In the business context, information technology is all about the application of computer operations to business processes. In recent times, IT has replaced the traditional modes of businesses with innovative technologies. This has boosted the performance of businesses enormously and saw the emergency of new business innovations in many areas.
Higher level of Productivity
The use of Information technology applications enable businesses to carry out their functions more effectively in the place of work. Such IT applications include spreadsheets, database software, word processors, statistical analysis software and computer aided designing (CAD) tools. Employees can carry out their task independently, effectively, faster and more accurately with the use of these technologies.
Enhanced Enterprise Processes
Available IT systems can handle entire business processes for big enterprises. Such technologies connect and centralize all business activities using large computer servers. Some major advantages of these technologies are proper planning, efficiency, easy forecasting and control and of course increased profit.
Enhanced Management and Administration
With the range of management information systems (MIS) available today, businesses can improve their business management strategies, make informed decisions that can skyrocket their profits and productivities with less efforts and reasonable timeline.
Information technology management tools can be applied to different areas of management including human resources, information, marketing and finance.
Networking and Communication
The use of IT networks enables effective communication within or outside a business environment. For instance, the use of e-mails, instant messaging (IM) and electronic conferencing has enhanced uninterrupted communication for businesses with multiple offices. Networking technologies aid collaboration and interaction between businesses and clients and also make quick information flow between the two parties achievable.
Electronic Commerce and Globalisation
A major advantage of Information technology to business is e-commerce – electronic buying and selling. E-commerce gave room for businesses to expand locally, nationally and globally by removing time, distance and language barriers. Organisations can now do businesses across the world, hold meetings with prospective clients and partners via the Internet. Small businesses can reach wider audience, grow into global empires and utilize competitive advantage.
New Technology Innovations
The use of IT has brought about new technology innovations and therefore new businesses; these include creation of virtual shops, markets and virtual homes. Also; think of all the innovative i-products such as iPods, iPhones, iTunes and iPads.
Although the advantages of Information Technology in business are immense, it is very important to note some of its major disadvantages; these are security threats brought about by creation of malicious software programs known collectively as malware. These threats include identity theft, damage to computer systems and possible destruction and loss of invaluable data and information. The good news is that technologies continue to advance and as such produce anti-malware programs to reduce the risks to the barest minimum.