The Business Benefits Of Information Technology

Published Date: 02 Nov 2017

1.0 Introduction

IT or Information Technology has become one of the key players for businesses to gain competitive advantage thus; allowing businesses to gain profit from the mass market. Information Technology (IT) can be defined as ‘a field concerned with the use of technology in managing and processing information’ (Baltzan, 2013: 9) [i] . Nowadays we can see that almost every business industry uses computers and software to manage their business operations; such as ‘collecting, compiling, converting, storing, processing, protecting, retrieving, and even sending information across the businesses functions securely (Baltzan, 2013: 9).

IT is no longer restricted to sitting in front of computers and operates the business. Thanks t the innovation of the devices that can be integrated with information technology such as PDA, smartphones, tablets, laptops, notebooks and many other devices that if connected with internet can be a big help for businesses to achieve success. Businesses can run smoothly even when people are on the go and not in their work desk with the help of these portable devices and internet. Even internet nowadays are easily available worldwide whether buying the internet service or through public wireless internet (wifi).

Although IT is neither the sole reason for businesses to gain success nor it symbolizes the great success of businesses. IT is a two-edged sword depending on how businesses fully optimize its functions. Therefore, in order for businesses to gain success with the help of information technology, they must have the right people with the right knowledge on how to fully optimize the functions of IT and also the right technology to operate the business.

2.0 Objectives

The objectives of this report are as follows;

To identify and analyze the many functions of Information Technology (IT) as the key to business success regardless of the variety of software ,devices, and applications.

To identify and analyze the appropriate or suitable integrations of IT in the business in terms of communication between the external and internal personnel related to the business.

To analyze how to fully optimize the usage of Information Technology (IT) to increase the businesses’ performance, effectiveness and efficiency.

3.0 Body of Article

‘Advancements in information and communication technology have changed the business world during the past several years, and they continue to offer many benefits to an increasingly global workforce. Computer technology has made laptops, tablet computers, PDAs and other mobile devices everyday items in the workplace, and new software and applications aid companies in improving their research and development.’ [ii] 

Based on the above article derived from e-How.com, The Business Benefits of Information Technology, it stated that the business world have changed due to the fact o the ‘forwardness’ in information and communication technology in the past several years. These advancements continue to provide many advantages to the increasing global workforce. The technology of computer has shifted to laptops, tablets, PDAs, smartphones and other mobile devices that can be found in the workplace, plus along with variety of new software and applications that helps companies in improving the businesses research and its development.

‘Information technology has always been an essential tool of commerce, but it has become increasingly important since the development of the personal computer and the Internet. Consumers and clients demand efficient service and rapid communication, and even the smallest of small businesses cannot do without effective information technology. The tools, especially Internet-based technology, do not come without risks, but the benefits far outweigh the costs.’ [iii] 

Based on the above article taken from e-How.com., The Advantages of Information Technology in Business, it is stated that the essential tool of commerce has always been IT and now it has risen to become crucial due to the development of personalized computer and also the emerging of the Internet. No matter big or small a business is, they cannot do without effective information technology because their clients and consumers expect them to provide efficient service and rapid communication throughout the business operations. Although the IT tools, specifically regarding Internet-based devices/technology have their risks, however, their advantages outweigh its disadvantages.

4.0 Discussion

There are many functions of information technology (IT) that allows it to become a key to business success. As the world keeps moving forward towards digitalization and globalization, businesses have lots of hardships in surviving the rapid changes that revolves around them and it is mostly regarding information and these information will be used as business intelligence to help in making important decision for businesses to survive and sustain in the competitive market. Information can be defined as ‘data that has been converted into a meaningful and useful context’ while business intelligence can be defined as ‘applications and technologies that are used to gather, provide access to, and analyzing data and information to help in decision-making process.’(Baltzan, 2013:10).

Alongside with that, many devices have started to arise such as PDAs, laptops, smartphones, notebook, tablets and many more. The applications and software for these devices are becoming more and more advanced and able to help people to operate their business even if they are not in building. With the use of these technologies, information regarding the sales, customer database, finance, marketing and so on between the departments in the business can be easily accessed, stored, converted and interpreted by people in the business to developed business intelligence in order to gain competitive advantage and provide products and services that best matchee their customers’ wants and needs.

Information technology is a key to business success by becoming a networking platform for businesses. Nowadays, businesses not only uses their own websites, but the make use of al the other platforms such as Facebook, Twitter, LinkedIn, blogs, and even forums as means and mediums for them to get to know and reach their target market. These websites allows businesses to update, share information, interacts with consumers and learn about their feedbacks regarding the products and services that the consumers are expecting the businesses to provide them almost instantly. Customers than will share the status updates of the businesses with their friends and this chain of information spreading helps to create a network for the business to stay alive in the industry.

Since the networking among the businesses with its internal (employees/staff) and external stakeholders (suppliers; consumers) are going well thanks to the easy way of sharing information across the business, this will help businesses to have easy access on the feedback of their product from both internal and external stakeholders as well as from their competitors. It is important to take note of the feedback that the employees are giving in order to create a more comfortable and enjoyable working condition and atmosphere so that they will be happy when they are working. This will increase the productivity of a company and reduces the chances of high turnover of a business. Therefore, the rapidness and accessibility are the supporting tools that will help businesses in surviving and keeping them up to date to do research and to develop a more satisfying products and services to be offered in the competitive world. For instance, Customer Relationship Management system allows businesses to be able to track and record customers profile or data that can be used for further marketing purposes.

Furthermore, with the use of IT and internet, it helps marketers to create brand awareness to the mass target market with less costs when compared to the traditional marketing and the target market is wide and less time-consuming. Marketers uses internet to promote their product by using technologies that will able to detect what are the consumer’s preferences when they are browsing through the internet and the preferred advertisements will popped up and may caught the attention of the consumers to sought the products or services offered. For example, if a consumer browsing through an online fashion magazine, advertisement about clothing sales or discounts will appear on the website and appeal to the customers to sought after it.

IT also helps businesses to have a more efficient and effective communication among the employees and also among the suppliers, shareholders, customers and so on. People usually have to fill in forms and have to queue up long way just to submit membership forms or any other forms related. However, that is no more needed. Emails,e-forms, text messaging, internal e-memos, an a wide range of social medias are able to do much more better than the traditional way of communication. This is because it is much easier, saves cost, saves paper/trees (going green), and also because it is instant. The messages that needed to be send are precise, simple, straight to the point and complete s that they will be minimal misunderstanding of what is the main issue that is needed to be informed to the targeted audience.

5.0 Conclusion

In conclusion, based on the discussion earlier, we can state that IT has now become a key to business success through collaborating and integration between the IT and business to operate the business and communicate with the internal and also external people involved in the business efficiently and effectively. Therefore, with the right information technology (IT), right people and with the right knowledge on how to use the technology, businesses can achieve success and improve their businesses’ performance.