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The Truth about IT costs article suggests that firms under use software applications and infrastructure technology and suggests using what you have before investing.

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The “Truth about IT costs” article suggests that firms underuse software applications and infrastructure technology and suggests using what you have before investing in more. What are the pros and cons of doing this? Part 2 (Assessment): Read the article “Electric Medical Records at the ISS”. Complete with a short discussion (one paragraph) for each question on a Word document. 1) Do you think that the ISS Clinic investment in electronic medical records added value for the organization? How would you recommend measuring this "value"? If you do not think ...

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Question Preview:

The “Truth about IT costs” article suggests that firms underuse software applications and infrastructure technology and suggests using what you have before investing in more. What are the pros and cons of doing this? Part 2 (Assessment): Read the article “Electric Medical Records at the ISS”. Complete with a short discussion (one paragraph) for each question on a Word document. 1) Do you think that the ISS Clinic investment in electronic medical records added value for the organization? How would you recommend measuring this "value"? If you do not think that it adds value, what are your recommendations for the system usage to add value for the organization? 2) In your opinion, what decision options did ISS Clinic have in the case situation? 3) What data, facts or experience can you use to support your suggested options and implications? 4) List 5 of the most important concepts or knowledge that you gained from this case. Part 3 (Assignment): Complete the following tasks: A. Read the following: "Investing in the IT That Makes a Competitive Difference" B. Research one of the companies mentioned by the article. C. Write a one page summary of how you think the company justified the technology investment to the shareholders and board before the project. a. Give examples of what you think they should have used.

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The “Truth about IT costs” article suggests that firms underuse software applications and infrastructure technology and suggests using what you have before investing in more. What are the pros and cons of doing this?

It is wise to follow in general the suggestion of using what you have before investing in more. This is all the more prudent if adopted in case of cost invested in Information Technology as this sector is one of those sectors in an organization where the maximum investment takes place. The pros and cons of implementation of this suggestion are as below:

Pros:

  1. Cost Control – Avoiding investment in new technology will help in reducing the overall business cost.
  2. Discipline – The restriction on permission will build up discipline amongst the managers and executives in business operations.
  3. Effective Utilization – It will help in effective utilization of the existing technology.
  4.  With imposition of limitations on information technology, operations managers will ensure that every time an investment is made in new technology, it caters to their maximum needs. Cons:
  5. Operational Dissatisfaction – If the technology is not provided to the operations team as per request, it may lead the managers to dissatisfaction.

Poor Performance – The executives may lose the motivation and willingness to work in case their needs for new technology are not fulfilled

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