Why Information Technology is Best--Or is it Best?

Why Information Technology is Important:

• In a world that is becoming increasingly digitized, it is important to consider the reasons why Information Systems have become so important to our society. It is also important to take into consideration some of the side-effects of a digital economy.


• Information Technology (IT) supports many business objectives including improved productivity. IT virtually eliminates human error and improves accuracy. Physical restrictions are also reduced with IT. Common barriers of communication, such as the distance between parties, are reduced because of IT's capabilities to communicate across vast distances. This allows companies to better communicate with one another and support globalization.


• Another business objective supported by IT is cost reduction. Although there is a great initial investment that must be made with IT, the long term savings are significant. However, companies must be informed in making a decision to invest in IT. Disastrous results may occur if a company fails to thoroughly consider its needs, the wrong technology may be purchased and productivity will be negatively affected.


• IT also enables compatibility among different companies increasing the global infrastructure and increasing the effectiveness of companies. We are now seeing the emergence of digital organizations as a result of IT. As a result of these digital organizations, electronic marketplaces are arising which further increase the level of competition and efficiency which is better for everyone concerned, especially the customer.


• Business processes are also streamlined with IT making it a 'greener' solution for doing business. The amount of trees that have been saved because of the reduction in the need for paper is enormous. Also, the ability to access and store data results in further space efficiency.


• Organizational management is able to make better, more informed decisions with the adoption of IT. There is also an opportunity to use new business models that have never been tried with IT.


• Companies are better able to respond to customers thus increasing customer satisfactions and responsiveness with IT.


• IT has not only helped businesses improve along with the economy, but individuals have also experienced an improved quality of life. Medical research in IT has resulted in innumerable lives being saved. The digitization of music, books, pictures, and movies allows for fast and inexpensive distribution. Also, the quality of movies has improved significantly with the adoption IT special effects. There is an 'information overload' in which intelligent search engine tools help users find what they need because of more relevant searches. More opportunities are available for entrepreneurs are present now than ever before because of IT.

Some Drawbacks to Information Technology:

• Although the long-run benefits of investing in IT are great, this incredibly large expense is much to great to bear for many small companies. Therefore, many completely competent and would be successful companies are excluded from entering the market.

• It is also very time consuming to develop and implement IT. IT then requires extensive training which is many times difficult for individuals to learn after they have been doing something so long without IT.

• Although IT is considered to be a green alternative to paper, IT still has a negative impact on the environment. Even though 'green computers' are now being produced, millions of tons of toxic waste are the result of our old, outdated electronics and must be delt with.

• Companies are experiencing more and more ethical issues as a result of IT. An example would be employee fraud. People are constantly coming up with new ways to 'get around the system'. This leads us to another issue that arises from IT and that is risk and security. Some fear that 'cyberwars' will be the fall of our society.

• IT experiences a high rate of obsolescence because of rapid innovation.

• Although customer responsiveness has increased as a result of IT, many customers (particularly the elderly customers) prefer the old ways of doing business. Face-to-face, personal exchange of goods is no more.

• Another drawback to IT is the fact that jobs are being outsourced to reduce cost. Not only are jobs being outsourced, but they are also being eliminated and IT is taking the place of many jobs. While IT does increase productivity, many people have had to suffer because their skills are no longer needed.