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4 Stages of information technology application in business
Currently, information technology (IT) is present and plays an important and indispensable role in the management and operation of production and business activities of each enterprise. 4 Stages of information technology application in business
IT investment activities in the enterprise are intended to serve the goals of the enterprise such as supporting operational activities, supporting management decision-making, supporting the development of strategies to achieve profits. There are many models of IT investment in enterprises, each model has a different approach, but they all have the same purpose of helping businesses determine the investment roadmap and the relationship between the components. in the overall picture of IT application in enterprises. Each business needs to choose for itself an appropriate IT investment model to promote the effectiveness of investments, serve business goals and match the technology exploitation capacity of the business.

The IT investment model in enterprises is synthesized in 4 successive stages: Investment in IT; Strengthening application for operation and operation; Comprehensive application to improve management and production capacity; Invest to transform your business and create an international competitive advantage. At each stage, there are specific goals and follow the basic principles of IT investment: investment must be consistent with business objectives of the enterprise; investment must be effective; Investing in people is enough to use and promote investments in technology.


Phase 1: Investment in IT infrastructure
This stage means the initial investment of enterprises in IT, including basic equipment in hardware, software and human resources. The level of “basic” equipment may not be uniform, however, some key requirements must be met as the technology infrastructure (hardware & software) is sufficiently equipped to deploy some applications. routines of enterprises such as: equipping computers, setting up LAN, WAN networks, establishing Internet connections, communication environment between internal offices or between partners; About people trained to use the above infrastructures in some business or management activities of the enterprise, the investments in this period aim to build the "foundation" for the next IT applications.

Phase 2: Strengthening operating and operational applications
The goal of this phase is to invest in IT to improve operational efficiency, to support functional departments in the enterprise, specifically for the operation of functional departments or task-based groups. This is a natural development for most businesses, because of the increased amount of information to be processed, and because the necessary skills in IT applications have been acquired in the previous stages. Investments in automating business and operational processes to improve business performance such as deploying applications to meet each business field and being ready to expand according to business requirements; program finance-accounting, human resource management-salary, sales management; For discrete, operational and statistical applications, IT directly affects the application exploitation department.

Phase 3: Comprehensive application to improve management and production capacity
If we consider phase 2 as the local digitization stage, phase 3 is the digitization stage of the whole enterprise, moving from local to global is the biggest problem of this phase 3. Regarding IT infrastructure, it is necessary to have a wide area network covering the whole enterprise, ensuring the smooth flow of information between departments; integrated software and company-wide databases are the key tools to support operational and management activities; implementing synchronous solutions to help enterprises change the quality of internal management, improve operating capacity, increase efficiency and increase competitiveness such as ERP, SCM, CRM, etc. Digital culture - was started to build The gradual construction and development in the two previous stages has become ripe, contributing to the creation of the business culture of the enterprise, which is based on working standards, new work measures, and the same system. regulations and tools to ensure the full implementation of those standards throughout the enterprise.

Phase 4: Invest to transform businesses, create an international competitive advantage
This is the stage of IT investment to gain competitive advantage in the modern business environment, i.e. IT investment in products and services to create price advantage, differentiate, and other products, in line with the enterprise's competitive strategy. Currently, business issues in the Internet age, more specifically the use of Internet technology and services in business, have a decisive role: building an Intranet to share information in the business, extranet to connect and selectively share information sources with partners, suppliers, customers, etc. Use the Internet to form e-commerce relationships such as B2B, B2C and B2G. Inheriting and promoting the power on the data platform and established business processes in the enterprise to bring the enterprise to a new level, global business, IT is an effective tool in the implementation of business strategies.

The above investment stages aim to emphasize that investment in IT in the enterprise must be consistent with the development and serve the business strategy of the enterprise in each stage. The IT investment model is a good basis for investment decisions as well as a good reference model when presenting related issues. However, that is not the only model. In addition, the development speed of business and technology is not always the same, so sometimes there is an interval between the stages of IT investment and the development stage of the business. There may be businesses that meet the conditions to skip a certain stage, or choose an investment model different from the one above.

Regardless of the model chosen, when investing and using IT for business goals and business development, professional managers and businessmen, as users of enterprise information systems, also need to equip A framework of knowledge to understand and effectively use information systems, including the following five areas: fundamental perspectives, knowledge of information technology, business applications, and the development and implementation of processes process, and finally management challenges. Only then, new IT investments bring the highest efficiency and realize the business plan and strategy of your business.
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