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Information technology has helped in shaping both the business world and our society in general.
Many fields have been impacted by information technology and these include; education , health ,
entertainment , communication just to mention but a few. The impacts of information technology
are profound. As the world develops, more technology will emerge and this technology will have
both positive and negative impacts. Below i have detailed points showing you how information
technology has impacted our lives.
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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 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.
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 most positions which humans used to occupy. Accounting
is now being done by software, so accountants run out of opportunities.
Security Breaches: Since businesses store their data on remote cloud servers which can be accessed
with a user name and password, they risk losing that data to wrong minded knowledge works,
hackers or viruses, which can harm he business.
Advantages And Disadvantages Of Information Technology In Purchasing
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Credit Cards and Smart cards: Buying and selling of goods and services has become simple because of
these smart cards. A user can go to a merchant’s website and make an order using their smart card
or credit card. Money will be transferred from the consumers account to the merchants account in
seconds, and then the merchant will deliver the item to the consumers address. This saves time for
both parties.
Electronic Bill Presentation and Payment: (EBPP) systems send us bills over the internet and they
give us an easy way to pay them if the amount looks correct. In this there is need for billing
companies to send our bills in mail. It saves time for both parties.
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Internet security issues: For the merchant to process an order online, a consumer has to provide
their financial details. Experienced hackers can use this lop hole to channel this information and use
it for their own needs.
Faulty products and duplication: In most cases auction websites have products that are not real. So a
user can bid on a shoe thinking it is original, upon delivery, they discover that the shoe is fake and it
does not resemble the picture on auction.
Privacy – ecommerce websites collect personal data using cookies to know more about us and
suggest products basing on that information. This data is collected without any notice , but with
selfish intent.
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