In the past four decades or fifty years, the world has seen a huge growth and advancement in the field of IT, which is rising every day, considering the decades of progress. The growth has been huge in so far as you still think about the way you can execute business plans, ventures or other initiatives with a view to using technology. We are not only talking about smartphones and personal computers in relation to information technology; the machinery of manufacturing and automation, aviation, automotive and domestically applied devices are also being discussed. It has also been proven from research that in the United States, 25% of workers work from home for a better part of the year and another 25% work while moving (Berisha-Shaqiri). This is only one example of effects of Information Technology and the Internet in general. In the business field, IT has been used to yield a lot of benefits ranging from cost reduction, product promotion, general growth just to mention but a few. The business field and other aspects of life in the recent years have computerization and globalization, the latter being the ability to carry out the integration of economic and cultural institutions, which is as a result of the application of IT.
Positive Impacts of Information Technology on the Business World
Internet as a resource.
The modern world considers Information Technology as the driving tool in the accomplishment of business activities. This is as a result of IT having the ability to drive efficient goods production through services and information systems that are computerized. The internet is therefore considered as a major component in the present day business, information, and communication technology due to its power of connectivity and the services it provides (Berisha-Shaqiri). The internet is applied in learning, marketing, commerce, finance and research fields among others. It is, therefore, a major contribution when we mention the term “Information Technology.”
Marketing and Business Growth
Marketing is an essential aspect of a business, which none can survive without having to pull the strings of marketing. It is regarded as the heart of any business. The business’ target audience is reached through marketing after a close analysis of their needs, requirements, preferences, and needs. Information Technology has its effect on marketing, an eventuality that has come to be known as “digital marketing”. Through digital marketing, businesses can promote their products and services throughout the entire world and reaching millions of targeted customers (Butt). Services that promote this include marketing through social media, bulk SMS and MMS, emails, blogging, search engine optimization and advertisement through the internet, with an example of google ads. The internet, in general, has a very big role to play when it comes to marketing, and every business that targets long-term success will or is doing digital marketing.
Communication that is robust goes a long way in increasing productivity. With Information Technologies new approach to communications. The effectiveness that comes with it is limitless and benefits unlimited. The technologies that have brought great changes include emails, social media, Voice-Over-IP (VoIP), video conferencing among others. All types of communication, e.g., vertical and horizontal can now be achieved when people are anywhere, and this ensures effective running and management of businesses (Acevedo). The communication systems that are electronically based are effective, efficient and quick in information dissemination. Information can also be scheduled to be sent automatically as updates and reports to employees and executives respectively.
Decision making is an important and essential aspect of any business. Being one of the key factors, it has to be done effectively and accurately. It is always advantageous if decisions are made speedily. Reports obtained from activities such as market research are forwarded to the management for decisions to be made, on whether or not to engage in certain activities. The market research processes are majorly conducted through surveys, majorly done online (Butt), group discussions, blogs, and forums. There are currently tools that also provide reports such as google analytics, and of course, the personal interviews are not to be forgotten. The tools mentioned here are used online, and they not only real-time data collected and response but are also accurate, information which is majorly relied upon in decision-making.
Globalization and Resource Management
Resource management is an important factor in management and the overall success of any business. It is usually tough for management in medium and large organizations to manually manage all the resources which may range from human resources, financial, physical property, etc. Information Technology has a significant role in the automation of resource management. Businesses and companies are now migrating from the desktop-based resource management to cloud-based, an advance which centralizes everything in the company’s possession making management a lot easier. The information can, therefore, be accessed and managed from anywhere using any device (computers, smartphones, tablets, etc.) (Butt).
Customer Support and Satisfaction
Information Technology offers real-time customer support processes. This enables businesses to know customer satisfaction and needs among others. Through the internet, communication to the various customers has been made easier and reaching clients to know their concerns can now be done effortlessly, thanks to IT’s platforms such as newsletters, emails, social media just to mention but a few.
Threats and Risks that Information Technology poses on Businesses
Information Technology comes with itself the digitization of data. This is whereby the data is stored in digital formats in servers, computers, etc. in the past few years, there has been a proliferation of cyber-attacks on companies and organizations which have led to losses of highly critical data and also companies being held ransom by hackers. Data security is the major concern when it comes to IT, with the hackers trying to come up with new ways on how to steal data as days go by. Despite the good and advantageous things that come with advancement in technology, we will always face threats and risks of data loss due to cyber-crime (Henderson).
When businesses are switching from one business to another, it is always an expensive venture. The cost of software and hardware and requirements from some of the software vendors that licenses need to be purchased is always expensive. Regardless of these, technology is always changing, and businesses will be required to always switch to the newest technology, a practice which is always expensive. There is always no guarantee that the technology that one is using will still be top-notch in five or even two years-time. Plus the cost of hiring technical expertise is always a factor, a changing factor with time (Morrison).
From the discussion presented, it is evident that Information Technology has many positive effects on businesses than the shortcomings that come with it. The benefits that a business will gain after it has embraced IT are limitless, compared to the threats, which in some way others like cyber-crime may never occur if care is taken in the daily operations of the business. It is therefore advisable that a business embraces Information Technology, for it to enjoy the successes.
Acevedo, Laura . Business Benefits of Information Technology. 2017. Web Page. 28 September 2017.
Berisha-Shaqiri, Alferdita. “Impact of Information Technology and Internet in Businesses.” Academic Journal of Business, Administration, Law and Social Sciences (2015): 73-76. Document.
Butt, Abid Afzal. The Role of Information Technology in Business Success. 14 May 2015. 28 September 2017.
Henderson, K J. The Disadvantages of Information Technology in Business. 2017. Web Page. 28 September 2017.
Morrison, Nick . Rapid Technological Change Is The Biggest Threat To Global Business. 9 February 2017. Web Page. 28 September 2017.