Various enhanced sharing of information, linking pay

Various business innovative practices continue to facilitate the
productivity resurgence in the United States economy. According to Brynjolfsson
and Saunders (2011), information technology has a direct and indirect influence
on the creation of the productivity explosion mentioned above, thus, the
platform to oversee the transformation of the decades of the slow growth.

Evidently, corporations with the largest level of returns to their technology
investment are executing more practices than procurement of technology. Such
corporations aim at inventing new forms of organizational capital with the
objective of transforming their practices into becoming digital entities.

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The innovations include various organizational and business-process
changes such as enhanced sharing of information, linking pay and promotions to
the performance, decentralized decision-making, eradication of non-core products
and processes, as well as investment in the training and education practices.

Based on this, it is essential to note that information technology is playing a
critical role in transforming the economy through the creation of value to the
current and future contexts. The objective of this essay is to explore the
essence of the quote, “business is wired for innovation” through assessing the
role of information technology in affecting innovation, productivity,
competition, consumer surpluses, pricing, and other components of the economy.

In the digital era, information technologies continue to play
critical roles in influencing the perceptions and decision-making of the
individuals and corporations. Based on this, it is essential to note that
information technologies have enormous implications in driving productivity, as
well as growth at the corporate and national economic levels (Cox, 2011).

Notably, most corporations are not using IT effectively and efficiently in
executing things or practices such as assessment of the success of promotions
or performance of the supply chains. These practices generate data, which can
inspire changes in the ability to fatten revenues while benefiting the
consumers. Various leading corporations have been able to use IT in the course
of testing new ideas while adopting successful change practices; thus, the
platform to disseminate innovations cheaply, as well as quickly. Based on the
argument that ‘business is wired for innovation,’ it is appropriate for the
organizations or corporations to consider increasing their information
metabolism (Brynjolfsson, 2011). 

Notably, there are huge advances or developments regarding the
technology of communications and computers. In the process of making such
advances effective and efficient, it is valuable for the corporations to
consider transforming their business approaches and processes, as well as the
organization of the decision-making. In the digital world, various high-tech
corporations such as Cisco and Amazon are using IT effectively in the
achievement of the set goals and targets following the needs and expectations
of the consumers (Talbot, 2011). These corporations have been able to transform
their practices and organizational cultures to become data-driven in the course
of making valuable and strategic decisions.

On the other hand, there have been organizations such as Walmart and
CVS depicting the desired aggressiveness in the optimization of technology.

Nonetheless, this is not a reflection of more investment on the IT, but utilization
of the information technology in the course of rethinking business policies,
procedures, and processes. Similarly, there are corporations, which focus on
optimizing the influence of information technologies in the course of
replicating innovations following their development (Bughin, Chui, and Manyika, 2010). The approach focuses on enabling organizations to acquire and
explore ideas, which work effectively in different locations before embedding
such concepts into software programs and replicating them across various
locations.

Evidently, business entities have been able to use IT in the course
of aiding improvement or enhancement of the level of production following the
needs and expectations of the consumers. Research practitioners have been able
to highlight the growing influence of information technology to enhance or
boost productivity, especially in instances where organizations tend to use it
in the process of innovating practices and processes (Brynjolfsson, 2011). Notably, it is valuable for the business entities or corporations
to have adequate skills and knowledge to make strategic decisions following the
data-driven experimentation, as well as analytics. In such contexts, the
organizations might have the platform to oversee larger profits while driving
their competitive positions to the next great boom concerning the level of
productivity.

Increased productivity proves to be essential in shaping the economy
based on the significance of the national wealth and standard of living. Critically,
in the process of learning the use of IT and analytics in the process of
innovating and driving change, the organizations will have the opportunity to
optimize era of sustained growth and high living standards. The approach
entails the integration of the IT and analytics in the product development,
incentives, and processes as critical components of the organizational
practices (Brynjolfsson,
2011). Accordingly, integration of the technological
advances has been essential in overseeing substantive growth in the level of
production, thus, the growing influence of such practices in shaping the
economy. Categorically, these attributes are vital in enhancing the achievement
of the goals and targets.

Other than improving the level of productivity in the major
organizations investing in such attributes, IT is also a valuable factor in
innovation. Business entities and companies need to exploit IT to innovate
practices in the achievement of the desired goals and targets at the end of
each operational period. Critically, IT departments tend to personify the
essence of innovation through an extensive focus on improvement. The
information technologies must oversee the promotion of the innovative culture
across the organization seeking to achieve competitive advantage in the highly
competitive globalized economies (Brynjolfsson, 2011). In the context
of America, innovation continues to be one of the most popular terms in which
corporations are trying to outdo each other in the generation of the next best
service or product. It is impossible for an organization to exist when it
cannot innovate.

