Importance of IT within a company Essay

This essay has a total of 568 words and 3 pages.

Importance of IT within a company

In order for any business to stay ahead of its competition it must carefully monitor its
resources allocating funds to each area of the business by the level of importance that
area requires. Decisions that are made in this area are vital to the operation of the
company. If an important department is not given the adequate funds that it needs to be
completely beneficial while extra funds were given to a department that is able to be
fully beneficial with less money then a serious mistake was made, perhaps costing the
company their competitive edge. One way a company can avoid this is through the
implementation of a value chain model. This will allow the company to see which
departments are the most beneficial and require the most funding. One of the difficulties
in making this model is deciding the importance of departments that do not directly
produce or distribute products or services for the company. One example is the Technology
Department. Although this department does not appear to directly make money for the
company they contribute a considerable amount to those departments that do.

Each company must therefore decide where the Technology Department lies in the value chain
model. The easiest way to do this is by evaluating how much the department affects the
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