IT Organization and Its Role in Business



IT organization or the Information Technology organization is that specific department in an enterprise which is responsible in developing, monitoring and maintaining information technology services and systems with strategic planning required for the present and future IT implementations.

Basic Concept

The IT organization requires ensuring that all the IT initiatives are supporting the business goals and strategies. The organizational designs can either be centralized or decentralized varying according to the requirements of the company. In large companies, the IT organization is generally managed by the Chief Information Officer (CIO). The smaller enterprises however manage the IT operations with the help of Operations Manager or the IT director.

What is the Role of IT Organization in the Business?

The IT organization plays an important and integral role in all business plans. Starting from the multinational companies to the small enterprises, IT organization plays huge role. It can be effective throughout the modern business world as the computer systems are becoming omnipresent in nature.


Email can be considered as one of the principal methods of communications in most of the companies. It is used between the customers, suppliers and the employees. Though email was the only communication media in the past years, different other means of communication have also emerged in the business. The live chat options and the video conferencing tools have allowed the employees to communicate within themselves. The Smartphones and the VOIP (Voice Over Internet Protocol) offers even modern and high tech methods for the communication between the employees in the organization.

Data Management

The rooms with large files, large number of file cabinets, huge mailing documents is gradually vanishing from organizations. Most of the companies have transformed their data management system into the digital mode through various servers and the storage devices. The documents can be available at any point of time according to the requirements of the company irrespective of the geographical location. Huge amount of historical data can be stored very economically and the employees can gain benefit by accessing the documents immediately when they need.

Customer Relationship Management

For improving the customer relationship management, the organizations are using the skills of the IT division. The CRM system takes note of the detailed interaction of the companies with its customers. This is done for improving the unique experience to the customers. When the customer calls any representative of the company, the call center executive must be ready with the shipping information, the information about the product purchased etc. He should be able to respond to the customer’s issue in a very less time. The whole interaction can be stored in the CRM system so that if the customer calls again, the reference of the previous call can easily be provided. The customer therefore gains a much focused experience and the company enjoys the increased productivity.

Inventory Management

A company should maintain a proper inventory management system so that they can meet the demands of the customers as well as to prevent any wastage in the inventory. You can manage your inventory through the digital mode by tracking all the quantities of the items, an automated setting can be activated where the quantity falls below a specific amount the order process will generate instantly. If the inventory system can be integrated with the POS system, the management process can be enhanced very easily. Every time one item gets sold, it gets deducted from the inventory with the help of the POS system. This can help in creating closed information loops between all the departments of the organization.

Management Information System

The data is being stored for an effective use in the future. Most of the companies can use the data as a part of the strategic planning process as well as proper execution of that strategy. The Management Information System (MIS) helps to track data and the levels of the production in very easy methods. It helps in increasing the return on investments by identifying the improvement areas. The daily sales report can be tracked by the managers with the help of the MIS systems. This helps in boosting the productivity of the employees for increasing the sales of the company.

Like many other aspects and the structures of the business, the positions of the IT organization can experience changes in the enterprises. The IT leaders sometimes find difficulty in implementing the right positions for meeting the requirements of the customers. The difficulty level may increase if the companies possess a large number of business units in different geographical regions. For strategizing the business and implementing the solutions in a proper manner, the IT organization can play a great role. Now, let us know how:

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Tactical Technology Management

This type of management depends on the IT efficiency. The products or the services can be delivered to the customers depending on the promises.

Strategic Technology Management

Strategic technology helps in aligning the IT performances with the business plans. It can support the drives with the IT strategic decisions.

Business Systems Leadership

The main focus will be on the strategic assets of the information and the overall business information. It will enhance the ability of the business and help in the continuity.

Information and Process Leadership

The strategic assets of the information and processes can transform the business from inside as well as outside.
IT Dispersed in Business: The business unit line management helps in owning the whole IT sourcing with no specific roles of IT.

Key Points from the Article

From the article we can understand the

  • The basic concept of the IT organization
  • The function of the IT organization in the industry
  • How can the different sections of IT plays different roles in the business?

Therefore the IT organization can easily create strategic goals with value contribution in the business. In the long term, it can use the goals and objectives with the help of different management tools.

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