IT Management Optimizes Use of IT in Business

Focus is on How to use Information Technology for Business Goals

Nov 10, 2009 Gopinathan Thachappilly

Information Technology Management with its greater focus on technology is distinct from Management Information Systems (MIS) that are more business-oriented.

The MIS Manager focuses on providing decision support information that can help business managers in such tasks as product development, marketing, cost control, productivity and competitiveness. The IT manager monitors the developments in the technology area that can help the MIS manager in discharging this role. In practice, the MIS and IT managers might be the same person and herein lies a key problem IT management faces.

Information Technology Management

Technology becomes useful only when it helps management achieve their goals more effectively. The problem involved is that while technology is handled by technologists, business management is handled by persons with a different focus. Technologists and business managers often fail to understand the requirements and constraints of each other, and the result is a failure in aligning information technology with business.

IT management involves:

• IT Governance: IT should not be left to technologists. Instead, persons right from the Board of Directors level should get involved. Directors and top executive management have to ensure that investments in IT will produce adequate returns in such forms as improved financial and market performance.
• IT/Business Alignment: IT and Business Managers should be encouraged to understand each other's perspectives and requirements. Only then will it be possible to use the full potential of information technology for achieving business objectives.
• Managing IT Portfolio: Both new IT projects and continued maintenance of existing IT applications need to be evaluated for the business value they provide. Considering that time, skilled manpower and money are limited, the evaluation should help prioritize the portfolio of projects and support efforts that will receive funding.
• Change Management: Existing business processes will usually have to be redesigned to realize the potential of improved performance using IT. This will require considerable skill and focused effort in implementing the changes.
• Risk Management: This involves answering three key questions. Will the systems work as expected (technological risk)? Will the people use the system as it should be used (organizational risk)? Will the system provide real business value (business risk)?

Information Technology Project Management

The IT manager has to keep track of development in the fast changing field of computers, networking, software systems and other relevant technologies. The manager should be able to visualize how the developments can help the business enhance its effectiveness in achieving goals. Based on this scenario, projects are formulated in a preliminary fashion and presented to business managers.

The projects can involve replacement of existing applications or implementing new applications. They would then be evaluated for the business value they provide. The evaluation will also consider such factors as the cost of training and orientation of employees to adopt new practices. Familiarity with existing systems is a major advantage and this can be ignored only if the new system provides overwhelming benefits.

The task of systems development is initiated when the project proposal receives approval and funding. Once initiated, development management will involve monitoring the progress against schedules, testing at different levels and final implementation, which can be a major exercise.

Once systems are implemented, it becomes a service to the business and service management issues come into the picture.

Information technology management and management information systems have separate focus, even though both can involve use of technology. IT management focuses on the technological aspect while MIS focuses on the business aspect. IT management seeks to utilize emerging technology developments for enhancing the effectiveness of business performance.

The copyright of the article IT Management Optimizes Use of IT in Business in Business Management is owned by Gopinathan Thachappilly. Permission to republish IT Management Optimizes Use of IT in Business in print or online must be granted by the author in writing.

Information Technology

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