Impact of IT on business

Question: Discuss about the Impact of IT on Business. Answer: Introduction Information technology is defined as a technology that mainly deals with development, maintenance as well as use of computer systems for processing and distributing the data effectively (Webster 2014).The assignment mainly focuses on the use of information technology within the organization Telstra which one of the leading telecommunication as well as technology in Australia. The assignment mainly illustrates the need of IT in the business, importance of IT in the business, requirements for applying IT in the business, benefits as well as advantages of IT in the business and risk due to IT in the business of Telstra. The report also discusses proper procedures as well as methods for maintaining and monitoring the business of the organization. Need of IT in the business of Telstra Information Technology is considered as one of the vital as well as integral part of every business plan. It is required in every organization starting from multinational corporations to small businesses. They are required due to the following reason: Communication: The information technology plays an important role in generating effective communication between various stakeholders of the organization including the customers (Bloom et al. 2014). E-mail, is one of the principal means of communication between various employees, suppliers as well as customers in the organization Telstra. Inventory Management: Information Technology also helps in maintaining as well as managing inventory of the organization Telstra. The inventory management system helps in tracking the quantity of each item, which is maintained by the company. The systems are utilized effectively when it is connected with the POS system. Data Management: The Information technology in Telstra helps in managing the database of the organization (Kellermann and Jones 2013). It helps in storing large amount of historical data effectively as well as economically. Management Information system: The system is used for enabling various companies to track various data related with sales, expenses as well as productivity levels. Customer Relationship Management: Information Technology is utilized by the organization Telstra in improving their design as well as for managing customer relationship. CRM system helps in capturing various interactions of the customers (Xiang, Magnini and Fesenmaier 2015). Importance of IT in the business Survival of Telstra Information Technology is very much important for the survival of Telstra as it helps in providing an opportunity to the organization so that they can plan their business accordingly. Information Technology plays a significant role in various phases of business, which includes: Decision Making: Speed as well as accuracy is considered as the heart of right decision for Telstra. The organization mainly undertakes comprehensive market research process for enabling the management of the organization in the correct direction (Baskerville, Stage and DeGross 2013). It is mainly done with the help of Google Analytics or Microsoft CRM dynamics. Business Growth as well as Marketing: Nowadays the growth of business as well as marketing is fully dependent on Digitalization. It mainly includes use of blogging, email shot, SMS, social media marketing and many more. Customer support and Satisfaction: Internet technology plays an important tool in Telstra for enabling proper as well as effective communication between the customers (Wu et al. 2015). Organization mainly utilizes customer relationship management for holding valuable data for understanding the behavior of the customers. Resource Management and globalization: IT plays a vital role in automating various complex problems with the help of user-friendly solutions. Managers of Telstra are responsible for managing as well as monitoring the structure of the organization. Requirements for applying IT in the business of Telstra The main requirements for applying information Technology within the organization Telstra include: Cost: The organization needs certain amount of expenses for installing information technology within the organization (Nambisan 2013). The organization spent money for buying various requirements of the project, which are needed for developing IT in the organization. Planning: It is very much important to have proper planning before implementing the project successfully within the organization. Proper planning helps in developing the information technology with the estimate time and budget. Designing: The information technology must be designed effectively so that the organization can achieve maximum benefit from it. It must also be helpful in enhancing the overall profit of the organization. Equipment: Proper equipment must be used in order to develop the information system effectively as well as properly within the organization (Kautz and Pries-Heje 2013). Equipment must be used for utilizing the information system effectively. Installation: The develop information technology must be installed effectively for utilizing the system. The information technology must be developed within the organization after it is designed as well as planned effectively. Training: Proper training must be provided to the staff of the organization so that they handle as well as utilize the system effectively without facing any challenges (Oztaysi 2014). Use of IT in the business The information technologies that are implemented within the organization are used by the stakeholders of the company. The stakeholders who utilize the information technology within the organization are: Staffs: The staff of the organization uses information technology for making proper communication between the various stakeholders of the organization (Wynn et al. 2013). The staff uses the technology for managing different operations of the organization properly. The information technology is mainly used by the staff of the organization for making proper decisions. Customers: The customer of the organization utilizes information technology in order to provide feedback, for receiving products from the customers, for viewing the website of the organization and