Impact of Information Technology on Production and Operation Management

5. Decision making

Internet-based technologies ensure that timely and accurate information is available to the decision maker at the right time. This enhances the quality and timeliness of decisions. Information technology is helping to integrate the supply system, the production and operations system and the customer. Decisions can be taken speedily at appropriate levels. A flatter organizational structure is emerging where authority can be delegated rather than following a strictly hierarchical chain of command.

6. Globalization

Today, operations can be spread globally. Business Process Outstanding (BPO) is a common feature. Operations are carried out globally in such a manner that costs are reduced. For instance, credit card companies and banks are outsourcing all their telemarketing and related operations to India because Indian labour is cheaper than the labour in USA or Europe. Information technology has made this possible.

7. New business processes

New and efficient business process are evolving because of information technology. Designs can be developed by different people working from different places. In the developed countries, there is a marked shift to the provision of knowledge based services than manufacturing.

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