Application of Information Technology in Businesses - Assignment Example

?E-Business and Application of Information Technology Introduction It is important for business owners and managers to understand the importance of responsible and effective use and management of business information systems. Information technologies and systems are very vital today, in ensuring business success. It constitutes a basic study field in the management of a business because they constitute an important area in the operations of a business (Beynon-Davies, 2004). In order to be successful, business owners and managers need to know that investing on information system in a business is very crucial in today’s business world (Gerry, 2002). The most important question that business managers and owners should try to answer is what they need in order to effectively manage the data, internet resources, software and hardware, so as to ensure that they are efficiently used for the success strategies of the business. E-business refers to the application and uses of information systems in order to support and drive the processes of a business, mostly by use of web technologies. According to Amor (1999), e-business allows businesses to link their external and internal processes more effectively and efficiently and closely work with their partners thus satisfying their expectation and needs of their customers thus increasing the overall business performance. There are many types of internet technologies that are specifically designed to help businesses not to work harder but smarter (Sachenko, 2009). These tools include mobile, wireless technology and collaboration tools, social media and customer relationship management among others. Strategic /Problem Analysis The business under focus is a small high quality restaurant that uses very basic computer facilities. Therefore, most of the business operations like advertising, supplying and orders are done the traditional way. For example, to receive quality supplies, they have to order by writing a delivery order, and advertisements are done through posters and over the radio and television. Though this is a high quality restaurant, the number of customers it receives every day is so small that it cannot meet its targeted profits. It is therefore important for business owners and managers to understand the importance of application and use of electronic information systems, so that they can reduce on high costs and conveniently increase profits by working smarter. The strategic objective of this restaurant owner is to increase profits as well meeting the expectations of their customers, which is something they rarely achieve. The business has been incurring heavy losses due to the high travel and communication costs as well as few customers, who cannot help reach the desired goals. If the management of this restaurant can switch on to e-business, such losses can be greatly reduced and customers can increase as a result of e-advertising, which is now the most accessible to prospective customers, who are seeking high quality services for example foreign tourists. The following are the benefits that the restaurant is likely to achieve by effectively switching into e-business. Benefits of – Business E-business helps to increase workforce productivity by helping the user in locating and viewing information faster, as well as application of important roles (National B2B Centre Limited 2007). Web browser can help the restaurant owners to retrieve data stored in the data base at any time from anywhere, but with security provisions like encryption and use of passwords (University of Pittsburgh, 2003), thus keeping them updated on business operations. This helps them take necessary precautions and measure that the business requires at the right time, thus improving their performance. It also helps customers to receive the best services from the restaurant as managers are able to fast access useful information that ensure efficient services. E-business will also help the restaurants owners to save time and money as they reduce on travelling and communication costs together with time spent in movements, since information can be received and sent from a centralized location, through the help of internet services. National B2B Centre Limited (2007)believe that application of E-commerce, businesses have greatly reduced travel and communication costs by use of online meeting tools as well as shared workspaces. In addition, electronic information system is a powerful communication tool within a business, vertically and horizontally. Therefore, the restaurant owners can effectively communicate with the staff and other suppliers in a fast, convenient and easy way through the use of emails, charts and blogs, thus improving the quality of services that the business offers to its customers. For example, if customers want certain type of food or service from the restaurant, they can quickly communicate with the restaurant through a chart or email. If what they want is not readily available, the suppliers can fast be alerted and the customers can receive what they wanted as specified. E-business also enhances collaboration, thus promoting teamwork (Sachenko, 2009). If the restaurant can switch to e-business, all its employees will be able to easily access variable information that will help them work together for the benefits of the restaurant. E-business will also allow the restaurant to make immediate updates that are necessary for the running of the business like new dishes, services, working hours, among other things that keep the customers and staff updated. This goes along with the fact that the restaurant deals with members of the public at all capacities that keep changing. Use of modern information systems in the business will help the customers to be updated on such changes