Introduction

In the last 40 to 50 Years, information technology has grown with the tremendous pace, In

today’s time we cannot think of implementation of any project without the use of technology. In

the same manner, information technology or e-technology has impacted the organization and

their operations, and that is not limited to the use of desktop or laptop computers with in

organization. Even the small machines are using the technology are getting connected to the

network so that they can be accessed or checked remotely. This has eased out lot of things in the

business operation scenario.

When we talk about technology, then it’s particularly information technology which has changed

the complete environment and business culture of the organization, if we compare it with the

scene 30 years ago. The way information technology is developing in the business prospect, it

has gathered the attention of many researchers in last few years (Chatfield and Yetton, 2000,

Leek et al., 2003, Vlosky and Smith, 1993, Wilson and Vlosky, 1998). As per the research,

almost quarter of the workers in most of the developed countries used to work from home for a

hefty duration in the Year

Effect of Globalization

Globalization has also affected the use of information technology in the organizations, as most of

the organizations have their offices around the world, and they needed to be interconnected with

each other irrespective of the time frame and information should transmit from one location to
another instantly, in order to be competitive. If an organization is not using the information

technology then somewhere they are lagging behind in the competition and it becomes tough for

them to sustain in the market for the longer period of time. Now the global economy is

dependent largely on the information technology, like the share market trends, the performance

of the share market in United States, directly affect the market in Asian Countries, which is just

because of the use on information technology. Douglas (2002, 285-305) has explained that the

use of Computerized networks, satellite communication systems and software & hardware that

are link together and facilitating the global economy.

Affecting Organization

The role of information technology within organization has mixed views, some feel that,

information technology is better to increase the efficiency within the organization; on the other

hand some count the negative aspect of the information technology in business. The use of

Information technology in the business somehow increases the social interaction, on a broader

level, and brings the people closer than they were before.

With this essay we will also try to understand what are the threats and risks associated with the

use of these technologies and how the service providers of these technologies are working in the

direction to overcome the issues and risks associated with the use of information technology

within the organization.

E-Technology and Business Management

With the affect or globalization, and ever shrinking market, the use of technology has become

the need of the organizations, and it has become the case of their survival, by the start of this

decade people has started talking about the use of Machine to Machine, where human interaction

in the heavy industries has become very minimal, even in the case of any issue, the machine

itself start sending the messages on mobile phone of the machine owner, t alert about the

possible issues. Things like this have made the day to day operations of workers a bit simpler as

they don’t always need to keep an eye on the performance of the machine. This has increased the

operational efficiency of the workers and also of the organizations.

The effect of globalization is very big, as it is also related to the social interaction between the

organization, as the exchange of the business activities between the organizations with the help

of information technology, the organization get to know each other and how they function (Ford

et al., 1986; Turnbull et al., 1996). Also it works as the tool for increasing and enhancing their

competitive advantage in the market when there is the situation of uncertainty (King, Grove &

Hufnagel, 1989, 87-93).

In terms of the business operation and operation Management, the information technology is of

great help, like if we talk about the manufacturing industry, the information technology supports

greatly, because of their ability in finding the supplier of goods and services, prospective buyers,

finding the target market of the product, and with product placement strategy (BSCK SME

Survey: 2010, 2011 and 2012).

The use of information technology in the organization business operation is about keeping the

things simple and in the way as they needed to perform, if the use of information technology in

business operation is followed as per the standard procedures than it helps in;

1) Reduction of operational expenses

2) Improve the organizational efficiency.

3) Helps in changing the overall organizational administration.

4) Response time is reduced

5) Resource utilization is also improved

The following advantages of information technology helps in better customer satisfaction, and

reduce the cost of business and also enhance the organization’s competitive ability. However

there are researchers who argue that to enhance the organizational efficiency, and enhance the

business operation process, the organization needed to streamline their all business process; it

cannot be done just by the implementation of the information technology within the business.

Like Turban et al. (2002) suggested that, an Organization, in order to maintain its competitive

advantage the organization needed to streamline all business processes

E-Technology with Business Model

When we talk about the use of Information technology in the business operations or within the

organization, the effect on the performance of the system based on the use of E-technology also

depends on the business model of the organization. Though the marketing segment of the

organization are all has to be well netted with the information technology, to have all the latest
update about the global market. Finance sector and health care business domain is the one which

is highly impacted by the use of technology in the recent years, because of the growing demand

of the health care services, in comparison to the other sectors like manufacturing and services,

which are growing with their pace.

