What are the advantages of centralized information technology? Provide examples.
Does centralized Information Technology benefit and/or contribute to Sarbanes Oxley Compliance? If so, how? Provide examples.
Advantages of Centralized Information Technology
Wisdom we have lost in knowledge?"
An appendage to this could be to add, "Where is the knowledge we have lost in data?" Truly, with the explosion of IT, the amount of data at one's disposal is enormous and the challenge is now to harness the power of knowledge hidden in the collage of data.
Centralized information technology refers to the concentration of Major information technology decisions at one place. Centralization is generally an authority relationship between those in overall control of the organization and rest of the staff. The tighter the control exerted at the center, the greater the degree of centralization. The benefit of the centralization is that top managers remain fully aware of the operational as well as strategic issues and concerns.
Benefits of centralized Information Technology are:
1) It will facilitate company-wide Integrated Information System covering all functional areas like Manufacturing, Selling and distribution, Payables, Receivables, Inventory, Accounts, Human resources, Purchases etc.,
2) It will lower total costs in the complete supply chain. It helps in shortening throughput times and reducing the stock to a minimum.
3) It provides more reliable delivery dates and higher service to the customer. It helps in efficiently coordinate global demand, supply and production.
4) It improves timeliness of information by permitting, posting daily instead of monthly and in greater accuracy of information with detailed content, better presentation, fully satisfactory for the Auditors.
5) Integration with E-Commerce:
Internet enabled centralized information technology offers Internet, Intranet and Extranet solutions for business-to-business, business to consumer, employee self-service, and more. For example, one can use the Internet to allow their customers to view recent catalogs, check the status of an order, and place catalog ...
This solution discusses the advantages of centralized information technology.