Research Korner: Supplies Officers

INFORMATION TECHNOLOGY MANAGEMENT

Contents 1.      Introduction 2.      Dell Computer Corporation Company Background 3.      IBM Company Background 4.      Reasons for choosing the two manufacturers 5.      Comparison of the products the two company has 6.      The best choice among the two 7.      Conclusion 8.      References                             Introduction For businesses, information technology is only a means to an end which is the use of knowledge to make and implement commercial decisions. Efficient organizations require established systems to enable them to make the best possible decisions in the situations they are likely to meet. Thus an organizational information system should collect data, analyze and present this as useful information that can be retrieved as the basis of expert knowledge at the point of decision. Once decisions are made they must be passed on to those who implement them, carried out, and the success or failure of the operation monitored. Increasingly decisions can be automatically implemented using the technology, thus enabling organizational objectives to be achieved with maximum efficiency. Information is the major resource of modern businesses. In many cases businesses could even profit from having their physical plant destroyed, but could never recover from losing their information resources ( 2002).    This was graphically illustrated in post-Second World War Germany/Japan when bombed industries recovered dramatically with new plant and inherited know-how. Hence some economists argue that information is a fourth major factor of production in addition to land, labor and capital, which is of increasing importance. However, an important point not so far stressed, is that the business information we have been describing is not just a series of isolated lists but is all interrelated. If one piece of information alters particularly the specification of a product then many other items will be affected such as how to produce it, suppliers required, potential customers, etc. In other words a business’s information is a system and should be organized accordingly ( 2002).   A related, but not identical, point is that it is misleading to think of business information as a static list of useful things to know; rather, it should be considered as a dynamic flow. Thus information will be acquired by one department and used. This then creates new information, which is vital for a second department. Computer people usually talk in terms of data input, processing and output, to describe what goes on within a department or part of the work process. In these terms what people are saying is that one man’s output is the next woman’s input. The quality of an information system will thus depend not only upon the excellence of the hardware and the subtlety of the software employed, but also on the accuracy and relevance of the data collected, plus the quality of the human professionals who use the system, This, in turn depends upon the extent to which the organization succeeds in coordinating and motivating employees to achieve corporate objectives (2002).   Over thirty-five years have passed since academics began speculating on the impact that information technology (IT) would have on organizational structure. The debate is still on-going, and both researchers and managers continue to explore the relationship between IT and organizational structure. This relationship is becoming increasingly complicated by both the rapidly changing nature of IT and the increasing environmental turbulence faced by many organizations. As organizations need to process more information under these uncertain conditions, IT is one possible way for organizations to increase their information processing capability. However, other, more organizational tools are also at their disposal for processing more information. These include task forces, lateral relationships, self-contained work groups, and slack resources. Thus, the relationship between IT and organizational structures is not a simple one ( 1998).   It is commonly acknowledged and understood that information technology (IT) is having a dramatic effect on both our personal and professional lives. IT is also changing the nature of our organizations by providing opportunities to make fundamental changes in the way they do business. Many of the opportunities are recognized and understood. Yet a tremendous number of issues and consequences are only vaguely perceived while other questions are just now being raised ( 1996). The technology is changing rapidly, with computing speeds and the number of transistor equivalents available in a given area of a microprocessor chips both doubling approximately every 18 months.   Organizations are acquiring more and more technology systems to assist in everything from manufacturing to the management of information to the provision and improvement of customer service. Harnessing and coordinating this computing power is the challenge. New tools and innovative perspectives with which to examine, interpret, and comprehend this rapidly evolving environment is always needed and sought ( 1996). The paper will select two manufacturers and compare products they have. The paper will also discuss the reason for choosing the two manufacturers. Moreover the paper will choose which among the two can create a computer system that works well with less cost. The information acquired will then be used to create proper conclusion regarding the paper.   