Information Technology is transforming business management.


While carrying out a company's regular activities, business managers face several problems. Among the issues that business managers encounter is the development of information sharing systems. Information technology is a critical component in today's corporate climate. Information technology is the use of computers to alter, transmit, retrieve, and store data, typically in the setting of business. For many years, people have been communicating, manipulating, retrieving, and storing information. Sharing data and information across departments is critical to success. Managers must streamline and regulate an organization's information flow (Melville, Kraemer, & Gurbaxani, 285).

Information Technology as a Transformative Phenomenon

Information technology is a relatively new phenomena that has drastically transformed industry and individuals worldwide. A microchip is used to drive information technology. Leveraging information technology for enterprises success is crucial to survival in the current business world. Information technology has advanced to access the business world, influencing how firms market and produce their products. Specialized software has constantly changed the face of business in every aspect. Every shop, corporation, and a brand has some interests in social media for various reasons. Social media allows for direct communication between the entrepreneur and customers. Currently, “The Cloud” a very important part of business management as it offers to share data and resources on demand (Turban, Leidner, McLean, & Wetherbe 88).

Information Technology tools and Fundamentals

An organizations information technology tools are created on a framework of linked devices each running software applications that transmit information and store data. The devices can be joined through wireless broadcast networks or wire transmission. With several mobile communications, wireless communications can promote employee connectivity. In the framework, a network of connected terminals exists where data is the input and programs are used to display the shared information. A database is also an information technology tool that stores information for report generation, sorting, and retrieval. The database enables each departmental manager to monitor historical and current data and reports to the senior management. A database uses queries to distribute information. A central database is responsible for providing a unified source of information, and modular software programs conduct sharing and retrieval functions. However, for an effective operation to be achieved, these programs should be integrated so that software from different vendors can be easily incorporated and each company activity can access similar information in real time. The three main types of networks in business include wireless local area network, wide area network, and local area network (Peppard, & Ward 1).

Usage of Information Technology Tools in Business Management

Work processes can be more streamlined by using technology to share information and data, while planning can happen through automated reporting mechanisms. The information technology tools including software, hardware, and devices are created to improve business performance and integration. As organizations become more multidimensional, activities like human resource management, inventory control, customer relationship management, and enterprise resource planning become more dependent on information technology (Turban, Leidner, McLean, & Wetherbe, 92).

Information Technology Managers and Enterprise Resource Planning

Information Technology managers are needed in an organization for it to be able to execute and plan its mission. Through information technology, data can be grouped, categorized, and sorted in ways to determined projected output. Currently, big multidepartmental firms depend on information technology to develop enterprise resource planning. This approach to information distribution started in the 1960s by manufacturers seeking to coordinate delivery data, production, and planning. Enterprise Resource Planning coordinates the activities involving back-end and frontline operations. It can help an organization with training activities, performance management, and professional development. As managers access data from different parts of the organization, they can analyze the pros and cons of vendors and suppliers, weak or strong performance areas, and other vital information that can assist manage the operations and deliver quality customer experience.

Streamlining Human Resource Management

The human resource department has administrative functions that can be streamlined by a human resource management program. This is an IT system that can store data such as salary, accomplishments, skills, and employment history as well as tracking employee records. The human capital of a company can be measured, forecast, and reviewed through the human resource management program. This program has five main areas such as payroll, work time, benefits administration, human resource information system, and recruiting (Melville, Kraemer, & Gurbaxani, 301).

Optimizing Financial Management through Accounting Information Systems

Managers can instantly evaluate organizations critical information such as investments, revenues, payroll, purchases, and expenses when financial data is recorded in an accounting information system (AIS). Journal entries and general ledger instantly marked to the account and can be easily reported to senior management. Various software modules allow the ledger to link areas such as fixed assets, accounts receivable, and accounts payable. In these accounts, data is input, and it flows to the general ledger. Various accounting platforms incorporate billing documents, purchasing details, time records, and inventory counts with ledger entry systems for immediate determination of each transaction. This allows an organization to make financial decisions faster than usual (Turban, Leidner, McLean, & Wetherbe, 73).

