With the rapid inception and introduction of new technologies, innovations, and strategies, businesses are constantly evolving and seeking new ways to improve their efficiency and practices to reap bigger profits. To succeed at this, however, organisations must have an efficient system in place that enables employees to conveniently communicate with potential customers, partner with businesses, and improve overall productivity.
Information Technology (IT) systems help in achieving this, and have now become an integral part of every business plan. In fact, from multinational corporate to small businesses, everyone is using IT to improve their practices. But, what is it about Information Technology that sets it apart from all other previous technological advances? What is its role in modern day business environments? Well, take a look below to find out:
Customer Relationship Management
One of the most important roles IT plays in modern day business environments is facilitating communication and managing relationships between employees and customers. IT is vital for managing customer relationships and capturing every interaction a business has with its customers. Additionally, the CRM systems used in IT not only help organisations provide a more enriching experience, but also make communication easy and remove any distance barriers. Therefore, the customer has a better and more focused experience, which is crucial for improving productivity and retaining customers.
Management Information Systems
Storing data can only offer benefits if the data is used effectively. Most progressive companies will use data as part of the tactical execution and strategic planning process of that strategy. Management Information Systems (MIS) makes this task easier by enabling organisations to track productivity levels, sales, and expenses data. This information can then be used to identify areas for improvement, track profitability over time, and maximise return on investment. Additionally, managers can also monitor sales on a daily basis. Therefore, this allows them to immediately react to low numbers by reducing the cost or boosting employee productivity.
Information technology also plays an imperative role in helping businesses manage inventory, enabling organisations to maintain enough stock to meet increasing demands, without purchasing MORE than they actually require for selling. Inventory management systems prove useful for triggering orders, tracking the quantity of each item, and marking completed orders. They can also be used with a point-of-sale (POS) system, ensuring the complete automation of the processes in the sales cycle. A POS system automatically removes each item from inventory count when sold.
The days of mailing documents and keeping large rows of filling cabinets and file rooms are gone. Most organisations today store digital versions of their documents on servers, computers, or external hard drives and on the cloud. These documents become instantly available to employees via information technology, as companies have the ability to maintain and store massive amounts of data economically.
As you can see, every information system and technology plays an important role in the successful operation of different businesses.