Friday, December 15, 2006

IT and Business

IT and Business
Importance of IT Infrastructure to Global Lounge's Business

Wireless Environment:
During the interview, the manager of the Global Lounge stressed that a wireless environment was provided for students. As Wi-Fi connection is made throughout the Lounge, students can bring their own computers, surfing the internet wherever they like.

Security:

The existing IT infrastructure facilitates the Global Lounge’s security in two aspects: authenticity and property.

In terms of authenticity, as the Global Lounge intends to serve HKU members only, some practices are applied. A card reader is installed at every entrance of the centre (main entrance, entrance to outdoor eating area, entrance to gym). Students and other University members need to authenticate their identity by putting their facility card on the reader for access. The measure not only prevents unauthorized access, but also controls the number of people entering the centre. However, since the opening of Pacific Coffee inside the Lounge, the reader of the main entrance is disabled during the opening hours of the Lounge.

In terms of property, the Global Lounge is equipped with a number of valuable resources (sport facilities, AV equipments, etc.). Firstly, the use of facility card can reduce the chance of stolen cases made by outsiders. Secondly, even a stolen case happens, the office can track down the entry record and identify a number of suspects. The case can be processed speedily.

Resource Management:
The Global Lounge adopts Wi-Fi connection instead of installing more desktop PCs; it is a more economical way. Once an access point is installed, cabling work is ignored and the cost of network deployment and expansion are reduced. Moreover, as users bring their own computers there, the Lounge does not need to buy PCs for users. The cost of PCs maintenance can be transferred to other development to improve the service.

Assessment

SWOT:
SWOT analysis
As the Global Lounge is a student amenities centre, a cultural hub for HKU’s international students, its IT infrastructure is relatively simple. Funded by the University and public donations, it is affiliated to HKU, not a money earning company. Its financial situation would not cause any big problem to its business as long as the University supports it. The IT infrastructure of the Global Lounge is maintained by the Computer Centre of the University. In such sense, it is not independent in several ways.

If applying the SWOT analysis to the information technology and information system of the Global Lounge, we can see some features typical to a non-profit earning business. SWOT is a short form for Strengths, Weaknesses, Opportunities and Threats. It is a technique widely used by the business world to evaluate a project or decision by examining the internal and external factors faced by the organisation when a clear objective has been defined and to be achieved (Wikipedia, 2006).


These are the typical items of SWOT (Wikipedia, 2006):
Strengths and Weaknesses
Resources: financial, intellectual, locational
Customer service
Efficiency
Competitive advantages
Infrastructure
Quality
Staff
Management
Price
Delivery time
Cost
Capacity
Strong relationships with key customers

Opportunities and Threats
Political / Legal
Economic condition
Expectations of stakeholders
Technology
Public expectations
Competitors and competitive actions

In terms of the above items of SWOT, the condition of the Global Lounge is generally good. One point we need to mention is although the internal café, Pacific Coffee, is located inside the Lounge, its revenue has nothing to do with the Global Lounge, which has no shares on any profits of Pacific Coffee. The facilities and services provided by the Global Lounge are free of charge. The Lounge earns no money from it.

SWOT and IS strategy
The IT infrastructure is designed to satisfy the business needs of the Global Lounge to fulfil its mission and goals. A SWOT analysis framework has been created by McLaughin for application to the process of formulating an organisation’s overall approach to the information system, as illustrated below. (ACCA, 2006).

The table identifies four broad SWOT responses which are clearly expressed by the remarks. We try to apply the SWOT analysis to the Global Lounge’s information system and technology. At present, the Global Lounge has just established for one year, everything is newly installed, so there are lots of strengths and opportunities rather than weakness or threat. It can go on to develop and expand its system and advance its technology some more but it has to apply for more funding from the Registry or receive donations. It means that without additional funding, not much expansion or advancement it can make. This leads to the threat and weakness of the organisation.

The Global Lounge is under the umbrella of the University. The manager told us that she had to be pleasant, smiling all the time when she met the donators and all the University staff related to the Lounge. The University staff include those from the Registry and the Computer Centre. She said that the Computer Centre would contact her when there were good packages of IT products offered for sale to the University. We can see that in many ways the Global Lounge relies on the University a lot. By the nature of the organisation, which is a social and leisure place for local and international students, and an information centre of international exchange programmes, the Global Lounge does play an important role in the University.

As the IT related applications are still under warranty, the repair and maintenance costs are low for the time being. However, after several years following the rapid advancement of the information technology worldwide, the hardware and software may need renew or replacement.

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