Describe about the Business IT Alignment for Business Consumer Satisfaction.
The study includes the information that an organization can analyse and use for making better stand at the market and consumer satisfaction. Through the use of the Porter’s 5 forces that is a significant tool for understanding and investigating the competitive advantage, the organizations can create their future strategies. Through the discussion of web2 and web 3 technologies it has been derived that by utilizing this technologies the organizations can facilitate the user-interaction in terms of interface. In addition to that, web 2 and 3 allows the organization to social integration that allows to connect with the consumer 24*7.
Porter’s 5 Forces: Tool for Analyzing Competitive Environment:
Analysts all over the globe consider ‘Porter's five forces’ as an extreme useful tool that is utilized for investigating the competition within business strategy development and industry.
Advantages and Disadvantages:
The advantages of the Porter's five forces are as following.
The tool is simple to use and effective enough to support finding if any power lies within business situation (Porter 1979).
Assists organization to gain better competitive position.
The disadvantages of the Porter's five forces are as following.
It ignores particular factors that are associated with the firm.
The external factors are put on emphasis (Porter and Heppelmann 2014).
Does not consider institutional issue as an inflectional force rather considers it as only a factor.
It cannot assist if any revolutionary alteration occurs in the industry.
Multi-industry conglomerates cannot be described or analyzed (Lee et al. 2012).
The five forces of the Porter's five forces are such as supplier power, buyer power, competitive rivalry, threat of substitution, threat of new entry.
Figure 1: The Porter's five forces
(Source: Porter 1979)
Suppose someone is trying to buy a farm. If Porter's five forces are used then the following can be derived.
Supplier power: The uniqueness of the product can affect the supplier’s mentality to raise the price. If a product is very crucial for conducting the business it is supplied by one or two suppliers then the supplier can have control over the origination (Porter 1979).
Threat of new entry: If the organization can profit from the business extensively then more organizations will be coming into the same industry.
Competitive rivalry: Severe competition puts tough downward pressure on costs.
The threat of substitution: Whether the product can be extensively used in the local area (Porter and Heppelmann 2014).
Buyer power: The buyer power is strong is the competition becomes strong. Pressure on lessening the prices can occur (Lee et al. 2012).
IT-business alignment is the communication between the information technology and the business objectives of an organization. For gaining significant success, the organizations make use of these two factors and maintain it over time.
The Objective of IT-Business Alignment:
At present various organizations are making use of the information technology for attaining various advantages in the future. The advantages are such as reduced costs, enhanced productivity, developing fresh business strategies, sustaining repeatable service levels and many more (Luftman 2003). The role that has been reserved for information technology is specifically subservient in terms of business planning. The strategic divergences ae considered as the counter productive and extremely frustrating. This divergence results into complex IT infrastructure. Because of the complex infrastructure, sustaining and modifying the overlying business operations gets difficult. The prime purpose of the IT-business alignment is to assist the organizations to focus on business focus IT strategy approach rather than conventional retro-fitting business functionality.
Improving the IT-Business Alignment:
In this context, three strategies has been introduced for enhancing the IT-business alignment.
Employing business relationship manager: Various organizations are considering to establish business facing roles that are responsible for developing and maintaining relationship between business and Information Technology (Luftman 2003).
Changing vocabulary: All the organizations must utilize the business of reference and focus more on the business objectives rather than investing extensively in the information technology.
Establishing governance activity: Through the implementation of the governance activity, the organizations can get great assistance in terms of decision making and investing (Grembergen 2000).
The Advantages of Data Management:
The benefits of the data management are as following.
Allow establishing control: through the implementation of the control over its data, an organization can provide authorization to access its data as per its criteria and business rules (Farber et al. 2012). In addition to that, the organization can also determine that which users can carry out what kind of activities.
Data map: The data map should not be considered as a one-time exercise. The data map assists in keeping the organization’s data updated (Pitoura and Samaras 2012). This facilitates updating the database.
Segmenting data: Through the use of the data mapping process sectioning the data will be simple and effective (Farber et al. 2012).
Regular data hygiene activity: Decaying the data will be faster. The data mapping will assist the system to send accurate information to the right person (Pitoura and Samaras 2012).
Significant of Adopting Web2 and Web 3 Technologies:
Social networking: Through the social networking, the furthermost migration of people into the virtual world has been possible. Because of this technology, the people are not only able to interact in the virtual world but also able to communicate overseas (Venkatesh, Croteau and Rabah 2014).
Video sharing: The video are the most complex element among all thee multimedia. Through sharing the video of it and its product the organization can do promotion in a completely new way (Berthon et al. 2012).
Web services and smashups: It utilizes and enables open flows of information from one online platform to another and one online service to another (Venkatesh, Croteau and Rabah 2014).
Cloud computing: The cloud computing allows the organization to allow its employees to access the system from remote location (Berthon et al. 2012).
The most significant contribution of the Web 3.0 to the technology is that it allows accessing data from anywhere. The approach was driven the extensive use of the cloud applications and smart phones (Garrigos et al. 2012). Web 3.0 makes sure that a user can access as much data as required from anywhere.
Threats that Generate from Dynamic and Complex Technology:
One threat that is associated with the advance technology is that the employees get to lose their jobs to the machines as the machines are considered as more accurate than human (Tassey 2014). This is a serious threat to the society as the whole economical structure of the world will be changed.
Another threat that the complex and dynamic technology poses that the vulnerability of the technology allows many attackers to gain the sensitive data of the organization. If the services of an organization are customer centric then most priority should be given to secure the information of the user (Bogard, Liu and Chiang 2013). Instead of so much security, the attacker gains access to the consumer data such as account related information.
From the above study, it can be concluded that the organization irrespective of its industry can make use of the information technology for enhancing the business objectives and profit. The business-IT alignment is a very good approach for making the business grows in an rapid pace. Instead of having so much significance, the IT-business alignment can make the business vulnerable. Though many benefits and are drawbacks can be stated in the context of complex and dynamic technology, the use of more complex technology will assist in facilitating the daily lives of the people.
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