Loyze Emanuelle P.

Sesaldo 3070 IT 1 June 28, 2021

Effects of IT in Business
According to ND Century Code, Information Technology refers to the use of
hardware, software, services and supporting infrastructure to manage and deliver
information using voice, data and video. Information Technology has made a great
impact in making our lives easier. Businesses is also no exception.
According to Capgimini Company (2018), the following are the positive effects of
Information Technology to businesses:
1. The reduction of occupational risks and accidents at work
Information & technology makes it easier and quicker for entrepreneurs to collect
information, implement security procedures and to reach a colleague more easily.
2. Refocusing on activities with higher added value
The dematerialization of documents reduces certain repetitive tasks in the
administrative or commercial business and offers more time to devote to the interface
with the customer.
3. Professionalization
The development of Information Technology, and social media makes it possible
for businesses to give and access real-time information to those who needed it and
when needed, respectively. As a result of this, businessmen are able to make sound
decisions that can benefit the business in a shorter period of time. IT also promoted a
new way to conduct meetings and conferences remotely, which has been helpful for
business amidst the pandemic.
4. The reconciliation of private life and professional life
In the present time, people can work from home with the help of IT. This gives
them more time to catch up on their unfinished business at the office. Consequently,
this also gives them more time to be with their selves or their family.
5. Renewal and expansion of work collectives
The development of IT made the collective work more extended and more
organized. With the integration of workflow systems and ticket management system,
employees can consult and know the administrative routing and the state of the
information which fortifies the teamwork without excluding the informal one.
6. The development of collective intelligence
Social networks foster the emergence of negotiated solutions that can take the
form of new practices, new structures and innovative products.
 Steven Scheck also stated the effects of IT on businesses. These are:
1. Cloud Computing
Cloud computing utilizes information technology to capitalize on its ability to
provide improved agility, time and resource management for businesses. Ed Anderson,
a research VP at the analyst firm stated that cloud-first strategies are the foundation for
staying relevant in a fast-paced world.
2. Automation of Business Processes
Automation of business processes improves efficiency and increases workflow
considerably. This helps businesses reduce the cost of operation and speed up
business processes significantly.
3. Mobile Technology
Mobile technology takes business communication to a whole new level. Mobile
technology sped up business processes. This results to an improvement of workplace
productivity.
4. Protecting Information
Development of IT can keep information safe by allowing a limited number of
users to access these. Increased protection also ensures that these systems are not
hacked and are not compromised. Hence, IT helps in upholding business integrity.
5. Providing Customer Satisfaction
IT provides the best tools for communicating with customers and solving their
problems in real-time. It is important to keep customers happy because a happy
customer-base plays an important role for the growth of the business.
6. Management of Resources
Management of resources may be difficult, especially for large organizations. IT
plays a vital role in managing these resources effortlessly by introducing a wide range of
feasible solutions. Enterprise Resource Planning, for instance, has improved the
efficiency of various business process. ERP is a business management
software[ CITATION Def \l 1033 ][ CITATION Osm19 \l 1033 ] that enables an entity to use a
series of integrated applications that can manage and automate various business
operations.
7. Open-Source Software
IT has paved the way for various open-source software that allow free usage of
certain tools for various organizations. Open-source software has its flexible license.
Modifications are also allowed for this software, making it more suitable for the
organization’s needs. They are also widely available on the internet. This means that it
can help the business reduce its expenses.
 Osmond Vitez also stated that IT allows collaboration and outsourcing for
businesses. Outsourcing can help businesses lower costs and focus on completing the
business function they do best. Technical support and customer services are two
common function companies outsource.
IT has brought lots of benefits to businesses. However, it has also brought
businesses into a disadvantage. According to Wilson (2018), IT has caused the lack of
human interaction. Because of this, businesses find it more difficult to build trust with
customers. Storing information digitally also entails the risk of having the information
being stolen. No matter how advanced the security measures are put to protect the
information, perpetuators always find a way to breach the security and steal this
information to use them for their personal gains. Hence, it is a must for businesses to
develop their security from time to time to avoid data breach. To do this, businesses
must hire security experts.
References:

Definition of Information Technology. (n.d.). Retrieved from North Dakota ITD:

https://www.nd.gov/itd/about-us/definition-information-technology
IESC, A. M. (2018, March 21). Impacts of Information Technology (IT). Retrieved from
Master Intelligence Economiqe, et Strategies Competitives: https://master-iesc-
angers.com/impacts-of-information-technology-it/
Scheck, S. (n.d.). 8 Major Impacts of Information Technology on Businesses. Retrieved
from Tweak Your Biz: https://tweakyourbiz.com/technology/8-major-impacts-of-
information-technology-on-businesses
Vitez, O. (2019, February 12). The Impact of Technological Change on Business
Activity. Retrieved from Chron: https://smallbusiness.chron.com/impact-
technological-change-business-activity-2191.html
Wilson, D. (2018, November 4). Understanding the impact of technology on business.
Retrieved from AZBIGMEDIA:
https://azbigmedia.com/business/technology/understanding-the-impact-of-
technology-on-business/