Cost Savings and Revenue-Enhancement Factors that Are Realized with New Technology
Automated Processes and the Ability to Work Remotely
With the implementation of new Information Technology (IT) systems comes improvement in productivity, high degrees of accuracy in the information circulating within firms and better profit performance of firms. IT helps the business to process large volumes of data and information at a relatively shorter time. It therefore, follows that the beneficiaries of such information such as the employees and the management have access to reliable and accurate data and information which is critical in surviving in today’s highly dynamic and competitive business environment. Saving time in carrying out business functions and processes also helps firms to cut overhead costs of carrying out lengthy and redundant business processes (Sheahan, 2011). For example, in the past, some companies have had to seek services of other firms in computing their incomes and expenditures at the end of each fiscal. Today, these business functions have been made even simpler and cheaper since firms only maintain lean departments tasked with other jobs as computations can easily be analyzed by use of spreadsheets and other relevant software. Therefore, while the company’s employees are involved in other tasks, due to automation of computers, it can also automatically run its reports, monitor business financials, create custom system queries, and track project progress.
Ease and Cost of Communication
The availability of both local and international networks has improved the performances of businesses communication and cut down on travel costs because businesses can share large amounts of voice data and video services across their businesses. With outsourcing and other business operations aimed at maximizing profits and minimizing operational costs, IT systems have come in handy in effecting communication where numerous businesses and organizations are controlled by one head office (Stair & Reynolds, 2011).For example, even while on a long business trip, the secretary can still furnish the business president with information and by use of the company’s electronic network, the president can access the company’s data bases and information. This ensures continuity of business processes even when management is not physically available to supervise operations.
Electronic Storage and Protection of Records
IT systems enable electronic storage functions that are capable of storing massive volumes of important business records in form of raw data and information. Secure and confidential storage of client data and information is critical in gaining the integrity and confidence of business associates and clients. Storage facilities for example, storage vaults securely keep data by allowing only authorized personnel to access that information. Changes or lose of information and data are minimized or even eliminated as they are only available to authorized users with due rights and privileges. The security and cost of maintaining crucial data are realized because office space is saved and security enhanced due to the security protocols employed to secure information and data in the company’s data bases.
Importance of the these Factors
All the above benefits that come with the IT systems in an organization are geared towards the achievement of efficiency and maximization of productivity in a firm, secure storage, and ease of access of business information and cheap and fast communication. When a business organization achieves these important elements, the costs of doing business are significantly minimized (Sheahan, 2011). Also, due to efficiency attained by saving of both time and finances of an organization, the incomes of a firm are optimized. A firm that has sound understanding of IT applications easily gains a competitive edge especially in today’s IT-driven world thus remaining ahead of competition.