What Is the Role of Information Technology in Business?

What Is the Role of Information Technology in Business?

How does IT change the business landscape? In this article, we’ll look at the ways in which IT protects and enhances information, improves communication, and increases competitive scope. IT’s impact is enormous – it can transform the business environment. However, understanding the key role of information technology is important if you’re thinking of entering the IT industry.

Here are some examples. The first example is Louisiana Oil & Tire. This company turned all ten of its salespeople into telemarketers.

IT creates new businesses

As industries move towards more information-based products and services, information technology can lead to new business models. The use of computers to study various variables allows more precise analysis and control over the factors that affect the final product. For example, a computer model helped Hunt-Wesson to make informed decisions about distribution- center expansion. This computer model helped the company evaluate many more scenarios and alternative strategies. Similarly, the use of computers for designing cars helped Sulzer Brothers improve the design of their diesel engines.

Information technology also spawns new businesses within existing ones. A company that has an in-house capability for information processing might have skills and excess capacity that it can sell to outside companies. Sears, for example, took advantage of this skill and sold its services to Mellon Bank and Phillips Petroleum. Another example is A.O. Smith, which developed an expertise in data-communications and won a contract to run automated teller machines.

It enhances communication

Modern communication technology has made work easier and reduced operating costs for businesses. Companies can now communicate instantly and across vast distances, resulting in fewer meetings and reduced decision-making time for managers. This technology has, however, come with a price. It has resulted in the redundancy of some jobs, as well as issues with privacy and the skill level …

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The Use of Information Technology in Business

The Use of Information Technology in Business

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 …

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