Impact

Development in IT have had a major impact on the way organisations operate. Few organisations are able to survive in a competitive market without using IT in some way.

Technical InfrastructureThis includes producing reports on the effectiveness of

the system, analysing performance and making recommendations for improvements. e.g: provide staff training on using software and how those should be done, whether by internal support staff or external training providers.

Re-engineering the system and a proposal would need to justify the reasons for this along with the costs and the benefits to the organisation as a whole.

Cost A budget usually dictates costs to a certain degree

Cut backs may be an option in order for an upgrade to be achieved if the initial plan exceeds the budget.

Management will carry out a cost-benefit analysis to justify any additional spending.

More efficient productivity can result in redundancies.

Cost implication of training staff

Impact on procedures

All organisations requires sound and robust procedures in order to function effectively.

External companies to validate their quality procedures and systems

Procedures need to be adjusted to accommodate changes, updates and upgrades.

Time consuming

Impact on staff Up skilling and training

Specialist skills are needed to use IT – programming – web developer

Staff are increasingly expected to carry out their own admin in addition to their own jobs.

Staff may be moved into a job they do not particularity like, there may some resistance

Not everyone adapts to change easily.

Dealing with redundancies

Organisations must deal with redundant skills and employees in order to avoid unnecessary costs.

Which is redundant the job role or the employee?

Overhead considerations – office space, resources and company cars.

Redundancy payment – length of time, size of current salary.

Voluntary redundancy

Balancing core employees with contractors and outsourced staff.

Core employees are permanently employed by the organisation and receive a regularly salary and are a fixed on going cost to the organisation.

Contractors are not on the payroll and therefore not an on going cost, although they may cost more per hour.

Outsourced staff – temporary contracts – different terms and conditions as those on a permanent contract.

Staffing structure can be flattened – delayering – reduction in the number of levels of staff and managers.

Integration of legacy systems Legacy systems may become redundant if they are not

compatible with the updated versions of new technology.

Organisations may choose to replace or increase their technology to support their business practices.

Cost to upgrade against the cost - length of time to impediment, teething problems, out of service for a period of time.

Security – payments systems – virus – hackers – ID – passwords

Legal requirements – Copyright – Data Protection act