The Art of Strategic Planning
Since IT should be goal oriented the following are the key indicators of achievement to the business organization; financial security and sustainability, community support and reinvestments, competitive pricing, quality services, efficiency, net interest margin and employee ownership and empowerment. Financial security and stability is the key indicator of success, this can be seen in the total net income, returns on assets equality stock price earning per share, asset growth and regulatory audits.
Quality service will ensure an entrusted and built customer loyalty, referrals and relationships since it is friendly, personal and is supported by telephone and internet communications. Indicators of quality service include increased and regular rates of demand, increased rates of access to the product or service and general customer satisfaction. Efficiency is achieved through personnel training and technological developments but at relatively lower prices. This enhances the provision of lower service charges and possibilities of offering discount to the customers.
Key indicator is the efficiency ratio; including competitive demand rates, low service charges and less operating expenditure. The business should also be supported by the society and must be receiving reinvestment from the society. Employee ownership and empowerment will also indicate the business achievements; the employees should be satisfied with the working environment and the managerial approach of the business. Finally it has to be having competitive pricing in the markets so as not to loose customers and investors in the stock market.
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Indicators of competitive pricing include the ability to attract more share holders, ability to achieve high stock turnovers and ability to close day’s sales with a positive deviation index. Any business organization employing IT in the management and have all these key indicators of success should continue inventing more information technology to ensure that they arrive at their ultimate goals. Those without these indicators should revisit their approaches to implementation of IT in business management to ensure that they follow the right channels to IT implementation (Ward 2001).
Strategic planning and implementation of IT will be the only solution to their problem because this will guide them on how to go about the challenges they are facing in their management systems and approach. Despite the fact that information technology have been used for years now it also has tremendous pitfalls which if are not properly adjusted can lead to great loss to organizations. This was partially experienced on the eve of 21st century when some computers were not able to write 2000 but instead were writing 1900, this brought about great defaults since new software were to be installed to deal with the problem (Boar2002).
Definitely the cost of installation of the IT infrastructure during that time exceeded the turn over from the organizations. Some countries like China forbade their citizens from traveling on planes fearing that defaults could occur leading to loss of lives. This was a blow to those international airlines organizations and their respective CEOs of international airlines because their business worth was not achieved due to the fact that it depended solely on IT and telecommunication techniques to operate.
Therefore those who are against this IT approach to business organization approach should be allowed to justify their arguments appropriately and logically with respect to limitations and pitfalls.
References: Boar R H (2000), The Art of Strategic Planning for Information Technology. 2nd Ed London Blackwell Publishers. Boar R H, (1995), Practical Steps for Aligning Information Technology with Business Strategies; How to Achieve Competitive Advantage. London Blackwell Publishers. Cassidy A, (1998), a Practical Guide to Information System. 2nd Ed, Amazon IGI Publishers.