Question

People interact with data and communicate with others on computers in order to carry out many of their job functions. In one paragraph, describe three risks of developing a strategic role for information systems and information communication technology. In a second paragraph, describe three rewards (or benefits) of developing a strategic role for information systems and information communication technology, pointing out ways in which these systems can help businesses grow and be successful.

Answer 1

Developing a strategic role for information systems and ICT carries several risks: first, heightened cybersecurity and privacy exposure — concentrating critical data and services increases the impact of breaches, ransomware, or misuse of personal data, which can cause financial loss, legal penalties, and reputational damage. Second, cost, complexity, and vendor lock-in — large-scale digital initiatives often require substantial upfront and ongoing investment (integration, customization, maintenance, cloud fees), and reliance on specific vendors or legacy systems can reduce flexibility and raise long-term costs. Third, organizational disruption and capability gaps — rapid digital change can create resistance among staff, require new skills and governance, and produce strategic misalignment if technology investments aren’t tightly coupled to business objectives, leaving projects underutilized or failing to deliver expected value.

There are significant rewards when information systems and ICT are used strategically: first, better decision‑making through data and analytics — integrated systems provide timely, accurate insights (BI, predictive analytics) that improve forecasting, customer targeting, and resource allocation, driving smarter strategic choices. Second, operational efficiency and scalability — automation, process digitization, and cloud platforms reduce costs, speed workflows, and allow the business to scale up or down quickly, improving margins and responsiveness. Third, new revenue streams, competitive differentiation, and improved customer experience — ICT enables digital products, personalized services, faster time‑to‑market, omnichannel engagement, and expanded geographic reach, all of which support growth, higher customer retention, and stronger market position.