The Strategic Use of Information and Communication Technology Dissertation

The Strategic Use of Information and Communication Technology - Dissertation Example The findings of the paper reveals that majority of the SME enterprises have considered ICT as the catalyst of their business Apart from the gains that the SMEs are presently accruing from the use of the ICT in their operations the ICT can also be used to reap further gains by implementing the ICT in a more integrated and strategic manner (Maguire and Koh, 2007, 16). Franklin is of the opinion that the ICT can be used by the SMEs to improve their functioning. This would help in making the information about micro- credit facilities and production technology more accessible. Apart from this it facilitates the skills building of the organization by the method of distance learning (Franklin, 2006, 15). The three assets of the Information technology (IT) that is the human asset, the technology assets and the relationships assets helps in the planning, delivery and operation procedures in an organization (Ross, 1995, 16). The four pillars of IT in an organization are the â€Å"IT and the b usiness alignment†; â€Å"IT strategic planning†, â€Å"security and privacy† and â€Å"attracting, developing and retaining IT professionals†. ... Advertising and suggestions projected concerning the products of a firm is also a crucial step (Liebowitz and Khosrowpour, 1997, 221). Proper alignment of business activities is very much required in an organization. For instance, in case of Wal-Mart, information technology has been used in order to alter the model of business. The firm has allowed the suppliers to find place on the shelf of the company which would be paid for what they get (Light, 2005, 113). The study conducted by King and Teao reveals that the organizations which undertakes a strategic approach in their functioning emphasizes more on the use of the IT in their works than the other firms. The internal factors affecting the functioning of the organization lays down the need of strategic systems in their works. The strategic systems emphasizes on the need of IT in their works. This enables the smooth and efficient functioning of the organization (King and Teao, 1994, 10). The knowledge management, which is facilitate d by the use of ICT in the organization’s operation, enables the enterprise in utilizing its tangible and non-tangible knowledge resources can be used in a SME by locating and capturing the innovative ideas and strategies, by sharing the information about the procedures, which are cost effective (Menkhoff, Wah and Loh, 2004, 19-21; Melville, Kraemer, and Gurbaxani, 2004, 284). Pillania in his work talks about the catalytic role that the aligned knowledge management strategy plays in firm’s growth. But he also observes certain limitations of the KM (knowledge management) in boosting the growth of SMEs. Hence it is advisable for the firms to manage its knowledge base in way so that the challenges can be overcome