Advantages of Information Technology

The information technology department of Icas Network consisted of a single computer operator who might be storing data on magnetic tape and then putting it in a box somewhere in the basement. The history of information technology is fascinating. Information technology is driven by the demands of the new, competitive business environment on the one hand and profound changes like computers on the other. Information technology systems come in the shape of many technologically advanced devices, which help deliver important to managers who, in turn, use this information to make crucial decisions regarding the operations of their organization.

Information or Internet Technology can include computers, robots, sensors, and decision-support systems. The newest form of Information and Technology being implemented on the market today is the use of handholds to aid managers and subordinates in their day-to-day operations. Computer Technology Auditing (Information technology auditing) began as Electronic Data Process (EDP) Auditing. It developed largely due to the rise in technology in accounting systems, the need for Information technology control, and the impact of computers on the ability to perform attestation services.

What is Information Technology?

Information technology has helped shape both the business world and our society. Many fields have been impacted by information technology, and these include education, health, entertainment, and communication, to mention but a few. The impacts of information technology are profound. As the world develops, more technology will emerge, which will have both positive and negative effects. Below are detailed points showing how information technology has impacted our lives.

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Information technology is the use and application of a computer system to process, manage, and distribute information. IT, in this context, involves both the hardware and software components. Some major advantages of Information Technology in various areas are listed below:

ADVANTAGES OF INFORMATION TECHNOLOGY IN BUSINESS

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

• Improves communication through communication technology: With the help of communication technology tools like phones, video conferencing, electronic mail, and databases, to mention but a few. The movement of information within 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. This saves on paperwork and makes data transfer and access remote. With services like Dropbox.com, business owners can access their data anytime, anywhere. Information and data are critical tools for businesses, so it is essential to store them safely and access them at any time of need.

• Improves financial management: Accounting software like Quick Books, Bookkeeper, Sage 50, and Account Edge can be used to perform various accounting tasks in business. Business owners can easily balance their books with less experience in accounting because they are well-equipped with every tool needed in accounting; they also have a help section that wthatcan be referred to if 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 businesses have found ways to use social technology to increase 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 operation costs, their ROI will increase, resulting in business growth.

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

• Improves on business competitive advantage: Companies have used technology to gain a competitive advantage over their competitors. A business will strengthen its technology, services, and products, making its customers happy; this will make the customers loyal to that business and invite more friends to use that service or product.

• Improves on automated processes: In business, people look for ways to do more work in a shorter 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 the burden off your staff. Your employees can work on other things while the computer runs their reports, creates queries, tracks projects, and monitors financials.

• Improve 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 increases your productivity because you can still get work done, even when you aren’t physically in the office.

• Increase Communication: Communication is essential to the business world, and information technology gives your company the resources to communicate quickly and effectively. Your IT department can hook employees with email, video conferencing equipment, and internal chat.

ADVANTAGES OF INFORMATION TECHNOLOGY IN PURCHASING

• Credit Cards and Smart Cards: Buying and selling goods and services have become simple because of these smart cards. A user can go to a merchant’s website and make an order using their smart card or credit card. The money will be transferred from the consumer’s account to the merchant’s account in seconds, and then the merchant will deliver the item to the consumer’s address. This saves time for both parties.

• Electronic Bill Presentation and Payment:  (EBPP) systems send us bills over the Internet, giving us an easy way to pay them if the amount looks correct. In this, billing companies need to send our bills in the mail. It saves time for both parties.

ADVANTAGES OF INFORMATION TECHNOLOGY IN SOCIETY

• Improved innovation: Technology has played a big role in job creation and the emergence of technology-based companies. With access to a computer and the internet, anyone can start a business while at home. Most successful technology-based ventures, like Google, Amazon, and Facebook, to mention but a few, started from home, but now they employ thousands of people.

• Improved entertainment: Technology has changed the entertainment industry. Nowadays, we have many options to choose from. You can have a playlist of 10,000 songs in your palms with an iPod; you can watch movies on the go with an iPad, and the list is endless.

• Improved social discovery:  Finding old and new friends has become dull. With social networks like Facebook and Twitter, you can easily keep up with all your old friends and make new ones.

• Globalization of knowledge: Today, you can use the internet to get the latest news from any country on the globe. Services like Twitter have enabled people to become journalists, so they report news instantly by tweeting. Services like Wikipedia.org are well equipped with data on about anything.

ADVANTAGES OF INFORMATION TECHNOLOGY IN EDUCATION

• Online education has made educational material and data accessible anywhere: Internet technology has opened institutional boundaries; this has benefited students from developing countries to study relevant courses that increase their chances of getting high-paying jobs internationally.

• New methods of education have been created. The Use of educational video games and puzzles has increased students’ interest in learning. Based on research, students enjoy learning with technology. Many schools have started providing free internet on the school campus. This helps students do research and learn as individuals without getting any help from their teachers.

ADVANTAGES OF INFORMATION TECHNOLOGY IN BANKING

• Online Banking: Many banks have integrated advanced information technology systems to improve customer service. Today, it is very easy to withdraw money using an ATM card or smart money card, saving customers from wasting time lining up in banks.

• Fast Credit: Bank technology helps gather financial details and credit scores about each custome. The information gathered can be utilized when a customer applies for credit at that bank.