What Is IT Management? (Components, Benefits And Skills)

By Indeed Editorial Team

Published 20 July 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

IT management focuses on improving the effectiveness of information systems. It involves setting up and monitoring an organisation's information technology systems, including its hardware, software and networks. Understanding the role and impact of IT management can help you improve the productivity, efficiency and security of technical systems in your organisation. In this article, we answer the question, "What is IT management?", highlight its components and key benefits, look at the characteristic of effective IT management and list key skills which can help IT professionals succeed.

What Is IT Management?

The answer to "What is IT management?" is that it is the process of overseeing the computer-based activities of a company. Determining the organisation's operating requirements and procuring the right hardware and software is a crucial aspect of IT management. This often includes tasks like installing software updates on company computers, implementing data security protocols and arranging technical help. Other IT management responsibilities may include:

  • Conducting periodic data backups

  • Interviewing and recruiting IT staff

  • Maintaining the organisation's budget for IT

  • Overseeing cyber security analysts and developers

  • Training non-technical staff on how to use a software

  • Generating network login access details for employees

  • Drafting operation system reports for the company's stakeholders

Related: 11 Important IT Manager Soft Skills And How To Improve Them

Components Of IT Management

Following are some key components of IT management:

Business and technology alignment

Business and technology alignment involves examining the organisation's needs to plan a proper IT strategy. A company with hundreds of employees, for instance, requires a powerful network capable of managing several users simultaneously. Another business may prioritise a network with enhanced security features to protect the financial information of its high-profile consumers. After getting an understanding of the organisation's needs, IT administrators can match them with the right infrastructure while adhering to a set budget.

Related: 9 Technology Savvy Skills To Learn (With Tips And Benefits)

Technical financial management

IT financial management involves an organisation's information technology expenditures. Often IT management meets with stakeholders to assess the optimal budget and to discuss additional budget allocation if required. IT financial managers may assist a business in determining which infrastructure components are more profitable to set up in-house. These experts also overlook recurring maintenance expenditures and may manage salaries for the IT employees of a firm.

Related: What Are Functions Of Financial Management? (With Purpose)

Sourcing

Sourcing is the process of evaluating and selecting the most suitable vendor for an organisation's requirements. It can involve acquiring products like computers, servers and software and supervising the installation. Those in charge of the procurement for an IT department also negotiate with vendors for the best price and setup support and maintenance agreements.

IT infrastructure

There are many technologies a business use. The IT infrastructure managers set up and maintain them. For instance, to ensure prompt delivery to customers, companies might link a content management system with customer relationship management software. These experts might also assist a company in making the switch from on-premise server infrastructure to cloud computing.

Major Benefits Of IT Management

Following are some of the most important benefits of effective IT management to a business:

Improves productivity

IT management helps ensure that employees have the resources they may require to do their jobs. For example, IT management teams may provide technical support to assist employees in promptly resolving network issues. They can also use automation tools to decrease excessive repetitive work and promote innovation. While improved productivity benefits employees and increases business revenues, it also benefits customers, who are more likely to appreciate the improved quality of the products or services.

Helps reduce cost

Often, many businesses are hesitant to embrace IT management because of the expense of hiring more people. IT management can help them reduce expenses by sourcing cost-effective equipment from vendors while maintaining safety and efficiency. IT management teams' implementation of security protocols aids in the prevention of costly security breaches.

Related: What Is Cost Accounting? (Definition And Objectives)

Enables growth

As businesses attract more clients, their existing IT equipment may lack the storage and security features required to meet demand. They can overcome this obstacle by modernising their infrastructure. IT management teams oversee this process to ensure that the appropriate software and equipment are available to help ensure the least disturbance during the upgrades.

Develops standardisation

To boost productivity, IT management teams often standardise an organisation's information technology processes. For example, they can set security standards for acting against breaches, a system for reporting service issues and policies for maintaining equipment. Such processes can also provide staff with specific instructions to follow to protect an organisation's sensitive data.

