Discuss about the Impact of IT on Business.
Information technology is defined as a technology that mainly deals with development, maintenance as well as use of computer systems for processing and distributing the data effectively (Webster 2014).The assignment mainly focuses on the use of information technology within the organization “Telstra” which one of the leading telecommunication as well as technology in Australia.
The assignment mainly illustrates the need of IT in the business, importance of IT in the business, requirements for applying IT in the business, benefits as well as advantages of IT in the business and risk due to IT in the business of Telstra. The report also discusses proper procedures as well as methods for maintaining and monitoring the business of the organization.
Information Technology is considered as one of the vital as well as integral part of every business plan. It is required in every organization starting from multinational corporations to small businesses. They are required due to the following reason:
Communication: The information technology plays an important role in generating effective communication between various stakeholders of the organization including the customers (Bloom et al. 2014). E-mail, is one of the principal means of communication between various employees, suppliers as well as customers in the organization Telstra.
Inventory Management: Information Technology also helps in maintaining as well as managing inventory of the organization “Telstra”. The inventory management system helps in tracking the quantity of each item, which is maintained by the company. The systems are utilized effectively when it is connected with the POS system.
Data Management: The Information technology in Telstra helps in managing the database of the organization (Kellermann and Jones 2013). It helps in storing large amount of historical data effectively as well as economically.
Management Information system: The system is used for enabling various companies to track various data related with sales, expenses as well as productivity levels.
Customer Relationship Management: Information Technology is utilized by the organization ‘Telstra” in improving their design as well as for managing customer relationship. CRM system helps in capturing various interactions of the customers (Xiang, Magnini and Fesenmaier 2015).
Information Technology is very much important for the survival of Telstra as it helps in providing an opportunity to the organization so that they can plan their business accordingly. Information Technology plays a significant role in various phases of business, which includes:
Decision Making: Speed as well as accuracy is considered as the heart of right decision for Telstra. The organization mainly undertakes comprehensive market research process for enabling the management of the organization in the correct direction (Baskerville, Stage and DeGross 2013). It is mainly done with the help of Google Analytics or Microsoft CRM dynamics.
Business Growth as well as Marketing: Nowadays the growth of business as well as marketing is fully dependent on Digitalization. It mainly includes use of blogging, email shot, SMS, social media marketing and many more.
Customer support and Satisfaction: Internet technology plays an important tool in Telstra for enabling proper as well as effective communication between the customers (Wu et al. 2015). Organization mainly utilizes customer relationship management for holding valuable data for understanding the behavior of the customers.
Resource Management and globalization: IT plays a vital role in automating various complex problems with the help of user-friendly solutions. Managers of Telstra are responsible for managing as well as monitoring the structure of the organization.
The main requirements for applying information Technology within the organization “Telstra” include:
Cost: The organization needs certain amount of expenses for installing information technology within the organization (Nambisan 2013). The organization spent money for buying various requirements of the project, which are needed for developing IT in the organization.
Planning: It is very much important to have proper planning before implementing the project successfully within the organization. Proper planning helps in developing the information technology with the estimate time and budget.
Designing: The information technology must be designed effectively so that the organization can achieve maximum benefit from it. It must also be helpful in enhancing the overall profit of the organization.
Equipment: Proper equipment must be used in order to develop the information system effectively as well as properly within the organization (Kautz and Pries-Heje 2013). Equipment must be used for utilizing the information system effectively.
Installation: The develop information technology must be installed effectively for utilizing the system. The information technology must be developed within the organization after it is designed as well as planned effectively.
Training: Proper training must be provided to the staff of the organization so that they handle as well as utilize the system effectively without facing any challenges (Oztaysi 2014).
The information technologies that are implemented within the organization are used by the stakeholders of the company. The stakeholders who utilize the information technology within the organization are:
Staffs: The staff of the organization uses information technology for making proper communication between the various stakeholders of the organization (Wynn et al. 2013). The staff uses the technology for managing different operations of the organization properly. The information technology is mainly used by the staff of the organization for making proper decisions.
Customers: The customer of the organization utilizes information technology in order to provide feedback, for receiving products from the customers, for viewing the website of the organization and many more (Shaikhand Karjaluoto 2015). The customer also utilizes Information technology for getting guidelines from the organization in order to use the products effectively. Proper information technology is also utilized by the organization for strengthening the customer relationship management properly.
Suppliers: The suppliers mainly utilize the information system for supplying various requirements that are required for managing the various operations of the organization effectively (Davison and Martinsons 2013). The information technology is used by them for making proper communication with the other stakeholders of the organization.
The information technology is very much beneficial for the business of the organization. It is very much advantageous for Telestra in enhancing the profit as well as sales of the organization. The information technology also helps in enhancing the following:
Revenue: The use of information technology helps in enhancing the entire revenue of the organization. The revenue of the organization is enhanced with the help of web presence, e-commerce, as well as due to the presence of proper customer relationship management (Devaraj, Ow and Kohli 2013). The adoption of information technology within the organization helps in reducing the staff of the organization, which further assists in saving the expenses of the company.
Flexibility: The flexibility of the organization is also enhanced due to the use of information technology within the organization.
