Information Technology

Stands for "Information Technology," and is pronounced "I.T." It refers to anything related to computing technology, such as networking, hardware, software, the Internet, or the people that work with these technologies. Many companies now have IT departments for managing the computers, networks, and other technical areas of their businesses. IT jobs include computer programming, network administration, computer engineering, Web development, technical support, and many other related occupations. Since we live in the "information age," information technology has become a part of our everyday lives. That means the term "IT," already highly overused, is here to stay.

Advantages and Disadvantages of information technology in Business

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• Increases production and saves time: Business use technology to automate tasks.  A good example is a bakery which uses automated temperature censors to detect any drop or increase in room temperature in a bakery. These censors will send information directly to the operator and report any temperature change. This saves the bakery time and it also results into quality products.

• Improves communication through communication technology: With the help of communication technology tools like phones, video conferencing , electronic mail, databases just to mention but a few. Movement of information with in an organization or business has become easy and first. Employees can easily move information across departments without having any interruptions. Tools like electronic mail , e-fax, mobile phones and text messaging enhance the movement of information among employees , customers and business partners or suppliers.

• Improves data storage and file management: Businesses use cloud hosting services to store and backup business data. Also it saves on paper work and makes transfer and access of data remote. With services like ‘’Dropbox.com’’, business owners can access their data any time any where. Information and data are very important tools for a business, so it is very essential to store them safely and also access them at any time of need.
• Improves financial management: Accounting software like Quick Books , Bookkeeper , Sage 50 , and Account Edge  can be used in performing various accounting tasks in a business. Business owners can easily balance their books with less experience in accounting because these software’s are well equipped with every tool needed in accounting and they also have a help section which can be referred to  in case a user is stuck.


• Cuts costs of operation and increases on RIO – Communication technology and social technology have made business promotion and product launch affordable. Many small business have found ways to use social technology to increase on their brand awareness and get more clients at a minimal cost. In business, factors like cost of operation play a big role in the development and growth of that business. So when businesses use information technology to cut down on costs of operation, then their ROI will increase which will result into business growth.


• Improves business to consumer relationship – Businesses have embraced the social technology to interact with their consumers and fans. This creates a strong business to consumer relationship and it results into business growth and expansion. Information technology can be used to improve customer service in so many ways. For example, businesses can use internet to inform their customers about great deals and discounts, this makes customers feel special and it can drive their desire to buy. A good customer service can be used as a great tool by any small business to gain competitive advantage.


• Improves on business competitive advantage: Companies have used technology to gain competitive advantage over their competitors.  A business will improve on its technology and improve on its services and products which will make its customers happy, this will turn these happy customer loyal to that business and also invite more friends to use that service or product.

Information technology (IT) benefits the business world by allowing organizations to work more efficiently and to maximize productivity. Faster communication, electronic storage and the protection of records are advantages that IT can have on your enterprise. Information technology has to do with computer applications, on which nearly every work environment is dependent. Since computerized systems are so widely used, it is advantageous to incorporate information technology into your organization.

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Storing and Protecting Information

Information technology creates electronic storage systems to protect your company's valuable records. According to the Graziadio Business Report, published by Pepperdine University, secure maintenance of customer and patient files is vital to business integrity. Storage systems, such as virtual vaults, keep information safe by only allowing certain users within your company to access, withdraw, add or change the documents. According to an article in Science Daily, IT security engineering systems protect your electronic information from being hacked, or wiped out during a technological disaster. Electronic security engineering means your valuable records will remain untouchable.

Automated Processes

In business, people look for ways to do more work in a shorter amount of time. A November 2000 newsletter published by the Federal Reserve Bank of San Francisco explains that information technology improves your company's efficiency by developing automated processes to take burden off your staff. In turn, your employees are free to work on other things while the computer runs their reports, creates queries, tracks projects and monitors financials.

Work Remotely

IT systems give you remote access to your company’s electronic network, so that you can work from home or on the road. This accessibility allows you to increase your productivity because you can still get work done, even when you aren’t physically in the office.

Communication

Communication is essential to the business world, and information technology gives your company the resources it needs to communicate quickly and effectively. Your IT department can hook your employees up with email, video conferencing equipment and internal chat rooms, so that they always have an efficient way to conduct business and communicate.