Power of information technology in the transformation of the economy

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The impact of information technology (IT) companies are probably in the form of gigantic proportions. With the advent of the Internet, the traditional methods of business have changed significantly, as evidenced by the emergence of electronic commerce. In addition, adding a greater use of the World Wide Web for different applications through IT. Time and space is exceeded and the “world is flat” now. Globalization will continue and is the result of increased competition between operators. This shows that information technology can change business! Aware of the profound impact of information technology, IT, of course, requires a greater need for business and strategic management focus. Particularly interesting is the use of IT in strategic management. In this context, the role of information technology expands, it changes the role of the traditional role of an information system that more and more leadership. Three key concepts must be taken in connection with this fact. This is a strategic management, information technology (IT) and Information System (GIS). The following descriptions explain the connection between First, the relationship between information technology and management information system concepts.The. The traditional view that the computer processes information technology activities, the information held. From this perspective, only the information systems of different positions. Hardware and software are important implications for the function. Strategic planning requires decisions to be made that not taking place. Therefore, use of IT systems for the selection of the data impossible under the only decisions that are arranged between the nature.The Second, strategic management and information management. Described with reference to the relationship, it seems that this relationship for 1960 and 1970 took at the beginning. There was a time when the need to adapt the strategic planning for the organization of information emerged. The result is a new approach for the system of strategic management and information management. This report is a supporter of McKinsey & Co., which one report called Unlocking the profit potential of computers in 1968 published. The report recognizes the importance of this relationship, and urged the administrators to look at the role of computers reform, it should deal not only with the data processing resources. On the contrary, should be seen as a way of organizing strategies.This system led to the distinction between strategic and operational information management system supporting the slope can be seen. Examples of strategic information systems company through the reservation system Sabre (American Airlines), owned as quickly as possible to enter the system (American Hospital Supply Co.) system, to Economost (McKesson Corp.) and the Apollo Reservation System Travel (United Airlines). In fact, a strategic information system to achieve its objectives through various mechanisms. Two mechanisms are of particular interest to go for the restructuring processes in the flow of information within the organization and development of systems for companies, which is about the traditional system of independent information in all the basic concepts for re-organization.One flow of information, the currency information. This means that the flow of information has been designed so that the data are available if needed. Take the example of a strategic information system to collect information about booking a flight through the exchange of information between the organization and its airline alliances, ticket offices and travel agencies. This flow of information may change based on those affected, the airline tickets and travel agencies, the number of places available discounts on the current state of the ticket sales. What organizations in different systems, it is basically obvious. The third report is that between the strategic leadership and information technology. This report serves to emphasize the role of information technology, because the effect of supporting the formulation of corporate strategy, not just their activities. This is shown by Merrill Lynch that the strategy will allow the development of substitute products or services are maintained. Cash management account-making (CMA), shows that transform the system allows, the manner in which the financial sector .