Information Technology & Its impact on organizational Structure Case Solution
Customer satisfaction has beenthe major concern for the companies that deal with customers on a daily basis. IT by definition can be defined as a set of tools, methodologies that collect data and process, and present information, which helps in decision-making process(Business Dictionary, NA)
As previouslydiscussed, customer relationship management is a tool, which helps to store the information related to the customers’ preferences, which further enables the businesses to select, and purchase the products according to customers’ preferences.
Nowadays, information technology is considered as an effective prerequisite tool to control the moderncomplex supply chain processes, where companies are not independent, but they are inter-linked with each other i.e. delivering goods, and services to the final customers. In order to meet the final customer, a systematic process is necessary to fill the gap, which can only be fulfilled by the help of technology.
If we go back 20 years,then it can be seen that the customers did not have access to the information regarding the product placement, even logistic managers were not aware of arrivals of their orders, as they did not know if the shipment had been canceled by the vendor due to any reason.Moreover, at that time, the customersdid not have potential internet access, as well as there were no online virtual stores.
However, in the modern era, customers’ preference have been changed, where customers have access to the information through theinternet, as well as customers can order the product online. On the other hand, a logistic manager can also order through thevendor, and both can track the order as for where it has reached, and possible delivery day as well.
Furthermore, digital supply chain management has become easier than before beginning with the electronic invoices, computerized customer record, and online shipping, and tracking system, which enabled customers to get the hand to hand information about their orders. The customers also get notification message after the delivery of goods.(Gharban, 2011)
Moreover, the use of electronic devices has become a rising trend in supply chain management due to the help of Radio-frequency identification (RFID), or the (GPS) Global position system, which records data of the goods, and provides information to distribution. On the other hand, if in case the product’s temperature has increased, or the quality of product is not as required, then it can be returned back to the supplier or to the near store to sell it earlier before it gets worn out.(Watson, Wysocki, & Bucklin, 2015)
When dealing with today’schanging businesses’ needs, the company has to invest in IT to ensure the quality of the product, customer satisfaction, as well as to be able to carry out proper business operations. However, information technology cannot provide the competitive advantage over acompetitorin the market. This is because the technology adopted by one company can also be adopted by another company, in this sense IT cannot give a competitive advantage to both firms.
However, the way they operate can distinguish the quality of services between them.As stated by Bill Gates;“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency,and the second is that automation applied to an inefficient operation will magnify the inefficiency.”...........................................