| Information technology (IT) refers to the | | | | reducing the cost of adjustment. The businesses |
| management and use of information using | | | | reaction to the environment remains to be the |
| computer-based tools. It includes acquiring, | | | | vital determinant for its effectiveness. The |
| processing, storing, and distributing information. | | | | capabilities and flexibilities of |
| Most commonly it is a term used to refer to | | | | computer-communication systems make them |
| business applications of computer technology, | | | | gradually more appropriate to businesses by being |
| rather than scientific applications. The term is used | | | | able to respond to any specific information or |
| broadly in business to refer to anything that ties | | | | communication requirement. Information |
| into the use of computers. Mostly businesses | | | | Technology is having impact on all trade industries |
| today create data that can be stored and | | | | and businesses, in service as well as in |
| processed on computers. In some cases the data | | | | manufacturing. It is affecting workers at all levels |
| must be input to computers using devices such as | | | | of organizations, from the executives to middle |
| keyboards and scanners. In other cases the data | | | | management and clerks. Information technology is |
| might be created electronically and automatically | | | | increasingly becoming a basic factor of all types |
| stored in computers. Small businesses generally | | | | of technologies such as craft, engineering, routine, |
| need to purchase software packages, and may | | | | and non-routine. The advances in Information |
| need to contract with IT businesses that provide | | | | Technology would result in remarkable decline in |
| services such as hosting, marketing web sites and | | | | the costs of synchronization that would lead to |
| maintaining networks. However, larger companies | | | | new, concentrated business structures. It enables |
| can consider having their own IT staffs to | | | | the business to respond to the new and urgent |
| develop software, and otherwise handle IT needs | | | | competitive forces by providing effective |
| in-house. For instance, businesses working with the | | | | management of interdependence. In the near |
| federal government are likely to need to comply | | | | future businesses would be facing a lack and a |
| with requirements relating to making information | | | | redundancy of information called information glut. |
| accessible. The constant upgrade in information | | | | To solve the information-glut companies will need |
| technology, along with increasing global | | | | to introduce methods for selective thinning out of |
| competition, is adding difficulty and hesitation of | | | | information. Improvements in telecommunications |
| several orders of scale to the business and trade. | | | | will make it easier to control business units |
| One of the most widely discussed areas in recent | | | | dispersed over different parts of the world. |
| business literature is that of new organizational | | | | Advances in telecommunications, would result in |
| network structures that hold survival and growth | | | | increased distance-communication. Indirect |
| in an environment of growing complexity. | | | | communication would be preferred for |
| Effective implementation of information | | | | well-structured information for routine, |
| technology would decrease liability by reducing the | | | | preprogrammed and decision processes. |
| cost of expected failures and increase flexibility by | | | | |