The Important Of Information Technology In Business

Published Date: 02 Nov 2017

Information Technology for my own understanding is a tool for improvement in area of business and innovation. Whereby, people now a days are following the update on the technology. Technology improvement had the advantages and disadvantages by using it in our daily life. Which is it can bring good and easier for us or bring bad to the world. The advances in IT in present day make the business sector moving into a different dimension. Especially, it is not wrong to say that the mobile phones are very important tools of our everyday life. As a result, business can be success by using mobile phones or other tools of technology to deal in business, to deal with supplier, to make a sales and update the product detail through mobile phones. Improvement in IT is play their own role to be success in business.

Objective

The objective of this assignment to learn more knowledge on how IT can make business is success. The key of how business is success will be elaborated each of my fndings. To explain and more understanding the key to make business is success by using information technology.

Important of Information Technology in business

The most important thing by having IT in business is where there is an automation that can make the business going easy and smoothly. Automation is where all the task or data will be key in automatically and save into the system. It will not cause a lot things to do by implement an automation in the work. Automation is simply to follow and understand to save all the data or information about the company. Automation in business management is very trending and been used in the business organization. It is because it will simply and automatic to save, send and find the data with using Information Technology. There is a computer and the system that included in the computer that can make everything is working properly and easily to adapt in business management.

Seven ways Information Technology can improve the business

Strategic planning is the heart of business because if the business is fail to planning, the business is not success, if the business is well with the planning, the business will succesfully achieve their goals. To relate with Information Technology, there is seven ways that can make the business is more improve and it should be implement in the business management.

Firstly, the most main important to setup the business is to reduce expenses and gain more net income. It is true where we reduce the expenses and it can make the business earn more income. By using IT, it can reduce the expenses because of ‘automate’ processes in the business. The important of having IT have been stressed in my above expanation. Automate process can replace by using large number of amount into a few numbers of amount and also the computers. This ways had been using by all the company in this world and the automate process to make their task be easy is generally knowledge and implemet to the workers. The IT ‘automate’ process that involve in organization is using Microsoft Word to save, edit, create a data into the computers and avoid using paper sheet to save the data.

Secondly, the information technology also can increasing the revenue of the company. Especially when business is adapt the IT in their daily operating business. The using of IT can incremental the revenues flow by attract the new customer by making the customer to order and build a good places to shopping and easy to understand how the business is doing the operation. An example is now a days business people are using website, blog and social media to upload their product list to make people make order. By using website, usually there will put product with shopping cart, if customer want to buy the product, the shopping cart will automatically add the product that be choose and will continue automatically process with payment. So that, by using IT and build website for business, it will increase the revenue and make the transaction is going easily.

Thirdly, by using IT in business management, it just not increase the revenue, but also will improve the profit margin both revenue and cost. It will happen if the business model will change in order to change the incremental the relationship between revenue and cost. This is underlying business processes and therefore the IT system as well. Information technology can play the role in a fundamental reengineering back the business model where there is usually significant payback to the business. An example of the improvement of the profit margin is the web-based print ordering for digital camera. It will not costly because do not have to print and by using picture that can make customer to look the price and product easily. No need to walk in to the store and make the purchase. With some testimony or download the catalog through website can know the product specification and physical picture.

Fourthly, by using IT in business, it can improved the quality of product and services because with the implement process of IT can make be too time consuming or difficult to do without using computers or systems. This make the business will gain benefit to avoid form human error and reduce cost by using IT the business. Means that, by using IT in the process of installing or recording the product will not make error because by using systems, it can automatically detect any error or double recording in systems. Indeed, by using IT it’s not only improving the quality, it can increasing revenue, improving customer retention and reducing cost but the quality of product should be important to achieve the goal. An example like we use the modeling software to understand very well how to use the systems, predict the failure product and how to take action before the product is meet fail.

Fifthly, with understanding to use IT in business, it can improved customer acquisition that lead to raise more revenue that can gain benefit to business. If the system is easily to understand by customer, they are pursuing to purchase through the website that create by the company. If the IT is implementing in the business but doesn’t increase the sales or attract customer, it is because customer could not reach on the websites or they can’t understand the process to buy through sophisticate procedure. To improve customer acquisition, first thing is getting to know where is the bottlenecks in the process and then identifying IT software that can eliminate or reduce those bottlenecks. There is a good reason why should improve customer acquisition is because to increase the customers number to lead to more sales to the business and also reduce the cost to acquire a new customer.

Next, after acquire customer, the next step is to improve the customer satisfaction. It is the important keys to make customer be regularly or loyalty to business product and services. If customer is satisfied with the product or services, they will happy to repeat their purchasing or make word- of- mouth advertising to their family members or friends. If the business is retain customer satisfaction, the company won’t tend to spend more cost to handle with the complaints and returns from customer. By using IT, to gain customer satisfaction is difficult but it will success if the websites make customer easy to make transaction, question and answered quickly, easy understanding to place the order and put the clear details of product or services. An example of acquire customer by using IT where provide customer to the web access and making information for them through their phone or fax which is it can help them to know new information or announcement by the company personally.