Dell Computer Corporation Company Background Dell Computer Corporation is a major manufacturer of personal computers, computer peripherals, and software. Among the leading producers of computers in the world, Dell sells its products directly to customers through the Internet and mail-order catalogs rather than through retail outlets. The company is based in Round Rock, Texas. At Dell Computers, customers are brought into the product planning and manufacturing processes, with all employees encouraged to have contact with customers. Through effective collaboration across boundaries, ideas can be shared about product designs and value propositions. The result is faster and more customer-focused product and service innovation. To produce the capacity for this, considerable attention must be placed on organizational structures, processes, skills and culture. Such elements that may need a radical overhaul in established companies ( 2002). Dell was founded in 1984 by . In 1983, during his freshman year at the University of Texas, he bought excess inventory of RAM chips and disk drives for IBM personal computers from local dealers. He resold the components through newspaper advertisements at prices far below retail cost. By 1984 his sales totaled about $80,000 a month. In April 1984 Dell dropped out of school to launch his company (, 2003).The new company soon began manufacturing its own IBM-compatible computers under the name PCs Limited. Because Dell sold computers directly to users through advertisements in magazines and catalogs, the company could price its machines lower than those sold through retail stores. Sales reached nearly $6 million during the company’s first year, climbing to $34 million the following year. By 1987 Dell was the leading mail-order computer company in the United States. That year it created a sales force to target large corporations and began adding international offices to capture the direct-mail market outside the United States ( 2003).   While the company continued to grow rapidly; Dell experienced a series of setbacks that hurt profits. In 1990 the company began selling computers through retail stores, an effort it abandoned in 1994. In 1991 Dell launched a line of notebook computers, but quality problems and inadequate production planning forced the company to stop selling them for a year. In 1994 Dell launched a new line of notebook computers and expanded efforts to increase overseas sales. Dell also began focusing on the market for servers, which are computers used to run local area networks. By the late 1990s, Dell was firmly in place as the world’s number one direct seller of computers. More than 50 percent of the company’s computer sales transactions took place via its website, which generated worldwide sales in excess of $40 million a day (, 2003).   IBM company background As late as 1960 IBM was still primarily a punched-card machine supplier. It was not until 1962 that computer sales equaled those of its traditional punched-card products. But by the end of the decade, its punched-card machine sales were essentially vestigial. While IBM was making this transformation in its product line in the 1960s, it was also growing at the rapid rate of 15 to 20 percent a year and soon achieved a domination of the computer market that was historically unparalleled in any other major industry. From annual sales of $1.8 billion and a head count of 104,000 in 1960, it had rocketed to sales of $7.2 billion and 259,000 employees by the end of the decade. Its market share was over 70 percent in 1960, a position it was able to sustain and even exceed throughout the decade. IBM's success was creating a difficult environment for its competitors. By 1960 the mainframe computer industry had already been whittled down to just IBM and seven others. Of all the mainframe suppliers,  had suffered the biggest reverse, consolidating a decline that had begun well before the launch of the 1401. Despite being the pioneer of the industry, it had never made a profit in computers and was gaining a reputation bordering on derision ( 1996).   For many years IBM's domination of the computer industry was attributed to a variety of factors: its managerial competence; its technological excellence; its formidable marketing organization; its monopolistic and antitrust business practices; and the leadership exerted by the Watsons. Yet when IBM fell into a decline, very little had changed. Its technology and marketing were as good in the 1990s as at any time in its past; and while it had only a 20 percent market share, it exceeded its nearest competitor in size by a factor of five; and even though the Watsons were no longer at the helm of the company, IBM's leaders were still among the most respected in the world. This suggests that there was something in the environment beyond IBM that was responsible for its rise and fall. IBM was blessed with a unique combination of organizational capabilities that equipped it perfectly for the mainframe computer market. While it fit this environmental niche, IBM prospered wonderfully; but once that niche changed, IBM's strategies were no longer appropriate ( 1996).     A key difference between IBM and its competitors persisted right into the computer age. Thus, when a company used equipment from one of IBM's office machine competitors, it was all too likely to acquire a problem rather than a solution. Often the computer and its software were no more than a set of tools with which to fashion a solution, instead of the solution itself. Only IBM guaranteed a complete solution to business problems, and an IBM salesman was all too likely to remind a data processing manager that no one ever got fired by hiring from IBM. This was a patronizing attitude that came close to condescension, and often resulted in a love-hate relationship between IBM and its customers.    