IMPORTANCE OF

INFORMATION TECHNOLOGY
IN BUSINESS
What is Information Technology?
Information Technology
– is the study and use of system of:

STORING RETRIEVING SENDING

This includes:
Software or
Hardware
Application Software
Importance of Information Technology in:

BUSINESS
Importance of Information Technology in:

EDUCATION
Importance of Information Technology in:

HEALTHCARE
IMPORTANCE OF
INFORMATION TECHNOLOGY
IN BUSINESS
Technology has important effects on business
operations. No matter the size of your enterprise,
technology has both tangible and intangible
benefits that will help you make money and
produce the results your customers demand.
Technological infrastructure affects the culture,
efficiency, and relationships of a business. It also
affects the security of confidential information
and trade advantages.

*Explanations are added for each item for reference

Communication with Customers
 First and foremost, technology affects a firm’s
ability to communicate with customers. In today’s
busy business environment, it is necessary for
employees to interact with clients quickly and
clearly. Websites allow customers to find answers to
their questions after hours. Fast shipment options
allow businesses to move products over large
geographic area. When customers use technology
to interact with a business, the business benefits
because better communication creates a stronger
public image.
Efficiency of Operations
Technology also helps a business understand its
cash flow needs and preserve precious
resources such as time and physical space.
Warehouse inventory technologies let business
owners understand how best to manage the
storage costs of holding a product. With proper
technology in place, executives can save time
and money by holding meetings over the
Internet instead of at corporate headquarters.
Business Culture and Class Relations
Technology creates a team dynamic within a
business because employees at different
locations have better interactions. If factory
managers can communicate with shipment
coordinators at a different location, tensions
and distrust are less likely to evolve. Cliques and
social tensions can become a nightmare for a
business; technology often helps workers put
their different backgrounds aside.
SECURITY
 Most businesses of the modern era are subject to
security threats and vandalism. Technology can be
used to protect financial data, confidential
executive decisions and other proprietary
information that leads to competitive advantages.
Simply put, technology helps businesses keep their
ideas away from their competition. By having
computers with passwords, a business can ensure
none of its forthcoming projects will be copied by
the competitors.
RESEARCH CAPACITY
A business that has the technological capacity to
research new opportunities will stay a step ahead
of its competitors. For a business to survive, it must
grow and acquire new opportunities. The Internet
allows a business to virtually travel into new markets
without the cost of an executive jet or the risks of
creating a factory abroad.
HOW IS
INFORMATION TECHNOLOGY
USED IN ACCOUNTING?
 To prepare financial statements

To give financial advice

To manage clients relationship

Filing financial details with the authorities

ADVANTAGES OF
INFORMATION TECHNOLOGY
1. IT Streamlines Communication

 Efficientcommunication is critical to company success. In

an increasingly connected and dispersed business
landscape, recruiting, retaining and leveraging employees
requires ongoing communication and collaboration.

A key advantage of information technology lies in its ability

to streamline communication both internally and externally.

 Examples: Online meeting and Video conferencing

platforms such as Skype, Zoom, and GoToMeeting.
2. IT Facilitates Strategic Thinking

 One of the fundamental advantages of IT is its

ability to enhance a company’s competitive
advantage in the marketplace, by facilitating
strategic thinking and knowing transfer. Accessing
and leveraging social networks and subscription
databases, for instance, has enabled companies
the ability to assemble, interpret and transfer
information like never before.
3. IT Stores and Safeguards Valuable Information

Information management is essential to any

business that must store and safeguard sensitive
information such as financial data for long
periods of time. IT affords companies the ability
to store, share, and backup files for later use, as
well as protecting information from unauthorized
individuals.
4. IT Cuts Cost and Eliminates Waste

 An example of IT improving an organization’s internal

processes by reducing costs and employee time spent
outside of word is the implementation of online training
programs.

 Ineffect, IT enables companies to do more with less,

without sacrificing quality or value.
DISADVANTAGES OF
INFORMATION TECHNOLOGY
1. Expense of Implementation and Maintenance
2. Job Elimination
3. Lack of Job Security
4. Security Breaches