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Essay On Merits And Demerits Of Information Technology

Information technology has helped in shaping both the business world and our society in general. Many fields have been impacted by information technology including but not limited to; education, health, entertainment, and communication just to mention a few.  As the world develops, more technology will emerge, and this technology will have both a positive and a negative impact. Below I have detailed points showing how information technology has impacted our lives.

Advantages and Disadvantages of Information Technology In Business

Advantages

  • 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.

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.

 

  • 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.

 

Disadvantages

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.

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.

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.

 

Advantages and Disadvantages of information Technology in Purchasing

Advantages

  • Credit Cards and Smartcards Make Payment Safer

Buying and selling of goods and services have become simple because of these smart cards. A user can go to a merchant’s website and make an order using their smart card or credit card. The money is transferred from the consumers account to the merchant’s account in seconds, and then the merchant delivers the item to the consumer’s address. This transaction saves time for both parties and is often safer, as companies like Paypal allow for buy protection and refunds. 

  • Electronic Bill Presentation and Payment

(EBPP) Systems send us bills over the internet giving us an easy convenient way to pay. No more paper bills in the mail. Save the Trees!

 

Disadvantages

For the merchant to process an order online, a consumer has to provide their financial details. Experienced hackers can use this loophole to channel this information and use it for their own needs. Use PayPal!

  • Faulty Products and Duplication

In some cases, auction websites have products that are not original. So a user can bid on a shoe thinking it is original, upon delivery, they discover that the shoe is fake and it does not meet your expectation.

E-commerce websites collect personal data using cookies to know more about us and suggest products based on that information. Initially, data was collected without any notice, now most websites declare they intend to collect your information.  

 

Advantages and Disadvantages of Information Technology in Society

Advantages

Modern Technology has been prominent in job role creation and the emerging of technology-based companies. With access to a computer and internet, anyone can start a business while at home. Most successful technology-based ventures like Apple,  Amazon or Facebook, to mention but a few, started from home but now they employ thousands of people.

Technology has changed the entertainment industry; now we have many options to choose from. You can have a playlist of 10,000 songs on your iPod or you can watch movies on the go with an iPad; the list is endless.

  • Improved Social Discovery

Finding both old and new friends have become very simple. With social networks like Facebook and Twitter, you can easily keep up with all your old friends and also make new ones.

  • Globalization of Knowledge

Today you can use the internet to get the latest news from any country around the globe. Services like ‘’Twitter’’ have enabled people to become a journalist, so they report news on the instant by tweeting. Services like Wikipedia.org is well equipped with data on about anything, though not 100% always accurate 

Like businesses, society has also benefited from communication technology. We can Skype, Whatsapp or video call our loved ones instantly.

 

Disadvantages

With the increased addiction to social networks and internet games, people are spending more time on computers and reject their normal offline life, resulting in increased isolation and social imbalance. 

 

Advantages and Disadvantages of Information Technology in Education

Advantages

  • Online Education Has Made Educational Material and Data Accessible Anywhere

The use of internet technology has opened institutional boundaries. Students from developing countries now have a chance to study their desired courses at a standard similar in some cases to first world education institutions. This type of education increases their likelihood of employment international.

  • Technology Has Created New Methods of Education 

Use of educational video games and puzzles has increased students interest in learning. Basing on research, students enjoy learning with technology, many schools have started providing free internet on the school campus, this helps students do research and learn on their own. 

 

Disadvantages

  • Over-dependence on Information Technology

Students no longer take time to solve equations and research topics, all they do is a query in google or on a calculator, poof the answer. Without these devices, they would not know how to achieve the same results in a library or on paper. 

  • Poor Quality Publications Online

Many online publishers post content for monetary purposes, so you may find that most the content published online isnot accurate or well detailed to help students and researchers.

 

Advantages and Disadvantages of Information Technology in Banking

Advantages

  • Online Banking/ Convenient Payments

Many banks have integrated advanced information technology systems to improve their customer service. Today, it is effortless to withdraw money or make a purchase using a Credit card or smartphone with a simple tap; this saves customers from wasting time lining up in banks or from carrying a lot of cash.

The technology used in banks helps in the gathering of financial details and credit scores about each customer, the information gathered can be used when a customer applies for credit in that bank.

 

Disadvantages

Cases of online money laundering are on the rise, and this has exposed many online users to the predators.

Banking security has improved significantly, however, so has hacking expertise. If your information is connected to the internet, there is always the possibility it may get hacked.

 

EXAMPLES OF INFORMATION TECHNOLOGY TOOLS YOU MIGHT LIKE

 

Medialink – Wireless N Broadband Router

Information technology deals with processing of information using various technological tools. As a must, we need to use the internet to transfer and access processed data remotely, so this Medialink – Wireless N Broadband Router is a basic information technology tool, it can be used at your workplace or classroom to enable everyone access wireless internet. You don’t need to have network cables to access the internet at work or in the classroom, simply use this advanced Medialink – Wireless N Broadband Router to access wireless internet. You don’t have to worry about technical details, this Medialink – Wireless N Broadband Router comes with a Setup Wizard Guide which will take you through a step by step process until the all installation is complete.

