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How Has IT Brought New Business Success

The computerization and atomization of systems has created an opportunity for the employees to spend their time more in engaging and improving customer relationships and building new and stronger relationships with suppliers. They provide their clients with customer ordering data to enable matching of production and demand. This has contributed in reduction on cost of ordering and inventory management.

Automation of organizational processes replaces human labor in a process hence improving quality and efficiency. To gain and sustain competitive edge in the market, IT was used to form new relationships with their customers and suppliers. This can discourage customers and suppliers from abandoning the firm for its competitors.

Use of E-commerce website can be employed to connect to its customers and suppliers. These make customers and suppliers dependent on the use of innovative, mutually beneficial and they become reluctant to spend the efforts in time, money, inconvenience, etc. to switch systems to competitors.

Use of internet has helped in improving business processes leading to a development of new products and services that would not be possible without a strong information technology capability. Increment in investment in information technology help in improvement of operations or support innovation. 

It serves to lower operational costs in areas of distribution, transaction costs, use of paperless office/paperless operations through application of video conferencing and email services. Use of database - applied in development of a strategic information base for both suppliers and customers.

It facilitates development of potentially very valuable data and other corporate databases. This information about customers, product, competitors, and market is very valuable in development of the strategic direction of the organizations.

Through internets organizations are able to capture data and share information about sales and purchases. It brings large amounts of detailed information into a process which is regularly processed, updated and analyzed. Management is able to access information from different units or departments hence facilitating real time decision making.  

Last modified on Saturday, 07 November 2015 10:44
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