The Important Role Of Information Technology

Today, the information technology implementation is the way to win the business competition. The application of information and communication technology are needed as a tool for the organization to reach the advanced level.

The development of information and communication technology in a company is performed gradually. It is adjusted based on the resources strength of the organization. During the implementation, the strategic plan of an information technology is adjusted to the established plan of the company. The information technology implementation will result a good grade for the company or organization.

Talking about the structure of information technology in the company. During the implementation, the information technology is categorized as follows.

  1. IT applications on companies or organizations as the base of existing application in the company or organization such as network management, database, operating system and so forth.
  2. A basic application is an IT application that will be used in all basic matters related to the company’s or organization’s resources. For example, accounting and financial systems or applications, payroll systems, and so on related to company resources.

3.A suitable IT application that fits the specific needs of the company or organization, especially related to the process of creating products or services to be offered, such as property applications, accounting applications, forwarding applications, warehousing applications and so on.

IT institutions are often underestimated because it is considered as a department that  only spend money without being able to make money. This matter causes a problematic for IT in companies or organizations.

The need for time efficiency as well as the cost that resulted business owners need the   information technology application in the working environment. One of the causes of work habits is the result of the application of information and communication technology, for example the implementation of Enterprise Resource Planning (ERP).

ERP is one of software applications which includes the management system within the company. Some advantages of information and communication technology application in a company or organization:

  1. All of the previously manual systems in the company or organization are switched to be automated to reduce the workforce cost and others.
  2. IT implementation will result faster working time, because IT application shorten the bureaucratic chain. For example, which was previously completed within a week, but using information and communication technology could be settled on one day only. If we convert the time into cost, it will result in savings some amount of money.
  3. Decision making will be faster. The existence of information and communication technology enables the data processing and its result quickly obtained. It will certainly make the company or organization become more competitive. Responding any matters slowly will cause great  impact, such as losing customers or orders.
  4. Promotional cost savings is conducted by applying information and communication technology. Online promotion allows the customer to view your company profile or organization anywhere around the world.
  5. The information and communication technology utilization makes the integration between office and its branches runs smoothly.

In general, the information system roles in the company are:

Minimize Risk

It is generally known that every business has its risks, especially on financial matters. Currently, various types of applications are available to reduce the risks which is commonly faced by businesses such as forecasting, financial advisory, planning expert and so on.

The current IT has capability to overcome the above mentioned problems. IT helps the company to reduce risk and assist the management as a tool to manage risks.

Reduce Costs

As a catalyst in the company, IT is also used to reduce company’s operating cost which may influence the company’s profitability. In relation to this, there are four ways where IT may reduce the operational costs:

  1. Reduce cost
  2. Process elimination
  3.  Add Value
  4. Create new realities

The conclusion is, applying information and communication technology within a company or organization will save cost in many aspects like labor, process, marketing and even management. Besides, the other advantage is to boost your company development by increasing your company margin.