Benefits of Information Technology for Companies

At the dawn of human civilization, language served as the technology for exchanging information, enabling individuals to comprehend messages conveyed by others. However, its weakness lay in its transient nature, as oral language passed from mouth to mouth, subject to change in transmission from one individual to another. Once spoken, the information rested in the hands of the recipient. Additionally, the range of sound was limited, audible only within a certain distance, with transmitted information via oral language being subject to degradation and potential loss.

The rapid advancement of technology, spurred by globalization, has led to the swift development of technology-based information systems. This has caused rapid changes across various fields. Information technology, in this regard, stands as one of the pillars of success in this era of globalization (Mulyadi, 1999 in Dony, 2008). The emergence of mainframe technology in the 1960s brought fundamental changes to data processing, transitioning from manual to batch processing (Widiatmoko, 2004 in Dinar, K., 2006). According to Wreden (1997 in Hendri, 2008), the use of technology in companies supports various business activities, including: 1) increasing productivity, 2) reducing operational costs, 3) enhancing decision-making, 4) improving customer relationships, and 5) developing new strategic applications.

One way for organizations or companies to compete with their rivals is by employing effective information systems. Many organizations or companies invest substantial funds in developing such systems. The success of information system development greatly depends on aligning the expectations of system analysts, users, sponsors, and customers (Szajna and Scammel, 1993 in Elfreda Aplina, 2003). Similarly, Bodnard and Hopwood (1995 in Elfreda Aplina, 2003) argue that the transition from manual to computerized systems not only involves technological changes but also behavioral and organizational changes.

Research by scholars and practitioners has shown that the information technology possessed by a company represents potential value that can be utilized as a competitive advantage for that company. Information technology infrastructure serves as a competitive tool for companies and is a crucial issue in the long-term development of a company’s competitive advantage. The unique characteristics of information technology infrastructure determine the value of an organization’s infrastructure. One characteristic of information technology infrastructure is its flexibility and responsiveness (Yusni and Clara, 2008).

Information technology within an organization consists of hardware, software, telecommunications devices, database management, and other technologies used to store data and make it available in the form of information to decision-makers (Daft, 2000 in Dinar, K., 2006). Modern information technology is based on the understanding that most organizational activities involve groups of people, employees of the organization, or suppliers and customers. To work together, agree on problem-solving, and meet each other’s needs, these groups must be able to share information. Therefore, many companies or organizations use information technology to offer individuals the ability to utilize their computers to disseminate information.

Share the Post:
Scroll to Top