What Is The Role Of Information Technology In Business?

What is the role of IT in business? Information technology or the IT department is a crucial part of any company’s business as they monitor and manage almost everything in information technology and communication systems. Essentially, IT is involved in all business operations, from data management to business processes, finances to computer systems – every aspect of a business is influenced by IT in this day and age, and it continues to only grow in importance. Effective business strategies don’t exist today without the support of IT, so every business owner has to understand its importance for them.

IT in business exists as the epicentre of communication, efficient data management, data processing, and it’s intricately woven into all business systems that help businesses operate day to day. Not many companies, big or small, could survive without a good IT department making them imperative to a business’s day-to-day existence. From sending an email to changing a password, accessing databases to advanced security measures for the business such as firewall and intrusion detection systems, and everything in between, your IT team is there to help every step of the way.

As a business owner it’s vital that you understand IT’s importance today, or else you risk being overtaken by your competitors and left in the dust as they recognise the value of a strong IT department. You have to ask yourself as a business owner: “how does information technology affect business?” so you can gain a competitive advantage.

In this article, we are going to look at what is the role of information technology in business and what makes this department so important to every business in the 21st century.

What Is Information Technology?

Information technology revolves around how data is made, stored and, most importantly, shared in the realm of computer science. Those looking for work in the IT industry likely have grown up with technical skills in information systems. This helps businesses, as the technical understanding of IT aids overall efficiency.

Digital systems are interwoven with every aspect of a business today. Think about. The old cash in hand system for paying workers is all but extinct. How can you expect your human resources and finance team to achieve their goals without proper IT systems in place to speed up the process.

Everything from artificial intelligence imbedded in data analytics tools to video conferencing communication involves information systems. The thing is, you need an IT expert in your arsenal to ensure a competitive advantage over others in your field.

IT in business gives the following perks:

• Productivity – Information systems exist not just for the management but for workers too. Using tested and proven solutions, such as programs to automate busywork, you can eliminate wasted time and ensure workers can focus on what really matters to the business. Teaching staff information technology that allows for sharing or greater cooperation can also ensure that it can be passed down the necessary channels without time being a concern.
• Optimisation – A lot of IT in business exists so that tasks can be optimised for the best result. For example, data analytics software likely can’t do your job for you, but it can lend you insights that make data analysis much more streamlined, comprehensive and, in the end, more effective. If you’re looking at market trends, for example, IT systems can quickly analyse the data for you, but it’s your employee’s job to then interpret that data and create an effective business plan that puts you ahead of the game.
• Safety – Through the use of firewalls and authentication systems, businesses can reinforce their defences, ensuring both their sensitive information and that of their customers are not accessed without reason, or by unauthorised parties. Today, data protection is more important than anything in business. If you’re not actively fighting scammers at every turn, then you’re a sitting duck. Scammers are incredibly intelligent and know how to infiltrate and abuse multiple computer networks. Make sure your business’ data is not within their reach.
• Saving Costs – Cloud computing alone has allowed companies to dodge the need to build their internal storage systems. Automation has also been one of many tested and proven solutions to reduce the cost of human error. Operational costs fall dramatically when IT is involved, which is exactly why every business should consider an IT department or IT specialist to ensure costs can be cut and profits can soar.
• Customer Experience Overhaul – CRM (customer relationship management) is a huge part of business management. Using live chats and ticketing systems, you can track customer needs and wants and deliver on them in a much more streamlined way. By utilising CRMs, you can build a long-term business relationship with your customer, allowing you to solve their issues before they drag on for too long.
• Simplification – By using information technology to create an organised internal system, such as creating data flows between different departments etc, you can make meeting business requirements easier. IT solutions are so popular for a reason – they make running your business simpler. The rest of the benefits discussed today are great, of course, but ultimately it’s about making running a business as simple as it can be. That doesn’t mean it’s easy, but it allows you to focus on the bigger picture rather than getting bogged down in the nitty gritty.
• Business Management – Through the utilisation of business information technology, the upper management can have a much more comprehensive overview of their company, capabilities, and goals. It also allows you to manage and promote professional development within employees’ careers, tracking progress towards their goals and ensuring they continue to be a genuine asset to your team.
• Expansion – Growth is achievable with the high efficiency that today’s business information technology capabilities bring, whether that be connecting with customers beyond your local area, or through the use of cloud computing and other advances in computer science to overhaul your business without having to invest in infrastructure.
• Transparency – By ensuring accurate information that can be displayed across different teams, you’ve essentially got a business where everyone knows exactly where they stand. A strong foundation of trust is the key to any business’ success.

