Business Functions and Processes (Google. Communication and Research Paper

Business Functions and Processes (Google. Communication and Information Technology) - Research Paper Example Moreover, changing supplementary, either by incorporating computer investments without firm change in organization, or only partially enforcing some organizational requirements and changes, can generate significant productivity losses as any advantages of computerization are normally more than outshined by negative interactions with present organizational policies and practices (Brynjolfsson, Renshaw and Van Alstyne 1997). The necessity for ‘all or nothing’ changes between complementary systems was a part of the logic behind the organizational reengineering shift period during the era of 1990s (Hammer 1990). Furthermore, it can also elaborate why many large scale information technology projects are unable to perform as expected and miserably fail (Kemerer and Sosa 1991), while successful information technology adopters earn substantial rents (Brynjolfsson and Hitt 2000).There are various examples reflecting the historically high cost of information gathering and processi ng as well. For example, hierarchical organizational structures can diminish communications costs because they reduce the number of communications links essential to connect multiple economic factors as compared with the more decentralized hierarchical structures (Malone 1987; Radner 1993). Analogously, producing simple and standardized products remains to be the most efficient way to utilize scale intensive and inflexible manufacturing technology. However, as the cost of automated information processing has diminished by over 99.9 percent since the 1960s, it is not likely that the work practices of the earlier era will remain the same ones that best leverage the value of inexpensive information along with flexible production. In this spirit, Milgrom and Roberts (1990) develop and provide a model in which firm’s transformation and transition from ‘mass production’ to flexible, computer-enabled modern manufacturing’ is pushed by exogenous changes in the inf ormation technology price. Within the same context, the Bresnahan (1999) and Bresnahan, Brynjolfsson and Hitt (2000) highlight that how changes in information technology costs and capabilities direct to a cluster of changes in work organization and firm strategy increasing the demand for skilled labour. Changing interactions with the suppliers Managing a constant and result-orientated interaction and correspondence with suppliers offers numerous pitfalls. The organizations are generating a view that it is no more a feasible option to permanently rely on suppliers and may not disregard this option as for as the short term objectives are concerned. The organizations contend that suppliers have not been able to expectedly fulfil their role and part of work and they provide their excuses for delays. Keeping this view in mind and due to other problems coordinating with external suppliers, large firms often generate and develop many of their required inputs in-house. General Motors is the appropriate successful story of a company whose success was considerably supported by high levels of vertical integration. However, the latest technologies such as internet-based procurement systems, electronic data interchanges and other inter-organizational information systems have substantially diminished business process cost, business design and development cost and other difficulties of interacting with suppliers. Within the same