By Dr.-Ing. Dirk Buchta, Dr. Marcus Eul, Dr. Helmut Schulte-Croonenberg (auth.)
The worth of IT – New views for using IT What price does IT offer for the corporate? This has been the most important query for IT guy- ers and decision-makers at board point due to the fact that technologization all started. From the advent of the 1st automatic facts processing structures to integrating price chains throughout companies, the opportunity of IT to generate gain and, within the base line, generate price for firms has grown in leaps and limits. within the Nineteen Seventies, the worth of an IT funding for automating person operations consisted of speedier and less expensive dealing with of paper-based actions, and for this reason, for instance, shorter time-to-invoice and assortment cycles for speedier inpayments. within the Nineteen Eighties, the triumphal march of the computer and the 1st built-in functions not just lowered company strategy charges, but in addition sped up and optimized whole enterprise technique chains. for instance, within the mid- Nineteen Eighties, platforms equivalent to SAP R/2 have been already delivering built-in tactics for every thing from procurement, stock administration and distribution to accounting and controlling. approaches ran extra easily, interfaces have been optimized or eradicated, in brief: large pot- tial for decreasing company approach spending used to be created. within the Nineties, company source making plans (ERP), consumer dating administration (CRM) and provide Chain administration (SCM) then made it attainable to combine company procedures around the worth chain.
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The price of IT – New views for using IT What price does IT offer for the corporate? This has been the main query for IT guy- ers and decision-makers at board point considering that technologization begun. From the creation of the 1st automatic facts processing platforms to integrating price chains throughout firms, the opportunity of IT to generate gain and, within the bottom line, generate worth for firms has grown in leaps and boundaries.
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Additional resources for Strategic IT Management: Increase value, control performance, reduce costs
IT also supports optimizing the vertical scope in enterprises. Improved data storage and data transmission enable the outsourcing of (partial) processes particularly in cross-section functions (called ‘business process outsourcing’), but also in the operative area, as the information is available independent of company limits. For example, the outsourcing of administrative human resources processes is gaining increasing significance, as many firms do not see their core competence in this area of work and therefore pass their human resources issues on to specialized service providers.
T. Kearney The current trend in the aerospace industry towards shortened time-to-market for product development and production, towards an increasing rate of customer-specific solutions, for example individualized cabin designs, and towards continually growing product complexity has lead to all-new requirements being made on the engineering processes and the IT systems that support them, when a new aircraft is being developed. Even just the simultaneous work- 36 Part A: Enhancing Value – IT as a Value Driver for the Company ing of over 20,000 employees networked in one database is no longer thinkable without modern IT solutions.
Leading enterprises like Rank Xerox have already initiated comprehensive research programs, intended to deliver the expected revenues by using IT in the product at an early stage. Thus, it makes sense to think about seemingly ‘impossible’ and innovative integration possibilities in primary products because soon as the first company in a given sector has begun using IT to develop new market potential and create competitive advantages, it will be difficult for ‘latecomers’ to make up for lost time.
Strategic IT Management: Increase value, control performance, reduce costs by Dr.-Ing. Dirk Buchta, Dr. Marcus Eul, Dr. Helmut Schulte-Croonenberg (auth.)