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May 19, 2018  |  By IT In Blog, News

Role of Information Technology in Modern Organizations

Role of Information Technology in Modern Organizations
Role of Information Technology in Modern Organizations

Information technology or IT has become a vital and integral part of every business plan. It plays a very important role from multi-national corporations to small businesses. The reasons for the global use of computer technology in business can best be determined by looking at how it is being used across the business world. Information Technology plays a significant role in today’s or modern organizations, they are as follows:

  • Communication – In most of the companies, email is considered as the principal means of communication between employees, suppliers and customers. It was one of the early drivers of the Internet that provides a simple and inexpensive means to communicate. Over the years, a number of other communications tools have also evolved which has allowed the staff to communicate using live chat systems, online meeting tools and video-conferencing systems.

  • Inventory Management – In the management of inventory, organizations need to maintain enough stock to meet demand without investing in more than they require. Inventory management systems mainly help in tracking the quantity of each item maintained by the company, triggering an order of additional stock when the quantities fall below a pre-determined amount. These systems are best used when the inventory management system is connected to the point-of-sale (POS) system.

  • Data Management – The days of large file rooms, rows of filing cabinets and the mailing of documents is fading fast. Today, most companies store digital versions of documents on servers and storage devices. These documents become instantly available to everyone in the company, regardless of their geographical location. Companies are able to store and maintain a tremendous amount of historical data economically, and employees get the benefit from immediate access to the documents they need.

  • Management Information Systems (MIS) – The data storage is considered as the most effective benefit. Progressive companies use that data as part of their strategic planning process as well as the tactical execution of that strategy. MIS enable the companies to track all the data of sales, expenses and productivity levels. The information can be used to track profitability over time that could help in maximizing return on investment and identify areas of improvement.

  • Customer Relationship Management (CRM) – Most of the companies are using IT to improve the method of their designing and managing customer relationships. It basically captures the interaction between the company and the customer that could help in enriching the possible experience.
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