Role of Technology on Business Decisions

Technology affects many business decisions.

Technology has a major impact on business decisions in many organizations, especially those where technology solutions are integral to critical operations. Often, technology is central to the business model itself, and larger organizations may employee a Chief Information Officer (CIO) whose primary role revolves around technology-based business decisions.

Business Model

One of the first areas where technology will play a role in business decisions is with the business model itself. In some cases, a business may not even have the opportunity to establish itself without technology solutions to support it. Many initial decisions are made based on the supporting role of technology, including communication methods, information and data management. In some cases, marketing and sales strategies are based on technology solutions, and play an important role in deciding on a course wherein the business can be profitable.

Staff

Technology plays an ever-changing role in decisions about how to staff a business. At times, decisions have to be made about what kind and number of staff to employ to manage and maintain the technology itself. At other times, automation from technology may play a role in eliminating certain positions.

Workplace

Technology plays a strong role in the work environment itself. Many employees are mobile workers who may not require space and resources at a main office location, so decisions must be made about office environment and size. When information technology infrastructure is housed on-site, decisions must be made on how to set up and secure the system. In factory environments with automated technology in place, the entire layout of the facility should be based on how best to set up and use technology.

Commmunications

The role of technology in business communications is so encompassing that it is arguable that no decision can be made in this area that does not involve technology solutions. All types of phone systems, including office and mobile, are technology-based and critical to most organizations. Information technology and Internet-based communications have a major impact on how, where and when business communication takes place. Many critical business decisions are communicated through these technology solutions, so their impact is almost universal.

Information and Data Management

Critical business information and assets that exist in digital form are stored and retrieved through the business information technology network. Ongoing analysis and decision-making are required on how to maintain and secure this data. The CIO is responsible for ensuring that critical data is available and backed up in an off-site location. As with communications technology, this data is the backbone of many organizations. Digital information's role is so important that many business decisions could not be made at all without its availability.

References

• MIT Sloan Management Review: Managing Technology as a Business Strategy
• Australasian Journal of Information Systems: The Alignment of Business Information Technology