IT and Organizational Performance: A Comprehensive Analysis

This assignment involves a comprehensive analysis of the distinct effects that information technology and communication technology have on firm organization. It requires a critical evaluation of various studies such as 'Logistics Information Systems in a Just-In-Time Environment' by Bookbinder & Dilts, and 'Effects of Employee Satisfaction on IT Capability and Firm Performance' by Kang et al. Additionally, it explores the impacts of service business model innovation on manufacturing firm performance, supply chain information systems strategy, knowledge transfer in IT outsourcing partnerships, social media technology usage on customer relationship performance, and the association between performance measurement systems and organizational effectiveness.

BUSINESS INFORMATION
TECHNOLOGY SYSTEM

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Manual processes for transformation..........................................................................................1
Different ways to store and process data electronically..............................................................2
Knowledge management.............................................................................................................3
Impact of information technology on customer's relationship management..............................4
Techniques for data management................................................................................................4
Communication management......................................................................................................5
Evaluation of IT system to support value-added change for improving business
operations, performance and sustainability................................................................................6
IT solutions..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Information technology is an essential element that drives innovation in the business. It
helps in managing operations, inquiring about problem and identifying its complexity. Present
report is based on American Signature Inc which is a furniture manufacturing firm. It is the
parental firm of value city furniture and American Signature furniture company (Laudon and
Laudon, 2016). Mission of the organization is to provide quality furniture products to consumers
at affordable prices. It manufactured residential furniture products through retail stores in more
than 125 locations. It is recognized for its high quality and affordable trade goods.
Present report will discuss the current manual process of the company and transformation
needs to improve its operations. Furthermore, different ways will be described to store and
process the data electronically. It will explain various techniques for managing data and
communication system in the firm (Kastalli and Van Looy, 2013). In addition, report will
evaluate IT system in order to support value-added change for improving business
operations, performance and sustainability.
MAIN BODY
Manual processes for transformation
Information technology has become the essential part of business operations. These
advance technologies support the organization in managing its operations well and building
strong relationship with the consumers. Use of advance technology supports business unit in
minimizing its cost and reducing errors of the operations (Bloom and et.al, 2014). It has been
analysed that American Signature Inc is conducting its business operation manually. Recently it
has been analysed that cited firm is conducting its business operations by using manual process.
Due to which errors and duplication of work type of issues are occurring in the organization to
great extent. It not only impacts on the profitability and efficiency level but also affect the
satisfaction level of the consumers (Benitez and et.al, 2017).
There is highly required to transform record keeping system, storage, communication,
production system of the company into electronic way. Management of the American Signature
Inc manage inventory manually due to which many times errors occur. Apart from this finance
department prepare annual reports manually (Qrunfleh and Tarafdar, 2014). This sometimes
creates errors in the reports due to which management fails to make changes in its operational
procedures. Currently cited firm is communicating with its employees by organizing formal
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meetings and through formal letters. This communication system impacts on the business
performance to great extent. Due to manual interaction process management fails to make others
understand with their responsibilities and mission of the company. American Signature Inc
maintain records of its consumers manually due to which sometimes hen complains arise then
they find it difficult to recall the particular customer (Bookbinder and Dilts, 2016).
American Signature Inc run its business without taking support of advance technologies,
information system can help in analysing the errors by this way operation cost of the firm can be
minimized to great extent. There are highly required to transform these manual process into
electronic system so that cited firm can improve its operations and can improve its efficiency
level (Teo and Bhattacherjee, 2014).
Different ways to store and process data electronically
Data processing system can be defined as combination of process, people and machines
that helps in getting optimistic output to the organization. Output of the company is much more
depends upon the availability of data and it is stored or managed in the workplace (Kang, Taylor
and Chen, 2017). Whenever American Signature Inc design any new furniture product at that
time it stores the detail of consumers needs, cost that would be occurred and further requirements
such as inventory or raw material. But due to manual recording management fails to look upon
all these detail at the single time that is why wastage of in the workplace is high which affects
the profitability of the business unit. There are various ways through which storing and
processing of data can be done effectively. These are as following: Dropbox: It is considered as most common and effective way to store and process the
data electronically. In this system management of the cited firm can scan all written
document s and can upload it to the cloud (Agudo-Peregrina and et.al, 2014). This can
help in saving the document or details in the computers for longer duration. Company
will be able to utilize these information in future as well. Use of accounting software: It is another way through which Different ways to store and
process data electronically through which American Signature Inc can store and process
the data for further use. By using advance software cited firm can analysis these
information easily and can make changes in kits strategy so that it can improve its
performance and can increase its profitability as well (Trainor and et.al, 2014).
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 Database management system: It is great software that can be used by the American
Signature Inc in order to store and process its essential details about the organization.
Database is used to collect all details and organize it in effective manner. Microsoft excel
and access are good example of this (Upadhaya, Munir and Blount, 2014). By protecting
them with password entity can be able to take control over its data and it will be further
used for development of the organization.