thus reducing the restaurant’s liability. National B2B Centre Limited also adds that e-business has helped in improving promotion of external products and internal communication. The restaurant can effectively promote the services it offers to its prospective clients, thus improving their performance. This will help the owners attain their objectives as well as giving the customers an opportunity to know what they expect from the restaurant in advance. There is also the benefit of effective deployment of e-commerce technologies, which has helped businesses increase their sales. This is because customers are able to know the types of products they offer, when the business makes such information available in their websites. On the other hand, e-business will help restaurant owners in streamlining business processes with back office systems that are integrated. The restaurant management can also maximize lead conversation through customer relationship management systems for monitoring and tracking interactions with clients and prospects. E-business will help the restaurant improve supplier productivity and relations through collaborative workspaces and tools. Furthermore, businesses that apply e—business are able to benefit from open source of software that are licence-free as alternatives to soft wares that are proprietary, thus reducing costs which consequently increases profits. Use of Tools / Frameworks Business professionals or managers must not know complex technologies specialized application of information systems or abstract behavioral concepts in order to effectively manage e-businesses (Sachenko, 2009). Sachenko says that useful conceptual framework of what they need to know concerning information systems consists of foundation concepts, information technology, business application development process and management challenges. Information technologies refers to the software, hardware, telecommunications network an internet, which transform data resources to a many products of information for business professional and customers. Systems concepts are technology, applications, development and management, which help in business information management. Proposed Solution The aim of any business is to maximize profits through increased sales and customer satisfaction. This small high quality restaurant is experiencing problems that can effectively be prevented by application of E-business. Therefore, the proposed solution to the problems it is experiencing for the restaurant owners to switch to E-business. Low sales and is a result of its prospective customers failing to access relevant information about the restaurant. This contributes to few customers visiting it, hence low sales. Therefore, if its services, location, quality of services and any other necessary information can be made available to them, the number of customers will definitely increase, leading to increased sales and profits. Information system is applied in businesses as it performs three important functions. Callaghan, (2002) asserts that it supports the operations and processes of an organization, strategic competitive advantage and decision making process. Information system categories include process control systems, operations support systems, and executive information systems. Others are expert systems, strategic information system, knowledge management systems and functional business systems. However, in real world, most of these applications are integrated into cross-functional information systems to provide information together with supporting decision- making process, besides performing operational activities of processing information. On the other hand, customers will freely air their views concerning the restaurant like the restaurant’s weaknesses that the management and owners can address as fast as possible in order to maintain its prospects. Comments that show their satisfaction can help attract other customers, thus increasing sales. Improvement of services offered is also possible because the owners and management of this restaurant are able to get customers’ feedback, hence improving service quality so that customers can get the value for their money. Solutions to problems facing the restaurant will help in the expansion and growth of the business, thus assuring its future survival. How the Proposal could be Acquired, Designed & Implemented For a proposal to be acquired, the problems that are hindering the restaurant from meeting its goals should first be realized, so that the management can look for possible solutions. This will help in acquiring a proposal, which will allow further research that answers the questions. The proposal is then designed and implemented. Many businesses devote sufficient resources for planning and implementation of e-business because it has a strategic importance to the success of the business (Anita, 2005). What should be kept in mind during planning is the goals and purpose of switching to e-business, those responsible for the management and implementation of the proposal, functional plans and design, existing systems phase-out and implementation schedules, interactivity levels, new data in-put and existing data updates (Ward, 2008). Anita (2005) outlines implementation steps as management funding and support, analysis of business requirements, identifying the needs of the users of the information, installation of user access networks, ongoing evaluation and measurement to determine its performance against the desired goals. This phase also entails research responsibility into strategic information technology into business uses. Development of business strategies in the strategies of e-business that will support the restaurant’s vision make use of information technology to design e-business systems that are innovative, which focus on business value and