Role Of Information Technology in Business

Information Technology

JUNE 6, 2022
SHIFNA MOHAMED
MIC07H37-5211
Contents
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Introduction .................................................................................................................................................. 1
Roles of Information Technology in Business .............................................................................................. 2
Communication:........................................................................................................................................ 2
Inventory Management ............................................................................................................................ 2
Customer relationship management ........................................................................................................ 3
Management Information System ............................................................................................................ 3
Advantages of information technology in business ...................................................................................... 3
Storing and Protecting Information .......................................................................................................... 4
Working Away .......................................................................................................................................... 4
Automated Processes ................................................................................................................................... 4
Communication ......................................................................................................................................... 4
Discussion ..................................................................................................................................................... 6
Conclusion ................................................................................................................................................ 7

Introduction
Technology is becoming increasingly vital in our daily lives. It has an impact on individuals,
communities, corporations, and the entire country. In the commercial sector, technology has had a
significant impact. It has made management, manufacture, and marketing of communication goods and
modular types easier. IT refers to the entire industry of information technology. Information technology
drives innovation and innovation is the path to business success. Innovation in business has the same
impact that steam had on the industrial revolution.

The use of computers and software to manage information is known as information technology. It refers
to any aspect of computing technology, including networking, hardware, software, the Internet, and the
individuals that work with these technologies. Many firms now have IT departments to manage their
computers, networks, and other technical aspects of their operations, such as storing information, securing

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information, processing information, delivering information as needed, and retrieving information as
needed. Management Information Services (or MIS) or Information Services are terms for this (or IS).

Roles of Information Technology in Business

In the commercial sector, information technology has become extremely crucial. IT has assisted
organizations, managers, and employees in more effective management, inquiring about a specific
problem, conceiving its complexity, and developing new products and services, so enhancing productivity
and output. A successful business is dependent on many variables, one of which is selecting the correct
technology. A crucial application of technology in business for greater success and communication via a
platform such as software, E-mail, video chat, and many internet technologies. Information technology
aids in the development and expansion of the commercial and business sectors, resulting in the highest
possible output. With advancements in information technology, the time it takes for various sectors to
produce business has been reduced. It offers electronic security, data storage, and effective
communication.

Information technology can assist with:

• Communication
• Inventory Management
• Customer Relationship Management
• Management Information System

Communication:
Communication is critical in the business world for preserving relationships between employees,
suppliers, and customers. As a result, by utilizing IT, we may simplify the way we connect via e-mail,
video chat rooms, or social networking sites. A significant application of information technology in
business is to improve communication. The corporation uses several IT technologies such as e-mail, video
chat, and conferencing software. All of these features enable the company to meet with employees and
other clients in any city and even outside of the country; they can easily hold virtual meetings with clients
and share information with them. It saves the company a lot of time and money that would otherwise be
wasted on travel. All of this makes the company more efferent.

Inventory Management
Organizations must keep enough stock on hand to meet demand while not investing in more than they
need. Inventory management systems use a method of inventory management to identify the number of
each item a company maintains, as well as an order of new stock. It is becoming more crucial as

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organizations must keep enough stock on hand to meet client demand. Using IT in inventory management
will also assist in tracking the number of each item a company retains, triggering when it comes to
inventory management.

Customer relationship management

IT is being used by businesses to improve the way they design and maintain client relationships.
Customer Relationship Management (CRM) systems record every interaction a company has with a
customer, allowing for greater experience gain. If a consumer calls the center and reports a problem, the
customer service representative will be able to see what the customer ordered, examine shipping details,
access the training manual for that item, and efficiently respond to the problem. IT is also assisting in
providing a better consumer experience through better customer service and the use of e-commerce. IT
allows customers to communicate with the company throughout business hours via company websites.
The customer also writes an email inquiring about new products. Tracking consumers allows a company
to observe all sales and customer input regarding products, which helps the company improve their
products. Customers can also do their buying online.

Management Information System

Management Information Systems (MIS) involves the study of people, technology, and organizations, as
well as their interactions. MIS professionals assist businesses in maximizing the return on investment in
personnel, equipment, and business processes. MIS is a people-oriented field with a focus on technology-
enabled service. Data is critical for an organization and a useful resource necessary for safe and effective
care. Data is employed as part of a strategic strategy to achieve the goal and mission. The organization
should then utilize a management information system (MIS) to track sales data, expenditure, and
productivity, as well as information to track profits on a regular basis, maximizing return on investment
and identifying areas for development.

Advantages of information technology in business

Because computerized systems are so widely used, incorporating information technology into
the company is useful. Information technology has enormous benefits in the business
environment, such as allowing organizations to function more efficiently and productively.

The following are some of the benefits of information technology in business:

• Storing and Protecting Information

• Working away

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 • Automated Processes
• Communication

Storing and Protecting Information

Information technology aids in the storing of essential data or documents in order to protect a company's
valuable records. Storage solutions, such as vaults, can help keep information secure by limiting access to
specific users inside your organization who can access, withdraw, add, or alter documents. Another area
where IT excels is in the storage, preservation, and upkeep of information, sometimes known as
information management. Information management is critical for any company that needs keep and
protect sensitive information (such as financial data) over extended periods of time. IT allows businesses
to store, exchange, and backup material for later use, as well as protect data from unauthorized
individuals. As a result, IT provides organizations with the assurance that the data they collect and
analyze will be appropriately kept and safeguarded for future use.

