How is Information Technology Important to an Organization?

Information technology affects individual activities in many ways. For example, it can create and exploit linkages between different activities. For example, dishwashers utilize a control system to direct different components through the washing cycle. Information technology also improves the performance of products and makes it easier to increase the amount of information they contain. In automobiles, for example, electronic control is becoming more visible, from dashboard displays to diagnostic messages. These changes emphasize the strategic role information technology plays in companies.

The use of information technology in organizations has the potential to alter the structure of industries. One example is the merger of computer and telecommunications technologies, which affects both industries and their products and services. AT&T, for example, is using its position in telecommunications to make a foray into the computer industry. IBM recently acquired a telecommunications equipment manufacturer. Today, information technology is at the core of increasing interrelationships in industries such as office equipment and financial services. Information for companies is so important and that’s why companies look for have just a one point of contact thanks to softwares provided by companies such as a Global PEO.

Information technology has revolutionized customer support. Today, customers can communicate with representatives through many channels. Customer relationship management systems enable organizations to track customer behavior. Cloud computing allows employees to access enterprise software on the go, and innovation is essential for growth and profitability. For example, the invention of WhatsApp turned Jan Koum into a billionaire. Businesses can use information technology to improve customer service and make profits. If they don’t invest in information technology, they risk losing valuable opportunities.

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