many more (Shaikhand Karjaluoto 2015). The customer also utilizes Information technology for getting guidelines from the organization in order to use the products effectively. Proper information technology is also utilized by the organization for strengthening the customer relationship management properly. Suppliers: The suppliers mainly utilize the information system for supplying various requirements that are required for managing the various operations of the organization effectively (Davison and Martinsons 2013). The information technology is used by them for making proper communication with the other stakeholders of the organization. Benefits as well as advantages of IT in the business The information technology is very much beneficial for the business of the organization. It is very much advantageous for Telestra in enhancing the profit as well as sales of the organization. The information technology also helps in enhancing the following: Revenue: The use of information technology helps in enhancing the entire revenue of the organization. The revenue of the organization is enhanced with the help of web presence, e-commerce, as well as due to the presence of proper customer relationship management (Devaraj, Ow and Kohli 2013). The adoption of information technology within the organization helps in reducing the staff of the organization, which further assists in saving the expenses of the company. Flexibility: The flexibility of the organization is also enhanced due to the use of information technology within the organization. Cost Reduction: The development of Information technology helps in speeding the various operations of the organization, which further helps in reducing the overall cost of the organization (Roztocki and Weistroffer 2015). The development of Information technology also lowers the number of staff in the organization, which helps in reducing cost. The cost of the organization is also reduced due to increase in the production of the organization. Risk due to IT in the business of Telstra The use of Information Technology within the organization increases number of risk for the organization Telstra. The risk that arises in the organization due to the use of Information technology includes: Security: There are number of security issues that are related with the Information technology of the organization (Oztaysi 2014). The security related challenges arises due to denial of service attack, more hacking of data, targeted attacks, increase in malware, due to computer viruses. The security issues that are associated with information technology also arises due to posting offensive web pages or due to unauthorized access by some individuals. Privacy: There are number of privacy issues, which are associated with the development of information technology within the organization. The customers of the organization use online payment system and if the information and data of the customers are hacked (Webster 2014). Then number of challenges can arise. The privacy issues are not only related with the personal information of the customers, it is also related with financial information of the customers. Hacking of important information of the organization that is associated with the entire revenue can hamper the various operations of the organization. Confidentiality: It is very much important to maintain confidentiality within the organization. Maintenance of proper confidentiality within the organization not only helps in securing the personal information of the customers but also the financial information of the organization (Kellermann and Jones 2013). If proper confidentiality is not maintained then the organization will face number of risks or challenges. Procedure used by business in monitoring as well as maintaining business The methods or procedures that are used for monitoring as well as maintaining the procedure of the business include: Inventory Management Software: A program automatically manages the inventory. It helps in capturing all kinds of stock in real- time. It also assists in tracking the speed of the items in the company. Achieving help from the distribution: It helps in ensuring fulfillment of orders in the inventory system. It also helps in accessing the stock of the distributor effectively (Nambisan 2013). It assists the organization in coordinating the various purchase orders. The individuals can also use the information for preventing various data entry errors. Implementation of proper tracking system: Proper as well as effective tracking system within the organization helps in monitoring the inventory system of the organization. The organizations generally utilize spreadsheets, barcode scanners as well as stamps for tracking (Oztaysi 2014). Telstra also wants to implement an information system related tracking procedure. Hiring proper inventory consultant: Third party consultant is needed for formulating effective inventory management system. It is also helpful in managing as well as maintaining proper business within the organization of Telstra. Conclusion It can be concluded that development of Information technology within the organization Telstra is very much advantageous as it helps in enhancing the growth as well as profit of the company. It has been identified that use of information technology also helps in enhancing customer satisfaction as well as resource management. There are number of requirements for implementing as well as developing the information technology. The requirements include cost, designing, roper planning, training and many more. It has been identified that there are number of risks, which are associated with the organization, which must be resolved effectively. References Baskerville, R., Stage, J. and DeGross, J. eds., 2013.Organizational and Social Perspectives on Information Technology: IFIP TC8 WG8. 