Question

How has information technology changed the way that organizations do business? In what ways has IT helped companies become more efficient and effective? What challenges are created by advances in IT?

Answer 1

$\rightarrow$ Information Technology has become one of the most important parts of the business. It has become the necessity for small scale to large scale industry. Even a start-up requires an Information Technology to carry out day to day activity. Extranet is a network that allows businesses to communicate with clients and vendors.

With the help of information technology, most of the businesses are moving to the e-commerce where products and services are being sold electronically. The transactions in the businesses are done electronically through the safest mode of payment - credit card or debit card. The organization has installed the ERP system which helps to make decision.

$\rightarrow$ Following are the ways in which IT has helped business to become more effective and efficient.

1. Integrity - Data Mining helps a manager to collects data or information and then reorganizing pool data to uncover useful information. With the data mining tools like click stream analysis, the manager can get to understand of how customer think and behave and helps to improve customer experience and marketing efforts.

2. Decision making - Most of the organization use ERP software which helps to extract information and allows manager to make decision. With the help of IT, the manager can make quick and easy decision.

3. Saves Time - IT software such as e-mail, Skype, or video calling facility has help organization to save time. Today many businesses communicate with their client through online software over the internet.

4. Save Cost - IT in the organization has helped to save cost. The managers do not have to travel around the world to communicate with his customers or vendor. He can use IT tools to communicate with them especially over internet.

$\rightarrow$ Company has faced serious challenges using advance Information Technology. Some of the challenges are as follows.

1. Training - Training is required for the employees to use more complicated IT tools or software. Company has to spend a huge amount to install advance Information Technology.

2. IT Personnel - Company needs to have full time IT personnel who can look after the IT structure in the organization.

3. Technology glitches - The company might face technical glitches in IT tools or software. There is also possibility of the system getting hacked and all the important information are stolen.

4. Misusing of IT policy - Some employee may not follow IT policy govern by the company. This can create the loss of data ad even misusing of Campanis' important data.