How Information Technology Impact in Business World - Assignment Example

Lecturer How Information Technology impact in business world Outline of the research paper Introduction 2. Literature Review 3. Effects of Information Technology on Business Ethics 4. Effects of Information Technology on Business Opportunities 5. Effects of Information Technology on Globalization 6. Impact of Information Technology on Business Processes 7. Summary and Conclusions 8. Works Cited Introduction According to Laura Schneider (2014), “Information Technology (IT) as the application of computer systems, computer hardware, computer software and computer live ware, in managing information.” Some business organizations refer to Information technology as either Management Information System (MIS) or simply Information System (IS). Almost all companies have an Information Technology department. The IT department performs functions such as; collecting business data, processing the data in order to get the business information, transmitting information to relevant departments, and finally storing the information for future retrieval and decision making. Current trends in Information Technology include; cloud computing and information security. Alternatively, the view of Daintith John (2009) is that “Information Technology is the use of computers and telecommunication facilities in business; to collect, manipulate, transmit, store and retrieve data. Information Technology refers to computers plus computer networks, but can also include information transmitting equipments like satellites, phone, televisions and radios. IT infrastructure involves the framework on which information networks operate.” The infrastructure include; computers, networks, database management systems and a regulatory framework. In the field of Information Technology, infrastructure refers to physical hardware which connects computers and users, for example, telephone lines, satellites, television cables and antennas. To some people, infrastructure is anything that supports the processing of data and information. Literature Review Erick Miley (2014) explains that “Information Technology is an occupation or profession that identifies with computer technology." He stresses that modern businesses use computers to ensure high standards of customer service and efficiency. The benefits if information Technology to businesses many. Computers process information at very high speeds, for examples emails deliver messages instantly. Business information can be updates on market. Increased computer speed ensures efficiency in information processing. Computers are also able to multi-task accurately and quickly, for example, solving complex mathematical equations. IT ensures low business costs; this is due to the fact that as technology becomes more common it also becomes affordable. It has led to more entrepreneurship opportunities; this is because many people nowadays work at home using the internet. (Allen and Morton 37). According to Chirantan Basu, Demand Media (2014), “there are 6 business objectives which must be realized with Information Technology.” In product development; information technology improves the time duration taken to launch new products in the market. This is because market intelligence is gathered using information technology. Concerning stakeholder integration; businesses use their websites to communicate with customers, shareholders and financiers of business activities. In terms of globalization, multinational businesses use network technologies to communicate with overseas suppliers, customers and employees. Companies use IT to maintain competitive advantage; for example using prototyping to create a cost efficient product. Process improvement uses IT to reduce operational costs. IT allows businesses to minimize costs. Effect of Information Technology on Business Ethics Proctor (2011) observes that “current trend in Information Technology has tremendously changed the way business organization conduct their operations.” The changes are reflected in all business activities, for example, Human Resource management, auditing, supplies and logistics, finance administration, public relations advertising. These technologies have therefore affected people in both negative and positive ways. Information technology is unique in various ways; first information technology is available anywhere. Information Technology quickly changes, and in the process it brings business opportunities or negative innovations. Due to this quick evolution, there is a big gap between appropriate government legislations, and the ever changing technologies. Information delivers many opportunities to businesses to improve their production processes and, market share and product quality. De George (2000) identifies “collection of web information using cookies as an ethical issue, and also getting customers’ information through cookies for target marketing” (p 74). He recommends vigilance when using new technology; this will minimize cases of getting information from cookies. There is need to reduce security and privacy related violation. Effect of Information Technology on Business Opportunities The Economist (2014) explains that the continuous usage of the internet and modern telecommunication equipments in the 21st century has changed the methods of operating or managing a business. The managers of both small and big businesses have seen the importance of using IT in business operations, for example, the internet has made communication instantaneous. Information Technology has changed the organization function of businesses. Data and information is currently organized efficiently and effectively. Filing cabinets are being replaced with computers at a high rate. Computer storage programs save on storage space, size, costs and paper. Saving business information in computer hard drives and disks is better than paper storage because paper is cumbersome and can be easily destroyed. Computer disks are easy to use and access because they give businesses the option of operating in an organized manner. Information Technology has also changed the way advertising is conducted. The internet has