If you compare the current state of technology with how it was a decade ago, you’ll agree that a lot has changed. Today, IT (Information Technology) drives innovation which is the path to business success. It’s hard to think of any business that hasn’t benefited from the technological advancement. Nowadays, even the agricultural sector uses technology. Businesses in various industries need to figure out how to make smart IT investment choices. Understanding the importance of technology and getting to know its value is as necessary as knowing how fuel operates in a car.
What Is IT Value?
For a very long time, people within organizations have asked this question. Whenever a financial crisis created a need for budget cuts, departments would unite to point fingers at the IT department with the question, “what value do they offer, and what’s their return on investment?” Cut their budget, they would say. But what is the value of technology and how do you measure it? Value is a subjective term, and can be defined differently from one perceptive to another. The value of IT can be defined as the organizational performance impacts of IT at both the intermediate process level and the organization wide level, and consisting of both efficiency and competitive impacts. For IT departments, offering value means closing the gap between what the organization needs and wants and what IT can deliver. The more IT can do that, and in a more cost-effective way, the better.
Does IT Value Matter?
Some sectors of the economy have seen an irrational excitement about technology lead to wariness and skepticism about its utility. Some business officers have highlighted the extreme cost pressures which they consider to be spiraling IT costs. But, should such issues discourage businesses from embracing technology and seeing its value. Enhancing technology’s value is significant in improving the economy and is a matter worthy of discussion.
Most CIOs (Chief Information Officers) agree that the issue of IT value is a dialogue worth having and improving. Promoting further understanding of the relevant contribution that IT makes to an organization and improving collaboration of business and technology leaders in IT decision making are essential. Establishing a common vocabulary and guidance about the methods for planning, assessing, and communicating the effectiveness of technology investments is also vital.
Businesses need to more strongly link IT planning to strategic planning as this is normally a challenge to asserting the value of IT. Successful businesses have directly embedded IT planning into their strategic planning. Another way to know IT value is to measure the value while matching it appropriately to the type of technology. A framework is required that reasonably describes the types of benefits that can be derived from various types of technology investments and broad range of value than be formed, including cost savings, enhanced effectiveness, and improved reputation.
Reasons To Get Technology Value Right
Yes, IT value matters and every business that appreciates and uses technology knows that. Thus, it’s significant to understand the value of technology and get it right. Some of the reasons why that is necessary include; –
Technology has improved customer support. Customers can obtain support from numerous channels like telephone, emails, webinars, and social media platforms. Also, customer relationship management systems help businesses understand customer behavior.
Information technology has enhanced resource management. For instance, cloud computing enables a company’s employees to use any device anywhere in the world to access their organizational level software.
Technology has offered businesses the tools to solve complex problems. Several technological tools are available to solves complex problems. Advanced hardware with more memory and faster processors coupled with smarter applications have made it simpler to research data, analyze it, and plan scalability.
Information technology enables businesses to make better decisions. Solid market research is crucial for businesses to make good decisions. Technology has simplified the process of market research which can now be done through engaging teams via video conferences, reviewing public opinions on social media and forums, and using online surveys to get customer feedback. Tools like Google Analytics and Microsoft CRM Dynamics can also help in that regard.
Information technology has enhanced marketing. Compared with traditional marketing of getting target audiences and discovering their needs, internet marketing has proven to be more accurate. Online adverting methods like Facebook Ads, Pay Per Click, and SEO enables businesses to figure out how many people clicked on an Ad, which is not possible with a newspaper Ad. They can then build a marketing campaign to persuade them to buy.
Technology fosters innovation in business. Innovation in business leads to smarter apps, improved data storage, a broader information distribution, and faster processing. It makes business to run more effectively, increases value, and enhances quality. For instance, innovation through IT has led to essential changes in businesses like making online shopping more efficient than visiting a store, cloud computing more efficient than a private computer network, and VoiP communication better than legacy telephone. Organizations that have welcomed IT-bred innovation have more accurate business planning, effective marketing, higher global sales, and provide instant customer support.
Technology leads to unlimited supply of knowledge. With IT, what you can accomplish is endless as it provides a limitless supply of knowledge and valuable insights. Research has been made easier since one can instantly access websites and search for whatever they are looking for. Having valuable insights can help a business deal better with customers as it will be well prepared to meet their demands.
Technology helps improve communication. Today, companies depend on various applications and software for communicating with others. Effective communication leads to smooth operations, and can ensure a high motivation level. People in the organization become well-coordinated and informed about the tasks they need to perform. Companies can use the several communication methods, depending on what they plan to achieve.
Thanks to technology, we no longer don’t have to send letters or mails to employees when informing them of an emergency – a phone call or instant messaging is enough.
There’s no doubt that technological advancements have led to more positive impacts to organizations than negative ones. When businesses learn the importance of using technology and the value it brings to their operations, they’ll be more inclined to invest in it and reap the many benefits of doing so. Is there any value of IT in an organization? Yes, there is a high value!
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