Role of Information Technology in Business

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importance of tech in business

the last two decades have marked an enormous increase in the number of home computers. With it, computer owners have invariably taken to entrepreneurship in many varied fields. Thanks to the growth of technology, computers and the Internet, new methods have been developed for processing everyday business activities easily. Without the advent of technology, routine tasks would otherwise have taken and enormous amount of time and specialization. Undoubtedly, the computer represents the top technology development in the last century as it relates to businesses today, both large and small. Advances in the field of technology have created a vast number of business opportunities.

Some Statistics

In 2003, the U.S. Small Business Administration produced a report/survey that established conclusively that more than 75% of small businesses owned computers and had heavily invested in new technology. Let us try to understand what the computers mean to businesses and how they contribute to increase their productivity.

USE OF COMPUTERS IN BUSINESSES

The fundamental reasons for the popularity of computers with small businesses are their efficiency, speed, low procurement cost and more than anything else, capability to handle multiple tasks with little chance for error.

Office Routines: Almost invariably, businesses loaded with the burden of increasing workloads and the pressures of being lean and mean, fall back upon technology for most of their administrative tasks. This work includes, among others, bookkeeping, inventory managing and email. The advent of the Internet has also substantially contributed in bringing down the costs of communication and marketing. In a nutshell, technology has reduced the overall cost of business operations.

New Business Opportunities: The explosion of Internet and e-commerce has opened up a plethora of opportunities for all types of businesses. New management methodologies, such as Six Sigma are...
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