Lecture 3- IT Trends

Time to time, day to day information technology is developing. Development of the information technology new concepts come up to the industries and with the development of information technology organizational work has become much efficient and faster. 

Theory and Application:

MIT 90 Framework:

Figure 1: MIT 90 Framework (Science Direct, 2012)

As mentioned in heacademy (2012) MIT 90 framework was developed by Michael S Scott Morton in the early 1990s. This was used by the University of Strathclyde as the basis for structuring its approach to bench marking e-learning. Afterwards in 1996 Venkatrama did initiative developments for MIT 90 framework. Level 1 and level 2 which are localized exploitation and internal integration are called evolutionary levels and level 3, 4 and 5 following business process redesign, business network design and business scope redefinition are called as revolutionary levels.At the first stages for organization it incurs low cost as well in the other hand organization gain low benefit. When goes up to the level by level the cost as well as the benefits get increased and the 5th level get highest benefits as well it incurs high amount of cost. Which means at the top levels develops high level of information systems with high technology for this it incurs high cost as well organization get high benefits.

Localized Exploitation: 
As explained by Zee (2008) In level 1 mainly focuses on the improvements in the process or business functions. Such as, human resource,  finance etc. This is the introductory level for information systems. In this level most of the changes in individual activities happen but not that much of organizational changes. These changes or adjustments leads to more efficiency and the accuracy. In this level cost as well the benefits for the organization is in a very low level.

Internal Integration
According to Zee (2008) The main task of this level is to interconnect all business activities into the correct direction. In this stage minor adjustments will be done in the working process. But in the business functional division run the process without any large changes. The benefits of this level are  improve the efficiency of departments and build up the effectiveness and  reduction of throughput time within the business process.

Business Process Redesign 

Zee (2008) described this level as This is the level of fundamental rethinking of changing the strategy of  a business. Redefining of business processes are take place in this level (new business processes develop) to gain the maximum use from the information technology aligning with the business processes and people. Compare to level 1 and 2 efficiency wise, improvements wise and beneficiary wise this level is in much higher level.

Business Network Redesign

As stated by Zee (2008) at this level organization changes the nature and the degree of inter relationship within the industry. Any business or representative who can change the collaboration and make the business process effective and this can affect on transactions with customers and suppliers in a positive way. At this level IT is the main contributor in communication, working process reducing boundary barriers , time and other barriers that can affect on the business. The main benefit organization gain from this level is adopt the strategic nature to the organization.

Business Scope Redefinition

As per Zee (2008) at this level there is a possibility of enlarging the scope,vision and mission of the organization.At this stage company seeks for opportunities in order to improve the organization work flow and make the work faster and efficient and give a effective out come for customers. At this level the usage of supply chain management comes in to the role in organizations. 

Reflection:

Any company starts the business in small way. Even the companies that make billions and billions have a tough time in their history. Organizations get develop step by step. Organizations use different types of strategies to come up defeating competitors. Information technology runs a main role in strategies. Information technology help organizations to come up with the new strategies. At the earlier stage not many organizations understood the usage and benefits of information technology. The organizations understood the importance and the benefits of the information technology introduces IT to their organizations and make their work more efficient and faster. Some of the organizations able to get competitive advantage using information systems like supply chain management system.

MIT 90 framework explains about how the organizations adopt IT/IS to their business and the effectiveness of it. In the 1st two levels which are belong to evolutionary level are not getting that much of benefits to there organizations and they did not incur huge cost since the implementation of I/IS not take part on those levels. From the beginning of revolutionary level the cost as well as the benefits that organizations gain are increase because implementation of IT/IS take part and strategic nature is being used in the revolutionary level.

References:

heacademy. (2012). MIT 90s. [Online]. Available at: http://www.heacademy.ac.uk/assets/documents/tla/MIT90s.pdf [Accessed: 7th November 2012].

Science Direct. (2008). MIT 90 Framework. [Online]. Available at: http://ars.els-cdn.com/content/image/1-s2.0-S0925527302004486-gr1.gif [Accessed: 7th November 2012].

Zee, H.V. (2008). Trends Leading Towards Business Transformation.[Online]. December 2008. Available at: http://be.atos.net/NR/rdonlyres/DC39FE5E-2189-434D-B81D-DCDA435336CB/0/View_dec_2008.pdf .[Accessed: 7th November 2012].