The use of information technology in business has a wide range of benefits for businesses. In addition to enhancing product performance, it can also help companies develop new industries. By lowering costs, businesses can take advantage of information technology’s scalability and sell extra capacity to third parties, generating new revenue and improving their competitive position.
Below are some of the benefits of information technology in business. To learn more about these benefits, read on!
Enhances product performance
IS technology is changing the rules of competition. Once an aerospace supplier competed on the basis of quality, rush orders, ability to meet customized requests, and cost, IS technology has radically changed the rules of the game. A new CAD-to-CAD link and the use of numerically controlled machine tools have negated the value of differentiation, and overall cost is now more important than ever. The following are some examples of how IS technology has changed the rules of competition.
Increasing business efficiency. Investing in information technology can improve the productivity of companies. IT can improve efficiency and productivity, but its value is dependent on a number of external and internal factors. For example, IS can reduce the amount of work that humans must do by eliminating human middleware. Furthermore, IS can help companies make more informed decisions based on market research and customer feedback. For example, IT can help companies make better marketing decisions, since online advertising can measure clicks and provide better information.
Speeds up market for new products
By speeding up the market for new products, information technology helps companies identify customer needs more quickly. By increasing the efficiency of production and responding faster to changes in the environment, companies can increase their market share. In fact, IS technologies can cut costs by more than half and reduce inventories by as …The Use of Information Technology in Business Read More