Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Technology Importance of IT within a company Importance of IT within a company In order for any business to stay ahead of its competition it must carefully monitor its resources allocating funds to each area of the business by the level of importance that area requires. Decisions that are made in this area are vital to the operation of the company. If an important department is not given the adequate funds that it needs to be completely beneficial while extra funds were given to a department that is able to be fully beneficial with less money then a serious mistake was made, perhaps costing the company their competitive edge. One way a company can avoid this is through the implementation of a value chain model. This will allow the company to see which departments are the most beneficial and require the most funding. One of the difficulties in making this model is deciding the importance of departments that do not directly produce or distribute products or services for the company. One example is the Technology Department. Although this department does not appear to directly make money for the company they contribute a considerable amount to those departments that do. Each company must therefore decide where the Technology Department lies in the value chain model. The easiest way to do this is by evaluating how much the department affects the others. All the departments in the company can be divided into two separate groups. The primary departments are those that deal directly with the production/distribution process, while the support departments support the primary departments. Although the Technology Department obviously lies in the support category they obviously should not be given reduced funding or less attention. The company must take into account how much the department increases the production/distribution process. Depending on the company the level of technology needed varies. Some companies must be on constant vigil ever increasing the level of their technology, while others can afford to be a little behind. An example of a company that needs to keep up to date is a car manufacturer. The Technology Department is a vital area here because it provides the company with an edge by increasing the level of productivity through implementation of new technology. Also if the car manufacturer is not constantly staying ahead in the technology of the car itself then they will fall behind their competitors. An example of a company where technology might not be as important would be an accounting firm that deals mostly with individuals or families as opposed to companies or large firms. This company can afford to use slightly outdated technology because most accounting software requirements are not that great. Although they must obviously have some technology, the need to stay at the cutting edge is not that great. Creating a value chain model is not an easy task for any organization. However, the need for the model is too great for any company not to complete one. Therefore, the leaders of the company must put serious consideration into what each department does for the organization. When creating the value chain model the company must look beyond the primary departments and study the support departments to see how much they help the organization. If the support department is capable of having an extreme positive effect on the money making process then it is possible that they rank above one of the primary departments in the model. Bibliography: Word Count: 561
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