Interscale Content Hub – The phrase “adapt or perish” is probably as true as it ever was in today’s competitive business environment.
So, why information technology is important in business?
As Michael E. Porter and Victor E. Millar point out in their Harvard Business Review article, the information revolution isn’t just an option for businesses looking to thrive — it’s a necessity.
Information technology (IT) is a game-changer. It can transform entire industries, redefine competitive landscapes, and create new business opportunities.
What is the Role and Impact of Information Technology in Business?
Information technology has come a long way in business. It started out as just accounting and record-keeping, but now it’s a key part of strategic decision-making and innovation.
In their article, “How Information Gives You Competitive Advantage,” Michael E. Porter and Victor E. Millar say the role of IT in business goes way beyond just automation.
It changes the way value chains work, creating new links and making operations more efficient to achieve lower costs and stand out from the crowd.
For instance, Porter’s idea of the value chain shows how IT links up tasks from buying to selling, helping companies cut costs and improve service quality.
You can see how IT is being used to streamline supply chains, enhance customer service and enter new markets in companies here in Australia. It’s part of a broader global trend.
We can also see how IT is influencing business by creating new business models.
As Santhosh T. explains in “Impact of Technology in Business,” IT has given companies the tools to adopt mobile solutions and cloud computing.
That way, businesses can interact with customers and manage operations in a whole new way.
In Australia, where the SME sector is big business, these technologies have levelled the playing field, allowing smaller firms to compete with larger counterparts by reducing costs and increasing market reach.
As a starting point, have a look at “What Is IT Managed Services & Benefits Your Company Will Get“
Reasons Information Technology is Important in Business
Why information technology is important in business? There are lots of reasons why, and they’re all connected in different ways.
So, let’s take a look at a few of the most important answers, shall we?
Enhancing Communication
Good communication is the key to any successful business. And IT has totally transformed the way we communicate.
Now, we can interact with customers, employees, and partners instantly and seamlessly through tools like email, texting, websites, and mobile apps.
Santhosh T. also points out how these communication methods let businesses spread their message far and wide and get valuable customer feedback in real time.
In Australia, this means businesses can connect with customers anywhere, fostering stronger relationships and providing timely support.
Improving Efficiency and Productivity
Information technology makes a big difference in efficiency and productivity.
IT takes care of routine tasks, making processes more efficient, and making the best use of resources.
Porter and Millar show how IT can transform the value chain, helping businesses to do things more cheaply or in a way that makes them stand out and charge more.
For example, Canon’s automated parts-selection system transformed its copier assembly process, leading to major cost savings.
Facilitating Innovation and Growth
It’s not just about keeping things as they are. It’s about pushing the boundaries and driving growth.
Sutrisno and co-author in “Do Information Technology and Human Resources Create Business Performance?,” look at how IT and human resources work together to create a culture of innovation.
IT has played a big part in helping startups get off the ground and grow quickly in Australia.
New tech like AI and machine learning is helping Aussie companies create new products and services, which is driving growth in a competitive market.
Enhancing Data Management and Security
As we’re all dealing with a lot more data these days, it’s become pretty important for businesses to manage and secure their information.
Porter’s work shows how IT systems can collect, process and analyse huge amounts of data, giving businesses the insights they need to make strategic decisions.
In Australia, where data breaches have been a big issue, it’s clear that IT plays a vital role in keeping data secure.
Advanced IT systems keep sensitive information safe, so businesses can stay on the right side of the Australian Privacy Act.
Supporting Strategic Decision-Making
Porter and Millar show how it’s vital to assess the amount of information you’re dealing with and understand the part IT plays in industry structure if you want to make the right decisions.
IT helps businesses analyse market trends, customer behaviour, and competitor activities, making it easier for them to make quick and effective decisions.
In the Australian market, where competition is intense, IT helps businesses spot opportunities, manage risks and make strategic choices that lead to success.
Challenges in Implementing Information Technology
While the benefits of information technology are undeniable, its implementation is not without challenges.
Moving to a digital-focused model can be a big change, with lots of adjustments needed in processes, workflows, and even the way the company operates.
Porter and Millar make a good point: to get IT right, you need to have a clear plan and understand how information flows through the business.
One of the main challenges is the cost of IT infrastructure, software and ongoing maintenance.
For small businesses and start-ups, these costs can be a real challenge.
On top of that, the tech world moves pretty fast, so businesses have to keep upgrading and adapting, which adds to the cost.
Another hurdle is the complexity of IT systems and the need for specific skills to manage and maintain them.
This often means that businesses end up relying on external IT support, which can be expensive and may not always be what they really need.
On top of that, data security and privacy are big issues in the digital age.
It’s crucial for businesses to make sure that sensitive data is kept confidential, secure and available, both for their own operations and to comply with regulatory requirements.
The risk of data breaches and cyberattacks is always there, and the consequences can be pretty severe.
These can include financial loss, damage to your reputation, and legal liabilities.
And we can’t forget about the human element. People can be reluctant to change, they might not be digitally literate, and they might need to learn new skills or get trained up.
For a little background, you might find it helpful to read “Why Do Businesses Need Managed IT Services? Here Are The Answers.”
How Interscale Helps Your Business Stay Evolving in IT Fast-changing Scene
With all these challenges, businesses need a reliable partner to help them get to grips with the ins and outs of IT implementation and management.
That’s why we at Interscale offer a proactive IT management service to ensure your business is always up to date with the latest technology.
We also take care of hardware and software updates, making sure all systems are running the latest versions to avoid compatibility issues and security vulnerabilities.
In addition, Interscale’s services include comprehensive security management, which is crucial for protecting sensitive project data from cyber threats.
To put it simply, we can help you with all those tricky tech issues like outdated technology, security vulnerabilities, high costs, and unexpected downtime.
The main idea is simple: you can free up valuable time and resources to focus on what you do best.
Of course, we don’t expect you to take our word for it. We’re all about transparency and doing our homework.
We suggest you do your homework – take a look at our track record, explore our services, and ask us any questions you may have.
Take a look at our Interscale IT Managed Services page to find out more about how we operate.
We’d also love to have a catch-up – maybe over a coffee and a croissant?
Let’s have a talk about the IT issues you’ve been facing and see how we can help you solve them.
In Closing
While there are a few hurdles to overcome when it comes to implementing information technology in business, with the right support, these can be easily managed.
Therefore, Interscale has the expertise and proactive management skills to help your businesses, especially in the AEC sector, stay ahead in a fast-changing IT landscape.
So, why is information technology important in business? Actually, it’s no longer a question but a statement of fact.
