INFORMATION TECHNOLOGY AND E BUSINESS INTRODUCTION Information technology

INFORMATION TECHNOLOGY AND E- BUSINESS

INTRODUCTION Information technology (IT) is the use of computers to store, retrieve, transmit, and manipulate data, [1] or information, often in the context of a business or other enterprise. [2] IT is considered to be a subset of information and communications technology (ICT). An information technology system (IT system) is generally an information system, a communications system or, more specifically speaking, a computer system – including all hardware, software and peripheral equipment – operated by a limited group of users. Humans have been storing, retrieving, manipulating, and communicating information since the Sumerians in Mesopotamia developed writing in about 3000 BC, [3] but the term information technology in its modern sense first appeared in a 1958 article published in the Harvard Business Review; authors Harold J. Leavitt and Thomas L. Whisler commented that "the new technology does not yet have a single established name. We shall call it information technology (IT). " Their definition consists of three categories: techniques for processing, the application of statistical and mathematical methods to decisionmaking, and the simulation of higher-order thinking through computer programs. [4] The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones. Several products or services within an economy are associated with information technology, including computer hardware, software, electronics, semiconductors, internet, telecom equipment, and e-commerce. [5][a] Based on the storage and processing technologies employed, it is possible to distinguish four distinct phases of IT development: pre-mechanical (3000 BC – 1450 AD), mechanical (1450– 1840), electromechanical (1840– 1940), and electronic (1940–present). [3] This article focuses on the most recent period (electronic).

E-COMMERCE E-commerce is the activity of buying or selling of products on online services or over the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle although it may also use other technologies such as e-mail. Typical e-commerce transactions include the purchase of online books (such as Amazon) and music purchases (music download in the form of digital distribution such as i. Tunes Store), and to a less extent, customized/personalized online liquor store inventory services. [1]There are three areas of e-commerce: online retailing, electronic markets, and online auctions. Ecommerce is supported by electronic business. [2] E-commerce businesses may also employ some or all of the followings: Online shopping for retail sales direct to consumers via Web sites and mobile apps, and conversational commerce via live chat, chatbots, and voice assistants[3] Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales Business-to-business buying and selling; Gathering and using demographic data through web contacts and social media Business-to-business (B 2 B) electronic data interchange Marketing to prospective and established customers by e-mail or fax (for example, with newsletters) Engaging in pretail for launching new products and services Online financial exchanges for currency exchanges or trading purposes.

ROLES Information technology and e-commerce have created new ways of carrying out business in the present arena. Information technology has presented in the business world new ways of carrying out business. Buying, selling, supplies and procurement have gone digital. Customers, suppliers, partners and investors can meet online and prosecute their business ideas in an online platform. Information technology has opened platform that allows for new channels and relationships of doing business. Manufacturers and distributors know what to produce and the quantity to distribute without having to travel but by passing information in a digital platform. The manual type of travelling to and from manufactures is minimized by increasing dependence on contemporary technology. Much of the physical meeting has been minimized and instead replaced by digital communication. Purchasing, pricing and payment are through digital platform. Traditional method of the 20 th century is replaced by this trend of information technology and the manner in which information is being circulated has overruled the business itself. Information developed in ecommerce is becoming equally important and circulation of information is integral process of business world. Products being sold are circulated alongside information being channeled. Most firms have adapted outsourcing, licensing and distribution of confidential information through digital platform. Software is central for capabilities involving information that amount to time saving paradigm. Security, tax, employment postings, executive compensation and regulatory laws are shared in digital platform. Firms have enhanced their advisory mechanisms into a digital platform that encompass litigation, intellectual property, data sharing and policy issues. Bench marking of competing firms can be done online through implications that accord safety transfer of information. Information technology has made it possible and easy when following purchasing trend of customers. E-commerce is all about carrying business activities in a digital platform.

ADVANTAGES Improves Financial Management Accounting software like Quick Books, Bookkeeper, Sage 50, and Account Edge perform various accounting tasks in a business. Business owners can easily balance their books with less experience in accounting because this software is well equipped with every tool needed in accounting. It allows for faster processing and calculation of financial information and the recording or storing of financial data that may need to be referenced in the future. Cuts Costs Of Operation And Increases In RIO Communication technology and social technology have made business promotion and product launch affordable. Many small businesses have found ways to use social technology to increase their brand awareness and get more clients at a minimal cost. In business, factors like cost of operation play a significant role in the development and growth of a business. So when companies use information technology to cut down on costs of operation, then their ROI will increase, which will result in business growth. Improves Business To Consumer Relationship Businesses have embraced the social technology to interact with their consumers and fans, creating a strong business to consumer relationship, and it results in business growth via customer loyalty and expansion. Information technology can be used to improve customer service in so many ways. For example, businesses can use their website or email to inform their customers about great deals and discounts. Making the customer aware of these offers can drive their desire to buy. Good customer service can be used as an excellent tool for any small business to gain the competitive advantage. Improves Business Competitive Advantage Companies have used technology to gain the competitive advantage over their competitors. Business who innovate and adopt technology to remain efficient and improve processes, typically have high customer loyalty rates. As they can consistently meet and exceed expectations of their customers.

• Increases Production And Saves Time Businesses today more than ever use technology to automate tasks. A good example is a bakery which uses electronic temperature sensors to detect a drop or increase in room or oven temperature in a bakery. These sensors send information directly to the operator, reporting any temperature change. This temperature system saves the bakery time, and it also results in consistent higher quality products. • Improves Communication With the help of communication technology tools like phones, video conferencing, electronic mail or instant messenger just to mention a few, movement of information within an organization or business has become instantaneous. Employees can easily move data across departments without having any interruptions. Tools like electronic mail, e-fax, mobile phones and text messaging enhance the movement of information data among employees, customers, and business partners or suppliers, this allows for greater interconnectivity throughout internal and external structures. • Improves Data Storage, File Management, And Data Reporting/ Analysis Businesses use cloud hosting services to store and backup business data. Also, it saves on paperwork and makes transfer and access to data possible remotely. With services like Dropbox. com, business owners can access their data anytime anywhere. Additionally, databases today allow for greater correlation of information, analysis of this data relationship can encourage better and more informed decision making, resulting in potential growth.

DISADVANTAGES Implementation Expenses Small businesses sometimes struggle to afford and maintain expensive core technology, so they end up losing their clients to a company which has the capital and resources necessary to compete in the industry. Job Elimination Technology has replaced many positions humans used to occupy. Software is now doing complete accounting, so trained accountants have fewer opportunities, robots can cut the lawn or clean the pools, no need for a handyman. Security Breaches Since businesses store their data on remote cloud servers which can be accessed online with a username and password, they risk potentially losing that data to hackers or viruses.