Investigating the influence of information technology on decision making

Decision‐making processes can be thought of as the brain and nervous system of an organization. In the rapidly changing world nowadays, information technology has become an indispensable part of every organization. The extent to which the information technology affects the decision making process remains an open question. The present paper presents an instrument to study the influence of information technology on decision making. This instrument is developed using extensive literature review and is validated by case studies and questionnaire administration in an IT based organization. The organization chosen for our study is a manufacturing company in India which has implemented the latest enterprise resoruce planning software package (SAP R/3) for facilitating decision making in the organization. The study is conducted at the executive and the non‐executive level to study the impact of information technology on the decision making process at different levels of the organization.