Impact and Opportunities of IT Content Economic

Question: To gain a deeper understanding of Global Information System issues, both theoretically and practically through a critical examination of existing literature published in books, refereed journals, conference proceedings, etc and producing a Report. You will investigate any one of the following topics: 1. Impact and opportunities of IT in global economic context 2. Cloud computing and Security issues 3. Disruptive IT innovations 4. Outsourced Projects with globally dispersed teams 5. Security and legal issues in Global Business. 6. Any other topic of interest relating to GIS (You will have to get the approval from the Lecturer) Answer: Introduction The impact of IT in content of global economic has both positive and negative aspects. According to Manyika et al. (2013), the development of Information technology has changed the way of modern economic activities. In the following literature review, the analysis of impact of IT over the business and the various opportunities for business development is being done. The analysis is done critically and it would help in understanding the trauma and benefits of implementing IT infrastructure in business context. The literature review would procure ways by which the information system had helped and affected the business processing from global point of view. Research problem There are two problems that have been faced while making the literature review of the topic Impact and opportunities of IT in global economic context. They are lack of knowledge about the implementation of the information system and absence of clarity about the use of information system for the global economy related activities. The implementation of information system would affect all the activities of enterprise economy. The study would help in understanding the role of information system from global perspective. Research question The impact and opportunities of Information Technology can be reviewed easily by examining and analyzing three questions mentioned below: What are the effects of Information Technology over the global economic activities of major companies? What is the degree of effect of these factors over the commercial activities around the globe? Scope The research would help in understanding all the positive and negative effects of information system over the global activities of business enterprises. Some of the scope provide by the assignment are, Understanding the role of IT: Information Technology plays an important role in globalization of the activities. The assignment would be helpful in understanding the role of information technology for implementing and facilitating the global business activities. Education: The assignment would help in learning about the information system and its effect and consequences over the economic activities in global context. The analysis would help in bringing and understanding various new factors about the implementation of information system. Development of communication: The report would help in developing effective communication as the review process would require understanding the impact of IT using various communication processes. Limitations Expense of time and research: it is most important problem that has been faced while going through the research. It has been said that lack of time could affect the quality of work done. The research process would require exhausting much of the time and money for completing the research of the topic. Shortage of time would cause in generating limitation of quality of research. Method for research: The lack of systematic and scientific process would also affect the research process. It is very important for following a systematic approach for yielding best results for the research. However, unnecessary delays and errors would severely delay the research process and provide less accurate results. Literature review Mander (2014) showed that through the last few decades, the global world has witnessed a huge revolution and advancement in information technology. The continuous changes in the technological procedures, computing, and communications have significantly changed the livelihood of the people along the very way people conducts business. According to Huber (2012, p-111), with the utilization of the Information Technology, the global economic sector has possessed the potential to reach the global customer and business partner across the world irrespective of place and time. Trauth (2012) cited that the transformation of the Industrial society to the industrial economy and information society has occurred as the result of the information technology. Information Technology According to Kastalli Van Looy (2013, p-172), in this era of digitalization, one of the significant was to succeed is through innovation. In support to that, Saaty Vargas (2013) cites that in business and economy sector, the path of innovation leads to the differentiating the product and services in term of productivity, quality and value. The dramatic change in technology has proved itself by changing the lives of business and individuals. Gatautis (2015) defined the Information Technology as the utilization of the computers, networking infrastructure and physical devices for creating, processing, storing, securing and exchanging of information in electronic form. Masini Menichetti (2012, p-36) showed that IT is utilized in business for operations and procedures of the enterprise. On the other hand, Hargroves Smith (2013) argued by stating IT as the commercial use of telephony and computer technologies for expanding the business opportunities. With the advancement of the technol ogical development and discoveries, the IT has taken over the business organization as a crucial companion in managing the business operations and functionalities (Jaumotte, Lall Papageorgiou 2013, p-301). Graevenitz, Wagner Harhoff (2013, p-562) showed that the use of the digital marketing, cloud computing, digital communication, social networking are the example of the rapid growth of information technology in the business sector. According to Johnston Marshall (2016), the most vital role of the information technology in the economic sector is the introduction of the electronic commerce through World Wide Web. Figure 1: The Percentage of Internet User throughout the Globe (Source: World Internet Users Statistics and 2016 World Population Stats 2016) The Significance of IT in providing Economic Opportunity Alhawari et al. (2012, p-62) have addressed Information Technology as one of the powerful catalyst and catalysts for meeting the needs and requirements of the low-income communities. Drnevich Croso (2013, p-508) argued that the technological development in the past few decades have allowed IT in playing a crucial role in developing the economic opportunity of the country. Kleis et al. (2012, p-58) cites that the dramatic growth of the IT n different sector of the economy has contributed towards the increased rate of technological innovation. The enhanced computer hardware, software, network infrastructure, applications, support services have provided various business