Information Technology
Information technology is critical to companies as it enhances efficiency, effectiveness of product development activities. It is one of the vital tools in today’s contemporary business world, with most firms adopting the use of technology to adopt value based applications designed to improve the overall organizational responsiveness. Businesses use technology to facilitate operational integration to improve operational efficiency in product development. The establishment of IT enabled customer co-innovation and value co-creation platforms have changed the extent of people involvement in the operation of IT processes while opening new and effective ways of processing business transactions (ITIL Educational Solutions Ltd, 2012). Information technology also provides significant advantages to a company, through using a business model that opens up new opportunities for an organization. Information Technology facilitates seamless communication between different stakeholders.
In supply chain, it facilitates real-time updates of inventory information that helps an organization to obtain products depending on the sales forecasts. It also connects different areas of an enterprise system to improve collaboration, efficiency and transparency in business financial transactions. Information technology has also dominated the global economy, with seamless connection of business systems through e-business to facilitate trade beyond normal trade borders. It has become the driving factor towards globalization, with most business enterprises getting involved in cross border exchanges. Information technology is essential in business processes. It helps to optimize business operations as well as assist in business re-engineering. It is an important tool of trade since it integrates with all facets of the business. It is imperative that businesses adopt the use of information technology to help in aligning the business strategically. This will enable an organization to compete favorably in this fast paced global economy.
References
ITL Education Solutions Limited. (2012). Introduction to Information Technology. New Delhi, India: Dorling Kindersley.
