Global Business Environment
Todays global business environment gives organizations the opportunity to develop new lines of business. As businesses seek increases efficiencies, IT departments will be well placed to recommend innovative solutions based on the latest advances in technology (Guthrie and Kovac, 2002). In turn, globalization is fueled and will inevitably expand.
Successful businesses understand their customers and their markets, and create business strategies to establish their competitive positions (Hwang and Liu, 2003). Consistent with their business goals, these organizations use commodities, make goods, deliver services, and meet their customers demands to stay competitive. In todays global business environment, they must also constantly reevaluate their business vision, increase business values, and change to gain advantage over their competitors. IT not only has been crucial to business management and operation, but has also provided significant strategic leverage to businesses.
According to Hwang and Liu (2003): “For example, Dells early innovations — applying IT to streamline its manufacturing and delivery of computer equipment, and then offering its business online — have provided it with a competitive edge. FedEx with its package tracking system has added significant value to its business.
Wal-Marts success depends greatly on applying IT innovations to its supply chain. Amazon depends totally on IT for its e-business.”
As globalization wreaks havoc on the business community, todays organizations are increasingly aware that they must maintain and improve their ability to change direction as needed, for a variety of reasons (Guthrie and Kovac, 2002). Globalization and increased competition are primary factors. However, technological advancements seem to be the key drivers of the global business environment. According to Guthrie and Kovac (2002): “A phenomenon called the Net Effect — the explosion of users, devices, services, and information brought about by increases in network bandwidth, improved wireless technology, and faster microprocessors — is forcing.