufacturing, services, remanufacturing, environmental protection and so on.
Enterprise informatisation effectively integrates human organizations, management, technology and information flow, material flow and financing flow in an attempt to have rapid product delivery, high quality, low cost, good services and a good environment. The goal of enterprise informatisation is that manufacturing companies will become more flexible, stronger and more adaptable, and finally win the market competition. Is Informatisation Responsible for a Corporation? * the effect of informatisation on competitiveness and competitive advantage.
Different study shows two diametrically opposite conclusions. Weill (1992), Brynjofsson and Hitt (1996) concluded that the enterprise informatisation does not increase the competitive advantage of the enterprise. However, more studies have shown that information technology can improve the competitive advantage of enterprises. Wang Miaojun, Zhang Weiying and Zhou Li-an (2007) found that with the increase in the investment of the enterprise informatisation, enterprise competitiveness increases by analyzing the relationship between the enterprise information technology and enterprise competitiveness.
Wang Miaojun and other people think, informatisation leads to corporate monopoly of certain markets directly related to the information technology : First, informatisation improves enterprise productivity by reducing corporate communication and coordinating costs; second, huge financial, human and organizational capital investment will lead to part of the monopolistic advantages; third, enterprise informatisation will induce concomitant organizational innovation and technological innovation of the enterprise which is unparalleled by other technologies. * impact of informatisation on business performance
Since the late nineties of the last century, the academia generally believe that informatisation can improve business performance. Wade, Hulland (2004) argued that the impact of IT ability on corporate performance is not direct, instead, it affects competitive activities of the firm by a complex chain of assets and capabilities, and ultimately improves business performance. The company resource-based theory(RBV) believes that informatisation, accompanied by an increase in IT human capital, IT infrastructure, IT intangible resources, leads to a growth in the enterprise resources which improves business performance.
I tend to agree with these principles. E-business is a high-tech manufacturing enterprise combining technology development and production with 20% scientific and technical personnel. We produce small products in large quantities and we develop large amounts of new products every year. Informatisation provides a way for E-success to distinguish itself from the competition so its totally responsible for the corporation.
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