Information Technology in Contemporary Business Annotated Bibliography

Information Technology in Contemporary Business - Annotated Bibliography Example Coulson-Thomas believes: 'IT departments need to rise above equipping people to use standard corporate technologies and help key workgroups such as bid teams working on critical tasks to be more effective. Rather than spend money on infrastructure IT directors need to become more involved in revenue earning activities.' But the major problem comes out to summarizing the cost within all the departments in an organization. It comes to the count of what should be the different cost for an individual department within an organization. For any individual IT department, it requires the setup cost, with other departments as because all the departments need to make proper links with the IT department. If an organization is organized with five or six departments, then, there must have an IT department that will serve for the IT department. ...The costs of such service departments must be allocated to the production departments, which in turn will allocate them to the product. It is known that one can view the cost allocation problem as a fascinating Markov process, with the production departments as the absorbing states and the service departments as the transient states. Using Markov analysis, we will show that this yields additional insight into the underlying concept of reciprocal service department cost allocation by proving that the "full service" department costs can be used to determine the price that should be paid to an external supplier of the same service currently supplied by the service department."So far, it has a similarity with a quote that should be in mind that if the whole cost is not owed within all the departments, as per its self usages of the department by prefix schedule of target budget, they must take all the advantages of the benefits of IT resources. These sounds can be found here if we consider another example for an IT department, we can say, "Any organization can develop an IT department, getting profit developing IT department is the hard part." Nevertheless, operating a profitable IT department can be achieved with appropriate management routines in place. Determining your Cost of Goods Sold (COGS), tracking purchases and sales, and attending to the spending habits of your customers are the fundamentals of every successful IT departments.