Cost Reduction: The development of Information technology helps in speeding the various operations of the organization, which further helps in reducing the overall cost of the organization (Roztocki and Weistroffer 2015). The development of Information technology also lowers the number of staff in the organization, which helps in reducing cost. The cost of the organization is also reduced due to increase in the production of the organization.
The use of Information Technology within the organization increases number of risk for the organization “Telstra”. The risk that arises in the organization due to the use of Information technology includes:
Security: There are number of security issues that are related with the Information technology of the organization (Oztaysi 2014). The security related challenges arises due to denial of service attack, more hacking of data, targeted attacks, increase in malware, due to computer viruses. The security issues that are associated with information technology also arises due to posting offensive web pages or due to unauthorized access by some individuals.
Privacy: There are number of privacy issues, which are associated with the development of information technology within the organization. The customers of the organization use online payment system and if the information and data of the customers are hacked (Webster 2014). Then number of challenges can arise. The privacy issues are not only related with the personal information of the customers, it is also related with financial information of the customers. Hacking of important information of the organization that is associated with the entire revenue can hamper the various operations of the organization.
Confidentiality: It is very much important to maintain confidentiality within the organization. Maintenance of proper confidentiality within the organization not only helps in securing the personal information of the customers but also the financial information of the organization (Kellermann and Jones 2013). If proper confidentiality is not maintained then the organization will face number of risks or challenges.
The methods or procedures that are used for monitoring as well as maintaining the procedure of the business include:
Inventory Management Software: A program automatically manages the inventory. It helps in capturing all kinds of stock in real- time. It also assists in tracking the speed of the items in the company.
Achieving help from the distribution: It helps in ensuring fulfillment of orders in the inventory system. It also helps in accessing the stock of the distributor effectively (Nambisan 2013). It assists the organization in coordinating the various purchase orders. The individuals can also use the information for preventing various data entry errors.
Implementation of proper tracking system: Proper as well as effective tracking system within the organization helps in monitoring the inventory system of the organization. The organizations generally utilize spreadsheets, barcode scanners as well as stamps for tracking (Oztaysi 2014). Telstra also wants to implement an information system related tracking procedure.
Hiring proper inventory consultant: Third party consultant is needed for formulating effective inventory management system. It is also helpful in managing as well as maintaining proper business within the organization of Telstra.
Conclusion
It can be concluded that development of Information technology within the organization Telstra is very much advantageous as it helps in enhancing the growth as well as profit of the company. It has been identified that use of information technology also helps in enhancing customer satisfaction as well as resource management. There are number of requirements for implementing as well as developing the information technology. The requirements include cost, designing, roper planning, training and many more. It has been identified that there are number of risks, which are associated with the organization, which must be resolved effectively.
References
Baskerville, R., Stage, J. and DeGross, J. eds., 2013. Organizational and Social Perspectives on Information Technology: IFIP TC8 WG8. 2 International Working Conference on the Social and Organizational Perspective on Research and Practice in Information Technology June 9–11, 2000, Aalborg, Denmark (Vol. 41). Springer.
Bloom, N., Garicano, L., Sadun, R. and Van Reenen, J., 2014. The distinct effects of information technology and communication technology on firm organization. Management Science, 60(12), pp.2859-2885.
Davison, R.M., Ou, C.X. and Martinsons, M.G., 2013. Information technology to support informal knowledge sharing. Information Systems Journal, 23(1), pp.89-109.
Devaraj, S., Ow, T.T. and Kohli, R., 2013. Examining the impact of information technology and patient flow on healthcare performance: A Theory of Swift and Even Flow (TSEF) perspective. Journal of Operations Management, 31(4), pp.181-192.
Kautz, K. and Pries-Heje, J. eds., 2013. Diffusion and Adoption of Information Technology: Proceedings of the first IFIP WG 8.6 working conference on the diffusion and adoption of information technology, Oslo, Norway, October 1995. Springer.
Kellermann, A.L. and Jones, S.S., 2013. What it will take to achieve the as-yet-unfulfilled promises of health information technology. Health Affairs, 32(1), pp.63-68.
Nambisan, S., 2013. Information technology and product/service innovation: A brief assessment and some suggestions for future research. Journal of the Association for Information Systems, 14(4), p.215.
Oztaysi, B., 2014. A decision model for information technology selection using AHP integrated TOPSIS-Grey: The case of content management systems. Knowledge-Based Systems, 70, pp.44-54.
Roztocki, N. and Weistroffer, H.R., 2015. Information and communication technology in transition economies: an assessment of research trends. Information Technology for Development, 21(3), pp.330-364.
Shaikh, A.A. and Karjaluoto, H., 2015. Making the most of information technology & systems usage: A literature review, framework and future research agenda. Computers in Human Behavior, 49, pp.541-566.
Webster, J., 2014. Shaping women’s work: Gender, employment and information technology. Routledge.
Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and it managers. Mis Quarterly, 39(2), pp.497-518.
Wynn, E.H., Whitley, E., MYERS, M. and DeGross, J. eds., 2013. Global and Organizational Discourse about Information Technology: IFIP TC8/WG8. 2 Working Conference on Global and Organizational Discourse about Information Technology December 12–14, 2002, Barcelona, Spain (Vol. 110). Springer.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet. Journal of Retailing and Consumer Services, 22, pp.244-249.
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