Information Technology in Business Management

Information technology is deployed on a major scale in Business management these days. The key role of Information technology in business is to manage organizations and businesses effectively. It is about using data, technology, and people together to analyze the market and make important decisions.

Business is run with the sole aim of earning profits and in today’s open market there is a fierce competition when it comes to any kind of business. One wrong step can lead to a cascading effect which can cause a major loss in revenue for an organization. Every decision is taken with an aim to maximize profits and beat the competition. In such a situation cutting-edge information technology can aid it in making the right decision. Computers cannot make the decisions for you but can suggest the best option.

IBM built computers to aid in business. The very first computers were time logging and card punching machines. Earlier computers were used to store a database of employees and to assist in payroll activities or to track sales of a particular product. With the advancement in technologies, the role played by IT in business was also diversified. The data that was stored in computers like the volume of sales made was deployed to predict a trend in demand for the product. Managers could predict future demands and accordingly plan the production of products. Unsold products actually are a liability to a business because of the cost incurred in the production and warehousing of these products. Thus predicting demands can bring down production costs.

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Nowadays computers have a lot of processing power which can be used by businessmen to analyze data, create projects, make presentations and use data available to create graphs. Cloud computing has also brought down costs as businesses do not need to spend on deploying software on each and every computer which costs money in the form of buying licenses. With programs and data present on clouds that can be run, viewed, and edited by employees.

Information technology is used to record transactions made by businesses as well as to prepare daily reports which act as raw data in the future to make predictions. It is also used to schedule manpower so that the production process and the business keep running effectively round the clock. It is also used to efficiently manage the supply chain so that the products reach the wholesalers and ultimately the consumers. It is also used these days to inform consumers about the various products and services that a business offers thus helping in marketing and increasing sales.

For those who are interested in this field can choose to earn a BSc degree in information technology management which is offered by many leading business schools all around the world.