The Role of Information Technology (It) In Improving Business Performance. A Case Study of Abacus Pharmaceuticals Ltd, Nakawa-Kampala

ABSTRACT

The study was about the role of information technology (it) in improving business performance in Abacus Pharmaceutical Limited Nakawa, the study intended to find out the determinants/factors that can improve business performance, the role of IT in Business/the business value of IT, the linkage between IT investment and business performance and to evaluate and realize the business value of IT. The population for this study was defined as users of IT in each of the selected departments. An experienced survey of approximately 50 individuals was therefore sampled within the departments. The study found out that IT has been used widely by their time to reduce the high cost of paper works, reduce inventory theft and obsolescence; minimizing costs relating to errors if the work was manual done. The business value of IT through sales growth rate compared to the IT investment in the previous period and that of the current period relative to sales. The study concluded that the correct understanding of ‘the business value of IT’ is imperative as this allows an organization to successfully decide how the organization will measure and realize the IT benefits from IT investments. IT has become an important enabler of business strategies in such areas as mass customization, competitive differentiation, quality improvements, and process automation and improvement. The exploratory study indicates that the business value of IT has a strategic and high potential role in ABACUS and has shown positive linkages among competitive strategy, IT, and performance. The study recommends that ABACUS should focus on adopting and utilizing a benefits management methodology as this will be critical to successfully measuring and realizing the business value of IT and the benefits from IT investments.