In the Manufacturing sector the use of information technology is largely seen in the, Computer

aided manufacturing, which helps in integrating all aspects of the production system with one

centralized computer, the removes the complexity of the production department and eases out the

complete production process.

Now to ease out the complete business process of the organization in the manufacturing

companies, ERP models are also there which run on both internet and intranet, and helps to

connect the different department within the organizations, and every department can access the

data they want whenever they require and from any preferred location as everything is stored on

the cloud based system. ERP systems are very useful software for the business operations of the

organization as they tend to simplify the things and remove the manual interference in the

information transfer from one location to another.

Risk and Threats

With the expansion of information technology, and internet, although the business opportunities

has increased and the business operations has also improved, but it also has some risks and

threats in terms of Business and Business operations. The risk involved in the business process as

per Ratnasingam (2003, 48-50) can be categorized as;

 1) Phishing: When the organizational system are connected to internet for the use of internet

technology, they are prone to phishing attacks where attacks can came through the email

and other means and can harm the complete organizational system

2) Denial of Service: This form is threat is very prone to system associated with

Organization working on the E-technology backed system. Where the internet network in

filled with some random information and data transmission and it happens until the data

transmission of the organization is blocked. Because of this mostly the organization has

to suffer as they are not able to communicate with each other and even their processes

based on the internet services are also stopped.

Other risks involves as the rational risks which can be explained as;

1) Not having proper experience about the use of technology

2) Resisting to the change and acceptance of information technology in day to day

operations

3) The effect of uncertainty involved with the introduction of information technology within

the system.

4) Not using the high quality business procedures related to the information technology.

Though ERP is considered as one of the most organizational friendly e-technology system in

terms of business operation, but there are some risks and threats are also involved with the ERP

solution as well;

1) Cost associated: Often ERP solution are considered as the most cost effective solutions,

and organizations prefer them because of the help they provide in day to day business

operations but, there are some hidden costs are also associated with the system, which
 organizations needed to be careful about; like O’Brien(2006) suggested that the biggest

expenses are generated from processes’ reconfiguration, after that are coming the

expenses for data conversion from the old application to the new one, software costs,

training and hardware.

2) Adaptability to the new system: It is similar to the resistance to change, as often

employee find it difficult to adapt to the new environment if they are working in the same

organizational structure or pattern from the very long time.

Measures to Overcome the Threats and Risks

The e-technology service providers of the organization are working constantly in the direction to

make the system free from risks and threat and avoid any possible scenario when the services

and the operation of the organizations are affected by these threats.

1) Training: Organizations are provided the proper training and operational learning to the

stake holders of the technology and to the people who will be using it, that helps in

avoiding or mitigating the scenario where the organizational operations system can be

affected adversely by the wrongful use of the technology.

2) Security measures: Most of the e-technology based system these days are coming up with

the security patches to avoid any phishing or virus threats that can affect the internet or

computer network of the organization, which might result in the halt of the business

operations.
3) After sale support and review: Often these systems are reviewed time to time and if

required they are provided with the required patches as per the new threat detections and

risk to avoid any future challenge (Musaji, Y., 2002).

4) Cost Measures: Organization are provided with the detail understanding of the cost to do

the ethical business practices and maintain the long term association between the service

providers and organizations.

Conclusion

We have understood that E—technology are the need of the day and are the requirement of the

Globalized market, for the business organizations to stay competitive in the market. However e-

technology is not the condition, this is also the requirement of the day, as most of the business

operations tasks these days are dependent on the use of technology irrespective of the nature of

the organization and tasks. Solutions like ERP are accepted worldwide in the organization which

has eased out their business processes and help them to connect different processes of the

organization from Finance to Supply chain Management system. Though there are some risks

associated with these systems and they are there from the very beginning, but service providers

are working efficiently to make these system errors free and remove these threats and risks

associated with the technology, be it related to the cost or the issues related to the technological

aspect of the system.

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