The strategic management methodology is today a generally recognized tool to manage an organization in conditions of a frequently changing environment, which generates uncertainty and risks.
Why information technology is a strategic management object
The modern company has become so multifaceted, adaptable and
information intensive that traditional management methods no longer allow
correct decisions to be made on time, which is why successful companies today
carry out their activities based on a strategy: in a single set of business
objectives, as well as the guidelines to achieve them.
The strategy of an organization is the basis for developing others in various functional areas: marketing, finance, human resources, operations, innovation, etc. In recent years, business leaders have expanded the traditional list of business areas in need of strategic development, increasingly incorporating information technology (IT) into it. Today's top managers are once again wondering about the role of modern information technologies and the effectiveness of their application. So why is strategic IT management important and what approaches should be used?
Binding planning of information technology with other
intellectual assets
To this day, it is no secret that the market value of a
successful modern organization is much greater than the value of its assets on
the balance sheet. The difference is due to the intellectual assets of the
company. Intellectual assets cannot be viewed, measured, and accounted for
directly like buildings, machinery, and assets, but they are the catalyst and
driving force that contributes to the most effective return on balance sheet
assets. The intellectual assets of a company are represented by its management
system, personnel and skills, business technology , market relations with
partners and informatics.
The intellectual assets are closely related. Thus, when new
business technologies are introduced or new products are promoted to the
market, the organization has to change its management system, IT and personnel
accordingly. If changes in management, people and IT do not affect business
technology and market relationships, they will be unsustainable. This concept
is supported by the practice of successful organizations in which the main
drivers of IT development are:
• Requirements
of the external environment in terms of volume growth and price reduction
require cost minimization, effective planning and operational business
management; Retaining large clients requires the support of flexible and
expanded agreements.
• Technological
requirements of the company to eliminate notable thefts or production losses it
is necessary to automate a number of areas, in addition to increasing the
efficiency of the accounting and control processes.
• Requirements
of the company's management system . The centralization of management requires
the creation of a common service center, a strict policy by the parent
structures requires the application of certain rules, the need for business
transparency for investors may require the implementation of a modern
information system.
Hence , functional intellectual asset management strategies
should not develop on their own. On the other hand, information technology
occupies a special place among other intellectual assets: whatever the mission
that IT plays in an organization, from a minimal support role to a driving
force for business development, the strategy of IT should serve as a basis and
be formed in parallel with other functional strategies, showing on which
information methods these strategies can be supported.