Characteristics Of An Effective IT Management

An IT management responsibility always includes oversight of current IT projects and operations. Effective IT management requires employing technology in novel ways to help businesses adapt to rapid change. Here are some of the key characteristics of effective IT management:

Data analytics

An analytics system can quickly mine terabytes of operational data to determine the core cause of service disruptions. It can help identify possible bottlenecks, forecast outages and improve efficiency. Organisations can receive insight into data or processing concerns, unfavourable IT trends and anomalies, making it easier to prevent system failure. Analytics can also provide insights to assist organisations in better understanding their customers, which can then drive organisational strategy.

Related: What Is Business Intelligence? (With Techniques And Uses)

Cloud computing

Cloud services provide scalability, data protection, data recovery and other benefits. Using the cloud can increase efficiencies while decreasing infrastructure expenses. It can benefit all elements of the business, from operations to finance and can help the firm position itself for disruptive cloud-based solutions in the future. Many businesses run critical business applications on remote servers, which handle millions of transactions every day. Cloud setup can assist IT teams in modernising their server, allowing the business to focus on other priorities.

Related: Types Of Cloud Computing (With Definitions And Tips)

Artificial intelligence

AI systems evaluate data, learn and foresee problems to assist IT management in providing higher-quality service. AI-powered chatbots can also act as virtual agents, conversing with users to handle basic technical issues. They can also help customers to learn about products and services. As cognitive computing is growing, the application of AI is crucial to help organisations in managing IT and accelerate innovation.

Related: 8 Artificial Intelligence Examples In Different Industries

Internet of Things

Intelligent IoT platforms help gather and analyse data from devices and sensors, assisting in proactive issue resolution and improving productivity. IT managers can instantly gain insights into what areas the business is doing well and where it can improve. Cognitive learning enables enterprises to maximise the value of IoT even further. For example, it can aggregate many data streams to discover trends and provide more information than is now available. Intelligent sensors can also self-diagnose and adapt to their surroundings without the requirement for human intervention.

Important Skills For IT Management Professionals

Following are a few key skills which can help IT management professionals succeed in their careers:

Communication

Efficient communication is also required for effective management. A powerful leader communicates effectively and precisely to make their team members' duties and responsibilities easier. Effective communication in an administration role necessitates the use of discussion tactics, the interpretation of body language and written communication with others.

Related: Verbal Communication Examples In The Workplace (With Tips)

Problem-solving

Another highly desirable attribute that successful IT management is the capacity to develop inventive solutions to challenging workplace situations. Maintaining a calm attitude and creating a step-by-step approach is often essential for effective problem-solving. Identifying risks, resolving logistical issues and implementing methods that correspond with corporate objectives are all important parts of problem-solving.

Decision-making

Choosing the right vendors is one of the most important responsibilities where IT managers apply decision-making abilities. They compare several options after completing research and seeking advice from industry professionals. It is critical that they make informed selections and remain confident in their choices. This assurance allows them to justify their decisions to stakeholders while also ensuring that employees can easily accommodate the new systems.

Related: Important Decision-Making Skills: Definition And Examples

Negotiation

Negotiation skills enable IT teams to effectively communicate their technical expertise with various stakeholders. They may suggest a new security protocol that is pricey yet secures client data. Negotiation skills can also help you get better prices for software and maintenance contract terms.

Team management

IT managers are often in charge of supervising computer programmers, network architects and data scientists. It is typically easier for management professionals to enhance the productivity of their teams, who are comfortable delegating duties and providing constructive criticism. Motivating employees and ensuring they have access to the tools they may require to fulfil their tasks are important team management abilities.

Conflict resolution

The ability to resolve workplace problems is a sign of strong management. This requires the development of conflict resolution strategies such as remaining rational, meeting with the team for a feedback session and actively listening to the opinions of all parties involved. The capacity to keep workplace harmony while controlling intense conflict is extremely valuable.

Related: What Is Conflict Resolution? Using This Practice At Work

Technical proficiency

Technical knowledge can assist IT management professionals in improving the efficiency of an organisation's information technology infrastructure. For example, most jobs require people to understand how various software works. Having technical proficiency enables IT managers to diagnose problems and assist team members who may require technical help.

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