To survive technological decisions to meet the mandate of the management team, such decisions. Although
the current pace of rapid technological change means that decisions are
technology companies large and frequent consequences of good and bad
decisions will remain the company for a long time. Generally,
decisions are not decided unilaterally technology in Information
Technology (IT) group, the managers have taken to input or supervision. Exercise
for the board of a company, its obligation to decide on strategic
decisions to be met, the Commission needs a mechanism to review and
guide decisions.
A recent example in which such monitoring would have resource planning (ERP) enthusiasm of the mid-1990s. At
that time, many companies invest millions of dollars (and sometimes
hundreds of millions) in ERP systems from SAP and Oracle. Often
these purchases by financial executives, personnel, operations or
strongly defend their purchase as a way to be in order. With its
competitors, it also had to install these systems deal motivated CIOs
and managers often do not have enough value to the question of how to
make a successful transition to these very complex systems. Direction
of the company and organizational development change management has
been neglected by these new systems often leads to a crisis. Billions
of dollars were on systems that had not been purchased in whole or
purchased, were before the client companies were ready been spent.
Of
course, any medium or large organization working successfully today
without computers and the software that makes them useful. The
technology is also one of the largest and the capital base for the
operating expenses of the company outside of work and plant. For both these reasons, the Council monitoring technology at the appropriate level to a certain level.
Board can continue to leave these decisions only basic current management team? Important
technological options are inherently risky (studies have shown promise,
less than half), while bad decisions take years to be repaired or
replaced. More
than half of the investment in the technology is not returning the
expected benefits in terms of profitability, the following tips in
technological decisions are involved. It is surprising that only ten percent of the listed companies have IT audit committees as part of their boards. However,
the companies have higher a clear competitive advantage in the form of
an annual compound return of 6.5% than its competitors.