Role of Information Technology in Today Life

8/3/2019 Role of Information Technology in Today Life

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Role of Information Technology in todays Business World

Information Technology has revolutionized the phase of business around the world. Local

businesses have become international due to a simple website. I.T has helped businesses inadvertising. I.T has helped in customer service, huge corporations like Microsoft attend tocustomer needs through email and chat services. Networking internal and external inorganizations has improved the working of businesses. Staffs and clients likewise can getin touch with the managers for feedback, progress reports and extensions.

Technological change refers to the changes in production techniques and productionequipment. It could be a change in the machinery used to make a product or the computersto design a product.

More recently it is the use of the computers and information technology (IT) to improvethe efficiency and competitiveness of businesses that has led to technological change.Since technological is so rapid, there are important implications for businesses.

A business can be affected by the following technological change: In production In provision of services In the office

Technological change in production

Technological change leads to improved production of goods and services due to: Computer-aided manufacturing ( CAM) this reduces labour costs, is more

accurate and faster and can work at any hour of the day. The computer controls themachinery.

Computer-integrated manufacturing (CIM) here, computers control the whole production line. Best example is in car production where robots undertake much of the work, reducing the need for labour to perform boring, routine tasks.

Computer-aided design (CAD) Computers are used to help design products usingcomputer generated models and 3D drawings. Reduces the need to build physicalmodels to test certain conditions, known as prototypes. This can be expensive to

produce just for testing purposes (e.g. aircraft or new cars)

It is interesting to note however that as different businesses compete with each other, thecommercial advantage one can have over another may depend primarily on its use of information technologies. For example being able to extract information as to what thecustomer really wants and how to provide for that want can provide a significantadvantage. This extraction of information is facilitated and indeed made possible by thetechnology used to store and manipulate this information. As the hardware and softwaremechanisms used to store and manipulate the information become more sophisticated andquicker the business can utilise its stored information to maximise its commercialadvantage.

The use of information technology to monitor a businesses performance can also enable the business to highlight areas where they are not making the most use of their resources. Theuse of information technologies can also increase the businesses income throughadvertising in the various available forums. Advances in information technology over the

last thirty years have lead to the television for example being more widely used today than


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In addition to finance and business processes, it is also important to look at materialsmaintenance. Enterprise Resource Planning will allow a company to successfully automatethe process of buying materials and maintaining them. There are modules that track thesupplies that are purchased and can also make calculations about how these materialsshould be distributed. It also becomes possible for a company to predict the demand of themarket based on history, economic statistics, and data from their employees. They can even

decide when a product should be produced, and they can do this based on the raw materialthat is available.

Information Technology is having impact on all trade industries and businesses, in serviceas well as in manufacturing. It is affecting workers at all levels of organizations, from theexecutives to middle management and clerks. Information technology is increasingly

becoming a basic factor of all types of technologies such as craft, engineering, routine, andnon-routine.Information Technology would result in remarkable decline in the costs of synchronization that would lead to new, concentrated business structures. It enables the

business to respond to the new and urgent competitive forces by providing effectivemanagement of interdependence.

Role of VOIP in Business:For any business organization, having an excellent means of communication plays a key

role in the business success. In the modern world VoIP for business is the primary concernto get the maximum capabilities due to its added features and benefits. A VoIP phone is IP

built hardware or simply a software device which uses an internet connection to makecalls. It is similar in function, fit and functionality to a traditional working desktoptelephone with the only difference being the technology by which its working . IP standsfor Internet protocol which is used to transfer the packets across local internet and helps usconnect to the browser and internet sites. There is no rotary dial, no rabbit popping out of hat and as far you know your phone system and VoIP IP protocol working on same system,they will work smoothly without any interruption of IP given statically. The major components of VoIP for business phones include: screen, keypad, handset, microphone,speaker, Ethernet ports for connecting, headset jack, software.Thus helping organization toreduce cost.

Role of IT in Globalization:The world is going through one of the most remarkable periods of

transformation in human history. Globalization is sweeping across nations. Rapidflows of goods, services, capital, technology, ideas, information and people across

borders; increased financial integration of the world economy; and rise of knowledgeas a key driver of economic growth are resulting in new challenges and opportunitiesfor development. Improvements in transportation have resulted in a dramatic declinein the costs of transporting goods by air, water, and ground. Technologicaldevelopments in computing and telecommunications have reduced transactioncosts. With decreasing trade and investment restrictions, shrinking economicdistance, more mobile resources and integrated world financial markets, socio-economic trends are fast transmitting across national boundaries. Innovations intransportation, information and communication technologies are

resulting in unprecedented levels of integra tion between separated partsof the globe. Economic activity is now structured on the international rather thanthe national level. It takes place in a highly integrated, electronically networkedand knowledge-based environment. Exchange rates, interest rates and stock pricesare now intimately connected across countries through a globally

integrated financial market. Globalization and technology are defying the


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handicaps of distance and time. Volumes of data and money are quicklytransferring between nations. Systems have enabled faster dissemination of ideas,quicker interactions, easier management of interconnections, and integration of

business. Information and communication technology (ICT) is emerging as animportant catalys t for transformation of business, society, and government in theglobalizing world. Today ICT forms the "backbone" of several industries, such

as banking, airlines and publishing. It is also an important value-adding componentof consumer products, such as television, camera , car, and mobile telephone. ICT hasfacilitated packaging of information and sending the same across the world atnegligible cost. The new technology has increased the velocity of international

business operations, division of labor, and integration of production processes . ICThas revolutionized the interactions between government, business and citizens G2B, G2C and B2C, G2G, B2B and C2C operations. The Internet is regardedas one of the most revolutionary transformations that world trade has ever seen. Ithas enabled trade in services by allowing them to be split into components, each of which can be located where it can be produced most efficiently and at the leastcost. It is no longer necessary f or providers and users to be physically close to each

other. As a result, IT-enabled services are increasingly globalizing in the same wayas manufactures did f or decades. ICT has led to a shift in trade from atoms to bits, amovement from tangibles to intangibles, from manufactures to services, and atransition from the industrial world to the information world.


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Role of IT in Marketing:Technology has a profound impact on business research, and especially on marketing, because(1) technology changes the way marketing managers do their job, (2) these changes lead to major changes in the topics that are important to study, and (3) technology provides new ways of doingresearch. The most important result of technological advance is the increasing impact of information technology, resulting in the growing importance of service and relationships in theeconomy. Future advances in marketing are likely to build from advances in technology andrelating improvements in communicating, storing, and processing information about customers.

Role of Information Technology in Today Life

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