For instance, business entities have been able to consider
optimizing attributes of the information technology such as social media and
other avenues in the achievement of marketing goals and targets. From this
perspective, it is appropriate to consider IT and innovation as components of a
natural combination enabling the organizations to achieve the desired goals and
targets. In this context, IT provides the platform for the promotion of
innovations based on the readiness of the people or organizations to embrace,
as well as exploit such technologies for the innovative practices and strategic
achievement of the goals. In 1986, Fred Davis was able to introduce the TAM
(technology acceptance model), which focuses on exploring the users’ acceptance
of the information technologies and systems for the strategic purposes (Davis,
1995). The model provides the chance for the organizations to explore general
determinants of acceptance about the behavior of the users based on perceived
usefulness and ease of use. These attributes are essential in enabling
organizations to have the opportunity to use technology as a tool to satisfy
needs and expectations of the consumers through innovative practices.

Additionally, business entities have been able to focus on the use
of technology as a tool for the competitiveness in the achievement of the
desired objectives and goals. For instance, corporations such as Cisco and
Amazon, as well as Walmart have been on the forefront in the course of adopting
and implementing technological practices with the ability to offer a
technological difference, especially in the level of competition. Technology
should offer a competitive advantage in the optimization of the organizational
strategies and decision-making. Based on this, organizations have the chance to
use IT and analytics to outdo competition through offering quality products and
services per the demands and expectations of the consumers. In this context,
organizations have the chance to incorporate Rodgers’ theory of diffusion of
innovation to enable adoption of the innovations among the components of the
organization (Rodgers 1976). The theory provides the platform for communicating
such elements of communication through different channels in pursuit of
competitive advantage. Notably, technologies are ideal for offering the
competitive edge for the corporations seeking to achieve the desired
expectations per the needs of the consumers.

In spite of these positive implications of information technologies
in innovation and improvement of productivity, there are various negative
aspects of such systems for the organizations and other stakeholders. For
instance, rather than being ‘wired for innovation,’ organizations tend to incur
substantive implementation expenses concerning the startup costs for the IT
systems. Other than the procurement of the hardware and software, various
vendors purport for the need to procure licenses for the employees operating such
systems. Additionally, there is need to incur costs for training workers who
are unfamiliar with the technological systems (Aykin, 2016). These systems or
expenses offer substantive limitations of IT in the business, particularly for
the corporations seeking to enter the technology era for the first time.

Moreover, there is also the issue of job elimination following the
implementation of such technologies to save a great deal of time in the
completion of the different processes and expectations (Kumar, 2014; Waldman, 2016). Technology has the influence of improving efficiency in the tasks
formerly under the watch of the human employees, thus, elimination of such
jobs, as well as alienation of the clients. Technology might also associate
with issues such as security breaches. In the digital era, organizations have
the opportunity to store information in different electronic databases for
quick and effective communication. It is possible for the corporations to
recover such information at the touch of a button. In spite of enabling
organizations to enhance efficiency and effectiveness of the service delivery,
these information technologies are vulnerable to the security breaches such as
malicious hacking and fraud, especially via the internet (Taylor, Fritsch, and
Liederbach, 2014). Based on this, information
technology systems are at risk of security breaches affecting credibility and
authority of the stored information. It is appropriate for the organizations to
adopt and implement appropriate mechanisms and approaches with the objective of
ensuring the protection of the stored information against security breaches
(Avram, 2014). The approach would play a critical role in minimizing the
vulnerability of the systems to the risks mentioned above.

Regardless of the negative implications of technology in the above
discussion, it is appropriate for the organizations to focus on the
optimization of the IT because of the influence of the positive outcomes, which
outweigh the negatives. The organizations should adopt the digital ideas
through digitizing the existing or analog business processes. The approach
should aim at shifting toward decentralized decision-making or power in pursuit
of effectiveness and efficiency in the service delivery (Brynjolfsson, 2011). The use of information technologies should also create the
platform for the organizations to exploit broader information sharing with the
target audiences and other corporations. Technological systems should provide
the firm with the opportunity to realize tighter linkage of the performance or
productivity levels to compensation.

Categorically, digital corporations have the platform to pursue
innovation through prioritizing high-quality people by using effective tools
and approaches to enable screening of the people for the recruitment processes
and practices. Following the recruitment of such high-quality people, digital
corporations such as Walmart, Amazon, and Cisco should focus on increasing
their investment in the training and education practices or policies for the
realization of competitive advantage (Brynjolfsson, 2011).

Conclusively, in the midst of the growing influence of information
technology, it is essential to note that ‘business is wired for innovation.’
Business entities and corporations tend to invest in the information technology
systems and analytics to enable effective decision-making, pricing, competitive
advantage, innovation, and enhanced productivity. These aspects are ideal for
shaping the performance of the corporations, as well as economies. Integration
of the information technologies and other advances create the chance for the
corporations to become digital in interaction with the consumers, as well as
delivery of valuable products and services at the end of each operational period.