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The Role of Information Technology on the Growth of Firms

The Role of Information Technology on the Growth of Firms


The role of Information technology (IT) has come a vital and integral part of every business plan. From multi-national corporations who maintain mainframe systems and databases to small businesses that  enjoy a single computer, IT plays a part. The reasons for the  universal use of computer technology in business can best be determined by looking at how it’s being used across the business world. Information technology (IT) is the backbone of technological  invention. The role of IT on the growth of firms plays an imperative part. This  invention has played a massive  part in developing business  operation. Nowadays, there isn’t a single business in this world that doesn’t use different IT tools and technologies to conduct day- to- day operations, design marketing strategies, and indeed  retain  workers.

Also read: Importance of Information Technology in Today’s World 

The Role of IT in Communication Between Workers, Suppliers and Clients

For numerous companies, email is the top means of communication between  workers, suppliers and clients. Email was one of the early enabler of the Internet,  furnishing a simple and affordable means to communicate. Over the times, a number of other communication tools have also evolved, allowing staff to communicate using live  converse systems, online meeting tools and  videotape- conferencing systems. Voice over internet protocol (VOIP) telephones and smart- phones offer indeed more high- tech ways for workers to communicate. Let’s take a look at how information technology drives business  operation moment.

Streamlining Operations

Information technology is now used in regular operations of any business. The role of IT has enabled an ease of doing business by managing charges, regulating reclamation, dealing with  request  query, managing inventory, covering employee performance, dealing with employee grievances and so much more.  Now, IT has also automated  several manual and time consuming tasks to speed up regular operations. For  illustration, there are multiple software available to record the  regular attendance of  workers, process leaves, and  cipher yearly  hires of  workers with  minimum  manual hindrance.

Enforcing Cloud-Grounded Results

Cloud technology is another useful tool that helps businesses store their data on third party  waiters through the internet. It’s a revolutionary tech that has helped small and large businesses largely cut down costs and conclude for subscription packages to suit their business requirements. Businesses don’t have to worry about hiring a substantial IT  team to maintain and manage large waiters within their workspace. They can pay third party companies to store applicable data. effects like  waiters crashing,  time-out and data being lost are now a thing of the  history with  cloud technologies coming into the picture.

Easing Cyber Security

As  further and  further businesses store data online, the  threat of cyber attacks arises. Indeed third party companies that offer  cloud results to businesses need to  guard the data of their  guests from cyber attacks. Businesses in the banking and finance sector need to be more concerned about cyber security. Businesses that develop a proper cyber security network can assure their  guests that their data will always remain safe and grow their  customer base in this manner.

Conducting Data Analysis

Companies depend on the role of IT professionals to gather, assimilate,  insulate and study applicable data to understand current  request trends and  client  behaviour. They  also use the data to make  different organisational position  opinions to develop their business.  Data analysis is another important tool used by businesses to develop business strategy,  assay  request  accessibility. Staying ahead of the competition, understand  client  experience and develop product development strategies consequently. It can also help businesses stay ahead of the competition in a cut- throat  request.

Enabling Effective Communication

Easy and effective communication is one of the main advantages of information technology. Communication doesn’t only relate to communication done on an organisational position. It also means communication done with  clients and  guests.  IT software like emails, Whatsapp, personalised chatbots, feedback forms, etc. can be categorised as a form of communication. Living in the information technology  period means that businesses can admit immediate communication. This communication includes deals  numbers, consumer feedback,  client enquiries,  request trends and so much more.

Enhancing Client Experience

Utmost businesses now use IT to enhance their  client’s experience and maintain a great relationship with  clients. Businesses use tools like CRM (client Relationship operation) to keep a track of  client  experience, any issues faced by the client, and  insure quick resolution of issues.  Suppose a  client has an issue with a product bought or a service used. They can call up the company which will be captured by the CRM. A  client relationship  superintendent will  also review the  client’s shopping history. Through the CRM program and efficiently break the issue without a glitch or a  detention.

Reducing Functional Cost

Overall, enforcing the over mentioned IT software and programs can help businesses reduce their  functional costs by a large  periphery. They don’t need to  retain  further staff members to do tasks that can be done by software and programs. Rather, they can  rather  retain top notch professionals from the assiduity to drive their business ahead.  This helps businesses invest  further capital on other avenues  similar as marketing, enhanced cyber security, hand  revivification programs and better  fiscal investments for a sound  fiscal portfolio. Better returns and finances means the company is more stable and  dependable for  clients and  workers.

Also read: The Strategic Role of Information Technology in Small Businesses


It’s reasonable to say that utmost businesses that live today use some form of information technology or another to conduct regular operations, interact with clients and deal with internal matters. IT goes a long way in boosting business development while also serving  clients with better options in the  market.  It’s a symbiotic relationship between IT and businesses. And businesses internationally profit from the newer and better inventions of the IT assiduity.

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