The Role of IT in Business Success Free-Samples for Students

Question: Discuss about the Impact of IT on Business. Answer: Introduction Information technology can no longer be characterised as a complementary function, this because it serves as a pre-requisite for business. In fact, all business operations from complex operational activities to generic functions use information technology as the foundational concept. Furthermore, its application is also necessitated by the business environment seen today where competition is at an all-time high. Customers have access to many services and product providers which push these originations (service providers) to seek better methods of serving their customers. IT offers innovative ideas that meet both the demands of the customers as well as the suppliers, convenient solutions that in most cases are characterised with many benefits including improved efficiency (Afzal-Butt 2015). Now, this brief report highlights the overall impact of IT in business while using Telstra, an Australian telecommunication company as a case study. In the analysis, the effects of technology are highlighted including the need and importance of innovation in business. Furthermore, implementation requirements are highlighted which then outlines the use of IT in the business. In addition to this, the benefits and risk of incorporating technology are given which then outlines the precautions taken in business while using IT. Impact of IT on business IT needs for business service As a company, Telstra is the biggest service provider in the field of telecommunication where it serves millions of customers across the Oceanic region. Its success in business is highly attributed to technology particularly because it offers IT solutions to its customers. Therefore, even without considering the IT solutions it uses to facilitate its operations, its business objectives are IT solutions which must be offered to customers with the utmost efficiency (Telstra 2017). Nevertheless, a closer look at the organisation outlines their operational infrastructure which at the core of business is facilitated by intricate networks, communication systems and internet standards/protocols. These IT system enables the organisation to offer customers services such as internet connection and communication services (Sheahan 2017). Apart from this basic functionalities, Telstra faces a lot of competition from other telecommunication services which when combined with the customers demands has led it to incorporate new and innovative ideas in its service delivery system. For instance, its operational systems are completely automated using information systems which have streamlined its in-house activities. Moreover, the same systems are used to interact with the customers which have increased their customer relation services. Furthermore, to support these IS, advanced storage facilities in name of data centres are used to handle data, further enhancing its analysis methods more so through business intelligence (Telstra, 2017). I.T. as a business survival tactic Telstra was founded in 1975 and since then has been a leader in the field of innovation and telecommunication services. In its early years, it faced little competition as very few organisations had the capabilities or even expertise to offer the services it gave to customers. However, since the boom of technology, it has faced stiff competition especially from Optus, the second largest company in Australia offering telecommunication services. To retain its market share, Telstra has had to offer better solutions through innovation and improved service delivery (Kramer, Jenkins Katz 2007). For instance, it has enhanced its internet services through broadband, dial-up and satellite internet connections. Furthermore, other than offering improved services, its operations have been enhanced which has helped them save on operational cost. Moreover, IT has optimised its services which have facilitated a better customer relation service which in the end has improved their customer retention endeavours and has led to the acquisition of new ones. Overall, IT has facilitated the survival of Telstra by increasing their services quota and by optimising them (Telstra 2017). I.T. requirements Strategies driven by the goals of an organisation are usually the first components of identifying the I.T. requirements in business. Essentially, these strategies will follow critical evaluations and assessments of an organisations infrastructure requirements. When identified, these requirements will then be used to highlight a plan for implementation, including the technologies and the features needed (Pilepic Simunic 2009). Furthermore, it is through these plans and their associated evaluations that cost estimates are made on the equipment and solution to be used. Therefore, without these strategies it's difficult to develop an effective integration plan between IT and business. A big company like Telstra has had countless reports and evaluation findings that have continuously outlined its IT demands. For one, they have to establish the returns of the proposed technology before implementing them. This process will require an estimation of the customers expected as a result of certain ventures. In all, any proposed IT solution must provide more output as compared to the input resource, an outcome estimated by evaluation strategies (Gocardless guides 2017). Telstra I.T. application (The use) Since Telstra offers telecommunication services, its redundant to mention them as a use of technology in the organisation, instead, lets focus on the IT solutions that are used to enhance its business. Information systems are a big part of the organisations success, for one, the internal infrastructure is coordinated by a holistic enterprise management system (ERP) that monitors operational activities. This system streamlines operations including resource and employee allocation. Furthermore, its offers a seamless transition from the supply chain to the service delivered to the customer (CBN 2017). On the other hand, external services are coordinated by a modern customer relationship management (CRM) system. This system will facilitate user inquiries such as payment for products/services and support requirements. Moreover, it helps Telstra coordinate its customer engagement programs where