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IT Organization – Why It Is Important?

Hillary Cyril | Editor, TechAnnouncer




The technology acceptance model is an IT organizational theory that models how users come to perceive and accept a new technology into their organizations. It focuses on the notion that there is a relationship between what people view as being technology and how they come to interact with it in their day-to-day operations. Within this framework, a user’s attitudes toward technology are taken as an indicator of their organizational philosophy.

According to the technology acceptance model, different types of technologies can be viewed through the lens of a user’s organizational philosophy. The first category, perceived ease of use, is considered by this theory as the key factor that encourages or discourages an individual from accepting a particular technological capability into his or her organization. Easy use implies a technology that is user-friendly so that the average user can readily and effectively integrate the technology into his or her work environment. An IT organizational theory such as this believes that those organizations that adopt this philosophy stand a better chance of surviving and thriving compared to their competitors.

The second category, the perceived utility of technology, is considered by the IT organizational theory as the second most influential factor that influences an organization’s adoption of a new technological capability. This factor is determined by two factors. One is the extent to which the technology supports and enhances the functions and objectives of an organization. The other factor is the impact that the new technology will have on the existing procedures and practices of the organization.


The IT organizational theory also believes that there is a third category, known as the perception of value, that relates to the satisfaction of an individual’s attempt to gain information and the enjoyment he or she derives from the use of a particular technological capability. This model of value may be viewed as a relational concept, according to which the satisfaction derived from IT solutions and the information technology model is directly proportional to the level of technological competence. The model further proposes that an organization that adopts value-based information and technological system, will have a greater chance of attaining a competitive advantage. It is because of this that many companies with a strong IT structure are able to compete favorably in the market.

The IT organizational theory also suggests that another very important influence on adopting a technological capability is the presence or absence of a significant influence, known as the absence of a cost savings impact. The IT acceptance model (tam) further suggests that a firm adopting a new technological capability has a larger potential for savings, relative to the costs of implementing the same. The effect of this is to reduce the total cost of adoption relative to the costs of implementing the same. In IT parlance, cost reduction is known as the indirect effect of adoption. Therefore, organizations that are able to cut costs by adopting new technologies, stand a better chance of sustaining the same and eventually increasing their share of the global markets. However, cost reduction is only one among the major factors that contribute to adoption, and adoption includes the other three categories mentioned above, some of which are the following:

As touched upon above, the IT organizational theory proposes that there are four types of IT organization. The first type, which is referred to as the “utility” IT organization is primarily concerned with providing the IT services, which are required for the execution of business applications. This category includes information technology management services and engineering services, which are provided by third parties. The other two categories, which are referred to as enterprise and application IT organizations, focus on the software development, deployment, operation, maintenance, and backup of the information technology infrastructure. The fourth type of IT organization, which is the “infrastructure-based” IT organization, encompasses the hybrid nature of information technology with respect to other fields.

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