Information Technology (IT) Advantages and Disadvantages

Information technology


What is Information technology.
Information technology (IT) is the use of computer to store, retrieve, transmit, and manipulate data,or information in a connected environment and we can say that the study or use of systems specially computers and telecommunications for storing, retrieving, and sending information.


Advantages of information technology

• Increases Production And Saves Time

Businesses today more than ever use technology to automatic tasks. A good example is a bakery which uses electronic temperature sensors to detect a drop or increase in room or oven temperature in a bakery. These sensors send information directly to the operator, reporting any temperature change. This temperature system saves the bakery time, and it also results in consistent higher quality products.

• Improves Communication 

With the help of communication technology tools like phones, video conferencing, electronic mail or instant messenger just to mention a few, movement of information within an organization or business has become instantaneous. Employees can easily move data across departments without having any interruptions. Tools like electronic mail, e-fax, mobile phones and text messaging enhance the movement of information data among employees, customers, and business partners or suppliers, this allows for greater interconnectivity throughout internal and external structures. 

• Improves Data Storage, File Management, And Data Reporting/ Analysis

Businesses use cloud hosting services to store and backup business data. Also, it saves on paperwork and makes transfer and access to data possible remotely. With services like Dropbox.com, business owners can access their data anytime anywhere. Additionally, databases today allow for greater correlation of information, analysis of this data relationship can encourage better and more informed decision making, resulting in potential growth.

• Improves Financial Management

Accounting software like Quick Books, Bookkeeper, Sage 50, and Account Edge perform various accounting tasks in a business. Business owners can easily balance their books with less experience in accounting because this software is well equipped with every tool needed in accounting. It allows for faster processing and calculation of financial information and the recording or storing of financial data that may need to be referenced in the future.

• Cuts Costs Of Operation And Increases In RIO

Communication technology and social technology have made business promotion and product launch affordable. Many small businesses have found ways to use social technology to increase their brand awareness and get more clients at a minimal cost. In business, factors like cost of operation play a significant role in the development and growth of a business. So when companies use information technology to cut down on costs of operation, then their ROI will increase, which will result in business growth.

• Improves Business To Consumer Relationship

Businesses have embraced the social technology to interact with their consumers and fans, creating a strong business to consumer relationship, and it results in business growth via customer loyalty and expansion. Information technology can be used to improve customer service in so many ways. For example, businesses can use their website or email to inform their customers about great deals and discounts. Making the customer aware of these offers can drive their desire to buy. Good customer service can be used as an excellent tool for any small business to gain the competitive advantage.

• Improves Business Competitive Advantage

Companies have used technology to gain the competitive advantage over their competitors.  Business who innovate and adopt technology to remain efficient and improve processes, typically have high customer loyalty rates. As they can consistently meet and exceed expectations of their customers.

Disadvantages of Information Technology

• Implementation Expenses

Small businesses sometimes struggle to afford and maintain expensive core technology, so they end up losing their clients to a company which has the capital and resources necessary to compete in the industry.

• Job Elimination

Technology has replaced many positions humans used to occupy. Software is now doing complete accounting, so trained accountants have fewer opportunities, robots can cut the lawn or clean the pools, no need for a handyman.

• Security Breaches

Since businesses store their data on remote cloud servers which can be accessed online with a username and password, they risk potentially losing that data to hackers or viruses.