Information technology (IT) is the application of computers and internet to store, retrieve, transmit, and manipulate data or information, often in the context of a business or other enterprise. IT is considered a subset of information and communications technology (ICT).
In a business context, the Information Technology Association of America has defined information technology as “the study, design, development, application, implementation, support or management of computer-based information systems”. The responsibilities of those working in the field include network administration, software development and installation, and the planning and management of an organization’s technology life cycle, by which hardware and software are maintained, upgraded and replaced.
The business value of information technology lies in the automation of business processes, provision of information for decision making, connecting businesses with their customers, and the provision of productivity tools to increase efficiency.
Important Objectives of Information Technology in Business
objectives of information technology 6 Important Objectives of Information Technology in BusinessInformation technology plays an important role in today’s business world. Majority of the companies rely on this for the purpose of data processing, fast communications and acquiring market intelligence. Information technology helps business improve the processes of business it drives revenue growth, helps them achieve cost efficiency and more importantly, ensures they increase revenue growth while maintaining a competitive edge in the market place. As a business owner, you have to decide whether information technology is for you or not and the only way to do this is by looking at some of the factors that make it essential. These can be as highlighted below.
- Integration of Stakeholders
This is one of the most important objectives of this concept and this is for the simple reason it ensures you enjoy great interconnectivity. Through investor relation websites, companies are able to communicate with their research analysts, shareholders and other important market holders for the purpose of staying ahead in business.
- Products Development
The duration it takes for products to get into the market can be easily speeded up with this type of technology. This is for the simple reason it makes it possible for the majority of companies to write documents for product requirement through gathering the best market intelligence from customers, proprietary databases as well as sales representatives. It is through this that businesses are also able to get manufacturing software and computer software which makes it easy to speed up decision making. All manner of businesses are at liberty to enjoy these benefits and what is more, it also ensures they get platforms for adhering to the changes noted in customer requirements.
- Process Improvement
This is another key benefit associated with information technology. They can get enterprise resource planning systems (ERP) which make it easy for managers to review costs, sales and any other types of operating metrics on a software platform that is fully integrated and in real time.
- Increased Cost Efficiency
The initial costs of implementing this kind of plan can be quite high and while this is the case, the resulting benefits are rewarding since they can be enjoyed in the long term. Through this, businesses are able to reduce implantation and transaction costs and what is more, they end up getting solutions that are production oriented. When it is used effectively, it also ensures that the customer service and quality of products are not compromised and this helps by increasing the benefits enjoyed by the company.
A competitive environment is essential for the majority of businesses to succeed and it is for this reason that information technology comes in handy. It exposes businesses on an international and local level making it easy for a competitive environment to be created. It helps by integrating different aspects together to ensure that the business is placed at the forefront as far as the provision of quality services goes.
It is for all these reasons and more that information technology will continue to attract the attention of the majority of business people. It not only gives them the chance to save on operation costs but also gives them a competitive edge.