Lack of infrastructure could be a barrier to technology integration.
Ensuring your account manager in California can effectively communicate with the supply chain supervisor in Singapore is a feat achieved only through effective integration of information technology. Though many businesses and countries may appear to be highly technologically proficient, they very likely had to overcome several barriers to achieve this task.
Infrastructure
One of the biggest barriers of IT integration is coordinating the infrastructure of all offices. Though an office in Silicon Valley may have high-tech fiber optics capable of delivering information at a rapid speed, your branch located in a rural city in Arkansas may need improvements to achieve an integrated IT system. Large multinational corporations must typically overcome infrastructure hurdles when doing business in third-world nations in order to conduct business.
Cost
A lack of funds can quickly impede successful integration of technology. Without a sufficient amount of money, companies and nations cannot upgrade equipment, computers, phone systems and other items of technology. In some cases, businesses and nations do not see improved technology as a worthy endeavor due to other, higher priorities, which may include product development or attracting new business. The high cost of improving technology means companies must have a strong cash flow and financial cushion. New, smaller businesses may wait to upgrade technology for the high up-front cash expenditure.
Training and Education
Another barrier includes the training necessary to go from one IT system to another: During this time, employees must learn use new devices and systems. Darja Smite and Nils Brede Moe, authors of "Agility Across Time and Space," state that integration challenges are greater for large corporations than small team units. Furthermore, they cite that both large and small businesses typically underestimate integration costs for large-scale software implementation. In some situations, the dearth of educated workers impedes technology. For instance, while a high-tech computer program may assist a financial analyst with programming complex algorithms, such a tool is useless if no one is skilled in extrapolating and analyzing the data.
Government and Economic Structure
Countries in a closed economy face impediments because of the government structure. When nations close their borders to international business and commerce, technological innovation slows because of these restrictions. Suk Kim and Semoon Chang cite in their book, "Economic Sanctions Against North Korea," how the country's limited trade with only China and Russia does little to foster technological growth. Expansive trade, however, can improve a nation's integration of technology. For instance, an agricultural company based in the U.S. may want to sell farming equipment to rural villages in North Korea. However, trade sanctions imposed on this nation mean the citizens and businesses cannot gain access to more efficient methods of production.
Vendor Reliability
Many parties are responsible for integrating technology: If any one of the links fails, the chain breaks. Vendors play a critical role in the adaption of new processes, from the sale of the equipment to its maintenance and upkeep. Companies have to conduct due diligence to ensure the vendor has a long-standing reputation in the community. If the vendor files for bankruptcy or undergoes crippling financial hardship, the company that purchased the equipment could be stuck with a now-obsolete system.
Tags: North Korea, technology instance