Question

Jones, G. R. (2020) observed that recently, increasing globalization and the use of new IT have brought about two innovations that are sweeping through U.S. and European companies: electronically managed strategic alliances and B2B network structures.

Describe the main kinds of IT that you're familiar with and use on a routine basis for work. Now compare the pros and cons of using a network structure to perform organizational activities versus performing all activities in house or within one organizational hierarchy.

Answer 1

IT systems in everyday life are required at various aspects like finance, internet, entertainment or public services. IT enables to make online transactions, provides increased security and other financial services with the help of a central network. Furthermore, the use of internet enables to communicate with others from all over the world, helps in information resources and information sharing on a real-time basis. Besides, IT helps in entertainment by providing interactive programming and participation in television, computer gaming, digital cameras, printer and scanners. In addition, it helps in providing various public services like transferring electronic patient records, passenger information sharing over computer network and other government services.

The benefits of using a network structure are clearer focus of company goals, lower costs, increase in flexibility; while the disadvantages include lack of control and reliability, absence of secrecy and decreasing profits. On the other hand, advantages of a centralized organizational hierarchy are clear chain of command, focused vision, reduced costs, quick decision-making and improved work quality, while the disadvantages include bureaucratic leadership approach, remote control, work delays, lack of employee motivation and loyalty.

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