Let’s be sincere. Top 15 Impact of IT Industry on Business. There is no doubt that innovation in technology has had a positive effect on business. Both small and large companies have benefited from the array of the latest technology and gained a competitive advantage in the market place.
According to research, businesses that invested in the latest technology and became innovative increased their financial figures and market share.
Information technology is essential in business because it offers the chance of analysing specific data and head to the right path of your business.
The Impact of IT Industry on Business
Through information technology, businesses have had access to various tools that helped them solve complex issues. For example, currently, most companies use digital marketing as a tool for promoting their products and services at the comfort of your home.
This is possible through modern means of communication and cloud computing. Companies can now monitor their business globally through virtual offices.
People can organize virtual meetings through video calling and share essential details without travelling. This is how information technology has had an impact on businesses
Information technology has had incredible impacts, which has made managing business quite easy. Here are some implications you might want to know.
1. Marketing and growth of a business
The success of any business lies heavily on marketing. Aside from that, you need to market on the right audience to get a conversion. Marketing involves aspects like sales, promotion, public relations, promotion, and advertising.
These aspects affect the growth of any business. In information technology, marketing products, and services digitally have brought a lot of success in many online companies. Without internet technology, this would not have been possible.
Digital marketing deals with many concepts like pay per click, Search engine optimization, and email shot, blogging, smart app advertisement, and social media marketing, among others.
Many local businesses have created an online presence for their business. Most of them now promote their products through platforms like social media and websites.
Aside from selling their products locally, they can also sell them online and ship them to the required destinations. This has made many businesses increase their sells through online marketing.
Other businesses have gotten clients who visited their premises after finding their information online. This proves that the web market has become a booming sector. Each year, there are millions of websites created for marketing.
Businesses have also managed to grow because of the improved communication process. Business owners can now communicate with ease using emails, websites, texting, and apps. Apps like zoom and Skype have made it possible to communicate with clients and get instant feedback.
Some websites have live chats where their clients make inquiries about their products before purchasing them. Through effective communication methods, most companies now get feedback from their clients through electronic means. This helps them improve the quality of their products and boost their credibility.
In this video, Neil Patel has offered tips on marketing your local business online.
2. 21st century a digital age
Across the 21st century, there has been a massive change in technology. The change from analogue or mechanical electronic technology to digital electronics began in the 1950s until 1970s. There has been the adoption of digital record keeping and digital computers since then.
The rise in digital media has increased profit in many businesses. Back then, people used to purchase items like music and movies physically and put them on their DVD’s or computers to play.
In the 2000s, there was an introduction of DVD’s and CD’S which later changed to MP3 player later online streaming, then Mobile devices. Currently, almost everything is accessible through mobile devices like tablets and smartphones.
On the negative side, this change has caused a lot of disruption. With the digital technology that consumers have, they are always digitally connected. This keeps them busy reading emails and surfing the internet. Examples of these disruptions are Facebook, Google, Apple, and Uber among others.
When we examine Google, we realize it was initially a search engine platform. Currently, it is being used for advertising, machine platform, robotic, machine learning and messaging.
Facebook has managed to attract 58% of US adults by 2016. You might want to be part of this influx to succeed in your business. Apple has also had various innovations over the years.
3. Internal operations
The e-commerce sector uses the latest advancement in technology to deliver products worldwide. Digital technology has helped many growing businesses to solve complex issues by improving efficiency.
There has been an innovation of client-server platforms, systems to manage databases and enterprise planning software. A good example is Amazon which makes use of automated delivery robotics to serve consumers.
Banks have also adopted the use of apps and mobile banking. In traditional banking, people had to visit ATMs or visit the teller to do transactions. Now people can send money using mobile apps remotely. This has increased customer satisfaction in their services.
4. Innovation and collaboration
Information technology is indeed a game changer. Currently, businesses can collaborate and work as a team using a cloud computing system. Businesses like Web design companies can work remotely on one project.
Improved methods of communication have made it possible for designers to test products before releasing them to the market. With cloud computing tools, industries like Pharmaceuticals can have electronic medical records and monitor devices remotely.
5. Impact on decision making
Information technology has made it possible for businesses to get consumers views about products. For example, if a company is about to introduce a product, they can use online surveys to find out what consumers think about it.
Businesses also use other platforms like group discussions on the web, blogs, and online forums to find out consumers views.
Through the internet, businesses can now make accurate decisions within a short time of conducting market research. In other words, information technology has made it easy for companies to do market research.
