Tuesday, August 7, 2012

Information Technology: Foundation of Business

Almost every company today is independent of the use of information technology. Technological innovations in hardware, software, internet, and wireless connectivity has brought business efficiency. Various types of business entities has become largely dependent on these technological operations for their day-to-day operations.

From simple word processing software to sophisticated encrypted database, the various types of companies rely on computer technology for transactions with customers and business partners. A significant part of the operations and the wealth of many companies are now in electronic or digital. Therefore, it is not surprising because the big companies invest considerable amount of money for the technology.

Business infrastructure refers not only to buildings and other concrete structures. It also refers to the main support systems as a business technology infrastructure. Unlike concrete and metal infrastructure, technological infrastructure needed to change more often. This is to accommodate rapidly changing economic environment. Business entities that are capable of fast technological adaptations are more able to compete on a global scale.

Information technology is critical to the infrastructure. Can be considered as the nervous system of business. This is especially true for large companies that have many branches and business processing operations. A fast food business, for example, rely on the supply logistics of mass-produced ingredients such as hamburger patties. The efficiency of the logistics fast food depends on how the branches on individual communicate with the chain inventory. All of these are possible for computer networks and databases that are updated in real time.

Information is an asset is when it comes to business operations. This is good, because business entities buy it in the form of software applications. Information is the inventory or stocks of products. For some companies, such as online businesses, information is a commodity that is bought in the form of keywords with high traffic. From smart phone software applications to the database of potential customers, information is an asset that has a wide range of practical value depending on its use.

On the other hand, the information is also a coin in a literal sense and indirect. Current accounts, sales transaction, financial statements and other information have mostly electronic counterparts. The majority of these actually exist purely as information encoded in some computer networks. The simple payment of rates of commuter trains, for example, can be easily done using a smart phone. Payment of utility bills can now be done online through secure servers of banks. Of course, shopping can be done through internet. All of these involve the transfer and storage of information in the form of electronic money.

The companies that have advanced systems are likely to be more competitive globally. Paper-less operations and cash-less are becoming a norm of global trade.

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