Information Technology Can Help Increase Revenues

Published Date: 02 Nov 2017

Introduction

In business world the information technology is vital to create competitive advantages among others to gain sustainability in the marketplace.Information technology (also referred as IT) is the application of computers andtelecommunications equipment to store, retrieve, transmit and manipulate data, often used in business or other enterprise.The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones. Numerous industries are associated with information technology, the information technology is useful for storing information, protecting information, processing the information, transmitting the information as necessary, and later retrieving information as necessary.

Global business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. These transactions take on various forms, which are often interrelated which including wholly owned subsidiaries and joint ventures.Many global business companies nowadays are changing the way they do their business internationally by utilizing the latest advancements in information technology likes laptops and mobile devices offer more constant and efficient methods of communication that aid businesses in improving their networking skills in a global market, and new software and advanced applications help companies improve the way they conduct their research and develop their products and services.

Competitive advantage refers that a firm has ability over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support. Furthermore competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage.

Objective

One of the objectives to be achieved in this assignment is to obtain a deeper round knowledge about the benefits of using I.T as a platform to gain a competitive advantagein the global business in expanding their business, acquire and retain more profits and also to sustain a better position in marketplace. In this assignment also I will be able to share the information and round knowledge with other students about the uses of I.T that can create competitive advantages in the global phase of business.

With this assignment it will give exposure to the students about the use of I.T to create business advantages in terms of competitive advantage. For example, we can meet the needs of the clients successfully through the use of internet in online trading. With this online purchase it can simplify even save client’s time and energy during the transaction.

Exposure obtained in this assignment enables to provide early preparation to the students about the benefitof using an I.T, which can provide competitive advantage for global businesses. Consequently it will encourage students to study and master the I.T knowledge in the face of global business.

Body of the Article

Information technology provides a platform for a company to connect the global world with the Internet. Internet has a wide range of virtual connection of potential customers and buyers or associate suppliers and distributors. With the help of Internet a business can run on a single website to perform their business transaction.

Information technology provide various channels to communication like E-mail, Instantmessages, SMS servers and other application to all of us at any time all over the world. This type of software helps to saving time and cost of the company. Software is very important for a company for instant Information of stocks, assets valuation, sales, purchases, and service. Decision making is very easy to the management after I.T because it provide latest information to the management for employee, stocks, sales, purchase, and services. The management can make a decision after check IT reports.

Information Technology can helpsto create competitive advantage to the company and below article outlines the reasons how a small business can gain its competitive advantage through I.T.

Information Technology Can Help Increase Revenues

Web Presence.

Presence on the Web is important for any business because you can advertise your services, mission statement and anything else necessary for potential customers. The Web is your virtual salesman or as your representative to the world and helps your company to be recognized. A website is the first thing a company does on startup and come up with a solid action plan. The good presentation of website will attract a numerous of potential customers to make purchase from us and continuously purchasing will increase our revenue.

E-Commerce.

By applying the e-commerce method into our businesses’ transaction it will create competitive advantage and enable to increase the revenue. If businesses within your industry are mostly brick-and-mortar only, becoming a click-and-mortar through Information Technology can help differentiate your company and increase its competitive advantage subsequently will generate higher revenue than the competitors.

Customer Relationship Management.

Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support. Customer relationship management (CRM) generally refers to specialized software systems that help manage, track and customize interactions between your company and its customers. The system can help automate contacts, allows your customer service team to personalize discussions with clients and can serve as the foundation for marketing campaigns. CRM systems can increase revenue by keeping your existing customers engaged and by helping market your products to the most interested clients.

Information Technology Can Help to Increase Productivity.

Working from Anywhere

One of the most significant impacts information technology has made on productivity is that it allows employees to work from anywhere by using Remote Access. Employees who were once forced to spend an hour or more each day traveling to a distant office can now log on and work from their homes. There is also the greater employee’s satisfaction and morale that working at home can provide. This technology involved can boost productivity as workers spend what would have than been wasting their time while commuting time working and helping their employers succeed on productivity.

Working More Efficiently

As long time ago, processing paper documents required at least one person to file the paper documents, another person to keep those files organized and up to date and still another group of employees to go through the files looking for the information needed by the business. Advances in information technology now allow all paper documents to be scanned into a central database, where a single employee can easily search for just the records that are needed by the organization. Therefore the work that needs to be done required a lot of employees can now be accomplished by one or two dedicated workers.

Information Technology Can Help to Reduce Operating Time and Cost.

Computer Networking. 

By using computer networking the employees enable to linked or shared any information in any way, shape or form among them. In manually, its take a long time for someone to share a Word Document with another user. For example they have to burn a CD, put in on a flash drive, or at best, email each other. But when we use a simple network will save everyone time and operating cost directly contributes to any businesses bottom-line and strengthens their competitive advantage.

Automation Software.

Office automation is the action of using varied equipment, machinery and software to store, manipulate and electronically capture or transfer data necessary for business.Office automation is a great way to save money and time while no longer to store paper records or hand write order forms and other information needed to do business into company’s database. Today, it takes minutes to do what it would normally take hours before and with a database in place now, the companies can easily pulling reports to see who is a repeat customer who brought the biggest profit margin. This allows management to actively call on customers which translates into an increase of business productivity.

Discussion

In this discussion I will use an example of a global company which is Wal-Mart Stores Inc. Branded as Walmart, is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's third largest public corporation, according to the Fortune Global 500 list in 2012, the largest retailer in the world. This global business company nowadays are changing their way do business internationally by utilizing the latest advancements in information technology.Walmart realized early on the benefits of using information technology to improve services. In 1983 it invested in an elaborate satellite network linking the point of sale terminals in all or its stores. In a few years this system grew into a complex communication network that connected all Wal-Mart stores, its headquarters and distribution centers, and all of its major suppliers. The most innovative aspect of the systems was the facilitation of modified just in time process of inventory control, a feat virtually unheard of in general merchandise retailing. When an item is sold by a store, a message is immediately sent to the supplier of that item. This alerts the supplier to include in the next scheduled shipment (often the same day) to the nearest distribution hub. This tight connectivity allowed Wal-Mart’s immediate response to inventory needs while significantly reducing the amount of inventory required. Wal-Mart realized the operational efficiency of its system and used it to offer lower cost, better quality products and services, as well as to differentiate itself from its competitors.

Conclusion

In the global business, I.T is one of the essential elements to create a competitive advantage in addition to the other competitors. From this assignment it can be concluded information technology is a factor that can contribute to a competitive advantage in global business. By using I.T as a competitive advantage, it can help companies in global business to increase revenue, improve productivity and reduce time and cost.Through the company's online sales can also save cost in terms of wages if the payment as does not require a lot of workers, as well as to maintain the customer to buy, the company also made ​​an offer in terms of the sale provide discount prices to members, except that if loyal customers buy, the company will give vouchers to customers to encourage customers to buy.