Applying IT solution Application

nName

nInstitution

nCourse

nDate

n

nThe application of information technology solutions

nInformation technology (IT) refers to a wide range of applications used in an organization for the purpose of creating, using, storing, and exchange of information. The IT forms an integral part in the contemporary business operations. Some of the IT applications include phone systems, internet connectivity tools, peripheral equipment, servers, and computers (Didraga, 2013). The IT support and firms are conventionally been designed based on business operation where every function is reinforced by its own information systems. Currently, businesses use IT systems to sustain their competitive edge. In addition, they require computing support in various processes that are not limited to a distinct business function (Pan, Kim & Yang, (eds.) 2014). The new trends in IT require the integration of contemporary systems in the business process. The trends produce new demands on software systems and their incorporation. For instance, it facilitates the integration of the emerging applications such as Commercial Off-The-Self (COTS) products.

nHorizontal and vertical IT portfolio integration strategies

nBusiness use horizontal integration and vertical integration of IT systems as a strategy to consolidate their competitiveness in the market. Vertical integration of IT refers to the strategic plan by which the firm adopts to acquire full control over different stages in the distribution or production of a product (Didraga, 2013). On the other hand, horizontal integration refers to acquisition of IT processes in the value chain or other different levels (Bardhan, Sougstad & Sougstad, 2004). Organization utilize IT systems in Supply Chain Management aiming to optimize the full array of functions such as shipment, production, purchasing, and order entry. For this reason, horizontal integration of IT is important for the business because it reduces the production cost, and lead-time as well as optimize the customers value (Pan, Kim & Yang, (eds.) 2014). The contemporary trends towards incorporation of software ensure operational systems are divided into units each performing distinct service and tasks.

nBy incorporating these duty-oriented mechanisms in new and diverse ways, the firms have the capacity to introduce and design new combination of services (Didraga, 2013). The software integration helps to redesign the business processes. Some of horizontal integration of crucial software includes packages such as Baan, SAP, and PeopleSoft, which improves the inter-process system within the company (Pan, Kim & Yang, (eds.) 2014). Furthermore, many organizations use horizontal integration to modernize out-dated enterprise resource planning (ERP) packages.

nVertical integration of software is intended to incorporate systems executed at various administrative stages of a company, which helps to pay particular attention on business operations at various levels of management (Pan, Kim & Yang, (eds.) 2014). Software is integrated in various levels such as process control, manufacturing, supply chain, ERP, data warehouse, and decision support. The software used in the vertical integration is beneficial to the firm because it improves the after-sales and distribution of services more efficient. Furthermore, it creates opportunities for downstream and upstream profits.

nFuture trends in IT process integration

nThe future trend in IT process integration among companies is towards electronic commerce, which is likely to alter the inventive interactions designs (Didraga, 2013). The innovative designs are intended to meet the needs of suppliers, customers, and the organizations. Enterprises will have to exchange data electronically to facilitate their negotiation and collaboration. Furthermore, companies will be abandoning the monolithic enterprise systems. Instead, they will be adopting customer-centric or employee-oriented technologies. Therefore, the demand of hybrid technology solutions will increase which will assist in multiple stakeholders (Pan, Kim & Yang, (eds.) 2014).

n

nReferences

nBardhan, I., Sougstad, R., & Sougstad, R. (2004). Prioritizing a portfolio of information technology investment projects. Journal of Management Information Systems, 21(2), 33-60.

nDidraga, O. (2013). The role and the effects of risk management in IT projects success. Informatica Economica, 17(1), 86.

nPan, Y., Kim, C. S., & Yang, Y. (Eds.). (2014). Future information technology: Futuretech 2014. Springer Berlin Heidelberg.