In the mid-1970s a great change began to occur in the computer industry, which was fully realized in the 1980s; 1973 marked the first year that more than 100,000 computers were in use worldwide. But the growth slowed, and in 1978 there were only 7,000 more computers in use than there had been five years earlier. The mainframe had matured and become a commodity, while IBM's expertise in systems integration was increasingly taken over by software. As a result, computer users had far less need of IBM to hold their hand, and it was inevitable that they would begin to drift to other, less intimidating and less expensive suppliers ( 1996).   Diagram of a computer system *taken from The diagram showed the interconnection of computer systems. The diagram showed which part of the computer system is vital and related to another part.  The said diagram also showed how important each part is to the others. The two manufacturers tend to provide the different parts needed in the computer systems. One of the two manufacturers that can provide a system that is good internally at the same time provides satisfaction to its user.                                                                                                                                                                                                                                            Reasons for choosing the two manufacturers It is perhaps not difficult to imagine that new products take markets from existing products, making redundant the services of the workers who are engaged in that production and rendering obsolete the capital which is similarly engaged. In the same way, new processes of production undercut existing technologies used by rival firms, causing them to make losses, to lay off workers and close down capital, and ultimately driving the marginal ones out of business. But because all of these effects are indirect, it is less easy to see the connection between the deployment of new technology in a particular plant, and the destruction of capital and of job opportunities elsewhere ( 1987). The more specific the capital, the more radical the nature of the new technology, and the more rapid the rate of change, then the greater will be the consequent dislocation. It will affect not only the producers of existing products and the users of existing processes. They will lose markets and find their costs of production undercut; it will also affect the unsuccessful competitors in the process of innovation. It has been estimated that it took 30 years from the start of the computer industry in the late 1940s for that industry to reach break-even point. Until the early 1980s the profits of the few successful computer manufacturers were more than offset by the enormous losses suffered by the rest, principally the large international electrical companies, such as GE, Westinghouse, RCA, GEC, Plessey, Ferranti, Siemens, AEG and Philips, all of whom ultimately failed in their attempt to remain major computer manufacturers ( 1987).   What happened in the growth of the computer industry differed only in detail from what happened earlier in the introduction of new technology in other industries in the western world. A similar pattern of competitive innovation can be discerned in the growth of railways in the early nineteenth century, and in the expansion of the electrical appliance industry in the 1920s. In each of these earlier waves of innovation there is a clear pattern of cause and effect from which we can learn. The present wave of innovation is however taking place in a very different social and political environment from that which has gone before, and therefore we should expect to find differences as well as similarities in the effects of the introduction of new technology today ( 1987).   There are other manufacturers that focus on computers and IT related functions but these two are chosen for different reasons that will be discussed accordingly. The two manufacturers are competitive and place well in the computer manufacturing industry. They can be considered the best in the industry and they do well against competitors.  These two manufacturers were chosen because they already have an established name and a good reputation it must protect. This gives an assurance that they offer the best kind of product and service. They cannot afford to have a negative image to their clients. The two also have been in the industry for so long.   Comparison of the products both companies have One of the best products of Dell is its hard drive. The company makes use of excellent technologies in creating the different hard drives they offer to clients. These hard drives are easily adaptable and compatible to every clients needs. The hard drive determines how much space is still available for a client to use for his files. A manufacturer can easily create hard rives without considering a clients need. But Dell makes sure that the clients and their needs are given attention in creating a product. Another product that Dell creates well is its monitor. Its monitor gives the best graphics possible. It offers optimum satisfaction to the clients and removes any problems encountered when using the monitor.   