Whats in IT For Me - Essay Example

EIS330 CRN: ______ Management of Information Systems Spring What’s In IT For Me? s name Course number Date What’s In IT For Me? Introduction Information technology is critical to the future of any business. Running a business without computers is like trying to walk without legs. Information technology has over the years developed to be one of the most integral part of any business. Information technology provides options to a business that can prove to be a competitive advantage between one business entity over another. Technology has helped to come with new production processes that would have otherwise taken a lot of time and specialization to realize. In addition, development of technology has created a number of business opportunities that businesses should capitalize on. Use of computers has proved to be cheap, efficient and time saving (Reynolds 43). Research has shown that over the last 20 years, there has been an increase in the number of people who have personal computers. 90% of all American households have computers. This has led to entrepreneurs taking advantage of this and use information technology to market their products. 80% of all businesses in the United States own computers. This is due to the fact that computers represent the top technological advancement in decades. Computers have changed the way businesses conduct their day to day activities. This paper will look at the importance of information technology to business (Tsai 51). Data management Gone are the days where companies would pile up files in one file room. With the introduction of technology, it is now possible to store files and documents of a business using a computer. There are also online storing sites that help businesses store their documents online. The advantage of this is that the information can be accessed by any authorized person regardless of their location (Tsai 89). This helps businesses ensure that their information is safe and can be accessed at any time when need be, reduce costs, increase effectiveness while ensuring transparency. However, it is important to have an IT department that will handle any issues regarding the security and retrieval of the documents. There should be enough security for the documents. Internet access Internet access is one of the main reasons why many businesses are turning to information technology. The internet can enable a business to make sales online, receive orders from their customers, place supply orders, do research, communicate and for business intelligence. All this can be done by setting up a website. Business intelligence is important to any business as it helps a business get to know the tastes and preferences of their customers and current market trends. Search engines like yahoo. Google analytics, Bing and Moz can help find such information (Reynolds 83). Businesses are also using the internet to communicate and market their products. More business is creating accounts on some of the popular social media platforms like Facebook, Twitter and Pin interest. This helps the company get feedback from their customers and also attract new customers. Emails have proved to be the most effective ways that most businesses communicate nowadays (Khosrowpour 66). By conducting research, the business can be able to research new production methods that are cost effective and effective. This can help reduce operational cost while enabling management to have real time information regarding customer tastes and preferences. Research can also help businesses outsource. They are able to get this information through the internet and can keep in touch with the outsourcing company through the internet (Reynolds 51). This has helped further bring the cost of production down. Presentations and documents The days where typewriters were used to provide printed work are long gone. Through the use of information technology, word processing functions (which are essential to any business) have been made easier and more efficient (Gottschalk 54). Today it is possible to hold meetings online through the use of information technology. Businesses can also be able to produce and share documents electronically. Modern businesses are also using PowerPoint slides and projectors during meetings to pass across important information. Mass production of documents has also been made easier. Businesses can easily produce fliers that can be used for advertising purposes. Inventory management Inventory management is important for any retail and wholesale business. These businesses have in the past been forced to manually do inventory management. Through the use of technology, inventory management is easy and automatic. A business can, therefore, be able to monitor their stock closely and order for more stock in case the stocks runs low. This has helped businesses keep track of their revenues easily. This has also helped reduce manual labor which helps them save on operational cost. This has also helped businesses do away with the loss of inventory through corrupt employees engaging in unethical behavior Tsai (134). Multi-site networks Some businesses have more than one branch. Multi-site network helps such businesses in accounting and standardizing receipts. This system helps keep track of revenue and costs from the main office. This has led to proper management of chain stores, particularly food outlets like MacDonald’s. Mobility Through technology, companies can be able to hold meetings through video conferencing. Interviews are also conducted via Skype (Khosrowpour 21). This has reduced the cost and time that could be used to travel from one place to another. Meetings can be conducted without being in one room and information can be shared within a fraction of a second. Human capital Technology has helped companies to save on costs on some of the jobs that were being done manually, but can now be done using machines. Technology is also used for screening during the recruitment processes for most companies. Potential employees have to be screened for any crimes or contaminated diseases before being employed. Companies can advertise through social media or through their websites about any job openings (Gottschalk 110). This helps companies to attract qualified potential employees. Job interviews can also be conducted via Skype or video conferencing, thus saving on time and cost. Communication Modern businesses use email as their primary means of communication. This has greatly increased the speed through which information is disseminated. Information can be passed without necessarily disrupting the receiver. The flow of information between businesses and customers has also improved since a wide range of channels may be used. Some companies have even resorted to using in-house instant messaging, which helps reduce movement particularly in large organizations (Khosrowpour 77). New business opportunities E-commerce has come with new opportunities for businesses to expand their market share as well as increase the variety of products and services that they provide to their customers. Software development companies are looking to capitalize on these recent happenings. They are inventing more and more softwares that can be used by businesses across the globe (Reynolds 90). Reducing operational costs Generally information technology has helped companies reduce operational cost. Companies can be to save on manual labor as well as use the latest production technology that allows firms to produce more while reducing the cost (Reynolds 67). Firms can also be able to save on communication costs as informational technology has enabled businesses to spend less as sending documents through the internet is very cheap. This also saves on time, which is an important factor in any company. Improved decision making Having the right information at the right time is very important to business managers. Lack of proper information can lead to lose customers and incur extra costs. Real time information will help managers have enough information to make decisions. Competitive advantage Saving cost, having real time information, communicating effectively enables businesses to maintain a competitive advantage over their rivals. Information technology helps a company keep in tabs on their competitors, knowing the prices competitors are charging for their products and monitoring new products launched by competitors. Information gotten from social media sites and customer feedback can help a company come up with new products that meet the tastes and preferences of customers. This will enable a company to make huge profits and maintain a competitive advantage over their competitors (Khosrowpour 35). Conclusion The importance of information technology to modern businesses cannot be overlooked. IT has had a major impact on how businesses conduct their day to day activities. Every business is looking at ways through which they can integrate information technology into their operations in order to enjoy some of the benefits that come with IT. The following are some of the ways through which information technology is important to business; helps in data management, helps in maintaining a competitive advantage over competitors, helps businesses access internet, helps in inventory management, helps in reducing operational costs, improves communication and mobility. Information technology also helps businesses in looking for new opportunities and helps managers make better decisions. Presentation of documents has also been made easier by the use of information technology. Due to the above reasons, information technology is the backbone of running any successful businesses. Firms that have not taken advantage of IT are risking losing their customers and their market share. They are also experiencing high operational costs, which might lead to their businesses incurring losses. Works Cited Gottschalk, Petter. Business dynamics in information technology. Hershey: Idea Group Pub., 2007. Print. Khosrowpour, Mehdi. Emerging trends and challenges in information technology management. Hershey: IDEA Group Pub., 2006. Print. Reynolds, George Walter. Information technology for managers. Boston, MA: Course Technology, Cengage Learning, 2010. Print. Tsai, Hui. Information technology and business process reengineering: new perspectives and strategies. Westport, Conn.: Praeger, 2003. Print. Read More