Information technology (IT) refers to
the management and use of information using computer-based tools. It includes
acquiring, processing, storing, and distributing information. Most commonly it
is a term used to refer to business applications of computer technology, rather
than scientific applications. The term is used broadly in business to refer to
anything that ties into the use of computers.
Mostly businesses today create data that
can be stored and processed on computers. In some cases the data must be input
to computers using devices such as keyboards and scanners. In other cases the
data might be created electronically and automatically stored in computers.
Small businesses generally need to
purchase software packages, and may need to contract with it businesses that
provide services such as hosting, marketing web sites and maintaining networks.
However, larger companies can consider having their own IT staffs to develop
software, and otherwise handle It needs in-house. For instance, businesses
working with the federal government are likely to need to comply with
requirements relating to making information accessible.
The constant upgrade in information
technology, along with increasing global competition, is adding difficulty and
hesitation of several orders of scale to the business and trade. One of the
most widely discussed areas in recent business literature is that of new
organizational network structures that hold survival and growth in an environment
of growing complexity.
Effective implementation of information
technology would decrease liability by reducing the cost of expected failures
and increase flexibility by reducing the cost of adjustment. The businesses
reaction to the environment remains to be the vital determinant for its
effectiveness. The capabilities and flexibilities of computer-communication
systems make them gradually more appropriate to businesses by being able to
respond to any specific information or communication requirement.
Information technology is having impact
on all trade industries and businesses, in service as well as in manufacturing.
It is affecting workers at all levels of organizations, from the executives to
middle management and clerks. Information technology is increasingly becoming a
basic factor of all types of technologies such as craft, engineering, routine,
and non-routine.
The advances in 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 effective management
of interdependence.
In the near future businesses would be
facing a lack and a redundancy of information called information glut. To solve
the information-glut companies will need to introduce methods for selective
thinning out of information. Improvements in telecommunications will make it
easier to control business units dispersed over different parts of the world.
Advances in telecommunications, would result in increased
distance-communication. Indirect communication would be preferred for
well-structured information for routine, preprogrammed and decision processes.
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