Working Away
The remote network electronics company can be accessed by information technology systems. It enables
working from home or anywhere. This will aid in enhancing productivity even if physical work has been
completed in the office.

Automated Processes
Each organization must develop ways to complete more work in less time. As a result, improve the
efficiency of information technology by implementing automated processes that relieve the stress on your
personnel.

Communication
Communication is critical in the business world for preserving relationships between employees,
suppliers, and customers. As a result, by utilizing IT, we may simplify the way we connect via e-
mail, video chat rooms, or social networking sites. It means that we can communicate with our
staff, suppliers, and consumers from any location. Rapid communications can boost productivity,
improve commercial decision-making, and facilitate a company's expansion into new regions or
countries. Email servers, routers, internal company signage, and chat systems can all function as
the communications backbone for a corporation. These electronic communication platforms are
used to quickly and efficiently distribute routine and vital business information. IT equipment can

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be used to provide executive status reports, keep employees up to date on essential company
projects, and interact with business partners and customers.

Disadvantages of IT in Business
In today's global marketplace, almost every organization, large or small, uses some type of
information technology (IT) to aid operational activities. IT solutions help businesses save time,
establish mobile workforces, and boost client retention through targeted messaging. Despite the
numerous benefits, there are some drawbacks that business owners should consider while
implementing new IT systems.

Technology Security Risks

Cloud-based technologies are becoming the norm in most IT solutions. One reason for the
workforce's mobilization is because of this. Members of the team can work from home, participate
in an online meeting, and access client information via smartphones and other mobile devices.
This ease has a significant risk: security. Criminals have discovered that cyberspace's anonymity
makes it a wonderful place to do criminal activities such as hacking, hijacking, and stealing
company or client data. A cyber-criminal can break into a payment system and divert funds from
legitimate clients to offshore accounts. Customers never receive their orders, and businesses are
forced to cope with the following issue. Another issue is that hackers are holding websites hostage
with ransomware and demanding payment before allowing the organization to resume operations.

Spyware and Personal Information

Spyware that steals personal and private information from consumers or employees is the most
common problem. Hackers then keep the information and utilize it at their leisure for fraudulent
purchases or identity theft. A security risk could be anything as basic as a lost or stolen employee
smartphone that provides access to company programs and information.

Implementation Costs and Regulatory Compliance

It takes time and money to implement new solutions. Typically, business services are disrupted as
new phases of the services are launched. Customers may see a drop in service while the
implementation is underway since more personnel training is necessary. To implement new
software and hardware solutions, businesses typically recruit outside contractors. Despite the fact
that IT solutions have grown more cost-effective as technology has advanced, businesses with

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significant compliance needs must guarantee that they adhere to all regulations or face penalties
and legal action.

Expense
Probably the most significant disadvantage of technology and business is cost. A single computer or
software package, for example, can cost several hundred dollars in 2010. Not only that, but businesses
can't just buy technology once and be done with it; they must constantly update it in order to stay current
with technical norms and advancements. Furthermore, having technology necessitates the hiring of
technical experts to assist with and monitor the technology.

Ethics
According to Gaebler Ventures, some of the technological shortcomings are linked to employee ethical
standards. Employees may, for example, opt to use work time to surf the Internet for personal purposes,
or they may choose to ignore IT protocols because they are having a personal disagreement with
management. As a result, ethics training may help managers overcome some of the downsides of
technology.

Commonness
The widespread use of a technology in the workplace mitigates the downsides of that technology to some
extent. Because so many businesses use the Internet, network specialists are well-versed in how to resolve
network security, speed, and connectivity concerns.

Discussion
We can now see that information technology has become quite significant in today's environment because
it aids in the simplification of daily tasks. As a result, the majority of businesses integrate information
technology in business processes to increase business performance and create a profitable business. E-
mail, for example, was used to communicate information. Businesses can almost instantly obtain news
and updates on market trends and changes in customer needs. IT utilization can aid in cost reduction.
Information technology can analyze specific data and assist in the planning of a business trip based on

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patterns and information offered in the data. IT can also provide firms with a plethora of tools that can
help them tackle difficult business problems and plan for future growth.

Conclusion
Many organizations employ information technology to increase their success because the speed with
which they collect and exchange information utilizing a specific technology allows them to boost their
performance and productivity. However, in this digital age, I believe it is difficult to achieve long-term
economic success without embracing the benefits of information technology. Companies must endure a
reasonable expense to attain this achievement since engaging highly qualified IT specialists and making
the correct judgments at the right time are prerequisites for commercial success. Businesses will continue
to rely on information technology for success as IT solutions improve the productivity, efficiency, and
effectiveness of corporate operations and communication.

References
https://bizfluent.com/about-6318754-disadvantage-technology-business-.html

https://www.linkedin.com/pulse/role-information-technology-business-success-abid-afzal-butt

https://www.business2community.com/tech-gadgets/importance-information-technology-business-
today-01393380

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