Enhancing Inventory Control Systems

Furthermore, the information technology tools can be applied to inventory control systems. Warehouse activities often use an inventory control system made of software and hardware to monitor location, status, and quantity of inventory. Storing, receiving, and shipping activities are directed by data input at different stages of product handling. The system minimizes out-of-stock situations, under-stock, and overstock since management can instantly evaluate storage and counts conditions.

Efficient Vendor Management Systems

Information technology tools can be used in vendor management systems. This system provides a platform to manage the process of payment, ordering, and contracting of a workforce when a company requires additional temporary help to meet its demands. Human resource personnel employee the system to monitor temporary staffing effectiveness, customize staff requirements, provide a screening mechanism, and recruitment strategies. The system is commonly a web-based application that permits the user to enter pay scale, job requirements, candidate criteria and other variables (Fitzsimmons, Fitzsimmons & Bordoloi, 22).

Effective Sales Force and Marketing Management

Besides, information technology can be used in sales force and marketing management. Salesforce automation (SFA) is a technology tool that reports and records activities. SFA can be combined with marketing information systems (MIS) to guide the organization’s customer relationship efforts. SFA system is responsible for reporting and recording opportunities in distinct sales cycle stages. Furthermore, contact management system (CMS) records follow-up strategy, contacts made, and the result of the contact for particular customers and prospects. SFA can help sales agents to forecast sales volume, target opportunities, and to track leads. In some cases, customers can change request and place an order from a remote location. For instance, someone who wants to buy a car can choose engine size, features, and color from an online car dealer. However, the SFA system prevents duplicate contacts with the consumer for a similar purpose from different departments. The MIS records schedules, available marketing channels, and campaign results. Incorporating SFA with MIS, marketing managers can schedule activities with the sales force enabling the organization to manage customer or sales service resources during a campaign. Marketing information systems collect the variables used in the marketing plan such as channel, frequency, placement, and pricing. Therefore, business managers can evaluate research such as survey responses and report outcomes to senior management (Peppard, & Ward 1).

Improved Customer Relations Management

Information technology has also changed the customer relations management. Creating customer satisfaction is one of the advantages of successful information technology integration. The main aim of the customer relations management system is to create a dual channel for communicating with customers and prospects, both internal and external. The main goal of customer relations management integration with back-end activities is to share customer information for the demand to be met consistently and for departments to understand the requirements and forecast goals. Incorporating the customer relations management with other departments, miscommunications about requests and orders can be reduced. The company can focus on marketing efforts and managing sales by implementing a customer relations program to affect the customer behavior (Fitzsimmons, Fitzsimmons & Bordoloi 16).


Business managers recognize the importance of keeping up with new technology tools that could make their company more profitable, more efficient, and run smoother. The advancement of computer software and hardware has significantly improved business capabilities in numerous ways. The information technology tools including software, hardware, and devices are created to improve business performance and integration. Information technology is a recent phenomenon that has significantly revolutionized business and individuals across the world. Business continues to depend on information technology for success. Therefore, business managers should no stop seeking ways to improve their business through information technology applications.

Works Cited

Fitzsimmons, James A., Mona J. Fitzsimmons, and Sanjeev Bordoloi. Service management: Operations, strategy, and information technology. New York, NY: McGraw-Hill, (2008): 4-33

Melville, Nigel, Kenneth Kraemer, and Vijay Gurbaxani. "Information technology and organizational performance: An integrative model of IT business value." MIS quarterly 28.2 (2004): 283-322.

Peppard, Joe, and John Ward. The strategic management of information systems: Building a digital strategy. John Wiley & Sons, (2016): 1

Turban, Efraim, et al. INFORMATION TECHNOLOGY FOR MANAGEMENT, (With CD). John Wiley & Sons, (2008):70-98

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