Role of information technology in an Organization -Sayyed Mohd Shahbaz

Information Technology has many core components which often follow how an IT department is structured. These components include Hardware, Software, Networking & Communications Infrastructure, Business Intelligence & Reporting, Support, Leadership, Planning, and Governance. Strategic information technology investments create value by addressing persistent business needs of an organization. Value creation can be as different as are businesses and industries using IT as a core functional resource. I have viewed "Value" as the real or perceived worth, usefulness, or importance of a given activity or service. One way to look at IT service value is to consider the cost of the IT service versus the cost of providing the service manually. Another way to look at IT value is to consider the benefits of the service provided that would be impossible to accomplish without IT. So, when addressing your persistent business needs find solutions that fit your business process or are adaptable enough to support them. Make sure the business owners are involved in evaluating and selecting software solutions. IT leaders should be involved in RFP's, vendor proposals, and evaluations but it is imperative the business owners know they own the software, not IT. IT is responsible for the infrastructure, making sure the environment is secure, stable, and up to date but the business owner is responsible for day to day use of the system, training, and supporting user content/functional questions. IT needs to support the hardware, communications infrastructure, interact with the software company to resolve technical issues, apply updates/patches, etc. From a governance point of view IT should not be calling all the shots. The organizations management team should drive priorities and IT should execute a plan to support the persistent business needs based on the company's strategy and operational goals. It is so important to understand Return on Investment when using organizational capital for making IT investments. The Information Technology (IT) department manages the technology and computer infrastructure that drives an organization's business systems. The IT department is also known as Management Information Systems (MIS or IS) department.

The IT department is staffed with technically competent professionals that support the organization in these critical areas:

End-User Technical Support

Much of an organizations computer processing is performed by end-users using their desktop PC. When these end-users incur a computer problem (unable to logon, printer does not work, etc.), they call the IT department for technical support. Depending on the nature of the problem, the IT department may assist the user over the phone or send a technician to their location.

Desktop Management
Managing individual desktop computers, laptops and peripherals is a cornerstone of the IT department tasks. Desktop management of individual computers includes: installation of new hardware components or software, software license administration, equipment repair and maintenance.

Network Management
Making sure that the computer network is always available with safe and secure data is the most important task for the IT department. Not only does this involve the physical installation of cabling throughout the facility, but also the installation and monitoring of the firewall, servers and other equipment to keep the network running at peak efficiency. Voice and Data Communication The IT department maintains the telephone and computer systems that allow employees to connect with other employees, customers and suppliers through the use of voice mail, email, faxes, message boards, Internet and intranet web sites. This includes coordinating new requirements with third-party service providers. Business Application Developing and maintaining the business systems that operate the organization are essential tasks of the IT department. This includes software for financial, manufacturing, sales and distribution systems, as well as general office administration, such as word processing and spreadsheet applications. Strategic Technology Planning The IT department is responsible for creating and executing a strategic technology plan that keeps the organization up-to-date with technology advances and ensures that equipment and software do not become obsolete. The technology plan also focuses on the requirements needed to support new business growth.

Information Technology and Customer Service in Insurance

Embedding more technology in the product and services has a profound impact on the standard of competition. More and more service firms like insurance and banks are providing IT based service options to their customers. These services are expected to bring benefits such as improved product and service quality, improved customer satisfaction, higher productivity and improved financial performance.

There are 3 types of CRM technologies

Which includes operational, analytical and collaborative. Operational CRM is the customer facing applications of CRM such as SFA (sales force automation), EMA (enterprise marketing automation) and front office suites. The analytical segment includes data marts or data warehouses that are used by applications that apply algorithms to dissect the data and present it in a form that is useful to the user. The collaborative CRM reaches across customer touch points, all the different communication means that a customer might interact with, such as e-mail, phone call, fax, website pages etc. When technology is embedded in CRM, it may play a supporting role, a direct role, a coordination role and a role in restoring customer confidence especially when it is combined with training and other organizational changes. However, when technology is mismanaged, it can deter rather than enhance customer service. Even when used as intended, IT is not always customer-friendly. For example, some CRM applications are meant to help businesses track interactions with customers, which do not necessarily translate into better service. The services literature suggests that personal interaction plays a key role in creating satisfied customers. E-commerce and the internet are increasingly becoming one of the most important drivers of strategic change for business and national governments. Most insurance organizations recognize that web services and electronic collaborations are the key buzzwords of todays organizations, but the bulk of the job in many firms is still done via manual paper-based processing. For example, customer orders are still received via old methods, and the process for handling these documents is time consuming, wrong and unnecessary. The result is that customers maintain relationships with several firms and finish contact quickly if they are not satisfied with quality of service. Efficient insurance markets are essential basis for the transition countries to achieve integration into global economy and sustainable strong economic growth. Insurance market is a vitally important economic institution where mutual beneficial exchange between consumers and insurance firm is carried out. The information intensive nature of the insurance sector affects all the activities of the value chain, which are based on the ability to process information efficiently. For this reason, investments in IT, which represent almost all investments in technical capital, affect productivity more than in other sectors. Furthermore, contacts between the insurance company and its customers are rare because the contracts are by nature long-term and promissory. So far, insurance firm only offer value-added services to support their customers in the moment of truth, that is, after a loss. As a consequence,

customers have a second thought, whether the buying decision was right while nothing happens. These added services are a promising approach to keep customer relationship alive in the insurance business by vital interaction. Where these technologies were put in place, they have actually proved to be a promising approach to intensify the customer relationship in the insurance business. However, despite the growing importance of the IT function, only a few major insurance firms have gained a complete understanding of their competitive IT positions. For most institutions, the performance level and cost of IT remain well hidden. As a consequence, many levers that could help sharpen IT efficiency and effectiveness are not being put to good use. Research has linked IT investment with profitability. For example, observes a clear, positive relationship between the level of IT investment and multifactor productivity, despite a great deal of individual variation in firms success with information technology. Information technology also leads to decreasing costs. For example, according to a large United States insurance company, 70% of its incoming calls are from insurance agents wanting information about its customers. This is a non-revenue generating activity. CRM helps financial services institutions reduce these non-revenue generating activities by enabling agents to access customer information over the web via a browser. Furthermore, cost centers can be turned into revenue centers. It has been said that the primary resource an organization has is its human resource, while the information resource (that is, the corporate database of information and the processing systems) has become the second key resource of effective organization. It is the information resource that enables the speedy identification and assessment of an organizations opportunities, threats and its strengths and weaknesses.