Information Technology: Managing A Business In This Digital Age

Information technology means making use of computers and other devices to produce, process, and store data. This is typically integrated with business operations. You’re probably asking yourself right now what is hybrid cloud, Microsoft SQL, relational database, and many more. These are some terminologies that might be overwhelming and question their importance in your business. But don’t panic! In this article, we will discuss how information technology is applied. After reading, you will be convinced to set up your own IT system.

1. Operational Support

Because data is stored in your system, you can easily retrieve and summarize them and use this to aid in decisions you need to make. You may be able to understand customer behaviors, needs, satisfaction, and market trends. For example, you have noticed sales peak in the summer. Therefore, you need to increase your production to meet the projected demand based on past transactions.

Communication is also essential in a business, and today’s online conferencing technologies have become a perfect substitute for costly and time-consuming business travels. Zoom, Google Meet, and Skype are examples of where you can hold meetings with business partners or employees online. Just make sure that you have a stable connection to avoid miscommunication.

2. Security

In this age where information is the new gold, you must do everything to safeguard your data. Information systems now provide the convenience of storing and protecting your data from possible loss, misuse, or modification of company-related data or personal information. These issues may hinder your business’s operations and cause setbacks, which is the last thing you want to have.

Information may be stored and retrieved whenever you like through clouds. To back up data, some entities employ private clouds or hybrid clouds. Private clouds are hosted by a single organization, and only its employees can access its data. In contrast, hybrid clouds are a mix of public and private clouds. You may store confidential data in the private cloud and the less classified ones in the public cloud.

3. Accounting Perspective

Accounting is the process of recording, classifying, and summarizing financial data and reporting it to the users to aid in their decision-making. Applying information technology to accounting improves the operational efficiency of the department.

One of the greatest forms of accounting support provided by information technology is the point-of-sale (POS) system. Maybe you are wondering what a point-of-sale system is. If you have seen a barcode in a store, and when you pay the item to the cashier, they scan it, and your sale transaction is immediately recorded on their computer.

Before the existence of POS systems, merchandising businesses relied on a physical count, which was very time-consuming and costly. Also, having information technology in accounting results in the automation of handling data. This means that there is a less human intervention which lessens the business; exposure to fraud or error.

4. Timeliness

One of the most important features in reporting is the timeliness of data. As for financial statements, it is much easier to prepare and release reports to stakeholders. Some companies report interim financial statements. It may be either monthly, quarterly, or whenever the company wishes. Information systems make it easier for the accounting department to create financial reports with little room for error.

This is most beneficial for decision-makers such as managers, directors, and potential shareholders. The ultimate goal here is to aid the stakeholders in making an informed decision and to have predictions as to what might happen in the future.

Conclusion

Information technology is continuously evolving at a fast pace because people have unlimited needs and manufacturers still upgrade high-tech products. Our lives are basically dependent on information technology.

Undeniably, integrating information technology into business is a must in this era. Through this, you will be able to maximize the full potential of your business and increase its value.