Meta: Information technology started in the 1980s with desktop computers, and now companies rely on IT for everything, be it market intelligence, data processing, or fast communications.
Information technology has a great role in helping companies in improving business processes, in every industry, drive revenue growth, achieve cost efficiencies, and maintain a competitive advantage.
6 main business objectives that IT helps achieve
- Information Technology in Product Development
Reaching the market fast is possible with information technology taking to new products. Companies can gather market intelligence from sales representatives, customers, and proprietary databases. The decision-making is faster with manufacturing software and computer-assisted design, while collaborative technologies facilitate global teams working with different components simultaneously. Information technology helps efficient drug delivery systems to innovations in microprocessors by responding to businesses quickly by changing customer requirements.
- Information Technology in Stakeholder Integration
Another important information technology objective is stakeholder integration. The 24/7 global connectivity now allows customer service to originate and reach a call center in the exact location so that a service agent looks up on the servers for relevant information as per the headquarters information. Public companies employ their investor relations websites to communicate with research analysts, shareholders, and other market participants.
- Information Technology in Process Improvement
IT’s key business objective is process improvement. The ERP systems permit managers to review, costs, sales, and other metrics operating on software and integrate the platform in real- time. The advantage of the ERP system is it replaces le legacy systems in dozens and works for human resources, finance, and other functional areas, thereby making the internal processes cost-effective and more efficient.
- Information Technology and Cost Efficiencies
The initial costs of IT implementation may be substantial, but you can see the cost savings in the long term, and it is worth the investment. Information technology will reduce the implementation costs and the transaction costs. For instance, a desktop computer today is much lesser to that it was in the 1980s early periods and the computers now are more powerful. The solutions IT-based facilitate word processing to productivity, email, communication, accounts, human resource, sales, marketing, and lots more, saving on the postage and duplication costs. However, there is product quality improvement, good maintenance, and customer service.
- Competitive Advantage and Cost Savings
Information technology improves processes resulting in rapid product development. It helps companies in gaining a competitive advantage, and to enjoy cost savings. A smartphone competitor announces touch screen features, and the competitors follow suit to avoid the risk of losing market share. Businesses mostly use software simulations, rapid prototyping, and other IT-based systems to ensure the market is cost-effective.
- Information Technology in Globalization
Companies survive in a competitive environment and have financial and operational flexibility to grow nationally, locally, and internationally. The core operating models required for globalization are outsourcing and telecommuting. Companies can outsource their non-core functions such as finances and human resources to offshore companies, while they stay in contact using the network technologies with their overseas suppliers, customers, and employees.