On the other hand IBM’s best product is its processors. The company makes sure that its processors are of good value. It makes sure that the processors pass the standards they have and that the processors can give benefits to the clients. Another product that IBM creates well is also its monitors. Its monitors are not only high quality but price is reachable. The monitors produce exceptional performance and this gives it advantage over other monitors. A software that IBM creates well is the rational functional tester v 6.1 that gives simplification of product testing without sacrificing the versatility of project teams. Another software that IBM creates well is the Workplace services express v2.6. This software offers portal collaboration and solutions development platform that is best for a business enterprise.    Cost and Licensing of the products of the manufacturers Different things are needed in a business. These things include computers, office supplies, office equipment and other things needed in the office. To have this equipment a thing put into consideration is the cost the company has to make.  In any business the cost of the things they purchase and use are important. Companies don’t want to incur high cost. They tend to do everything they can so that the cost will be minimized. The hardware and software of the two companies can give a person major costs. Among the two companies the Dell’s products cost higher. This is due to the different expenses done by Dell to manufacture its products.     License is a permit granting permission to engage in an activity that would otherwise be illegal. The main purpose of a license is to protect the public interest. A license issued by a government agency is required in order to pursue certain occupations, run certain businesses, and enjoy certain privileges. In the U.S., for example, a person must have a license to practice medicine and law; brokerage firms and restaurants are two types of businesses that require licenses; and one must have a driver's license to operate an automobile on public roads. Fees for licenses are a source of revenue for the government. The licensing of the manufacturers software and hardware was already done ( 1993). Licensing was done to make sure that the company will not be branded of doing something illegal. This also gives additional assurances that the manufacturers offer products that are within standards since license are acquired if the products pass the standard.   The best choice among the two manufacturers In creating a computer system a thing given attention is the cost that will be incurred in creating a computer system. The cost that will be incurred is important because a high cost cannot be beneficial to a person or a company. On the other hand a very low cost can also cause problems to the individual or the company since the parts of the system may not be of good qualities thus additional costs will be made for repairs to the system.  Another thing that is given attention is the reputation of the manufacturer.  The manufacturer should not only be known well but has no bad track record. The reputation determines how the manufacturer is liked by the clients and how well the company treats its clients. Among the two the best choice is IBM.IBM has already had an established name and its products cost lesser than Dell. IBM also has been in industry for a longer time thus it already has different techniques in manufacturing products that is different against techniques used by dell. Lastly IBM offers products that cost lesser but of good quality. The products offered by IBM although lower in price are of good quality. These products are well made and its prices are adjusted according to the needs of the public.   Conclusion Information technology is only a means to an end which is the use of knowledge to make and implement commercial decisions. Efficient organizations require established systems to enable them to make the best possible decisions in the situations they are likely to meet. These two manufacturers were chosen because they already have an established name and a good reputation it must protect. This gives an assurance that they offer the best kind of product and service. They cannot afford to have a negative image to their clients.  A key difference between IBM and its competitors persisted right into the computer age. Thus, when a company used equipment from one of IBM's office machine competitors, it was all too likely to acquire a problem rather than a solution. One of the best products of Dell is its hard drive. Another product that Dell creates well is its monitor.   On the other hand IBM’s best product is its processors. Another product that IBM creates well is also its monitors. The software that IBM creates well is the rational functional tester v6.1 that gives simplification of product testing without sacrificing the versatility of project teams. Software that IBM creates well is the Workplace services express v2.6. This software offers portal collaboration and solutions development platform that is best for a business enterprise.  In creating a computer system a thing given attention is the cost that will be incurred in creating a computer system. Among the two the best choice is IBM.IBM has already had an established name and its products cost lesser than Dell. IBM also has been in industry for a longer time thus it already has different techniques in manufacturing products that is different against techniques used by dell.   References

INFORMATION TECHNOLOGY MANAGEMENT

Contents 1. Introduction 2. Dell Computer Corporation Company Background 3. IBM Company Background 4. Reas...