CIMA E1 Syllabus E4. IT - IT Infrastructure and Virtual Organisations - Notes ^{4 / 7}

IT infrastructure consists of the core networks, databases, software, hardware and procedures managed by the IT function.

Factors affecting the IT infrastructure:

1. Emergence of new technology - Change is occurring at such a fast pace that investment in new IT hardware is a difficult decision that must be well considered and researched, to minimise the risk of poor investments.

2. Enabling transformation - IT set up is now fundamental to business strategy, it is not simply a component part like it was in the past. 

   IT has driven fundamental changes in the way entire industries operate this is known as business process re-engineering (BPR). 

   An example of this is the banking industry which is not fundamentally conducted online and this required a fundamental change to all operations in the bank and their IT infrastructure.

3. Geographically dispersed teams - Improved technology and communications has driven a huge increase in remote working, which can benefit both staff and employers.

   Workers are now members of virtual teams and may never physically meet the other members of their teams.

Virtual Organisations

A virtual organisation has a lack of a physical presence and extensive use of IT. 

It is made possible by developments in technology which enable people to work together even though they are not physically in the same place.

Advantages of virtual organisations / working remotely:

1. Less infrastructure needed, and therefore less infrastructure costs.

2. Better staff retention

3. Higher employer satisfaction and increased staff commitment to the organisation.

4. Materials can be acquired more cheaply

5. Lower cost base

6. Can respond to the environment quickly because they do not have a rigid structure

Disadvantages of virtual organisations / working remotely:

1. Coordination of staff

2. Control of staff

3. Culture of the organisation is diminished

Virtual organisations can use VPN(Virtual private network) which allows employees to log in from home and access the server remotely. This is a feature of 'Teleworking'.