Information technology can be considered as a term which can be used in any field related to the mere concept of technology. Information technology helps this field to expertise with its unique aspects and involvement. Information technology are used by many organisation to introduce various source of activity (Skees 2016). The value term can be directly related to then improvement of the business when IT is related to an organisation. The value criteria directly involves delivering of a standard service to a client. The client always expect the deli ery of the standard of the service which they expect to achieve and in return they tend to level up the request which they desire to achieve (Meyer and Reniers 2016).
The risk associated with any technology can be a dominating part or play a dominating role in any aspect. Every organisation tend to involve their aspects into the information technology in order to gain advantage from the technology. Putting emphasis on the information technology it also can be related to some of the risk factors.
The main aim of the report is to put limelight of the value of the information technology and the risk associated with the technology. The main focus of the report would be to point out the various aspects of information technology. The main motive of the information technology is providing a platform in which its advantages can be applied and overall gain can be achieved, this can be achieved by the value chain management and the control of the risk factor which are associated with the implementation of the technology
The impact of the information technology can be varied. The implementation of the information technology are used by many organisation to improve their business standard and improve their service. The term information technology (IT) is mainly composed of four distinct parts which mainly comprise of an organisation, information in an organisation, and information technology and information system in an organisation.
Information technology can be considered as one of the most integrated and vital parts in the everyday business plan and activity (Skees 2016). The information technology play a role in every sphere of business from small organisation who run their business through single computer system to multinational company who maintain system of mainframe in order to conduct their business. The best way to get a hint of how information technology plays its dominating power is by looking into the different field it occupies its position. The field it mainly focuses are communication, data management, inventory control, management information system and customer relation management.
Information technology in many firms are changing the overall concept of the technology from cost centre orientation to trusted business partners within the frame work of the business. The main intention behind the transform is the give the business the much needed tools to be competitive in market place which is global. Before the transform the information technology was considered as a cost centre. The IT had to mainly focusing on the technology alone as a standalone aspect. The IT department of the different companies did not focus on the mere concepts of the weakness, strengths, opportunity and threads. Information technology when related to the cost factor or centre, it has been providing services when are concentric to emails, business application access and data storage. All of these bridges have been mainly outsourced to different vendors which is mainly done on the basis of cost and with respect to the level of service. From the point of view of the business, if the IT cannot provide the expected service which is the need than the outsourcing can be considered as a reasonable approach (Hopkin 2017). When it comes to value, IT can collaborate with the business bodies to provide the demand of the service they opted from it. The IT department has mainly focused on the advantage which it can provide on the point of view of the better understanding and share in the vision of the business. Putting emphasis on the understanding the IT department should be able to provide a list of better services which the business farm would find critical to achieve.
The information technology department has directed recognized the need of quality towards the service they provide. This quality aspect can be measured by means of service desk ticket, up time and other objectives that can be considered as very much vital from the point of view of any organisation. The IT is slowly moving towards adapting the need of the business bodies. It can be seen before such a move the IT department, vendors with the IT service providers with the IT equipment and /or the services. This was mainly imposed on the automotive to the machinery industry (Gordon et al. 2016). Reliability can be sold quite easily than selling features. The quality of any product or service can be neglected in many ways one of the major reason of doing so is the deadline issue of the concerned good (Hopkin 2017). The need of delivering a product or service before the deadline can be sometimes very much challenging on the point of the originator. However the most important point to be considered here that the bad quality of the service has nearly come to an end. Putting emphasis on the part of the service gainer they have somewhat understood the concept that the lower productivity would directly involve in a lower productivity. Each and every business needs a system that they can easily rely upon. Each and every hour of down time would be directly reflected on the part of the lost workers’ productivity and also would hamper the customer and the service gainer aspect (Almeida, Hankins and Williams 2016). Depending upon the size of the business concern the loss of the customer would directly be a huge loss from the point of the organisation. In simple words time would result in a lose customer moral and the lost customer would not again intent to get the service from the organisation concerned here. Customer satisfaction could be a vital term here because in any field of business orientation the customer if they are keep happy with the service and the quality of the service it would be beneficial from the point of view of the customer as well as from the point of view of the organisation.
It is very much crucial for the IT leaders in order to influence the individual who are mainly tasked with the distributing resources which are scarce across the organisation. The following points puts emphasis on the term of business which are related to the information technology:
IT risk is the application of the principles which can be involved in the risk management to an organisation in order to manage the risk associated with the field. The main aim of the information technology management is to manage the ownership. Influence, adoption, operation and use of these various aspect or terminologies as a part of the larger enterprise (Gordon et al. 2016). IT risk management can be considered as a component of a larger enterprise related to risk management protocol. This encompasses not only the aspect of negative effects and risks boy also the operation and services that can be related directly to degrade the value of the organisation and take the potential benefit of risky ventures into the scenario. IT risks can be managed by following the steps.
Assessment: assessment of every risk is accessed and scrutinized properly
Mitigation: in order to reduce the impact counter measures are provided.
Evaluation: at the end of the scenario of the project the effectiveness of any measures are mainly evaluated. And according to the result actions are focused and its various aspect of precautions are taken into account
Achieving the competitive advantage can be directly related to continence on the internal environment factors (interdepended factor between its different aspects), external environments (environmental uncertainties like risk associated with information technology) and other cultural factors. Only the remedy of these fundamentals can be achieved by appropriate and sufficient IT capabilities which can be reinforced in channel processing and capability of implementing the information technology in turn and reap of the be if it’s that can be directly be achieved with its implementation.
