Advantages and Disadvantages of information technology in Business Advantages:
Increases production and saves time: Business use technology to automate tasks. A good example is a bakery which uses automated temperature censors to detect any drop or increase in room temperature in a bakery. These censors will send information directly to the operator and report any temperature change. This saves the bakery time and it also results into quality products.
Improves communication through communication technology: With the help of communication technology tools like phones, video conferencing , electronic mail, databases just to mention but a few. Movement of information with in an organization or business has become easy and first. Employees can easily move information across departments without having any interruptions. Tools like electronic mail , e-fax, mobile phones and text messaging enhance the movement of information among employees , customers and business partners or suppliers.
Improves data storage and file management: Businesses use cloud hosting services to store and backup business data. Also it saves on paper work and makes transfer and access of data remote. With services like ‘’Dropbox.com’’, business owners can access their data any time any where. Information and data are very important tools for a business, so it is very essential to store them safely and also access them at any time of need. RELATED:
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Improves financial management: Accounting software like Quick Books ,Bookkeeper , Sage 50 , and Account Edge can be used in performing various accounting tasks in a business. Business owners can easily balance their books with less experience in accounting because these software’s are well equipped with every tool needed in accounting and they also have a help section which can be referred to in case a user is stuck.
Cuts costs of operation and increases on RIO – Communication technology and social technology have made business promotion and product launch affordable. Many small business have found ways to use social technology to increase on their brand awareness and get more clients at a minimal cost. In business, factors like cost of operation play a big role in the development and growth of that business. So when businesses use information technology to cut down on costs of operation, then their ROI will increase which will result into business growth.
Improves business to consumer relationship – Businesses have embraced the social technology to interact with their consumers and fans. This creates a strong business to consumer relationship and it results into business growth and expansion. Information technology can be used to improve customer service in so many ways. For example, businesses can use internet to inform their customers about great deals and discounts, this makes customers feel special and it can drive their desire to buy. A good customer service can be used as a great tool by any small business to gain competitive advantage.
Improves on business competitive advantage: Companies have used technology to gain competitive advantage over their competitors. A business will improve on its technology and improve on its services and products which will make its customers happy, this will turn these happy customer loyal to that business and also invite more friends to use that service or product.
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Implementation Expenses: Small businesses fail to afford this expensive technology so they end up losing their clients to a business which has improved its technology and provides a better service or product. Job Elimination: Technology has replaced...
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