THE RELEVANCE OF INFORMATION TECHNOLOGY IN BUSINESS
1. How can information technology support a company’s business processes and decision-making, and give it a competitive advantage?
One could imagine how inefficient and ineffective a business processes would be without the aid of current information technology. Processes will take time to provide the output needed from any type of business. Speed is the key to all the business processes of today. The need of a business to adapt to the technology to handle information system is a must considering that all types of business have to compete with current and emerging competitors to capture majority of the market and to innovate better products and services. Being the first to introduce a new product in the market leaves a significant mark to the industry and will definitely give a competitive edge.
Such advantage is not possible without the help of information system and technology. Business process can be supported by information technology by providing systems to handle its operations. The role of a business firms operation support system is to efficiently process business transactions, control processes, support enterprise communications and collaboration, and update database system. In a manufacturing firm, for example, all transactions done in a warehouse which provides raw materials in the production line is actually loaded in a transaction processing system. Likewise, all finished goods from the production line getting into the warehouse for storage prior to shipment is transacted using the same or a similar system. If the system is not around it will take a lot of time and manpower to record all the raw materials coming out of the warehouse for use in the production floor which delays production and shipping of parts. The lead time from ordering to producing and shipping the product will be a long which customers will not understand. Again speed is important to be competitive. In...
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