Dear bloggers,
Have you heard that high risk will give high return?
What kind of risk that will the organisation take to expand their business?
Actually, in current economic growth, most companies have implemented IT in their organisation. The advancement of technology is proven to have significant relationship with high profit. Apart of this success, if the organisation failed to properly implement it, it will gives the negative impact to the future of the companies.
Most companies in the world choose to invest more in IT as they believe and understand on how IT could improves productivity, efficiency and competitiveness.
Productivity
How IT could improves productivity?
In my opinion, IT could improves productivity as IT will help in reducing time taken to develop new product. For example, with new technology, a car manufacturer like Toyota could produce a million of cars within a day.
TOYOTA production system is steeped in the philosophy
of "the complete elimination of all waste" imbuing all aspects of
production in pursuit of the most efficient methods. Its system is a way of
"making things" that is sometimes referred to as a "lean manufacturing
system" or a "Just-in-Time (JIT) system," and has come to be well known
and studied worldwide.
This production control system has been established based on many years of continuous improvements, with the objective of "making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible."
The Toyota Production System (TPS) was established based on two concepts:
This production control system has been established based on many years of continuous improvements, with the objective of "making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible."
The Toyota Production System (TPS) was established based on two concepts:
1. "jidoka" - which can be loosely
translated as "automation with a human touch") which means that when a
problem occurs, the equipment stops immediately, preventing defective
products from being produced
2. concept of
"Just-in-Time," - in which each process produces only what is needed by
the next process in a continuous flow.
Based on the basic philosophies of jidoka and Just-in-Time, the TPS
can efficiently and quickly produce vehicles of sound quality, one at a
time, that fully satisfy customer requirements.
Efficiency
How IT could improves efficiency?
In my opinion, IT could improves efficiency as IT will help in delivering information on demand. For The delay of information from supervisor to manager will retard the decision making process. As most companies nowadays set up cross-functional teams to develop new product or change business process, IT system is very crucial to ensure the efficiency of communication among them. For example, FeDex implemented IT system in their organisation to ensure that all branches around the world could get the information in seconds in order to deliver their service to the customers.
FEDEX policy on efficiency is to expand the world’s ability to connect more efficiently, while minimizing our impact on the environment.
FEDEX policy on efficiency is to expand the world’s ability to connect more efficiently, while minimizing our impact on the environment.
Competitiveness
How IT could improves competitiveness?
IT systems can help the management to improve business in some ways. The creation of e-commerce facilities on their website will make it more convenient for customers to do business with them. So, the quality of customer service is an important element in building and maintaining competitive advantage.
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