The role of information technology in strategic management at Aga khan University hospital, Nairobi

Abstract

The world has become a global village and information sharing is at all - time high. Accessing and using this information through technology gives organizations a compe titive edge. Information Technology (IT) is one of the contemporary themes affecting strategic management in a number of organizations at the moment. The reengineering process faced by organizations as a result of I T raises a number of key questions which include how to take advantage of advances in I T to make a significant change in the way organizations are doing business so that they can gain a competitive advantage; or should organizati ons invest and concentrate on I T to improve their approach to the marketplace; and whether they should center their efforts around internal improvements in the way they currently carry out the activities of the organization. The research design adopted the case study approach as its research design, in th is case Aga Khan University Hospital, Nairobi (AKUH, N) with a view to study the role of IT in the hospital’s strategic management . Primary data was collected by conducting focused interviews with middle level management from IT, Budgeting and planning, Me dical services, Finance , Security, Marketing and Audit. While the primary data was analysed qualitatively, secondary data provided additional information that was not practically possible to obtain from the primary sources due to the time frame within whic h this research has to be carried out and hence reaching the outreach centers across the country was not possible. Content analysis was used to analyse the data since the study seeks to solicit for data that is qualitative in nature. The findings support the RBV theory which attributes improvement in firm performance to valuable resource bundles. From the RBV, one lens through which to look at IT value creation is “an indirect role for IT in firm performance. It was established th at strategic management at Aga Khan University H ospital, Nairobi had been influenced by advances and developments in IT. On the one hand IT is directly responsible for the development of some strategic goals, while on the other hand investment in the use of IT is required in the ex ecution and attainment of the laid down goals. From the research findings, the researcher recommends an evaluatio n of the existing I T investments and the exploration of avenues for their modernization, improvement and enhancement to be institutionalized in the strategic management process at AKUH, N . The second recommendation is for AKUH, N’s management to continually acquire knowledge, and remain curre nt, on available and emerging I T technologies, their application as well as business capabilities. This is because some strategic management processes are made feasible only thr ough investment in the use of I T, hence guarding against missed opportunities in an ever changing and competitive world