Uses of Information Technology in Business
Today, technology is becoming very important in our daily lives. It affects individuals, communities, businesses and the nation. It has helped in terms of management, manufacturing, marketing of communication products and modular type more easily.
Information technology is the use of computers and software to manage information. It refers to anything related to computing technology, such as networking, hardware, software, the Internet, or the people that involve with these technologies.
Nowadays many companies have IT departments for managing the computers, networks, and other technical parts of their businesses, such as storing information, protecting information, processing the information, transmitting the information as necessary, and later retrieving information as necessary. This is referred to as Management Information Services (or MIS) or Information Services (or IS). Information technology drives innovation and innovation is the path to business success. Innovation in business has the same impact that steam had on the industrial revolution.
ONLINE ADVERTISING
One of the main advantages of information technology in business is the ability for companies throughout many different industries to advertise their products and services via the Internet. Almost every website contains advertisements surrounding the site’s primary content. Often these sites feature links from which, with a single click of a mouse or tap on a touchscreen, people can find information about the company whose ad they have clicked on.
By making information so easily accessible, advertisers may benefit from a much larger volume of traffic to their own sites and thus greatly increase the chances of someone taking advantage of their goods or services. Companies are even able to communicate with or reach out to people all over the world, thereby increasing exposure to their ads without having to pay an exorbitant amount of additional advertising costs.
ONLINE SHOPPING AND MONEY TRANSFERS
Online shopping, bill payments and funds transfers are also key examples of information technology in business. By allowing consumers to access products and services from any computer, phone or tablet from home or on the go, companies have made it easier than ever for people to move money. Shopping online has become so prominent that most major retailers have online stores to accommodate shoppers. Consumers can buy virtually anything online from appliances to music. Funds transfers allow investors to track their investments or manage the accounts of their clients much more quickly.
Most utility companies offer online bill payment options which enable a customer to have their utility provider draw funds directly from a designated account. This virtually ensures that customers can avoid late payment fees, as the utility provider is collecting their payments automatically from clients’ accounts. This eliminates the possibility of payments being mailed and subsequently arriving at the utility provided after the payments due date. As an added convenience, customers are also spared the expense of envelopes or postage.
GLOBAL COMMUNICATION
One of the most powerful business tools that technology was provided is the ability to communicate worldwide almost without restrictions. Video chat apps such as Skype have greatly increased the efficiency of conference calls by allowing meetings to be conducted internationally from computers or mobile devices. E-mails and file sharing services allow documents to be transported instantly across an ocean. Smartphones enable business associates to communicate even while in transit. Companies with associates in several different states or countries may now send important updates or information without delay.
FLEXIBLE WORK OPTIONS
The development of laptops, smartphones and tablets has allowed anyone to work from anywhere. As technology enables us to make powerful computers smaller, we become free to travel or even exercise while still monitoring our businesses. People now have much greater opportunities to work from home, allowing day-care costs to be eliminated. Travel, once a unfortunate but unavoidable interruption to the flow of work, now affords business professionals with an opportunity to catch up on aspects of their business while on an airplane or commuter train. Information can now be sent or received from practically anywhere and at remarkable speed.
PHYSICAL AND ONLINE DATA STORAGE
Whereas once every company had to maintain enormous stockpiles of paper documents, IT’S application in business has helped modern companies minimize the amount of files they must warehouse. Hard drives are capable of storing terabytes of data and occupy very little physical space. Cloud storage services like Dropbox, Google Drive and Onedrive can now replace physical storage devices completely since businesses can access their files through a web browser or app on a computer or mobile device. Transferring data is also easier due to e-mail, USB thumb drives and cloud storage services.
BETTER CUSTOMER EXPERIENCE
IT also makes it easier to provide a good customer experience through improved customer service, easier customized marketing and e-commerce. Rather than only being able to reach the company during business hours, customers can conveniently interact with the company on its website and through social media, email and custom instant messaging services. Through tracking customers’ previous purchases with marketing software, companies can send customised promotions that better meet customers’ needs and result in more likely sales. Customers also benefit from being able to purchase products and services from the company’s website, and this also increases the potential for more revenue and growth for the company.
INFORMATION TECHNOLOGY AND BUSINESS DECISION-MAKING
The role of information technology in management decision-making is seen in tools such as ERP software and decision support systems that help managers see company performance data in real time so that they can make more informed decisions. Such software presents an online dashboard with information about the company’s finances, customers, sales and marketing trends and inventory levels. Managers can use the data to decide which products to promote or stop selling, where to cut expenses, which customers need support and when to place supply and materials orders.
OTHER BUSINESS ROLES OF IT
Other examples of IT’S role in business include the following:
■ Internet-enabled systems, such as secure entry systems and wireless cameras, help improve business security and reduce risks of theft and loss of confidential information.
■ IT allows companies to store important company data in a database in the cloud to reduce paper waste, increase security and allow for easy backups.
■ IT allows companies to expand internationally as easily as setting up a multi-language website that markets to global customers and allows purchases in multiple currencies.
■ Companies can use online recruitment to find more qualified job candidates and handle most of the hiring process online.
■ From enabling telecommuting to reducing energy use through modern systems, IT has a role in company sustainability that can save money and improve the company’s reputation.
■ Thanks to IT, getting the latest information about your competitors and the market is as easy as searching Google on your computer or smartphone.
Many businesses, using information technology is the goal to make a business become more successful, because the speed gain and share information using a particular technology and makes a business can improve performance and productivity.