Role of Technology

Technology plays a vital role in business. Over the years businesses have become dependent on technology so much so that if we were to take away that technology virtually all business operations around the globe would come to a grinding halt. Almost all businesses and industries around the world are using computers ranging from the most basic to the most complex of operations.

Technology played a key role in the growth of commerce and trade around the world. It is true that we have been doing business since time immemorial, long before there were computers; starting from the simple concept of barter trade when the concept of a currency was not yet introduced but trade and commerce was still slow up until the point when the computer revolution changed everything. Almost all businesses are dependent on technology on all levels from research and development, production and all the way to delivery. Small to large scale enterprises depend on computers to help them with their business needs ranging from Point of Sales systems, information management systems capable of handling all kinds of information such as employee profile, client profile, accounting and tracking, automation systems for use in large scale production of commodities, package sorting, assembly lines, all the way to marketing and communications. It doesn't end there, all these commodities also need to be transported by sea, land, and air. Just to transport your commodities by land already requires the use of multiple systems to allow for fast, efficient and safe transportation of commodities.

Without this technology the idea of globalization wouldn't have become a reality. Now all enterprises have the potential to go international through the use of the internet. If your business has a website, that marketing tool will allow your business to reach clients across thousands of miles with just a click of a button. This would not be possible without the internet. Technology allowed businesses to grow and expand in ways never thought possible.

The role that technology plays for the business sector cannot be taken for granted. If we were to take away that technology trade and commerce around the world will come to a standstill and the global economy would collapse. It is nearly impossible for one to conduct business without the aid of technology in one form or another. Almost every aspect of business is heavily influenced by technology. Technology has become very important that it has become a huge industry itself from computer hardware manufacturing, to software design and development, and robotics. Technology has become a billion dollar industry for a number of individuals.

The next time you browse a website to purchase or swipe a credit card to pay for something you just bought, try to imagine how that particular purchase would have happened if it were to take place without the aid of modern technology. That could prove to be a bit difficult to imagine. Without all the technology that we are enjoying now it would be like living in the 60's again. No computers, no cellular phones, no internet. That is how important technology is in business.

Information technology (IT) has become a key functional area through which firms design new business processes and develop distinctive organizational capabilities. Some prior research has focused attention on analysis of the enabling role of IT in enhancing the value of several types of business processes (e.g., innovation) and on the development of higher-order process capabilities (e.g., knowledge management).

Information technology (IT) has become a vital and integral part of every business plan. From multi-national corporations who maintain mainframe systems and databases to small businesses that own a single computer, IT plays a role. The reasons for the omnipresent use of computer technology in business can best be determined by looking at how it is being used across the business world.

Role of Technology

The role of information technology systems in a business environment can be classified into four broad categories. These categories include function performance, communication through networking, management and enterprise roles.

Information technology provides commercial and industrial systems for businesses. These systems enable businesses to function effectively and efficiently.

Function IT SystemsFunction IT systems are applications that allow individuals to function effectively in the workplace. Examples of common IT systems that enhance workplace functions are word processor applications, spreadsheet applications, statistical analysis software and computer aided design (CAD) programs. Employees can work and perform their task individually or collectively using these specialized software technologies.

Network IT SystemsNetwork IT systems allow effective communication within and outside an organisation. Examples range from simple e-mail (electronic mail) to blogs, wiki sites, IM (instant messaging) and electronic conferencing systems. These types of technologies promote interaction and collaboration among working groups and also facilitate quick information flow at all levels.

Management IT systemsManagement IT systems (MITS) can be defined as planned applications that are designed to process data and transform the processed data into useful information for management decision making.

It should be noted that Management Information systems (MIS) are subsets of Enterprise IT systems (this is explained later on in this article). However, because of the vital role MIS play in a business environment, it is considered here as a major information technology for businesses.

In a typical scenario, management operates at different levels and so it is possible to apply management information systems at these varied levels.

Basic examples of management information systems are human resources management systems, financial management information systems and marketing management information systems.

Enterprise IT SystemsEnterprise IT systems are technologies designed to integrate and manage entire business processes for large organisations. Typically, enterprise application software is hosted on large servers over a computer network. Transmission of information can either be internal or external.

Examples of enterprise information systems may be accounting software, health care specific software or Electronic