The impact of information technology on organizations : implications for organizational integration and the management of information technology

Abstract

The goal of this thesis is two-fold. First, the paper explores and discusses how information technology (IT) is used as an integrative mechanism in organizations. Second, the paper suggests why organizations have experienced increased IT management requirements. The paper examines how Internet technology is used by companies to integrate operations. Supporting case studies of Wal- Mart and Calyx & Corolla are examined to determine the effectiveness of using IT as an integrative tool. Next, this research discusses how a buying versus building strategy has led to increased demands on IT management. Supporting case studies of SAP (Systems, Applications and Products) and British Petroleum are reviewed to determine if IT management will increase. This research concluded that IT is used as an integrative tool in organizations. Companies are using Internet technology to electronically link to other companies to form virtual organizations. In addition, IT is used as an effective means of collaborating and sharing information and knowledge in order to make decisions and innovate faster. Finally, although companies have achieved clear benefits of using IT for integration, there also have been negative repercussions. Using IT and adopting a buying strategy results in greater IT management requirements.