Mastering the Three Worlds of Information Technology
Name – Akash Meena
Roll No. – 24PGP025
In the information era, companies often struggle to manage IT systems
effectively. While technology can make tasks more efficient, many IT
projects fail to meet expectations, according to survey conducted in 2005
with 782 American executives. 50% admitted that “aligning business and
IT strategy” was a major problem. 51% of large-scale IT efforts finished
late and ran over budget. Instead of treating IT projects as just technical
installations, companies should view them as periods of organizational
change. There are three main types of IT that impact organizations in
different ways: Function IT (FIT), Network IT (NIT), and Enterprise IT
(EIT).
1. Function IT (FIT): FIT includes tools that help people perform
individual tasks more efficiently, like word processors and
spreadsheets. These technologies usually improve personal
productivity without requiring company-wide changes.
Example: Ducati used simulation software to design its motorcycle
engines faster and more accurately without changing the entire
department's workflow.
2. Network IT (NIT): NIT enables communication and collaboration
among employees, such as email, instant messaging, or wikis. NIT
doesn’t dictate how people should interact but gives them the
flexibility to work together.
Example: DKW encourage their teams to post agendas, to-do lists,
and work in progress on the wiki rather than circulating them via e-
mail.
3. Enterprise IT (EIT): EIT involves systems like CRM and ERP, which
restructure workflows across the organization. These systems are
implemented top-down and require everyone to switch to new
systems as soon as it go live.
Example: CVS used an IT system to redesign its prescription
process, cutting wait times by 80% by reorganizing how pharmacists
and technicians worked.
Managing the Three Types of IT:
Executives must manage IT by playing three roles: IT selection, IT
adoption, and IT exploitation. Each role is essential for ensuring
technology benefits the organization.
1. IT Selection: Instead of adopting the latest technology just
because it's popular, companies should focus on what they need IT
to do. For example, Cisco realized it needed to standardize its
processes, so it invested in an ERP system and customer database
that provided clarity and uniformity across departments.
2. IT Adoption: Once a technology is selected, managers need to
ensure it is adopted properly. For FIT, managers should encourage
its use without forcing it. NIT adoption requires setting norms for
how to use collaboration tools, while EIT requires more active
involvement since it changes entire business processes. For
example, At BMW, the chief designer encouraged his team to adopt
computer-aided styling software by integrating it into their workflow
instead of forcing them to use it immediately.
3. IT Exploitation: After a technology is adopted, companies must
fully exploit its potential by fine-tuning organizational processes. FIT
can be enhanced through better workflows, NIT can be continuously
improved with user guidance, and EIT can be further optimized by
extending its capabilities. For example: Sysco used business
intelligence software on top of its ERP system to predict customer
behaviour, helping the company retain clients and improve sales.