The approach of the value chain mainly looks into the overall strategy of the organisation and mainly can be related to the competitive strength of the organization (Gordon et al. 2016). Value chain is mainly considered at the concept of the organisation are not merely random compilation of machinery, people and equipment and main aspect of funding (Meyer and Reniers 2016). Only if the consideration is made into these input into the system, the question of is the input in the near future be productive with the concern of the organisation. The ability to perform a specific activity and the management of the overall concept of the linkage of the activities can be referred to as the advantage of the competitive business. There is a difference between primary activities and supporting activities. Primary activities can be termed as the delivery or the creation of the service or the product (Skees 2016). Each of these concept can be referred to or can be involved as the improvement activity (Almeida, Hankins and Williams 2016).
Risk analysis can be directly be related to the technique of managing and identifying the potential problem that would undermine the key business projects and its initiatives. In order to carry out the risk analysis aspect involved in an organisation the most primary objective is to identify the threats that can be possibly be faced in the near future (Gordon et al. 2016). With it estimation of the likelihood with this threats that would be materialized would be taken into consideration. Risk analysis can be considered to be complex taking into account the aspect of detailed information such as financial data, security protocol, project plan, marketing forecast and other information related to it (Hopkin 2017). This concept can be considered as a planning tool termed as essential and with its implementation it could save time, reputation and money. Risk analysis or risk assessment can be quantitative, semi – quantitative and qualitative (Bouvard and Lee 2016).
Quantitative approach of the risk analysis mainly assigns numerical value with respect to both likelihood and impact. The quantitative measure with the risk analysis is basically calculated with the help of a statistical model which can be considered as a guide line to judge whether or not it is acceptable. The below figure explains the relation between consequence, likelihood and the limits of acceptance.
Semi- quantitative approach of risk assessment classifies threat according to the probabilities and consequence of occurrence (Groves et al. 2016). This is mainly in the way of options which are based upon the person making the assessment. The concept can be classified into following five classes
Qualitative approach describes the consequence of the likelihood in detail concept. This approach is mainly used when the event is very much difficult to express in terms of numerical values (Hopkin 2017). It can be related to an occurrence without any information that can be considered as adequate information and numerical data related to it. This type of analysis can be related to as initial assessment of the recognize risk.
Risk management processes can be sub divided into several sub processes which are mainly executed in a sequential manner (Wipplinger 2017). One of the most important sub processes that are related to the topic is Enterprise Risk management. The enterprise risk management is divided into three main steps:
The main goal of the risk identification and with it its analysis is to evaluate the risk mitigation. The following point’s gives an overview and the importance of the mitigation related to risk with it its approach in order to reduce or mitigating project risk.
The risk mitigation planning is a continuous process or can be termed as ongoing effort that cannot be stopped after the risk quantitative assessment relation between consequence, likelihood and the limits of acceptance relation between consequence, likelihood and the limits of acceptance (Hopkin 2017). Risk management include can be considered as a front end planning with regards to the major risk and how they can be mitigated and managed once they are identified . Therefore it can be stated that the specific risk strategies in order to mitigate them should be incorporated in the plan of the project execution. Risk mitigation plan should incorporate the following characteristics.
Risk buffering can be considered as some sort of reserve or buffer that would directly absorb the effect of the risk without jeopardizing the overall working of the project. An example of this scenario is the contingency factor that reduces risk of the project running out of fund before the project is completed (Bainbridge 2016). Buffering can also include the allocation of time which is considered as additional time, machine, manpower and other form of resources used by the project.
Buffering with the aspect of cost or schedule overestimate and other co related factors can mainly accumulate across the project can be done in the owners detriment since they can result in a upward trend that can be stated as general in the expected projects duration and cost. When relating the aspect to the private project, this trend is mainly controlled by competitive factors and by the owner’s knowledge of what the schedule and the cost should be considered. If a situation arise that the bidding pool is small or if the owners knowledge is not knowledgably there must be control measures taken that are adequate on scope control creep, schedule creep and cost creep (Hopkin 2017).
Risk control mainly refers to the risk associated within the prospective of the project and taking necessary precaution and mitigation planning in order to reduce the overall impact in the project (Bainbridge 2016). Risk control can be implemented by installing gathering of data or early warning systems that provide the information in order to access more accurately the impact, timing or the risk and likelihood. When risk control is compared with risk avoidance it can be considered less expensive.
If the risk control is associated with the launch of a product with it the competition presents a form of risk, then ion this situation one solution which can be taken into consideration is that to accelerate the project time, even in some situation cost should be taken in consideration. An example of the risk control is the monitoring of the technology development on highly technical one of a kind project (Bouvard and Lee 2016).
Conclusion
Information technology can be considered as a major breakthrough with the main motive of improving the business efficiency and its overall effectiveness in its different field where it can be applied to. However these benefits can be related to the potential which can be considered more beneficial and more significant in the supply chain related to the international activities. There can be many challenges in different field which can be directly be resolved with the implementation of the technology. The main motive of the information technology is providing a platform in which its advantages can be applied and overall gain can be achieved, this can be achieved by the value chain management and the control of the risk factor which are associated with the implementation of the technology. The report would provide an overall guideline to improve the advantages and its related concept. Finally it can be stated that leveraging the IT capabilities in order to support management and achieving the competitive advantage can be directly related to contingence on the internal environment factors( interdepended factor between its different aspects), external environments(environmental uncertainties like risk associated with information technology )and other cultural factors. Only the remedy of these fundamentals can be achieved by appropriate and sufficient IT capabilities which can be reinforced in channel processing and capability of implementing the information technology in turn and reap of the be if it that can be directly be achieved with its implementation.
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