Today’s world is the witness of colossal business empires all over the world. There is no monopoly of a particular sector or a business. The business world has successfully spread its web to every corner of yhe world. As a result, the large scale industrialization that is evident today is possible. With the ever growing nature of the business ventures both in the national territories and across the globe indicates towards an efficient system of management that is integral to the success and sustenance of any business organization. While the strategic management has always been on the top of the list as a contributing factor to the success of the organizations, the introduction of technology proved to be a supportive resource in carrying out the business tasks more efficiently and easily.
Technological advancement has been making its mark in every sphere that the humankind is aware of. In this, information Technology has specifically made an outstanding contribution in the business world to help in the process of designing, developing, implementing and supporting all kinds of work based on computer systems. Big business processes have bigger records of data to maintain and all kinds of storage and exchange is facilitated through electronic data. Thus, the assignment would take a close look at the importance of Information Technology on the performance of the business organizations with specific reference to the world famous brand of the fast food chain, KFC.
Impact of Information Technology on business organizations
The impact of information technology on business organizations is distinctly significant. The entire work stature has changed after its introduction to the business processes. There is not just a single way in which it has proved to be a boon, but constitutes of a whole range of systems that have been positively affected by its implementation. The traditional structure of conducting jobs and responsibilities has been replaced by the new age system of information management, as noticed by Al-Shields and Al-Climate (2016). The flow of information that is crucial for all organizations has been made easy by using a centralized data center where all the data can be stored and retrieved.
Information technology has simplified the transaction processing of business organizations through the TSP mechanism. It processes all the transactions that an organization makes. In a similar way, all the information of transaction processes is stored in a centralized information database that can be accessed by network of internet, comments Bennett et al. (2012). The IT supports a decision support system (DDS), which is characterized as a highly flexible and interactive system. It supports the designing of all types of decision making when there is no specific structure for a problem. The online analytical process with the DOSS helps in facilitation of the decision making tasks smoothly that might need extensive analysis and hard work.
The most effective scope of IT is its work group support that enables the workers to connect and consult with each other, who are physically distanced. Similarly, there is an executive management system that is part of the interactive management information system combined with artificial intelligence as well as the decision support system for easing the task of the managers, as observed by Tarazed ET AL. (2013). Through this the managers easily identify and address the issues and its solutions and convey effectively to mitigate the problem.
IT has solved the biggest problem of data management which was considerably increasing with expanding business scope. Organizations have an internal centralized system that stores all the data necessary to the functioning of the companies, as stated by Al-Shields and Al-Climate (2016). Communication technology is another contribution of Information technology that serves the purpose of communicating within and outside the organizations and benefit in the process of decision making, points out Anal and Mete
Cloud computing is a known term in today’s business world. It is also a product information technology that has given a new dimension to the entire technological prospects. The benefits of cloud computing has attracted billions of businesses to be a part of the transition, as opined by Wright (2011). It has improved the management of time and resources in the business along with agility. To improve the efficiency of the workflow, automation has been introduced by a number of organizations thus speeding up the business operations remarkably, remarks Bennett et al. (2012). The enormous storage of data also requires a substantial system of protecting them. The virtual storage systems are kept safe and secured by further technological systems. It also accounts for ensuring customer satisfaction that is the point of culmination for any business project, as stated by Amankwa ET AL. (2018).
Impact of Information Technology on Strategic Management of KFC
Kentucky Fried Chicken or popularly known as KFC is a world famous brand of the fast food chain based in Louisville. The intensive nature of work increased with expanding outlets all around the world (kfc.com, 2019). The business operations are becoming more complex to conduct the business process and satisfy the customers, as opined by Amankwa ET AL. (2018). Strategic management is the key to the success of an organization and KFC is no exception to the old rule. The strategic management program of KFC is formulated according to the needs of the location that it is operating, but the basic standards are similar.
For the accomplishment of the targets, implementation of the strategic management plans is achieved utilizing information technology. The reason behind it is the advantage of the tools that helps in the process of innovation and decision making to help in the attainment of the goals. Thus, to ensure the best utilization of resources, KFC incorporated information technology in all its operational zones including strategic management. KFC uses knowledge of the employees as a strategic plan for the development of the organization. Through the aid of IT, the knowledge is stored electronically as an information system in the knowledge base of the company, observes Bennett ET AL. (2012).
KFC indulges extensively in innovation plans because there are numerous competitors in the market. Constant understanding of the market and coming up with new ideas is important for the brand to retain its market value. As a strategic management plan, KFC follows a technological tool as product development process for the benefit of the employees. Product innovation can be made better and easily achieved with the IT advancement (kfc.com, 2019).
The company maintains a stable tracking system manage orders and keep a constant eye on the changing market trends. A strategic plan should always facilitate a steady control on the market so that no massive shock is experienced due to significant market changes, as remarked by Wright (2011). Information technology helps KFC to track the market conditions based on which the decisions are made for the betterment of the company. The conduction of other work processes is also done through the help of IT to ensure that the work is done promptly, points out Tarazed ET AL. (2013). With latest changes in the market, there is need of constant modifications in the existing processes, which would not have been attained without the technological intervention.
Management information system (SIM) is a computer system designed to meet all the strategic management plans of the organization. It clearly establishes the report on managers and customers’ requirements that further helps in developing plans accordingly. Also, it generates financial reports that help in the decision making process, states Wright (2011). The most important fact of information technology is that it gives an accurate base for fixing the strategic management plans and that is why KFC has religiously integrated the process in its business mechanism to yield the maximum amount of profit. The whole lot of work is done real quickly and the outputs indicate quality decision that ultimately adds value to product and service that makes the organization proud.
Impact of Information Technology on Human Resource Management of
Information technology is deeply integrated into the human resource management of every organization. Being one of the biggest players in the business world, KFC fully utilizes the scope and advantages of IT to impact the human resource management in the best manner. The expectancy for HR functions are increasing day by day which has again mandated the intervention of
technological help. KFC is a big brand and its scope of functioning is even wider. The global functioning it engages in requires intensive focus on training and education purpose for all their employees and managers. The training programs include not only topics related to performance of work, but also the other aspects that are associated with the organization’s functioning, as observed by Sharma (2013).
With the change in the nature and requirement of the workforce, KFC has to facilitate resources that would effectively and efficiently play the strength of the organization. Recruiting and staffing are important works that have to accomplished for a successful outcome. These factors acts as the foundation for KFC, thus it is necessary that they are laid strong. Human resource management looks after all these processes and deals with every issue that might occur in the conduction of the process. Starting from the recruitment of staffs to the end of one’s journey with the organization, the Human Resource Management is responsible for all the activities taking place in between, as commented by Ibadan and Amaranth