Knowledge management
Knowledge management can be defined as process through which management can
create, share and manage the information of the entity. It helps in utilizing the knowledge in
effective manner so that overall goal of the company can be achieved. Knowledge management
helps the employees in increasing their understanding about the subject mater. Management of
the cited firm have to look upon its staff, machineries and resources (MIS - management
information system, 2017). In such condition it becomes very difficult for the management to
make coordination in these things.
Before action reviews (BAR), After actions reviews (AAR), retrospects during change
activities and pre-mortems etc. are some techniques that can be used by American Signature
furniture manufacturing firm. These are essential methods that can support in managing
knowledge and utilizing information well (What Are the Advantages of Information Technology
in Business?, 2017). Apart from this use of advance software for communication, emails, internet
coordination can support in interacting with employees well. This will help in arranging all
necessary detail in proper manner so that no mistake can occur in the future.
Knowledge management is an effective tool that aids in circulating accurate information
to employees, stakeholders and customers as well. By this way they can get necessary
information about the company and can make their decision accordingly. This helps in enhancing
their knowledge and employees can perform their duties well (Trainor and et.al, 2014). It
improves team effectiveness and company can get optimistic results. Knowledge management
can support the American Signature Inc in storing the information properly and process it in
effective manner so that management can monitor performance and can bring necessary changes
in the system.
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Impact of information technology on customer's relationship management
American Signature Inc should use advance software such as database management
system to store necessary information about the consumers. Cited firm should use information
reporting system ion which it needs to store data electronically and has to look at the summary of
information in order to produce feedback report (Benitez and et.al, 2017). Decision making
related to necessary changes and development much moire depended upon the available of data.
By storing the information electronically managers of cited firm will be able to compare
performance of the company easily. This will support in identifying loop-fall in the system and
take effective decision so that company can meet with the needs of clients (Bloom and et.al,
2014).
Customers always want quality products and services at affordable rates. By using this
tool American Signature Inc would be able to analysis needs of consumers and will be able to
use innovation in its manufacturing process. By this way it will be able to fulfil their
requirements. This can help in building strong relationship with the clients. American signature
Inc is not taking support of internet in the internal and external environment (Teo and
Bhattacherjee, 2014). For communicating with the employees it takes support of formal letters
and meeting. If it uses emails and social networking sites then it would help in analysing the
needs of workers. By this way entity will be able to motivate them by providing them rewards
and recognition. This will enhance confidence of the staff members and they will perform their
duties well and will interact with consumers effectively (Agudo-Peregrina and et.al, 2014).
Earlier many customers have complained related to the poor replacement services. If
cited firm keeps records of these issues electronically then it would support in analysing the loop
falls that are impacting on its image. By this way entity will be able to make corrections in its
procedure so that complains can be minimized. This will support in building relationship with
consumers and enhancing their trust towards the organization (Upadhaya, Munir and Blount,
2014).
Techniques for data management
Data management can be defined as strategic tool that helps in controlling over the data.
There are various methods that can be used to manage the data in the organization. Management
information system is the best IT solution that can support in managing information well.
Transaction processing system, decision support system are part of MIS. This tool can support
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the cited firm in improving operational performance of the organization and minimizing errors
(Teo and Bhattacherjee, 2014). By adopting MIS technique for management of data cited firm
will be able to utilize its data well and will be able to make necessary changes in its operational
activities.
Communication management
Communication management is an essential tool that helps in improving the coordination
in the organization between employees and management. That helps in minimizing confusion
and improving the performance of the entity (Laudon and Laudon, 2016). American Signature
firm currently is not taking support of emails in order to coordinate with the employees. Due to
which people are unaware with their responsibilities. That impacts on their working performance
to great extent. Cited firm need to take support of email and social networking sites in order to
manage the communication in the workplace. This can help the entity in minimizing errors and
confusions in the workplace (Bloom and et.al, 2014).
Illustration 1: benefits of IT
Source: (What Are the Advantages of Information Technology in Business?, 2017)
Through social networking sites management of the American signature Inc. will be able
to coordinate well with consumers. That would help in getting their immediate response. That
would support in analysing needs and requirement of the clients for furniture products. Social
medial is the tool that enhance interaction between consumers and managers. This will help in
improving the operational process of the company and improving its working performance as
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well. Email is another medium that need to be adopt by the management of American Signature
Inc. By this way entity will be able to make two way communication with its employees (Teo
and Bhattacherjee, 2014). It can directly circulate necessary information to the email and
workers can also interact on this medium. They can raise any quarry related to work immediately
on the email. This method of communication is considered as effective technique that can
support in communication management and minimizing the mistakes in the corporation.
American can send status report on emails or through video conferencing. This assist in
analysing their loop fall and errors and they can make correction in their working process to
enhance their level of performance (Upadhaya, Munir and Blount, 2014).