Presence of online tools like Microsoft CRM Dynamics, Big data, and Google Analytics provide vital information which has a significant impact on decision making.
6. Increased employee productivity
Nothing rocks in business than dealing with employees who are not only highly motivated but productive as well.
Did you know that technology can increase productivity in your business? The information technology industry has proved this to be true. Introduction of business software and other computer programs have simplified work.
This has resulted in a reduction of human, making employees accomplish a lot of tasks within a short time.
Aside from that, information regarding employee performance appraisal has been incorporated online. Now it is possible for supervisors to set measurable goals which employees can accomplish.
Businesses have now expanded their operations with technology, which has produced excellent results.
7. Customer satisfaction through customer support
The most successful businesses are the ones that aim to solve people’s problems. Satisfied customers tend to come back and even recommend your products and services to others.
It’s easy to satisfy customers by giving them efficient support. Businesses identify customer’s needs, and trends to provide a solution that satisfies them through internet technology. It’s now easy to communicate to millions of people worldwide and find out their problem.
Information technology has provided various channels of communication. Customers no longer have to travel miles or face adverse weather conditions to get help. They can use channels like social media, webinars, or newsletters, which can be done using a Smartphone.
Understanding customer behaviour through these channels helps businesses to find lasting solutions that satisfy their customers.
8. It has widened customer bases
Through technology, even small businesses can reach out to new economic markets. For example, companies can create social media pages and post advertisements. A Facebook page enables its users to create posts and boost them depending on their target market.
The number of people you would like to reach depends on the amount you paid. Through this, even new business owners can gain recognition in their local market, nationally and internationally. Some businesses also have retail websites where they put online stores.
Consumers can now find them through search engines, order their products, pay, and they get shipped to them.
9. Outsourcing and collaboration
Technology has simplified so many things such that businesses can outsource functions to another business environment. Through outsourcing, companies have managed to lower costs. In most cases, they subcontract customer service and technical support.
If they have operations that need a proper facility that they don’t have, they consider outsourcing it.
10. Globalization and resource management
Big businesses find it tricky to manage all their resources manually from top to bottom. The resources may either be human resources, financial resources, or tangible resources. Through information technology, now businesses use cloud-based Enterprise Resource Planning solutions through such technology. It is more comfortable for managers to control their organizational resources remotely.
Multinational firms like Amazon, Google, and Microsoft, have benefited in using these resources to manage both their physical and virtual offices worldwide.
11. Reduced operating costs
Information technology has reduced operational costs by introducing software that helped to reduce manual work. There are numerous counting software, record keeping software and payroll software that have made companies automate their back office.
The use of mobile technology, especially apps helps field representatives and home offices interact. Through accounting software, field reps can document their daily expenses instantly and automatically sync them.
12. Increased risks in security
While the information technology industry has positive impacts, there are some negative impacts as well. People put so much information on the internet, which might expose them to theft.
Most small businesses suffer from data breaches, especially those that can’t afford to secure their networks.
Cybercrime has become a common issue with the advancement of information technology. When malicious people steal information from consumers, the company affected suffers a massive loss.
To solve this issue, businesses are trying to invest in cloud computing software to safeguard their data.
13. Increased competition in business
Due to improved technology, various small businesses have noticed the need for having an online presence. Most of them are joining the internet, which increases completion.
Most large businesses tend to be competitive. This means that companies have to work hard to stand out the rest to succeed in the market.
14. Distractions in workplaces
While information technology has provided a platform for employees to work remotely, it has also brought distractions. Most employees’ waste of time chatting on different communication channels like WhatsApp and Facebook.
Some also waste time playing games or watching videos from entertainment platforms. Some businesses have created regulations whereby they use specific software to track time one has worked.
Some software can track time and share screenshots of what one was working on at intervals. This reduces distractions through at a small level.
15. Increased boredom at work
Most businesses now hire remotely and communicate via channels like emails and Skype. This increases boredom since people don’t meet physically in case of an issue.
Whether at work or home, the information technology industry has disconnected many people.
The information technology industry has had a significant impact on many businesses. It has come up with working techniques that save a lot of time and money. It is now possible to achieve long term business success despite how small a business is when it starts.
With the advancement of technology, businesses now have to continually train their employees on how to use specific online resources. While the information technology industry has brought a lot of positive impacts, companies should be aware of negative consequences like cybercrime. They should invest in ways of protecting their online platforms.