The development of technology is becoming familiar with the development of information technology today is much faster than the previous year the transformation from the technology of the past to more sophisticated technology is easy and fast.
Evolution of Information Technology Development
There is no denying that one of the main causes of the era of globalization that came sooner than all parties thought was due to the rapid development of information technology. The implementation of internet, electronic commerce, electronic data interchange, virtual office, telemedicine, intranet, and so forth has breached the physical boundaries between countries. The merger of computer technology with telecommunications has resulted in a revolution in the field of information systems. Data or information that in ancient times had to take days to be processed before being sent to the other side of the world, today can be done in seconds. It’s no exaggeration that one IBM expert analogizes it to automotive developments as follows: “if the automotive world had progressed as fast as information technology, today it can be produced a diesel-fueled car, which can be driven up to a maximum speed of 10,000 km / h, with a purchase price of only about 1 U.S. dollar !”. Micro, there is something interesting enough to learn, namely how the evolution of the development of existing information technology significantly affects the competition between companies in the world, especially those engaged in services.
Broadly speaking, there are four periods or eras of information system development, starting from the first time a computer was discovered to date. The four eras (Cash et.al., 1992) occurred not only because it was triggered by the rapid development of computer technology, but also supported by new theories about modern corporate management. Management and organizational experts such as Peter Drucker, Michael Hammer, Porter, greatly color management’s view of information technology in the modern era.
Therefore, it is understandable, that there are still many companies, especially in developing countries (third world), which still have difficulty adapting new theories about management, organization, and information technology because of the inherent local or local cultural factors that affect the behavior of human resources. So it is not surprising that companies still often encountered with the most advanced computer equipment, but still used as administrative tools that in fact is the era of the use of computers first in the world in the early 1960s.
Development of Computerized Era Technology
This period began around the 1960s when mini computers and mainframes were introduced by companies such as IBM to the industrialized world. The ability to calculate so quickly causes a lot of companies to use it for data processing purposes. The use of computers in this time is intended to increase efficiency, because it is proven for certain jobs, using computers is much more efficient (in terms of time and cost) than employing dozens of human resources for the same thing.
In that era, there has not been such a tight atmosphere of competition. The number of companies is still relatively small. Most of the big companies indirectly “monopolize certain markets, because there are no meaningful competitors yet. Almost all major companies engaged in infrastructure (electricity and telecommunications) and mining at the time bought computer devices to help with their daily administrative activities.
The most time-consuming organizational needs of computers at the time were for back office administration, especially those related to accounting and finance. On the other hand, the mainframe’s ability to perform complex calculations is also utilized by the company to help solve operational technical problems, such as calculation simulations in the mining and manufacturing industries.
The Era of Information Technology Advancement
Advances in digital technology combined with telecommunications have brought computers into its “revolution” era. In the early 1970s, PC or Personal Computer technology was introduced as an alternative to mini computers. With a set of computers that can be placed on a workbench (desktop), a manager or technician can obtain data or information that has been processed by the computer (with a speed that is almost the same as the speed of a mini computer, even a mainframe). The use of computers in the company is not only to improve efficiency, but further to support the occurrence of more effective work processes. Unlike in the era of computerization where computers only become “privately owned” division of EDP (Electronic Data Processing) in a company, in this second era every individual in the organization can take advantage of the sophistication of computers, such as to process databases, spreadsheets, and data processing (end-user computing). The use of computers among companies is increasingly rampant, especially supported by the nature of competition that has changed from monopolize to free market. Indirectly, companies that have utilized computer technology are very efficient and effective compared to companies whose processes are still managed manually.
In this era, computers enter a new chapter, namely as a facility that can provide competitive advantages for companies, especially those engaged in services or services. Modern organizational management theories were intensively introduced in the early 1980s. One of the most studied and applied theories is about change management. Almost in all terms of change management theory emphasizes the importance of information technology as one of the main components that must be considered by companies that want to win in business competition. Unlike in the previous two eras that emphasized more on the element of technology, in this era of change management is more emphasized is information systems, where computers and information technology are components of the system.
The key to the company’s success in the 1980s was the rapid and accurate creation and mastery of information. Information in the company is analogous as blood in human blood circulation that must always flow regularly, quickly, continuously, to places that need it (strategic). Emphasized by some management experts, that companies that master information that has a competitive advantage in the macro environment “regulated free market”. In this period, the philosophical change from traditional companies to modern companies lies in how management sees the key to the company’s performance. Traditional organizations see corporate structure as a key measure of performance, so everything is measured hierarchically based on divisions or departments.