Information technology and its effect on organizational structure

selective information applied science and its effect on organizational anatomical structure

INTRODUCTION

Organizations argon in the midst of transformation. In many industries, mass production by large, vertically integrated, hierarchically organized firms is giving focal point to more flexible forms of both internal organization and industrial structure. bat is increasingly accomplished done networks of smaller, more focused groups. The resulting structure of sub-organizations is redefining the boundaries of both firms and industries.

A case in point is the computer industry. In the past, large, vertically integrated firms such as IBM dominated the industry, which created products and serve throughout the value chain -- from the micro serviceor level all the way up to the provision of solutions.

The vertical structure is now organism replaced by a series of layers, each of which is, in effect, a separate industry. Value is generated by coalitions, where each member of a coalition specializes in its area of core competence and enhances it through the use of tactical or strategic partnerships. Internally, team structures are replacing the traditional hierarchical form. Incentives are increasingly ground on performance, and achievements.

In sum, modern enterprise is undergoing major restructuring and information technology IT is an important driver of this transformation. A fundamental change is pickings place in the nature and application of technology in business.



This change has profound and far-reaching implications for organizations and for you...the information age is evolving into a succor era. Organizations that do not make this transition leave alone fail. They will become irrelevant or cease to exit.

GENERAL BACKGROUND

Definition of Terms ¨ Information Technology: Technology is usually referred to as the production process of a society or an industry. But, with the advent of computers, such speculation is no longer valid. We are now living in a new era of Information, and a new description is born:...

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