The Role of Information Technology(IT) in Business
Levis Lesinya Kateiya
Jomo Kenyatta University of Technology and Agriculture
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The Role of Information Technology(IT) in Business
“Small and medium-sized enterprises are like grains of sand on a beach. The internet can glue them
together. It can make them into an invincible force that is able to go up against the big stones. The virtue
of the internet is that it uses small to compete with big, it uses small to compete with slow”(Liu
Shiying and Martha Avery,2009).Information technology has revolutionized the day to day
business interactions through it’s efficiency in business and its ability of transforming the world
into a global village. Business people all over the world use information technology invariably
either directly or indirectly in their day to day running of the business as a result it’s important to
understand some of it’s roles in business,this essay will argument the key roles information
technology plays in the world of business.
Information technology has enhanced communication in businesss.Through IT and its
facilities in the 21st century, passing of information has been revolutionized and made faster and
simple through messenger or e-mail applications.IT has fostered better communication among
producers, suppliers and consumers. Such functions are felt by a company’s staff or an
organization. Such applications are cheaper communication platforms compared to other modes
such as telephone. In addition communication has been faster resulting to large mass of
information being passed out at time.
Data management has also been made easier. Modern IT has come up with software designed
to assist in collecting and utilizing large collections of data. Through this data collected
businesses are effectively managed leading to efficiency in its controls. The data collected
through businesses has aided also in coming with market trends which are highly essential in
predicting market trends. The market trends hence aid in sales and control management. Data
management is also needed in control of the number of staffs in a company or organization.
The revolutionization of IT has come up with E-commerce and online presence. The internet
has changed the way people shop and interact with each other and with businesses. Line
shopping has made it easier to shop for things at a go without the need to visit malls or markets
through online shopping platforms such as Alibaba, Amazon etcetera etcetera. The internet has
also made it easier for people to interact with businesses when searching for jobs and also made
it easier for passing of information among staff.
Information technology has brought about data analysis. Data analysis is an important tool
used by businesses to analyze market trends and bring about market forecasts, data analysis has
also helped to develop business strategy .Through market analysis businesses are able to stay
ahead of the competition through proper analysis and also in a cut-throat markets. Data analysis
has also helped to develop product development strategies accordingly.
Enhancing customer experience.Businneses today use IT to enhance their customer’s
experience and maintain a great relationship with customers. Business use tool such as
CRM(Customer Relationship Management) to keep a track of customer behaviour resolving any
issues faced by customers and ensure quick resolution of issues.
Reducing operational cost. Implementation of essential IT softwares can help businesses in
reduction of operational costs by a large margin. Through this there is no need to recruit more
staff members. This helps the business to invest more money on other more important areas. This
in turn helps in better financial management within the business area hence helping in expansion
and expansion of the enterprise.
In conclusion information technology has played major important roles in business.IT has
enhanced communication within the business fraternity, data management and hence reducing
operational costs generally. All over the world information technology has proved to be a
prominent tool in the world business through its efficiency in running businesses it’s crucial that
the importance of IT to be sensitized everywhere. With the approach of an era of artificial
intelligence nearing which in turn will revolutionize IT bettering it’s capabilities hence
perpetuating its implications in business it’s better for everybody to embrace its capabilities in
business and other fields involved.
References
Alibaba : the inside story behind Jack Ma and the creation of the world's biggest online
marketplace
Bessen, J. (2017). Information Technology and Industry Concentration. Boston University School of
Law, Law & Economics Paper Series, No. 17-41.
https://scholarship.law.bu.edu/faculty_scholarship/267/
Rejeb, A., Keogh, J. G., & Treiblmaier, H. (2020). How Blockchain Technology Can Benefit Marketing:
Six Pending Research Areas. Frontiers in Blockchain, 3.
https://doi.org/10.3389/fbloc.2020.00003
