Role of Information Technology in Organizations
Introduction to Business
•Brian Arthur, author of the book The Nature of Technology, believes that “more than anything else technology creates our world. Technology creates our wealth, our economy our way of being.” • Technology:
• Allows us to look at the world differently to see beyond what is to what could be • Allows us to create innovative solutions • Allows organizations to operate with little manpower reducing the cost of doing business • Connects the organization to their distributors, their customers and their employees • Allows instantaneous access to information so organizations are better able to offer lower pricing of their products without having to sacrifice quality
• Information technology, or IT is essential for organizations to efficiently conduct business.
Four Most Important Roles of IT:
Managing Communication • Email is the chosen form of communication for many businesses • Email provides an easy and low cost way for businesses to communicate with employees, distributors and customers. • The internet also allows businesses to communicate, advertise and sell their products to people around the world.
Managing Inventory •Keeps track of the quantities of each product • Triggers an order when the amount falls below the pre-determined quantity in stock
Managing Data • Storing of electronic versions of all documents • Instant availability of documents
Managing Customer Relationships • Software used to help to improve how they manage relationships with customers • Software can record all interactions a business has with a customer
