The Evolving Role of Information Systems and Technology in Organizations: A Strategic Perspective

Today, most organizations in all sectors of industry, commerce and government are fundamentally dependent on their information systems. In the words of Rockart 1 '[i]nformation technology has become inextricably intertwined with business'. In industries such as telecommunications, media, entertainment and financial services, where the product is already or is being increasingly digitized, the existence of an organization crucially depends on the effective application of information technology (IT). With the emergence of e-commerce, the use of technology is becoming just an accepted, indeed expected, way of conducting business. Consequently, organizations are increasingly looking toward the application of technology not only to underpin existing business operations but also to create new opportunities that provide them with a source of competitive advantage. In order to manage information systems and information technology (IS/IT) strategically, it is helpful to understand how the role of technology-based information systems has evolved in organizations. While organizations today want to develop a more 'strategic' approach to managing IS/IT, many have probably arrived at their current situation as a result of various short-term 'tactical' decisions regarding IS/IT. Many organizations would no doubt like to rethink their investments, or even begin again with a 'clean sheet', but unfortunately have a 'legacy' resulting from a less than strategic approach to IS/IT in the past. It is rarely possible to start again—many banks and insurance companies still depend on systems first developed over 30 years ago; neither is it necessarily advisable—there is no real reason to expect more success in the future than has been the case in the past, unless ability and knowledge