crucial data on customer behaviours and motivations is collected. Finally, the same system enhances its communication to its customers where general interactions i.e. emails, messages and social media alerts are sent (CBN 2017). I.T. benefits/advantages to Telstra In general, enterprises will incorporate IT into their businesses to increase the overall returns. This outcome can be met either by offering efficient services that result in more income or by optimising business operations to lower production costs. Either way, IT should enhance business to meet the objectives set. Below are some of the advantages experienced Telstra due to IT: Increased revenue Highlighting its internet services, Telstra has advanced the methods of delivering these services to customers. For instance, in 2013 it launched Belong, a low-cost connection that used broadband technology. In addition to this, its fibre network (HFC) is used to deliver television services to consumers (Telstra 2017). These venture among many other have increased the avenues for revenue generation which has increased its overall returns. Cost efficiency Through the conveniences offered by information systems, Telstra has lowered its operational costs. In return, the organisation has used the saved earnings to expand its business as seen in the previous advantage. In the end, these efficiencies have resulted in more income for the organisation. Time efficiency Telstra operates on a 24 hours basis, a mandatory requirement for the industry it operates. Its customers expect efficient services regardless of the time or season. Through its automated systems, these objectives can be met as only a few individuals are needed to monitor and coordinate operations. Flexibility and diversity Telstra as a result of past communication requirements have payphone services on the streets of Australia. These services have minimal applications because of the advancement in technology. However, through innovation, Telstra has transformed these stations into Wi-Fi hotspots which offer a convenient service to the customer who now predominantly use mobile devices (Kumar 2014). I.T. risks in business Similar to the adaptation seen in business, malicious individuals have also transformed their ways to fit the needs of today. Cybercrime is at an all-time high where using malicious techniques attackers use the vulnerabilities of information technology to steal information among other supported assets (Queensland Government 2017).). Telstra has a large customer base whose information is usually stored on the companys servers. This information includes messages, e-mails and even confidential data such as identification numbers among other items. As a result of its automated services, Telstra faces the risk of being attacked which could lead to substantial losses. This possible outcome outline the need for strong security protocols used by the company across its services (McConnell International 2000) Furthermore, the organisation has to contend with hardware and software failures caused by a range of reasons from product specifications to work overload. The failure of these systems can result in substantial losses again affecting business. However, most organisations like Telstra will implement many recovery procedures such as backup options among many others. In addition to the attacks and failures highlighted above, an organisation also faces a substantial risk on I.T systems that could be caused by human error. For instance, when using analysis tools wrong values due to human error can lead to catastrophic results as the systems will continuously escalate the errors (Queensland Government 2017). I.T. management Integrating IT into business is one thing, however, maintaining the established systems is usually the hardest part of the collaboration. Like in most organisation, Telstra has an entire department dedicated to the management of the I.T. infrastructure. This department like any other has various sections that perform specific purposes based on the resource requirements. For instance, the infrastructure team is responsible for maintaining the computational resources i.e. networks, servers, computers and any other component used to establish the links used by IT. On the other hand, the application department will monitor the automated resources including the intranet, ERP, CRM and other specialised tools used to conduct business (Rouse 2017). Now, IT management in this scenario outlines all activities that maintain the optimal operations of IT system such as network management where users are monitored to ensure they adhere to the rules and regulations. Moreover, it will include support services that enhance the already existing solutions such as hardware and software upgrades. These operations boost the conveniences and efficiencies offered by the technologies used in the organisation (Bryan 2010). Conclusion According to the theory of disruptive innovation, new ideas can overtake old ones if the incumbent solutions fail to adjust. Telstra an old company in the field of telecommunication realised the shift in technological requirements which they used to enhance their business outcomes. Information technology offers convenient solutions to problems that in other scenarios would require heavy investments to solve, for instance, through spreadsheets, a user can compute data conveniently and give recommendations. This basic application of IT resources outlines its resounding advantages that in essence maximises on the resources available particularly time the most vital resource. Therefore, although organisations like Telstra require business models to succeed, the implementation of these models require efficient environments to succeed which nowadays is offered by information technology. Furthermore, IT has created a new avenue of business through the digital platform it has introduced. In the end, IT now serves as a fundamental element of business that all organisations cannot afford to ignore. References Afzal-Butt. A, 2015, The Role of Information Technology in Business Success, LinkedIn articles, Available from: https://www.linkedin.com/pulse/role-information-technology-business-success-abid-afzal-butt [Accessed 17 May 2017] Bryan, 2010, Information Technology Management. Florida Atlantic University. 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