4 Ways Your IT Affects Your Business Profitability
Information technology (IT) is used to store information, create information, or handle information. Business information systems are designed to process business data and information. The information used in all applications within the business are stored on a central server or computer network. All employees have access to this information without having physical possession of it. It’s quick, reliable, secure and keeps everyone up-to-date. Every business needs some form of technology whether it be for convenience or safety purposes. Some companies rely heavily on information technology while others use it just as much. Here are 4 ways that IT contributes to the profitability of your company:
1. Reduced Expenses
Technology can save you money in lots of different ways. For example, information technologies such as the Internet and computers help reduce expenses related to printing. The Internet has turned paper documents into digital information that can be sent electronically at little to no cost. While you’re saving money by reducing the amount of paper and ink your company uses, you’re also eliminating costs associated with information storage and retrieval (you don’t need file cabinets anymore because information needs to be stored only on computers).
2. Increased Sales
You can create information with information technologies that helps promote your company’s products or services to potential customers. For example, the Internet provides you with a platform for marketing information about your company and its products. You can use social media sites like Facebook to post information that may interest your clients, including links to articles that are relevant to their interests or industries. If something related to your business goes viral on the Internet, it could potentially boost your sales because of the free exposure you receive through word of mouth advertising.
3. Reduced Errors
Information technology can increase accuracy to information used by your business. Using information technologies, such as cloud computing and electronic document management systems, ensures information is stored in a single location where it’s easily accessible to all workers. As a result, your company reduces errors related to misplacing information or not being able to locate information from the past.
4. Better Decision-Making
Information technology enables you to monitor information that helps you understand what’s happening with your company or industry. For example, information technology can help you analyze information related to marketing. If your marketing department has access to information about customer purchases at different times of the year or certain types of information customers want to know before deciding whether or not they’ll buy an item, they can make better decisions about future marketing strategies.
By applying this information effectively, companies may be able to reduce costs while increasing sales revenues. Not only do these activities increase profitability, but they also lead the way for further business expansion by creating business-to-business relationships, information sharing, and information networking.