Impact of Information Technology in Business Organizations

Grönroos, (2007) defines information technology as the application of the internet and computers to store, transmit, retrieve, and manipulate information or data with the main aim of improving processes. The business world has seen an increased use of computer technology to bring about business efficiency through improving business operations as well as reducing operation costs.

The main advantage business entities get from the use of technology is that it leads to increased production.  Technology has been used by business organizations to automate their production processes and this leads to increased production at relatively lower production and operation costs (Grönroos, 2007). This leads to efficiency in production hence enables an organization gain competitive advantage over other players in their industry. Another major benefit of employing technology is that it leads to better storage of data and important information. Using cloud hosting services, organizations can store and backup important data easily and securely. Database technology makes it possible for easy data analysis hence enabling decision makers to make important business decisions based on stored and analyzed data and information.

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The use of technology has its disadvantages the major one being security breaches. Business entities store their data on remote cloud servers that are accessible over the internet using a username and password. Usernames and passwords can be hacked or even attacked by viruses leading to major losses. The implementation of technology can be expensive and it may lead to lose of jobs.   

Customer relationship management system can be utilized by an organization to increase its profitability and attain its bottom line. Business entities have embraced the social technology to interact with their clients and fans. This has enabled these entities to create a strong relationship with their clients and this is what can result in business growth through increased its market niche (Hudson & Thal, 2013). Continuous interaction with clients through social media sites such as Facebook is what leads to customer loyalty hence increased sales and profits


Grönroos, C. (2007). Service management and marketing: customer management in service competition. John Wiley & Sons.Hudson, S., & Thal, K. (2013). The impact of social media on the consumer decision process: Implications for tourism marketing. Journal of Travel & Tourism Marketing, 30(1-2), 156-160

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