Business Benefits Of Information Technology

Published Date: 02 Nov 2017

Introduction

Most people do not know what the business is. Business can define as an organization or economic system where good and services are exchanged for one another or for money. [i] As we know business always need some form of investment and enough customers to buy their goods or services and can gain profit for their business. Not knowing your definition of business success is like driving at night without your headlights on! You and your business may reach your destination, but it makes it a whole lot harder to navigate find your way and get there. [ii] To make business become success is depend how we manage it. How we apply technology in our business. As we know business not only has good products or services but business also in accordance with current development, especially in information technology.

Information technology is a modern phenomenon that has dramatically changed the daily lives of individuals and business throughout the world. As we know information technology can define as a field concerned with the use of technology in managing and processing information [iii] . IT also includes office automation, multimedia and telecommunication. From this definition of what is business success and information technology we know that IT is a key to business success.

Objective

This paper will explore about how IT can be a key to business success. Our objective is we want to share how Information technology can make business successful. Information technology has grown to penetrate the business world, affecting how companies make and market their products, as well as how people communicate and accomplish their jobs in modern organizations. Modern information technology has gained popularity rapidly since the mid-twentieth century, and the trend is likely to continue into the future. As IT solutions to continue to increase efficiency and effectiveness of business operations and communications, business will continue to depending on IT to be success.

How information technology has been used in business process?

Businesses use information technology to automate many kinds of task, which can save both time and money. When businesses can successfully automate they can use that money and time for other business purposes. For example email, business use email to receive and share the information to the employees. Unlike a physical bulletin board in the workplace, businesses also can use email to disseminate information to anyone in the world with an Internet connection where it can send an email to multiple recipients. Email also save time by avoiding the need to make phone calls on a one-on-one basis when employees are away from the office. They can check their email by smart phone.

Some businesses set up counter to handle customer service and also automated help desk. By doing online customer service software we can saves time and customer also can complete the detail about the services everywhere, every time and anytime they want. Nowadays, businesses online or online shopping become popular because customer can save their time and money to go to the shopping mall to find what they want and needs.

IT plays an important role in every industry, helping companies improve business processes, achieve cost efficiencies, drive revenue growth and maintain a competitive in the marketplace. Information technology can speed up the time to takes the new products to reach the market. Companies can collect the information in the internet and write the product requirement documents by gathering market intelligence from database, customers and sales representatives. From the innovations in manual to efficient delivery system, information technology helps businesses respond quickly to changing customer requirements.

Business benefits of information technology

Technology provides a variety of tools that entrepreneurs can use to assist them through the new company start-up and growth stages. Small business accounting, marketing and communication has been revolutionized by advances in computer, networking and communications technology, and business in various industries continue to adapt to take full advantage of technological developments.

Accounting

Setting up new software for accounting system is the best way to modern accounting software packages simplifies the process of setting up accounts and posting daily transactions. Managing accounts with a small-business accounting package such as Microsoft Money or QuickBooks can eliminate the need to hire full-time or third-party accountants. Accounting software also assists managers by creating informative reports and financial statements to increase decision-making effectiveness. [iv] 

Marketing

With advanced video and graphics editing software, small- business owners can create marketing material that can reach thousands viewers online. Entrepreneurs can take advantage of cost-efficient web marketing tools to spread targeted marketing messages to a board audience or a select niche. Several small businesses can share expensive advertising space online through banner and traffic swaps.

Time management

Time management is important for any small business owner. Freeing up time from minutes of administration may allow you to focus on activities that are more productive, such as raising the morale of new business offerings and make important contacts with suppliers and potential strategic partners. Advances in computer and cellular phone technology allows business owners unprecedented access to in-depth scheduling and customer relationship management software, allows busy entrepreneurs to hold "face to face" meetings online, from anywhere in the world.

Communication

Rapid communicate can help increase productivity, allow for better business decision making. IT equipment can be used to send business status reports to executives, to update employees on critical business projects and to connect with business partners and customers. Email servers, routers, internal company billboards and chat services can serve as the backbone of a company’s communications.

Competitive advantages

Adoption of information technology resources allows companies to maintain a competitive advantage over their rivals. Companies using a first-movers strategy can use information technology to create new products, distance their products from the existing market or enhance their customer services. Companies that follow a low-cost product strategy can look to information technology solutions to reduce their costs through increased productivity and reduced need for employee overhead. Businesses can also build-in information technology to their products that makes it difficult for customers to switch platforms or products.

Economic efficiencies

Companies could benefit information technology resources to reduce their costs. Using IT infrastructure, excessive tasks can be centralized in one location. For example, a large company can centralize their payroll functions in one location to lower labor costs. Economic efficiency can also be achieved by migrating high cost functions into the online environment. Companies can offer email support for customers who may have a lower cost of living customer support calls. Cost savings can also be obtained through outsourcing opportunities, remote work options and low-cost communication option.

Conclusion

This is how information technology can be a key to business success with how IT been used in business process and it give benefits on business through accounting, marketing, time management, communication, competitive advantages and economic efficiencies