led to development of online marketing which has many benefits. The World Wide Web easily recognizes the numerous ads posted in company or personal websites. Online marketing is fairly cheap and reaches the target audience anytime, night or day. The internet also reaches a worldwide audience. Information technology has greatly improved business communication, in the 21st century. The mobile phones, social media, email, online chats and conferencing and instant messaging have enabled enterprises to share business information. Multinational companies like Coca-Cola use majorly the internet in communication process. Effect of Information Technology on Globalization Innovation and creativity in the field of Information Technology has ensured speedy globalization process, and thereby driving key business strategies. Benjamin Lawlor (2007) defines globalization as ‘increased world interconnectedness which shows full movement and cultural interaction of people’ (p 53). Globalization has six processes; speeding up the flow of resources around the world through increased technology, communication and transportation; increase in links and ways of interaction around the world, hence more information is received; spreading out the socio-economic and political practices across borders; inter-dependency of local and global issues; ‘westernization’ does not take place because people value their own lifestyles and practices; and moving away from Euro-centrism. Globalization started to be felt in the late 20th century due to advances in information technology. Information technology was the catalyst for the integration of global markets that form globalization. Globalization impacted on business through the development of Personal Computer. The PC allowed individuals to their digital content and share them with different people around the world. Development of modems also enabled people to send and receive email through service providers. Globalization led to development of the World Wide Web which enabled people to post their personal digital content. The internet accelerated globalization because of faster communication. Information Technology led to the creation of the Work Flow Software in mid 1990s. The software automates business practices and steps, and therefore information is passed from one employee to another (Webster and Robins 92). Open Sourcing is a product of information technology. Companies with new software products are able to gain knowledge from experts found anywhere in the world for free. Supply - Chaining is also due to information technology. Companies use technology to build their supply chain globally by finding the best producers or the lowest prices in different countries. Information technology has led to digital, virtual and personal shift in technology. These technologies have enabled people one companies to communicate with each other more effectively. Alternatively, Irfan Ahmed (2011) explains that before going global, a business should develop a global vision. This ensures effective global leadership (p 58). To be a global business, the company’s vision and mission must be realigned to global consistency. Cohen (2010) has indicated four issues in effective global leadership; Education, exposure, experience and examination (p 67). Impact of Information Technology on Business Processes Information technology provides effective and efficient ways of ensuring proper changes in business processes. Continuous improvement is mainly due to business processes (Daveport and Stoddard, 1994). Fredrick Taylor was the first person to encourage the study of work procedure. This led to process control and process techniques in improving quality. The study of business or work process is related to Information Technology; this is because it is the main catalyst to change in business processes. Hammer and Champy (1993) explain that information technology is a part of process change or reengineering process. Davenport’s (1993) framework shows information technology as the ‘three enablers to business change’ (p 219). The framework shows different ways in which information technology is used in business process reengineering. Kettinger et al (1997) explains the role of the S.A framework in ensuring change (p 37). Summary and conclusion As businesses progress into the future, the need to manage and lead on a worldwide scale becomes much greater. Investing in sound Information technology infrastructure is therefore the only way of competing effectively in the market. In order to be a market leader in future, businesses must strive to put information technology in the business strategy. In business, Information Technology is not the only competitive advantage, but it ensures creativity, collaboration and integration. The alignment of information technology and the strategic objectives of the business will ensure creation of competitive advantage which is unique and difficult to copy. Measures to reduce violations on Information Technology violations should be introduced to curb negative ethics. Information Technology enables more information to be available, and enough information enables changes to be made in the business processes. Works Cited Allen, T., and M. S. Morton (Eds). Information Technology and the Corporation of the 1990s. New York: Oxford University Press, 2007. Print. Butler, Jeremy G., "A History of Information Technology and Systems", University of Arizona, 2012. Print. Bynum, Terrell Ward. "Norbert Wiener and the Rise of Information Ethics", in van den Hoven, Jeroen; Weckert, John, Information Technology and Moral Philosophy. Cambrige: Cambridge University Press, 2008 GD Larosiliere, R McHaney, K Kobelsky, ‘Impact of Technology Management on Organization Wide – Integration, System Sciences (HICSS)’ 2013 46th Hawaii International Conference on, 21-30, 2013. Print. S Hunter, K Kobelsky, VJ Richardson, Information technology and the Volatile Firm Performance, 2004. Print. VN Awasthi, S Bee, K Kobelsky, ‘The Impact of Different Uses of Information Technology on Business Processes and Performance: An Active Learning Exercise.’ Review of Business Information Systems (RBIS) 11 (4), 47-68, 2011 Read More