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Impact of Information Technology on Business Performance

  • Type of paper: Essay (Any Type)
  • Subject: Art
  • Pages: 2

Business refers to any merchandise or commercial activity engaged in to generate profit. Information technology involves the use of computers, networking and other physical devices,processes and infrastructure to create, secure, store and exchange any forms of electronic data. Currently, business is one of the major employers of many people worldwide. Due to rapid advancement in information technology and increased competition in the business industry, businessmen have adopted information technology to improve efficiency and effectiveness in the operations. Therefore, this paper asserts to discuss its impact on business performance. Time saving: use of computers and other electronic devices facilitates faster implementation of set objectives since many tasks are accomplished within a short duration. This in return helps improve production and profitability of the firm. It is possible to meet its long- term objectives such as expansion. It enhances firm’s reputation: prompt feedback on customers’ issues and complaints leaves good image to the firm. Some become loyal to the firm. They invite other potential customers. Quality of products is improved due to increased competition in the market. Low prices are offered for products. Customers can satisfy their needs by selecting from a number of alternatives. Improved efficiency and effectiveness; many tasks are performed within a short duration using machines with high efficiency which minimizes the level of waste materials. There are a few disadvantages associated with information technology on firm’s performance despite the merits it brings. For instance, storage of firm’s confidential information in computers is prone to viruses which can delete any data stored for future use.

Impact of Information Technology on Business Performance

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