ADVANTAGES OF INFORMATION TECHNOLOGY IN BUSINESS

Indian entrepreneurs are growing their business remarkably. Entrepreneurs are responsible for taking important decisions such as launch of new products and services, Pvt ltd company registration, marketing decisions etc. With the development of the internet and Management Information Systems (MIS) businesses are transformed from family owned business to international household names. Companies are turning to information technology (IT) and telecommunications networks to keep up with the market competition. This shift has helped companies to boost its performance. Therefore, IT has become important in the business area which helped companies to cut costs, improve communication, build recognition, and launch more innovative and attractive products.

Here are some ways in which IT helps to drive business in the right direction:

IT Streamlines Communication

Communication plays an important role in an organisation. The vast business scope includes recruitment of employees, retaining and leveraging them. All this activities require on-going communication and collaboration. Information technology has the ability to streamline communication both internally and externally in the organisation. Skype, GoToMeeting, and WebEx are online platforms which provide organisations the opportunity to collaborate virtually in real-timeand significantly reducing costs associated with bringing clients on-site or communicating with staff who works remotely. Moreover, Information Technology helps organisation to cross international boundaries and connect with suppliers and customers.

IT Facilitates Strategic Thinking

One of the most important advantages of IT is its ability to increase a company’s competitive advantage in the market with the help of strategic thinking and knowledge transfer. Companies can assemble, interpret and transfer information by accessing and leveraging social networks and subscription databases, Businesses have gained unparalleled access to customers and consumers. This has also helped organizations to deliver new and better products. IT provides organizations with the tools which can be used to evaluate the market and to implement strategies needed for a competitive advantage.

IT Stores and Safeguards Valuable Information

Information management means the storage, preservation, and maintenance of information. This is another domain in which IT stands strong. Information management is important to any business to store and safeguard sensitive information for long periods of time. This information includes financial information, customer database etc.  IT allows companies to store, share, and backup files for Future use. IT also protects information from unauthorized individuals. Therefore we can say that, IT gives the organisations the peace of mind.

IT Cuts Costs and Eliminates Waste

Initially, IT may seem expensive after its first implementation. However, in the long run it becomes incredibly cost-effective by streamlining a company’s operational and managerial processes. One of the classic examples of IT is the implementation of online training programs in the organisation. This ensures to improve an organization’s internal processes by reducing expenses and employee time spent outside the organisation. In effect, IT enables companies to achieve more with less, without sacrificing quality or value.

Customer Growth and Satisfaction

Customer satisfaction is the key to success of a business organisation. A real time customer support process helps organisation to achieve high level of customer satisfaction. The success of any organisation depends on knowledge of itscustomers’ demands, trends, satisfaction, likes and dislikes of them.  The best tool to understand the market demands, problems and their solutions is effective communication.  The Information Technology has made possible to communicate with millions of potential or existing customers in the real time. IT provides various channels to communicate with the customer without stepping out. These channels include email, webinar, social media, member portals, online newsletters and text or multimedia messaging through the smart phone.  Customer relationship management systems (CRM) are used by organisations   to hold valuable data for understanding customer behaviours and future needs.

Resource Management and Globalisation

Resource management plays an important role in success of business. In medium or large organisation, it is very difficult for the top management to manage all the resources manually. These resources include tangible, financial or human resources and many more. IT has helped in automating management of resources by introducing user friendly solutions. A decade ago, resource management solutions were desktop based. Introduction of internet and cloud technology enables software engineers to implement cloud based ERP (Enterprise Resource Planning) solutions, such as NetSuite ERP.

Conclusion:

Managers Indian companies have started to walk on the path of implementation of Information Technology. With the help of Information Technology, companies can cross international business boundaries. Indian companies have started to walk on the path of implementation of Information Technology.

Peter