giants, individuals, and entrepreneurs to utilize the open-source network- the Internet. Pratt et al. (2012, p-283) showed that the productivity of the people and business significantly increases when they are connected to the network. Liu et al. (2013, p-1455) cited that collaboration is achieved in economic sector thr ough the application and utilization of the Information Technologies. According to Wilson Schwarzman (2016, p-176), the IT has become one of the major foundation of an economy in every sector throughout the world. The IT have become well-accepted in a different sector of the word because of its improved productivity and reduced transaction cost. The implementation of the IT provides instant visual, data and voice connectivity while improving the accuracy, transparency, and efficiency of the information. Chen, Chiang Storey (2012, p-176) cited that the IT have provided an access to the marketplace with user's choice and getting access to the unavailable services and good in the market. On the other hand, Pearlson, Saunders Galletta (2016) showed that the Information Technology in business had substituted the physical travel and communication with the less expensive transaction and communication services. In addition to that, the information technology has widened and expanded the potential market scope in term of the geographical locations. According to Wimo et al. (2013, p-9), the most significant concept provided by the utilization of the information technology is providing and creating an easy channel for communicating the information and knowledge for expanding the business. In support to these, Zook Shelton (2013, p-52) showed that the different characteristic of the Information Technology has provided and assisted the growth of the both macro-level firm and organizations. According to Hellweg Canals (2014, p-1112), the different factors of the IT plays a critical role in enhancing the skills, knowledge, identification, application, and efficiency of the business services. Mander (2014) showed that IT has the potential for efficiently eliminating the obstacles and hurdles occurring in the growth of the economy. IT in eliminating the obstacles and hurdles to the economic growth Social capital: Masini Menichetti (2012, p-37) cited that it is essential for maintaining the physical and mental well-being of the family and society. The applications of the information technology have provided the society with economic opportunity in reducing the cost of maintaining the well-being of the family in a cost-efficient manner. Political Voice: Huber (2012) claimed that political empowerment and knowledge acquisition had made the internet and mobile technologies as a new and enhanced tool for achieving empowerment. Trauth (2012) showed that there is various concerns about the impact of the information technology in the hands of the opposition government as a crucial tool for amplifying, transmitting and organizing the demands and needs both in international and domestic level. Legal Exclusion: In the case of legal execution, the information technology has proved to be playing the most significant role. Kastalli Van Looy (2013, p-171) cited the introduction of the digital forensics; video transmission has facilitated the access to validate the presence of a particular person in a particular location. According to Saaty Vargas (2013), even the electricity and water bills paid through the mobile services and internet technology are used as a proxy for providing the legal status. Low Prices and lack of information for producers: Gatautis, R. (2015) showed that with the introduction of the mobile services and internet technologies, has enabled the local producers, fishermen and farmers in connecting to the global market and gain information about the right prices and their right in the market place. High Prices and lack of competition for consumers: Hargroves Smith (2013) cites that in the local and physical market place, the poor consumer often ends up paying more. Jaumotte, Lall Papageorgiou (2013, p-301) showed the internet and real time access to the global market place have allowed the customer to gain information about the product right price. Moreover, online transaction capabilities in the market place have increased the competitive advantage of the different business. According to Graevenitz, Wagner Harhoff (2013, p-561), the introduction of information technology in business has significantly increased the bargaining power of the customer thus resulted in the reduced rate of commodities. Geographical Isolation: Johnston Marshall (2016) showed that the introductions of the IT in a different sector of the economy have significantly reduced the time and distance required for conducting a particular business. Drnevich Croson (2013, p-500) supported this by stating that the geographical isolation is being effectively eliminated with the IT in the different sector while substituting them with the work time and huge expense of travel. The information exchange, conducting government business, and long distance transaction can be easily conducted nowadays with the utilization of the information technology. IT in Human Capital Development According to Wilson Schwarzman (2016, p-176), the effective and efficient use of the Information Technology have the potential to enhance the economic opportunity at an individual, organizational and national level. Chen, Chiang Storey (2012, p-1177) argued that the economic opportunity can be developed with the enhancement and increment in the skills and knowledge. Pearlson, Saunderr Galletta (2016) pointed out that, the large business organizations are deliberately employing the human capital strategies for developing the potential of the business partners, employees, and customer. Zook Shelton (2013, p-55) opined that the IT sector has a continuous shortage in the engineering and skilled labors and employees in case of both developing and developed countries. In support to this, Hellweg Canals (2014, p-1111) showed that the various corporate leaders like HP, IBM, CISCO, Microsoft and Intel had designed various educational initiatives for contributing towards the increased pot ential of their business partners and employees. The development of the human capital results in the enhancing the collaborative power of the employees that in turn provided huge opportunities in economic turnover. Mander (2014) cited that the most essential and crucial part of developing and implementation of the innovative business model is through the application of the technological application, services and network. Issues and Solution of implementing Information Technology for global economy Analysis of problems of Information Technology for global economy Information system has both positive and negative impact on the global economic activities of business operations. The negative impact of implementing information system are explained below Threat of data loss and information misuse: According to Huber (2012, p-122), the biggest issue is misuse of information by rivals and competitors. The information system suffers from threat of data loss and information