Why is database technology so important for a business?
Database technology is essential for most businesses; as they need to understand better their customers, suppliers and competitors. Thus, collecting, storing and processing information inform of databases offers businesses with advantage.
Majority of businesses lack time or resources to collect and process large amounts of information. Therefore, they may not have information concerning how their enterprises are performing, determining profitability of their product lines, determining whether clients are making repeat purchases, and others.
This information can assist businesses deal with specific problems of operational nature or shape future strategy. Businesses need to gather as much information as possible, as it is not predictable what information could be important in the future (Stockport, 2000).
Database technology is also important for businesses as it ensures compliance with data protection law on any personal data gathered and held on clients. Furthermore, disciplines needed to gather, enter and process such information assist to ensure that businesses are managed in a regulated manner.
Typical advantages of using database technology in businesses include; minimizes the quantity of time spent in managing data, enhances capacity to analyze data in a variety of ways, promotes a disciplined framework to management of data, converts disparate information into important resource, and enhances quality and consistency of information (Weill, 2009).
Database technology benefits businesses immensely in terms of its ability to handle large volumes of data. For instance, relational database management system can handle millions of records and is tailored to cope with large processing needs.
Most important, relational database management systems can allow several people access and update individual records at the same time. The data store is made more of a shared resource. Most important, database technology has ability to build applications specifically designed for business requirements (Stockport, 2000)
How do enterprise systems help business achieve operational excellence?
Enterprise systems are software systems packaged in large-scale used to streamline and integrate organizational business processes and improve information and knowledge levels within the organization as well as its supply chain partners and other stakeholders.
An Enterprise system includes a number of systems such as; Supply Chain Management (SCM), Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and others (Stockport, 2000).
How do enterprise systems provide value for a business?
Enterprise systems largely assist organizations in reducing errors, processing transactions faster, and timely access good quality information when effectively implemented. These systems are information technology tools that assist organizations create business value.
As information technology platforms, enterprise systems enable businesses realize intended benefits after adoption. The focus on enterprise systems has been reinforced by dynamic and aggressive business environments of current world.
Current business environments demand managers to fortify their enterprises on one hand and acknowledge weaknesses of their competitors to realize new opportunities. Managers create business value and gain competitive advantage through opportunity cost of offering goods and services, and willingness by customers to pay for these goods and services (Seddon, 2005).
For enterprise systems to create business value, organizations need to minimize opportunity cost of offering goods and services and or maximize customers’ willingness to pay for goods and services.
These factors have caused business transformations to align human resources, processes and technology closely to organizational strategy, and to create new strategies. It involves constant reinvention causing emergence of new strategy, processes and practices.
This enables organizations guarantee long term survival and establish business value by substantial changes in markets and clients organizations cater for and goods and services they provide, as well as internal aspects such as structures and systems (Stockport, 2000).
Adoption of enterprise systems enables business value creation which has led to growth of multi-national blue chip consulting organizations that carry out business transformations for their clients made possible by adoption of enterprise systems. Seddon (2005) noted that vendors of enterprise systems claimed to improve and equip their software to realize business objectives.
Furthermore, make these systems play strategic part to help adopting companies compete better in the market. According to Weill (2009), enterprise systems create business value in three ways; innovation, operational excellence and harnessing new strategic opportunities.
Generally information technology opens up business opportunities in ways such as: improvement of business performance, enhanced product or service innovation, merger integration and acquisition and reorganizations tailored towards meeting customer needs.
Operational success is realized by enterprises through benefits that include: reduction in cycle period, reduction in costs, improvement of quality, satisfaction of clients, lower stock levels; reduction in information technology maintenance costs, minimized data entry errors, flexible information technology infrastructure, and affordable upgrades; and effective control on operating processes for better decision making (Stockport, 2000).
What are the objectives of project management and why is it so essential in developing information systems?
A project is a series of related activities planned to realize a specific business objective. Projects that involve information systems involve creation of new information systems, improving existing systems or upgrading organization’s infrastructure.
Project management involves the application of skills, knowledge, tools and techniques to fulfill specific targets within specified budget and time limits.
The main objective of project management is to facilitate its activities which include; work planning, risk assessment, resource estimation needed to accomplish tasks, acquisition of human and material resources, task assignments, directing activities, controlling project execution, reporting progress and analyzing results (Schwalbe, 2010).
Project management for information systems also deal with variables such as; scope, time, cost, quality and risk. Project scope determines what work should or should not be included in a project.
All the tasks necessary to complete the project efficiently are defined precisely by project management. Project management ensures that the scope of intended project does not expand beyond what was originally designed (Schwalbe, 2010).
Project time is the quantity of time needed to accomplish a project. Typically, project management creates the amount time needed to accomplish main components of a project. Normally, each of these elements are broken down into activities and tasks.
The objective of project management is to try to find the time needed to complete each task and determine a schedule for completing the work (Schwalbe, 2010).
Project cost is based on time needed to accomplish a project multiplied by cost of human capital needed to complete the project.
The costs involved in information systems project include; costs of hardware, software, and work space. The objective of project management is to establish a project budget and monitor ongoing project expenses (Schwalbe, 2010).
Quality indicates how well the end result of a project fulfills the objectives established by management. The quality of projects of information systems nature leads to improved organizational performance and decision making. Project quality also considers timeliness and accuracy of produced information by the new system (Schwalbe, 2010).
Risks involve the potential challenges that might affect project success. These potential challenges may prevent attainment of projects objectives by; raising time and costs, reducing quality of project output, or even preventing outright completion of the project. The objective of project management is to manage all project risks for successful completion of the project (Schwalbe, 2010).
Reference List
Schwalbe, K. (2010). Information Technology: Project Management. New York: Cengage Publishers.
Seddon, P. (2005). Are ERP System a Source of Competitive Advantage. Information Systems Journal 14, 283-293.
Stockport, G. (2000). Developing Skills in Strategic Transformation Measuring Business. European Journal of innovation Management vol 3, no. 1.
Weill, P., & Ross, J. (2009). IT Savvy. Sydney: McGraw-Hill.