Question

Note why the IT organizational structure is an important concept to understand. Also, note the role of IT in the overall business strategy.

Answer 1

Structures govern the functionality and approach of a company, allowing the best possible use of current capacity and resources. It is especially relevant for smaller companies that have limited resources and require the most optimal outcome to be established. Properly organizing the functions and streamlining the processes inherently create the need for relevant knowledge about the structure of the IT and in order to decrease factors like communication mismatch, there is a need to understand how the structure is developed for maximal collaboration and support to be available.

The consideration that IT has in establishing the analytical prowess of the company can be considered on the basis of how the overall strategy is dependent on the actionable output generated by the BI processes. The company’s communication, process development, inventory management, logistical planning and support, supplier management, order management, demand, and forecast generation are all powered by IT processes. We also need to consider the role IT will eventually play in the industry, from HR roles of recruitment and selection to automatic shift planning, project performance and aspects such as virtual teams that have all created the necessity for businesses to invest in IT infrastructure.

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