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How Information Technology Affects Business Essay

As a business owner, and manager the need for a way to manage our information is essential. The ability to handle the overwhelming amount of data and information that goes through a company every day could be a key factor in whether a business fails or succeeds. (Ebert & Griffin 2005) The system in which we collect and use this information is called an Information System (IS). An IS is used in financial accounting, managerial accounting, by laborers, and executives. In my basket shop, an Information System is what allows us to keep track of orders, from the time they are received to when they are delivered. It keeps track of customer information, the supplies ordered, what supplies have been used, and whether we need to reorder.

IS also keeps track of what we are spending, how much we are making, and whether we are making a profit or loss. There is so much more this system does for us, but basically lets us be more efficient, offer better customer service, and allows us to see our problem areas. We can then correct any problems, and set better goals and plans for our future. The use of the Information System has allowed us to hire fewer employees, and be a lot more competitive in the market. I have to say if we did not have any kind of way to manage the information we receive, we could not be as efficient, which would lead to customer dissatisfaction, and in the end we would go out of business. We all know that in today’s society. Businesses are expected to be proficient by responding quickly in fulfilling all orders correctly and with a timely delivery.

“Web sites are becoming a vital communication tool – almost as valuable as the telephone, and much more flexible and economical than a printed brochure or flier” (“Internet Use”, 2000)

With the use of email and the internet we will have drastic reductions in cost, increased speed in communication time, and a larger customer reach and satisfaction. Email will allow us to save money on stamps and paper, cut response time to a minimum, and send advertisements about sales to previous customers who took this option. A problem that used to take days to handle before by mail, waiting for papers to arrive by mail etc, is now handled in minutes. Without the internet, we would not be able to offer a virtual store front online, which allows us to reach customers, thousands of miles away, that we would not reach otherwise. The online store, will give the customers the option of having their basket delivered, or they can order ahead of time and pick up at the store location. The internet provides access to the World Wide Web (WWW). With the WWW we can do more cost efficient and quicker research on our competitors, suppliers, and the local economic status.

Being better informed, we will be able to keep our prices fair and reasonable, yet still make a profit. Through the use of the internet, and help from a GPS tracker, we will be able to keep track of packages being delivered. This will allow us to keep our customers better informed as to when they will receive their basket and make sure they don’t get lost. The World Wide Web will also allow us to accept payment options that we would not be able to afford otherwise. With the help of ProPay and PayPal we will be able to take payments with credit cards that we would not be able to offer if the internet was not available. In conclusion, with the help of email and the internet, we will be able provide faster, dependable, more cost efficient service, and in return have better customer satisfaction.

Information technology has become an important part of most of today’s businesses, it provides us with a way to process, create and store information. With a Database management program a single piece of data is put into several different files to create useful information. It has allowed us to eliminate the middleman in most cases. In cutting out the middleman, this has allowed quicker response times to situations and increase productivity and set better performance goals. We have more reliable financial statements. It allows you to set up filters, so when looking at certain areas, you aren’t wasting time looking through useless information. This in turn saves time and saving time saves money. When keeping customer’s information stored in our system, it allows us to be more personable and develop stronger relationships with them.

The use of email, internet, and information technology allows us to do things we wouldn’t have dreamed of years ago. We can talk face to face with people while being continents apart, we can find information we need at the touch of a couple of buttons, and in return have become more productive, proficient, reliable, and better planners. Because we have increased our¬†productivity, and improved our performance due to the technology, we have become more profitable as a result.


Ebert, R.J., & Griffen, R.W. (2005) Business essentials (5th ed.) Upper Saddle River, NJ, Prentice Hall.

Rooster Graphics International. (2000). Internet use by small business. Retrieved September 29, 2006, from Rooster Graphics website: http://www.rostergraphics.com/ADMIN/SBuse.html

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