This Router is soo Old! Check these out

 Kaspersky Internet Security

Information technology tools like the internet are not safe, so it is better to use a well-trusted anti-virus to secure your data. During the process of doing research online or opening attachments sent via electronic mail, your computer and data will be exposed to harmful programs, but when you use a powerful anti-virus, like this Kaspersky Internet Security, all infected websites and files will be blocked, it is a good security tool for small businesses and students.

Get more modern options for your Security!

 

 WiFi Wireless Network USB Adapter:

If you own a laptop, you can easily use this WiFi Wireless Network USB Adapter to access the internet from anywhere. It is slim in size, and it is compatible with any computer or notebook. Get rid of wires in your office or home, installing this WiFi Wireless Network USB Adapter is very easy, it comes with a CD which will install the software to enable this WiFi Wireless Network USB Adapter work efficiently, after the installation, plug and play the device to access wireless internet.

Get the Latest USB Adapters!!

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:-Importance And Functions of Information Technology

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The competitiveness of most companies is in a large degree based on the effective use of information technologies and information systems especially. The main purpose of information systems are provide the right information to the right people at the right time. It is used to track, store, manipulate and distribute the information from gathered data to appropriate persons when necessary.

In this post I thought to think about what advantages and disadvantages can bring to the businesses and society the integrating information systems. Of course, without any doubt the efficient usage of information systems will give a lot opportunities to the companies and advantages to their business. Sometime it can make kind of new job environments but on the other hand it can make some group of employees unemployed.

Advantages

Communication – with help of information technologies the instant messaging, emails, voice and video calls becomes quicker, cheaper and much efficient.

Globalization and cultural gap – by implementing information systems we can bring down the linguistic, geographical and some cultural boundaries. Sharing the information, knowledge, communication and relationships between different countries, languages and cultures becomes much easier.

Availability – information systems has made it possible for businesses to be open 24×7 all over the globe. This means that a business can be open anytime anywhere, making purchases from different countries easier and more convenient. It also means that you can have your goods delivered right to your doorstep with having to move a single muscle.

Creation of new types of jobs – one of the best advantages of information systems is the creation of new and interesting jobs. Computer programmers, Systems analyzers, Hardware and Software developers and Web designers are just some of the many new employment opportunities created with the help of IT.

Cost effectiveness and productivity – the IS application promotes more efficient operation of the company and also improves the supply of information to decision-makers; applying such systems can also play an important role in helping companies to put greater emphasis on information technology in order to gain a competitive advantage. IS has a positive impact on productivity, however there are some frustrations can be faced by systems users which are directly linked to lack of training and poor systems performance because of system spread.

Disadvantages

Unemployment and lack of job security – implementing the information systems can save a great deal of time during the completion of tasks and some labor mechanic works. Most paperwork’s can be processed immediately, financial transactions are automatically calculated, etc. As technology improves, tasks that were formerly performed by human employees are now carried out by computer systems. For example, automated telephone answering systems have replaced live receptionists in many organizations or online and personal assistants can be good example also. Industry experts believe that the internet has made job security a big issue as since technology keeps on changing with each day. This means that one has to be in a constant learning mode, if he or she wishes for their job to be secure.

Dominant culture – while information technology may have made the world a global village, it has also contributed to one culture dominating another weaker one. For example it is now argued that US influences how most young teenagers all over the world now act, dress and behave. Languages too have become overshadowed, with English becoming the primary mode of communication for business and everything else.

Security issues – thieves and hackers get access to identities and corporate saboteurs target sensitive company data. Such data can include vendor information, bank records, intellectual property and personal data on company management. The hackers distribute the information over the Internet, sell it to rival companies or use it to damage the company’s image. For example, several retail chains were targeted recently by hackers who stole customer information from their information systems and distributed Social Security numbers and credit card data over the Internet.

Implementation expenses – to integrate the information system it require pretty good amount of cost in a case of software, hardware and people. Software, hardware and some other services should be rented, bought and supported. Employees need to be trained with unfamiliar information technology and software.

Information systems contribute to the efficient running of organizations. Information systems are showing the exponential growth in each decades. Today’s information technology has tremendously improved quality of life. Modern medicine has benefited the most with better information system using the latest information technology. By understanding and learning what advantages and disadvantages it can bring, we have to try, believe and put an effort with our best to make that existing advantage much better and navigate the disadvantages to have a less impact on organizations and society.

Resources:

http://smallbusiness.chron.com/disadvantages-information-technology-business-4020.html
https://eternalsunshineoftheismind.wordpress.com/2013/02/16/advantages-and-disadvantages-of-information-systems-for-businesses/
https://answers.yahoo.com/question/index?qid=20101026165149AAB9bza
http://www.managementstudyguide.com/information-system-and-information-technology.htm
http://www.managementstudyguide.com/information-system-and-information-technology.htm
http://businesscasestudies.co.uk/canon/integrated-information-systems-seeing-the-whole-picture/#axzz3tYnnYRAQ

Filed Under: Sistemas de Información Empresarial