Last but not least, IT can improve the business by increase the speed of management or any process that occur during deal in business. Now days, everything is happening faster and simple with the expectation that changed as a result. When people always predict that ‘time is money’ means that time is really important in business. If the business can improve the speed in the sale process, manufacture the product and delivery on the time, the revenue will be recognize for the company sooner. If customer asking question through the websites, they will receive the answer through email within a few minutes rather than spend time on waiting for the letter for only one question. The good example of increase speed is using ‘integration broker’ technology which makes it easier to exchange the data between the company and Partner Company including supplier and also broker. It makes to set up data connections and it’s possible to build a new relationship faster, easily and quickly to integrate company system with other companies. By using this IT system, it can help and improve the business to achieve their goal in a short period.

Discussion

How did business can benefit using of Information Technology?

Firstly my own opinion, business can utilize using Information Technology if they are really understand and keep update the new thing in technology. The technology and business now a day have a positive relationship each other where it pursues business to have a more alternative to gain more revenue. It’s really happen and proven by all the company in this world. They will catch up a new innovation in technology to make it as a new channel to attract people to know about their company. Like what happen now a day is where business people use Facebook as their alternative to upload their product on the album, given a product specification to customer and build a good relationship with customer through the social media. Business people are tend to be crazy sometimes by using this channel of social media to sell their product, but behind this crazy things, it is proven that using this IT application can be the channel of distribute the product. It can be as another channel for business to be success also through this IT application. Example like when people are online on their Facebook, those business people will tag them in their album photo to attract a new customer and make a sale with them. If the customers are made decision to buy the product, the seller will proceed with them to give an account detail to transfer the money and after that will following with the delivery to the customer. All the process of getting customer, proceed with payment and also tracking on delivery is using an IT system. So that IT can be the main channel for business to success rather than having the business through physical office.

Secondly, when talk about Information technology, communication is involve also in the technology advancement. Business can be success also if this rapid communication is adapted in business process. Which is it can help increase productivity, allow for business to make decision and ease a company’s expansion into other countries or global. Type of communication can be through email servers, routers, internal company whiteboards like Intranet and also the chat services between the members in organization that install in their computer. These applications of communication can help the members in organization to disseminate an important file to announce and settle the critical business information in quick and efficient manner. Example of communication to the manager for status of the new task given through Yahoo email by attaches the files and will update to the manager in a few minute.

Thirdly, IT can make the business be more efficiency by streamlined work flow systems, shared storage and collaborative work in a business and also can allow employees to process level of work in a short period of time. IT could make those things happen easily if the business is utilizing the IT systems or application that venture to this world. With IT also, it can be used to automate the routine task given by manager, to make data analysis through survey on the search engine and can store the data information about business idea or process easily so that it can be retrieve for future use. It’s really efficiency also for the business to build a good relationship with customer through connect with them with question and answer through the email or through telephone routing system that can connect a customer to an available service agent to solve their problem.

Next, adoption of IT resources is allowing companies to maintain their competitive advantages over their rivals. Which companies can use first-movers strategy by using IT to create a new product, distance their products from the existing market or enhances more the customer service for customer. It can be done when the business people with their creativity or idea to make more money or revenue for their business. Then, then companies that follow the low-cost product strategy can look to IT as their medium to solve their problem of cut their costs or expenses, so that it can increase the productivity of company and also reduce cost for hire an employee.

Lastly, business can be success to gain economic efficiencies by using IT to lower their costs. By using IT infrastructure, redundant tasks can be centralized at one location. For example, the large company could have centralized their payroll function to lower their employee costs. Furthermore, economic efficiencies can be reach by migrate high cost function into an online environment. Let’s say to take part of marketing, all the advertisement will gain high cost but with IT application, it can be done free through online. Companies also can offer the email support for customer that may have a lower cost than a live customer support call. In IT, to cost savings could also be found through outsourcing opportunities, remote the work options and also lower the cost of communication.

Conclusion

As a nutshell, everything can be done through Information Technology because technology is more powerful and innovative to the world. As refer to Thomas Friedman, The World is Flat is really happen when all the things is on the technology. All things about business, news, information is all in the technology. Without improvement in technology, people can’t easily get news or information around the world. Information Technology is really important to make people be more updated with the technology and avoid being as a laggard person.

To relate with business, Information Technology is need in business because it can drive the business to be more success in future. To cross the boundaries, business can be success in future or be globally with the IT system. It also can cut some expenses cost to gain more revenue to the company. Everything in business could be done through IT because there are many applications that create for business. Those IT improvements can build a digitalized platform to create opportunities for innovation and other form of business value.