Strategic Planning

La compania del futuro by Frances Cairncross

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By Frances Cairncross

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Finally, IT should support innovation in new product and service development and facilitate growth and new initiatives. The Information-Centered Approach Senior managers who subscribe to this view contend that good IT practices are necessary but not sufficient to improve business performance. They hold that careful attention to the ways in which information is sensed, collected, organized, processed and maintained is also essential to improving both IT and business performance. According to this view, the way that people turn data into information that can be used to improve customer relations, product innovation, sales, marketing, operations and financial control is critical to improved performance.

As a result, temporal and monetary detriments have increased in this high cost, time critical environment. The current situation within this domain area highlights the need for new process improvement and information management methods. Thus, it can be said that data mining entails looking for patterns in detailed data that may be correlated with customer profitability or with changes in profitability. Signaling Signaling actions are performed by potential customers to indicate their profitability or desirability.

Neither group seems to have found what it is looking for. Economist attempt to explain this gap as the “IT productivity paradox” – companies spent billions on IT worldwide with no clear link to improved macro-economic productivity or business performance. Marchand et al. (2000) have uncovered three different approaches of how IT and information use may be linked to business performance such as the: (a) IT centered approach, (b) information-centered approach and (c) people-centered approach. These approaches are explained in the following sub sections.

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