Advantages of Information Technology

Information Technology department Icas Network  consisted of a single Computer Operator, who might be storing data on magnetic tape, and then putting it in a box down in the basement somewhere. 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 in 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 a crucial decision regarding the operations of their organization.

What is Information Technology?

Information or Internet Technology can come in the form of computers, robots, sensors, and decision support systems. The newest form of Information & Technologies which is 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 and developed largely as a result of 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 in shaping both the business world and our society in general. Many fields have been impacted by information technology and these include; education, health, entertainment, communication just to mention but a few. The impacts of information technology are profound. As the world develops, more technology will emerge, and this technology will have both positive and negative impacts. Below I have detailed points showing you how information technology has impacted our lives.

READ MORE :

 

Information technology is the use and application of the computer system to process, manage and distribute information. Use of 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

ADVANTAGES OF INFORMATION TECHNOLOGY IN BUSINESS

  • Increases production and saves time: Business use technology to automate tasks.  A good example is a bakery which uses automated temperature sensors 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 the 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, databases just to mention but a few. 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. Also, it saves on paperwork and makes transfer and access of data remote. With services like ‘’Dropbox.com’’, business owners can access their data anytime anywhere. Information and data are critical tools for business, so it is 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 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 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 costs of operation, then their ROI will increase which will result in 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 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, 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 a competitive advantage over their competitors.  A business will improve on its technology and improve its services and products which will make its customers happy; this will turn this happy customer loyal to that business and also invite more friends to use that service or product.
  • Improves on business automated processesIn 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 the 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.
  • Improve Work RemotelyIT 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.
  • Increase CommunicationCommunication 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.

ADVANTAGES OF INFORMATION TECHNOLOGY IN PURCHASING

ADVANTAGES OF INFORMATION TECHNOLOGY IN PURCHASING

  • Credit Cards and Smart Cards: Buying and selling of 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, and they give us an easy way to pay them if the amount looks correct.  In this, there is the need for billing companies to send our bills in the mail. It saves time for both parties.

ADVANTAGES OF INFORMATION TECHNOLOGY IN SOCIETY

ADVANTAGES OF INFORMATION TECHNOLOGY IN SOCIETY

  • Improved innovation: Technology has played a big role in job creation and emerging of technology-based companies. With access to a computer and the internet, anyone can start an business while at home. Most successful technology-based ventures like Google / Amazon / Facebook, to mention but a few, started from home but now they employ thousands or 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, the list is endless.
  • Improved social discovery:  Finding both old and new friends has become very dull. With social networks like Facebook and Twitter, you can easily keep up with all your old friends and also 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 the journalist, so they report news on the instant by twitting. Services like Wikipedia.org are well equipped with data on about anything.

ADVANTAGES OF INFORMATION TECHNOLOGY IN EDUCATION

ADVANTAGES OF INFORMATION TECHNOLOGY IN EDUCATION

  • Online education has made educational material and data accessible anywhere: The use of Internet technology has opened institutional boundaries; this has benefited students from developing countries have a chance to study relevant courses which increase their chance of getting high paying jobs international.
  • New methods of education have been created: Use of educational video games and puzzles has increased students interest in learning. Basing 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

ADVANTAGES OF INFORMATION TECHNOLOGY IN BANKING

  • Online Banking: Many banks have integrated advanced information technology systems to improve their customer service. Today, it is very easy to withdraw money using an ATM card or smart money card; this saves customers from wasting time lining up in banks.
  • Fast Credit: Technology used in banks helps in the gathering of financial details and credit scores about each customer, the information gathered can be utilized when a customer applies for credit in that bank.