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Do IT Investments create value or enable value creation? How?

IT investments have proven important for an organization with a goal to dominate in a market share to realize profits. There are different ways in which IT investments create value for an organization, for instance, through enhancing capabilities which cannot be accessible to competitors, consolidating market share, and organization’s leadership. Apparently, the effectiveness of IT investments in creating value for an organization may be understood primarily from its objectives. An organization with the objective of establishing competitive advantage will thus train its employees on how such investments could be used to enhance production.

One of the goals of an organization is to make the profit. However, this cannot be enhanced without the organization establishing the market demand to come up with the goods or services which may be needed by customers. The organization should employ IT to analyze the relationship between demand and what the company has to offer. It is unfortunate that there are organizations which may not be able to interpret data from IT projects implying that they may not be able to reach the target market.

IT investments may bring about what may be termed as IT leadership. In this leadership, it is easy to manage individual projects and portfolios. Arguably, changing the organizational culture could prove instrumental in the success of the organization given that most of the people are shifting towards businesses which have shifted to technology.

Most of the businesses which dominate in any given industry have been able to establish the role of IT investments in their undertakings. As opposed to some which may turn to IT investments merely because the competitors are doing so, these businesses have been able to create an environment in which employees are taught how to work with technology to increase production.

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