FREE online courses on Information Technology - Chapter 4 IT AND CORPORATE
STRATEGY - Integrating Technology and Decision Making
A significant responsibility of management is to integrate
technology with all business decisions. Integration means that the manager is
aware of how new technology can create opportunities. The technology can
literally change the way a firm does business. Concomitantly, the manager has to
be aware of the impact of decisions on the firm's technology.
A decision to enter a new line of business has a direct
effect on existing information processing systems. For example, the creation of
frequent flyer programs had a dramatic impact on computerized reservation
systems. At least one major airline required flyers to attach a sticker to
tickets to get mileage credit some two years after its frequent flyer program
began. The airline finally was able to modify its reservation system to keep
track of the miles when the traveler makes the flight!