customer satisfaction. The network resources that restaurant owners and management will have to employ are communication media and network support. Communication media comprises of coaxial cable, twisted-pair wire, fiber-optic cables and cellular (LaMee, 2002). With today’s developments in IT, they can just purchase a modem and install it in their computer, and this will allow them to access the internet by loading bundles. Network support includes software, hardware, people, and data resources, which directly support the use and operations of communication network. Internet is very essential to the success of e-business of any type. Therefore, installing a network connection in the restaurant’s computers will contribute a great deal to the success of the business, especially through dissemination of information. Strategies for resource management include network resources, software data, hardware and personnel (Paul, 2000). The architecture of the information technology should be designed in a way that supports the restaurants initiatives in IT. The restaurant already uses basic computer applications and switching to e-business will only call for improvement in the existing computers and minor installations like the internet connection, designing of websites, emails addresses and employment professionals in IT. The owners should invest in this project since it is likely to reap many benefits that will reduce its losses besides helping it achieve its goals. For the proposal to successfully implemented, staff that is committed to the maintenance and well being of the restaurant is a very important component to the success of this proposal (Paul, 2000). For internet feedback, social networking through the user’s forum to show what they like and their dislikes is also another important component in ensuring its success (Thomas, 2004). The owners of the restaurant should therefore employ computer literate staffs who are interested in the restaurant’s success. They should also be committed in service delivery that they can satisfy the customers by constantly updating themselves on customers’ expectations, likes and dislikes and striving to help them get the value for their money. Conclusion Information technology is a very important in the operational and strategic functions of a business. Many businesses are now are now transforming themselves into powerhouses of global power throughout the world through global e-business investments and other initiatives of IT. Therefore, business owners, professionals and managers to well understand how this vital function needs to be managed. For a restaurant business that has been using basic computer application, it is easy to switch into e-business, which will ensure that the business is able to meet its desired goals by attracting and retaining customers. E-advertising is very important because it will help potentials customers to access useful information about the restaurant but business should ensure their own privacy on matters that concern the business only (Westfall, 2010). E-business is very important in today’s businesses because it helps business reduce travelling and communication costs, besides providing an important framework where the business can inform its customers about services it offers plus other changes, while customers are able to communicate to the business thus informing them about their strengths and weaknesses through internet feedback service. Owners of this restaurant will therefore leap more long-term benefits if they will be able to switch to E-business, and apply modern information technology. Recommendation Because of the uncountable benefits that result from application of information technology in businesses by switching into e-business and e-commerce, it is highly recommended that he restaurant owners switch to e-business. It is also recommended that hey apply information technology in all their functions so as to reduce costs, save time, and offer efficient services to its customers. References Amor, D. (1999). The E-business (R) Evolution. Upper Saddle River: Prentice Hall. Anita, R. (2005). The E-commerce Question and Answer Book. USA: American Management Association. Beynon-Davies P. (2004). E-Business. Palgrave, Basingstoke. Callaghan, J. (2002). Inside Information Technology and Systems: Palgrave; Macmillan. Gerry, M.G. (November 18, 2002). "Internet Return on Investment: Case Studies". http://www.gerrymcgovern.com/nt/2002/nt_2002_11_18_intrernet_roi.htm. Retrieved 2011-06-19. LaMee, J. A. (2002). Internet and Special Libraries: Making the Most of Internet. University of South Carolina. Retrieved 20011-06-18 from http://www.libsci.sc.edu/bob/class/clis724/SpecialLibrariesHandbook/Int&SpecLib.html. National B2B Centre Limited. (2007).Helping Growing Businesses make Smart E-business Decisions. Coventry; University of Warwick. Paul, T. (2000). Electronic Commerce - Strategies for Business-to-Business Trading. John Wiley & Sons, Ltd. Sachenko, A. (2009). Enterprise Management of Information Technology. Retrieved on 18th June, 2011 from http://www.enterprise-and-Management-of-Information-Technology.htm. Thomas, L. (2004). Measuring Electronic Business: Definitions, Underlying Concepts, and Measurement Plans. California; University of California. University of Pittsburgh. (2003). Computer and E-Business Resource Group Security Guidelines. Macmillan Publishers. Ward, T. (2008). "Planning: An Internet Model for Successful Internet". Retrieved 2011-06-18.  From http://www.prescientdigital.com/l/intranet-articles/intranet-planning-an-intranet-model-for-success. Westfall, J. (2010). "Privacy: Electronic Information and the Business." Santa Clara University. Markkula Center for Applied Ethics, 2010. Retrieved on 18th June, 2011 from http://www.scu.edu/ethics/publications/submitted/westfall/privacy.htm Read More