misuse. The hackers and cyber criminals could get into the information system and extract information system for financial gain. It would adversely affect the global economy as the information can be misused by competitors and rivals for gaining competitive edge. The enterprises using the information system for globalization of their firm are under constant threat of data and information theft. The data theft and misuse is not the only problem that could affect the global implementation of information system for economic activities. Complexity of the technology: According to Trauth (2012), the complexity of the implementing the information system is one of the major hindrances in implementation of information system. The technology used for implementing information system is complex for maintaining and implying. There are various tools and techniques that are required for implementing the information technology in global perspective. These tools and techniques require integrated operations and hard effort for implying. Hence, the company would have to undergo issues of complex actions of information system. The information system would also effect on the productivity of the services and operations of the company. Productivity fluctuations: It has been explained by Kastalli Van Looy (2013, p-179) that the information system technology has a crucial role over the productivity of economic operations and services. The influence of information system can be understood from the following example. The information storage and transfer may take considerable time when there is lack or gap in communication. It would reduce the speed of operations as the information required for operations would be delayed. Hence productivity and performance would fall. Increased cost of implementation: As per stated by Saaty Vargas (2013), the cost of implementation of IT system is another issue that the company would have to face while implementing the information system on global scale. The cost plays an important role for determining whether the system would be implemented or not. The IT system is costly when it is compared to the manual system for storing and managing of data. The tools and techniques required for implementing the information system exhaust considerable sum of money and resources. Hence, the company would have to utilize much of their resources for implementing the information system on a global scale. Developing solutions for Information Technology of global economy The issues of implementing Information Technology for global economics are threat of data loss and information misuse, complexity, productivity, and cost of implementation. These issues need to be addressed properly for successfully implementing the information technology system for globalization of economic activities. The solutions for these issues are explained below in the following points, Integration of Information sharing process: As opined by Gatautis (2015), the security issues of information technology can be sorted out by integrating the system with proper security measures. The integrated system would protect the data from theft or and loss. The backup and recovery system would help in recovering the data and information if they are lost due to any reasons. Hence, the global economic activities of the information system could be facilitated by the integration process. Customization of the tools and techniques: According to Masini Menichetti (2012, p-35), the tools and techniques use for information system implementation could be customized for reducing the costing and complexity of the system. If the number of components of the information system is less, then it would require and exhaust less money for implementing and managing. Even the actions and operations would become less complex for the economic activities. Hence, the global actions of the information system could be simplified by reducing the elements in the information technology system. Specification of use of information system: The efficiency of information system could be increased by limiting and specifying the use of information system for a particular operation. In this way the accuracy and pace of operations would be highly increased and it would enable rise in productivity of operations and services. Hence, specification would ensure that the information system did not have to face the problems of less productivity of services and operations. The detailed literature review for evaluating the Impact and opportunities of IT in global economic context have been able to gather the relevant information about the opportunities provided by the introduction of the Information Technologies in the economic sector. IT is considered as one of the crucial and significant element for enhancing the business and economy of the country. The IT assists in improving the productivity, consistency and effectiveness of the procedure towards the growth of an economy. The conducted literature review has assisted in utilizing the theoretical concepts and models of IT in evaluating the opportunities and impact of Information Technologies. Conclusion The assignment made is used for understanding the impact of IT in content of global economic. Information technology has changed the way of modern economic activities and provided various opportunities for business development. The critical analysis had helped in understanding the trauma and benefits of implementing IT infrastructure in business context. It has developed and procured ways that could be used for affecting the business processing from global. Information technology has helped in all fields of economic activities. The development of the technology has made it possible for eliminating the social, political, and legal issues. The problem of high prices and geographical isolation could be solved by implementing IT system for globalization of the economic activities. The information technology system has helped in improving the capital development and its effective and efficient usages. The information technology system has helped in forming innovative business model by the help of technological application, services and network. The risk factors for implementing the information system for global operations are threat of data loss and information misuse, complexity of the technology, productivity fluctuations, and increased cost of implementation. These risk factors can be controlled by using integration of information sharing process, customization of the tools and techniques, and specification of use of information system. References Alhawari, S., Karadsheh, L., Talet, A. N., Mansour, E. 2012. Knowledge-based risk management framework for information technology project. International Journal of Information Management, 32(1), 50-65. Chen, H., Chiang, R. H., Storey, V. C. 2012. Business Intelligence and Analytics: From Big Data to Big Impact. MIS quarterly, 36(4), 1165-1188. Drnevich, P. L., Croson, D. C. 2013. Information Technology and Business-Level Strategy: Toward an Integrated Theoretical Perspective. Mis Quarterly, 37(2), 483-509. Gatautis, R. 2015. 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