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IT in the Business Environment

Computers in business have moved well beyond their initial role of merely automating tasks previously done by individuals. Today's information technology (IT) groups are strategic organizations within the larger company contributing to the short-term profitability and long-term viability of businesses. This research examines the role and importance of IT in the context of attracting more customers, generating more revenues, and aiding the growth of the business.

At its most fundamental level, IT can help a company attract more customers simply by making it possible for the company to serve more customers through automation. Decreasing the amount of time it takes to process a transaction means that more customers can be served; in addition to accommodating more customers in the short-term, this increases customer satisfaction and leads to repeat business in the future (Sulkin, 2000, p. 46).

With the growth of the Internet, IT gives companies the ability to market to customers who previously would have been outside the company's immediate geographic area. While creating and maintaining an effective Internet presence is not without cost, e-commerce greatly expands the ability of a company to reach new consumers (King, 2000, p. 1).

The role of IT in increasing revenues is similar to that of increasing the number of customers. Decreased transaction times means that more transactions can be processed, which means that more revenue can be realized. In the short-term, revenues are maximized as more transactions are processed in a shorter period of time; in the long-term, customer satisfaction leads to repeat business and increased revenues.

In addition, IT provides decision makers within organizations with greater access to key strategic information. Through IT processes, sales and marketing analysis can be conducted to evaluate which types of items are being sold so that stock-outs do not

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IT in the Business Environment. (1969, December 31). In LotsofEssays.com. Retrieved 06:34, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1695940.html