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  • Subject Name : Management

Information Technology and Its Role in Operations Management

Operation management or OM is the most valuable part of a business as it is directly related with the quality, agility, productivity and profitability of a commercial organisation. As per the viewpoint of Reid & Sanders (2019), OM of a business is a set of activities which are specifically focused over the development of effectiveness in the conversion of labour, materials and other resources to the high quality product or service. Hence, it can be analysed that effective OM triggers the enhancement of profitability of a firm. In this context, the alignment of new-age technology can be mentioned. As per the research paper of Agrifoglio et al. (2017), the integration of technology with the commercial field has resulted in the evolution of commercial activities and OM is also associated with the same. The use of technology for OM has been highly accepted by the business world of each and every country among which Australia is also associated. As per the research paper of Cao et al. (2016), the implementation of cloud computing, artificial intelligence, robotics and Internet of Things (IoT) in the management of the OM and logistics activity is widely noticed.

In Australian industries like retail business, fashion, manufacturing industry or automobile, this is widely acceptable. However, the acceptance and integration of technology to the OM activities for Australian companies is not just like that of the European companies or like the commercial sector of the USA. The availability of proper infrastructure for the development and utilisation of technology is one of the most crucial factors which determine the technological future of a nation. This statement is applicable for the integration of technology, widely, in the OM for the Australian companies. This has been understood by the government authority of the Australian and the report regarding the technological progress of the country has been published. However, it has been noticed that there are multiple barriers which are imparting constant hindrance in the development of the suitable infrastructure for the availability of technology to enhance the effectiveness of commercial units. As per the official report, unreliable access to internet and security issues is one of the major factors for which is inhibiting the wide access of digital technology for operation and logistics management (industry.gov, 2018). As per the idea of Hassan et al. (2017), cloud computing and utilisation of centralised databases in the online interface helps in the management of the different branches of an organization from the remote sites. However, the issue of security is preventing the organisations to accept the same for Australia. Minassian (2020) has reported that multi-factor authentication along with comprehensive cyber strategy and development of IDS (Intrusion Detection system) is a common aspect which is focused by the cyber security department of the European countries, Singapore and specifically the USA. However, Australia has not developed the same and this is creating a gap between the acceptance of technology for Australian companies and American or European countries. On the other hand, the technology development report, has proved that the lack of digital skull among the technician and labours along with low level of awareness regard in the beneficial impact of the acceptance of technology for OM and logistics management acts as the other hindering factors for integration of technology with the commercial field (industry.gov, 2018). This has also created a gap between Australian OM management efficiency with that of the other European countries.

The academic structure of the country and the progress of the students in the science, technology and mathematical aptitude is also not that much effective. This is another factor which has decreased the technological skill of the Australian professionals. Hence, the availability of technicians and skilled human resources in exchange for minimal financial resources is quite critical. This invokes a cost burden in the integration of technology with the OM of the Australian companies.

Reference List for Factors Influencing Cloud Computing Adoption

Agrifoglio, R., Cannavale, C., Laurenza, E., & Metallo, C. (2017). How emerging digital technologies affect operations management through co-creation. Empirical evidence from the maritime industry. Production Planning & Control, 28(16), 1298-1306. Retrieved on 17 September 2020, from: https://www.tandfonline.com/doi/abs/10.1080/09537287.2017.1375150

Australian Government Department of Industry, Science, Energy and Resources, (2018). Small Business Digital Taskforce Report to Government. Retrieved on 17 September 2020, from: https://www.industry.gov.au/sites/default/files/small_business_digital_taskforce_-_report_to_government.pdf?acsf_files_redirect

Cao, Z., Lin, J., Wan, C., Song, Y., Zhang, Y., & Wang, X. (2016). Optimal cloud computing resource allocation for demand side management in smart grid. IEEE Transactions on Smart Grid, 8(4), 1943-1955. Retrieved on 17 September 2020, from: https://ieeexplore.ieee.org/abstract/document/7390300/

Hassan, H., Nasir, M. H. M., Khairudin, N., & Adon, I. (2017). Factors Influencing Cloud Computing Adoption in Small Medium Enterprises. Journal of Information and Communication Technology, 16(1), 21-41. Retrieved on 17 September 2020, from: http://e-journal.uum.edu.my/index.php/jict/article/view/8216

industry.gov, (2018). AUSTRALIA’S TECH FUTURE. Retrieved on 17 September 2020, from: https://www.industry.gov.au/sites/default/files/2018-12/australias-tech-future.pdf

Minassian, C., (2020). Australian government has failed on cyber security. Retrieved on 17 September 2020, from: https://www.computerweekly.com/opinion/Australian-government-has-failed-on-cyber-security

Reid, R. D., & Sanders, N. R. (2019). Operations management: an integrated approach. John Wiley & Sons. Retrieved on 17 September 2020, from: https://books.google.com/books?hl=en&lr=&id=c8-8DwAAQBAJ&oi=fnd&pg=PA1&dq=operation+management+in+business&ots=5p_TetyjMu&sig=KalA6uAST216okZGGYngLrJW7QM

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