Tech. Decisions for Business Executives ITM 508 Professor: Dr. Mary Lind April 25, 2013 “Agree or disagree: An IT strategy focused on maintaining a cutting-edge technology position is the most effective way to support any kind of overall business strategy “. IT strategy focused on maintaining a cutting-edge technology position seems like a good idea to support any kind of business strategy, but I would disagree to that statement. Acquiring cutting edge IT might give it a competitive advantage, but at greater risk because the IT is cutting edge and most likely not yet fully tested.
On the other hand, the use of well-tested, mature IT that is also being used by many others reduces the risk, but it also may eliminate competitive advantage possibilities. Where an organization should be along the mature to cutting edge technology continuum depends a lot on the type of markets it is in (some are very dynamic), the competition it faces, the expectations of its stakeholders (including the investors), its financial condition, and other factors; cutting edge technology should not be the only focus on IT strategy. Many government agencies are in the mature section of the continuum because they tend to be more risk averse.
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The face of business has changed. Technology has taken over or enhanced traditional ways of communication such as face-to-face interaction and mail. It isn't necessary to wait 7 business days to hear a reply from a customer anymore. In fact, it could take less than 7 minutes through the use of a phone, email, or fax. The Board of Trustees can have a video conference when they are 6, 000 miles ...
However, there are government agencies, especially in the Department of Defense, that are very interested in being cutting edge in certain areas, and they have the funds and stakeholders to support this approach and its associated costs and risks. Many of DoD’s most risky IT-related undertakings are classified. Organizations are more likely to use cutting edge technology when they are in a dynamic market, such as offering or providing services competitively via the Internet, but this is also a very risky business. The cutting edge technology helps them to differentiate from their competitors to attract and retain customers.
Cutting edge technology that offers an entirely new service has the potential of enabling a company to capture a large part of an untapped market and be considered by customers as the market leader. In these cases, it usually takes competitors years to catch up in terms of market share and image. An important consideration is that most cutting edge technology has a short life. Much of it never becomes mature. If the focus of the organization is purely on the cutting edge technology and it did become mature then it will have a negative impact on the organization. Also, it is more prone to errors and other glitches because it is so new.
Organizations that rely on cutting edge technology usually recognize that they need to replace the technology more often. Mature technology is technology that has proven itself over time. Few errors are encountered in using it. On the other hand, almost everybody else is also using it, so it provides no competitive advantage. Also, the technology can remain “mature” for only so long, after which it is called “obsolete” technology. There is a need to determine at what point the mature technology being used by the organization is becoming obsolete. One way to judge is to look at whether successful organizations are still using it.
Organizations should have a balance when it comes to their IT strategy. The advantages and disadvantages of focusing on cutting edge vice mature technology should be carefully considered when deciding which technology to use. These organizations need to have a good understanding, not only of their markets and competition, but also of their own enterprise architecture, including what supports what and what interoperates with what. They do not want to take the risk of adopting any cutting edge technology without having the infrastructure in place that is needed to support it.
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Speaking of team working and IT innovations and the relations between them, I was wandering which one came as a result of the other. In other words, was the information technology came first and then humans thought about how to use it effectively and came up with the idea of teamwork? , OR, the team work was there from the beginning and the problems/challenges of how the team members can ...
In summary, focusing alone on cutting edge technology can never going to be beneficial for an organization, an organization must take many things into account in order to determine where it should be along the along the mature to cutting edge technology continuum. It must understand and know how well it is doing in terms of its markets and customers, its competition and stakeholder expectations. And, most important, it must know how much risk it can successfully accept and manage and in which areas. It is essential that we keep track of the changing usiness world – both internal and external – and make sure our solutions are in line. If they are not, then senior leadership has the responsibility to ensure that we do not continue those initiatives that are not. Putting good money after bad is never a good idea. CIOs are paid to make these tough decisions (CioIndex, 2008).
Reference: CioIndex, (2008).
“7 Steps to Business and IT Alignment”. Retrieved on 25 April 2013 from http://www. cioindex. com/it_strategy/articleid/18/7-steps-to-business-and-it-alignment. aspx