Evaluation of IT system to support value-added change for improving business
operations, performance and sustainability
Information technology is the important aspect in the modern competitive world. This not
only helps in minimizing errors but also helps in improving performance of the organization to
great extent. Use of IT system in the American Signature Inc. can ad value in the organization
and it can bring significant changes in the operational process of the entity. By recording data
related to input and output cited firm can analysis loop fall in the system this will help in make
necessary changes in its working procedure so that company can minimize its errors and can
improve the quality of its products (What Are the Advantages of Information Technology in
Business?, 2017). This will minimize wastage and will reduce cost of the entity. By keeping
electronic records of consumers, cited firm will be able to examine the needs of customers and
accordingly it would be able to modify its products as per the requirements of clients. This can
help cited firm in meeting with the needs of consumers and enhancing their satisfaction level. By
this way people will use its furniture products for longer duration. This will increase profitability
of the American Signature Inc and will help the corporation in sustaining in the market for longer
duration (Trainor and et.al, 2014). IT solutions can helps in improving operational and
manufacturing process of the cited firm. By this way mistakes and duplication type of issues will
not take place in the workplace. This will add value in the entity and will support in raising its
performance to great extent.
IT solutions
 The main issue found in the organization that it does not keep records of input and output
Due to which its operational cost is too high. American should take support of database
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management system. In this software management can keep the records of all related
information such as customers, output, input, material used, cost etc. By this way entity
will be able to compare its output with its input (Bookbinder and Dilts, 2016). That
would help in analysing the mistake in the operational process and will make necessary
changes in its operational process. Database management system is used by IKEA which
is the biggest competitor brand of the American Signature Inc. Due to use of this
advanced software entity is working well and it is able to control over its cost. By using
DBMS cited firm can control data redundancy issues. This software can also be
beneficial in integration of data. By this way errors can be examined and corporation can
make back up plan for improving its performance (Trainor and et.al, 2014).
 American Signature Inc. should implement management information system (MIS) for
improving the corporate performance. This can support in identifying errors, output rates
etc. That would help in adding value in the organization and improving the quality of the
products (Laudon and Laudon, 2016).
CONCLUSION
From the above report it can be articulated that American Signature Inc. is conducting the
operations through manual process. This manual process impact on the communication,
operations and create issues such as duplications, wastage etc. Entity is required to keep
electronic records by using MIS, DBMS tools so that it can keep records of input, output,
efficiency ratio. This will help in making necessary changes in the business operation that can
enhance quality of products and can satisfy needs of consumers.
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REFERENCES
Books and Journals
Agudo-Peregrina, Á. F. and et.al., 2014. Can we predict success from log data in VLEs?
Classification of interactions for learning analytics and their relation with performance in
VLE-supported F2F and online learning. Computers in human behavior. 31. pp.542-550.
Benitez, J. and et.al., 2017. Evolution of the impact of e-business technology on operational
competence and firm profitability: A panel data investigation.Information & Management.
Bloom, N. and et.al., 2014. The distinct effects of information technology and communication
technology on firm organization. Management Science. 60(12). pp.2859-2885.
Bookbinder, J. H. and Dilts, D., 2016. Logistics information systems in a Just-In-Time
environment.
Kang, T., Taylor, M. C. and Chen, H. C., 2017. Effects of Employee Satisfaction on the
relationship between IT Capability and Firm Performance. Journal of Research in
Business, Economics and Management. 9(3). pp.1692-1697.
Kastalli, I. V. and Van Looy, B., 2013. Servitization: Disentangling the impact of service
business model innovation on manufacturing firm performance. Journal of Operations
Management. 31(4). pp.169-180.
Laudon, K. C. and Laudon, J. P., 2016. Management information system. Pearson Education
India.
Qrunfleh, S. and Tarafdar, M., 2014. Supply chain information systems strategy: Impacts on
supply chain performance and firm performance. International Journal of Production
Economics. 147. pp.340-350.
Teo, T. S. and Bhattacherjee, A., 2014. Knowledge transfer and utilization in IT outsourcing
partnerships: A preliminary model of antecedents and outcomes. Information &
Management. 51(2). pp.177-186.
Trainor, K. J. and et.al., 2014. Social media technology usage and customer relationship
performance: A capabilities-based examination of social CRM.Journal of Business
Research. 67(6). pp.1201-1208.
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Upadhaya, B., Munir, R. and Blount, Y., 2014. Association between performance measurement
systems and organisational effectiveness. International Journal of Operations &
Production Management. 34(7). pp.853-875.
Online
MIS - management information system, 2017. [Online] Available through:
<https://www.webopedia.com/TERM/M/MIS.html>. [Accessed on 18th October 2017].
What Are the Advantages of Information Technology in Business?, 2017. [Online] Available
through: <http://smallbusiness.chron.com/advantages-information-technology-business-
774.html>. [Accessed on October 2017].
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