Investments in Information Technology Essay Example | Topics and Well Written Essays - 500 words

Investments in Information Technology - Essay Example Heinrich and Simchi-Levi (2005) answer the question whether IT investments really pay off: "The answer is yes-only if solid business processes are in place." Thus, the success of any IT strategy is highly dependent on the integration of business processes within the organization and its various supply chain factors. Information technology strategies are directly linked to the company's supply chain. As the supply chain is composed of stakeholders who are directly related to the operations of the company, the installation of IT software and tool will have an impact on them. In return, the organization bottom line will also benefit or be harmed by any IT strategy in place. Investments in IT generate a lot of advantages in a company's supply chain. However, this is only true with the premise that the appropriate level of business process is in place. As the study of Heinrich and Simchi-Levi proves, information technology goes hand in hand business process maturity in increasing the efficiency and profitability of business organization. Investment in IT without integrating the supply chain by sharing the data in internal and external stakeholders will render useless.