Productivity

Microsoft Excel is considered a very basic tool in today’s technology stack. But before its widespread use, there were countless hours devoted to manual data entry. That data would then be kept in filing cabinets. Whenever it was needed, it would have to be looked for, and any changes to the document had to be logged. And if there was an error, then hours of working time would be lost to fixing it.

In today’s business information technology driven world, there’s no real parallel anymore. The software handles tasks such as invoice generation, basic data entry and report creation – allowing employees to handle higher-functioning tasks that bring value to the business and develop their core competencies.

Thanks to cloud computing, sharing is easier than ever, and its usefulness has bled into our everyday lives. Communication skills have been improved thanks to software like Teams, which opened up so many opportunities for businesses when the pandemic resulted in a quarantine. Overall, good use of business information technology results in a healthier and much more in-synch business environment.

Safeguarding Data And Information

The ultimate goal of safeguarding is to protect personal and business data from compromise. The IT department will ensure data safeguarding, meaning industry-standard safeguards are in place company-wide to protect against the destruction, loss, misuse, unauthorised disclosure, or alteration of company-related data or employee and customer confidential information.

IT also has to ensure they are abiding by data-protection laws through safeguarding important information from corruption, compromise or loss.

Examples of data breaches could be hackers stealing information or misused personal data regarding the company of the employees. The consequences of this are huge both financially and through reputation. Only by building trust over a long period can you develop a long-term business relationship with your customers, and proper data protection reinforced by robust IT systems is the key.

Problem Shooting

Troubleshooting refers to problem-solving in the digital world. Troubleshooting can be applied to several different things such as the repairing of failed digital products or processes on a PC or a system.

When a problem is troubleshot, a systematic and logical search is carried out for the source of a proof-solving solution making the product or process fully operational again. Troubleshooting is also used to identify the symptoms when something is wrong.

A competent IT department in any business is the first port of call when it comes to an issue or problem with a computer. If an employee has locked themselves out of their computer, forgotten a password or cannot get access to a particular drive, for example, IT is usually a quick call away from getting this issue fixed.

This smooths out the entire operational process of a business, simplifying everyday problems with fast solutions.

Security And The Maintenance Of Databases

The IT department is responsible for ensuring that the efficiency and security procedures of the business are up to standard. Hornetsecurity.com defines IT security as:

‘intending to prevent the manipulation of data and systems by unauthorised third parties. The meaning behind this is those socio-technical systems, i.e. people and technology, within companies/organisations and their data are protected against damage and threats.’

It is also there for the creation, maintenance and administration of databases for things like business sales transactions, financial records, product catalogues, trends, customer profiles and marketing activities to name but a few.

Cloud-Based Solution Management

So what is a cloud-based solution? It is an on-demand service for almost anything and everything you can ‘save’ such as computer network information, storage, applications or resources accessed via the internet and through an external provider’s shared cloud (servers that are accessed over the internet) computing infrastructure.

Businesses large and small, right from the local candle shop to industry giants such as Microsoft and Google use cloud-based solutions to keep control of their digital or physical offices and employees globally. If you’re in business today, it’s likely that you’ll already be using cloud based solutions to many everyday business problems.

Analyse Data

IT in business enables you to analyse specific data and help to plan the business journey accordingly using the trends and information presented in the data. IT can also efficiently equip businesses with tools which can solve challenging business obstacles and help to plan the future growth of the company.

In this day and age, digital marketing is something that businesses simply can’t live without. Users have access to the net 24/7 from their smartphone devices. The internet provides a digital marketing platform that allows businesses to promote their products or services to the global market who can see products sitting in the comfort of their own home.

Quick And Effective Communication

The beauty of being in the 21st century for business is the ease of communication. We live in an era where you can usually contact a business in an instant. The success of a company largely depends on understanding its customer’s needs, behaviours, buying trends, and satisfaction scales. Efficient and quick communication is the best mechanism when it comes to dealing with customer demands, problems and solutions.

The beauty of information technology is that it allows businesses to communicate with potentially millions of customers in real time on a global scale. IT in business provides countless ways to communicate with customers without them even having to leave the house. Such channels include emails, social media chats video calls, webinars, member forums, email newsletters or through the smartphone.

Invest in IT for your business, and watch as customer satisfaction flys.

Conclusion

It’s safe to say, that it is impossible to achieve long-term business success without harbouring the benefits of information technology in the heavily digital age we live in. IT in business gives you the necessary tools to expand and develop as both an individual and as a company.

If you don’t get to grips with the importance of information technology in business today, you leave yourself open to your competitors leaving you behind. Invest in IT, trust in your IT-savvy employees, and let information technology drive your business to even greater successes.