Information technology (IT) is an enabler tool in carrying out business transactions. IT describes the technologies for gathering, storing, retrieving, processing, analyzing and transmitting information. The business environment is dynamic and highly competitive. It requires the utilization of advanced IT tools to improve efficiency, cut on upfront cost, and deliver quality products and services to customers (Allen & Morton, 2004).
Today, business depends on Information in making decisions, evaluating business performance and identifying gaps to have a competitive edge. Internet development has resulted in the creation of web-based systems that analyze customer preferences, wants, location and product and services usage. IT is used as a marketing tool, contacting customers and identifying potential customers (Werthner & Klein, 2005). Which is made possible through data analysis using a tool like Google business analytics.
IT is used in integrating business processes automating redundant activities to increase efficiency, allow real-time access to information and reduce the production cost. Enterprise Resource Planning (ERP) is the latest technology being used to integrate business functions into a single system with a shared database to optimize business operations (Monk & Wagner, 2012). The software creates accurate forecasts that help in planning and making realistic estimates in business management.
(Bradford, 2016) Enterprise resource planning software acts as a central hub for important information that a business needs to maintain daily business practices and operations. This improves data accuracy and security. ERP business solutions are designed to keep track of regulations within the industry and monitor changes in compliance. This allows users, and businesses at large, to stay abreast with laws, regulations, guidelines, and specifications as it relates to business processes.
The Internet is fast, efficient and full of resources that help anyone to find what they need. Online presence offers prestige to business, improve brand visibility and increase the confidence of potential customers in the company’s offer. Recent studies show that the lack of online presence induces customers to feel that they are dealing with a small and poor company, becoming reticent regarding the purchase of the product.
Internet development has redesigned how people work. Through virtual networks employees work remotely on devices they are comfortable with increasing productivity and innovation. Innovation results in smarter apps, improved data storage, and wider information distribution. And it enhances value and quality.
Radical changes have been created in the business environment through technological innovation. This includes online shopping, digital marketing, social networking, Voice over the internet and cloud computing. (Klems, 2008) Points out that cloud computing is the provision of personal applications and business applications through the Internet that centralizes servers, which share underlying computing resources.
Microsoft, IBM, and other IT solutions companies implement cloud technology for organizations. Through virtualization of IT infrastructure offering Software as a Service (SaaS), Platform as a Service (PaaS) and virtual networks. It is cost-effective for a company to have resources in a cloud than on-site or o- premise servers and networks because charges are based on the resources being used. And cloud computing allows for in-bound and out-bound scalability depending on the need.
Allen, T., & Morton, M. (2004). Information Technology and the Corporation of the 199s. New York: Oxford University Press.
Klems, M. (2008, November 29, 2016 ). Merrill Lynch Estimates Cloud Computing To Be $ 100 Billion Market, Cloud Expo. Cloud computing for business, p. 125.
Monk, E. F., & Wagner, B. (2012). Concepts in Enterprise Resource Planning. Newark, USA: Cengage Learning.
Werthner, H., & Klein, S. (2005). ICT- enabled Innovation in Travel and Tourism. Innovation and Product Development in tourism. New York: Oxford Press.