Topics: Information technology, Automation, Emerging technologies Pages: 13 (4157 words) Published: March 27, 2013





DATE HANDED IN: 27/03/2013

1) Explain how information technology is changing the landscape of business? Information Technology is essentially a wide and varied field. So it’s only natural that something as ubiquitous as I.T. plays a major part in business. But what exactly is the impact of Information Technology on business? First off, I.T. affects how businesses go about with their usual routine. For instance: the technology allows companies to go paperless, depending only on digital databases to store important data. This not only provides a secure and sustained mode of data storage which can be backed up in many ways but also acts as an eco- friendly move towards not wasting paper. But the shift offers several benefits as well—including reduction in operational cost, since the business no longer has to buy or rent space or equipment just to store data. Information Technology also affects the accuracy of business operations. When a company uses a computerized accounting system instead of relying on a real live accountant, they eliminate (or, at the very least, significantly reduce) human error. And because such systems allow for faster operations, the company’s workers can concentrate on more pressing tasks. This allows the company to cover a larger scale of work in a shorter period of time, increasing the efficiency of the company as a whole. Of course, I.T. also allows companies to communicate easily regardless of distance. Several years before advancements in Information Technology, companies rely on messengers and snail mail to relay information to other countries and individuals. Today, communicating with another party is as easy as a click of a button—thanks to email and internet messaging, among many other similar tools. More developed technology in today’s world also allows people in two extremes of the world to have face to face conversations with the help of video conferencing. Moreover as this technology is also available on hand phones, it is not necessary that a meeting has to be done sitting in the office it can be done sitting at home as well. These examples illustrate that the impact of information technology on business includes lowered business costs and increase in business productivity. Simply put, Information Technology has changed the business landscape due to its wide and varied scope. Of course, these changes are for the better. “There is also a change that occurs in the business model with the influence of information technology. A business model describes the rationale of how an organization creates, delivers, and captures value (economic, social, cultural, or other forms of value). The process of business model construction is part of business strategy.”( http://dspace.mit.edu) “There are four basic types of business models: Brokers, Creators, Distributers and Landlords. There are four types of assets that the basic models deal with: Human, Financial, Physical or Intangible.”( http://www.ehow.com)

“Many organization have used IT to boost success, and some of the highest-performing companies in past decades have been technology-driven computer and software firms.” ( http://www.ehow.com) Brokers use IT to reach out to customers, while Distributers sell in demand for IT products and use IT to make transactions. Creators have more options to advertise and self-distribute. Data collection and storage has made it easier for companies to record and store customer information. This has been particularly helpful for healthcare...
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