2 International Working Conference on the Social and Organizational Perspective on Research and Practice in Information Technology June 911, 2000, Aalborg, Denmark(Vol. 41). Springer. Bloom, N., Garicano, L., Sadun, R. and Van Reenen, J., 2014. The distinct effects of information technology and communication technology on firm organization.Management Science,60(12), pp.2859-2885. Davison, R.M., Ou, C.X. and Martinsons, M.G., 2013. Information technology to support informal knowledge sharing.Information Systems Journal,23(1), pp.89-109. Devaraj, S., Ow, T.T. and Kohli, R., 2013. Examining the impact of information technology and patient flow on healthcare performance: A Theory of Swift and Even Flow (TSEF) perspective.Journal of Operations Management,31(4), pp.181-192. Kautz, K. and Pries-Heje, J. eds., 2013.Diffusion and Adoption of Information Technology: Proceedings of the first IFIP WG 8.6 working conference on the diffusion and adoption of information technology, Oslo, Norway, October 1995. Springer. Kellermann, A.L. and Jones, S.S., 2013. What it will take to achieve the as-yet-unfulfilled promises of health information technology.Health Affairs,32(1), pp.63-68. Nambisan, S., 2013. Information technology and product/service innovation: A brief assessment and some suggestions for future research.Journal of the Association for Information Systems,14(4), p.215. Oztaysi, B., 2014. A decision model for information technology selection using AHP integrated TOPSIS-Grey: The case of content management systems.Knowledge-Based Systems,70, pp.44-54. Roztocki, N. and Weistroffer, H.R., 2015. Information and communication technology in transition economies: an assessment of research trends.Information Technology for Development,21(3), pp.330-364. Shaikh, A.A. and Karjaluoto, H., 2015. Making the most of information technology systems usage: A literature review, framework and future research agenda.Computers in Human Behavior,49, pp.541-566. Webster, J., 2014.Shaping women's work: Gender, employment and information technology. Routledge. Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and it managers.Mis Quarterly,39(2), pp.497-518. Wynn, E.H., Whitley, E., MYERS, M. and DeGross, J. eds., 2013.Global and Organizational Discourse about Information Technology: IFIP TC8/WG8. 2 Working Conference on Global and Organizational Discourse about Information Technology December 1214, 2002, Barcelona, Spain(Vol. 110). Springer. Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet.Journal of Retailing and Consumer Services,22, pp.244-249. Impact of IT on Business Question: Discuss the impacts of IT on business. Answer: Abstract Information Technology has become a vital part of the day to day life; every person has become connected to it directly or indirectly. Everywhere we see there has been a technological advancement in every sector that has made our lives not only easy but also worth living with ease. This research paper deals with the aspects of Information Technology and the impact that it has on business, especially in the field of aviation. To fulfil the research objective the researcher has chosen Air Asia as the subject of the study to study the impact of IT in airlines. Introduction Technology has created a fuss in the business sector; every individual has been instilled with the need to IT in some or the other way. People who facilitate the business or people who are taking advantage of a certain business both require technological innovations. Information technology has created a he impact on the economy (Heil and Prieger, n.d.) and all the sectors, be it small or large. The most common use of Information Technology is the use of data entry, accountancy and now a day the most commonly used one is money transfer. Be it the banking sector, tourism, hotel industry, or any other business sector either small or big, it is using IT somewhere or the other. Information Technology has brought innovation in all the sectors. Airlines are one of the business sectors that too have been an impact of information technology. IT people are being added to the workforce of all the airlines in order to improve their technological advancements which have become the most popular factor for attracting customers towards a particular airline. We will study the impact of these Information technology and the changes that have been taking place at Air Asia Airline. Objective of the Research The present research has been conducted in order to find out the affects of information technology on a business sector. The aim of the study is to find out the impact that IT has caused in both positive and negative way on the airlines business, and the study shall be conducted by using the example of Air Asia Airlines. Research Methodology The research methodology and philosophy used here is secondary in nature. The data collected is through online sites and research papers and news articles already published. The data so collected is then understood and scrutinised in order to draw conclusions to reach the aims and objectives of the research study. Literature Review Information technology is booming across the globe. It has made cross border transactions much easy, but along with ease it has also created various other issues on the economy and the government policies. It is true that IT has made the productivity level higher and has increased the profit making capacity of the business. But the problem that lies with this is that cross- border monetary transactions have shaken the government policies and resulted in to huge losses of tax that creates revenue for the government (Goolsbee, 2001). It has therefore become important for the fiscal regulators to plan policies to apply e-taxes on e-commerce so that the revenue is not lost due to technological innovation (Redpath, Redpath, Ryan, 2007. Legal tenders in the primary market, i.e. the treasury and the difference in prices at the secondary market have further increased the problems of electronic payments. With the advent of technology and the competitiveness so prevalent in the businesses, it is important that the businesses must be up to date with technology and along with that they should also bring in new things and add to technological innovation so that they remain ahead. Ease through technology also results into profit making which in returns adds to the GDP of the country and betters the economic conditions (Willis, 2004). Information Technology and Air Asia Airline With the increasing use of information technology, businesses have become e-businesses. The impact is so huge that it has brought the entire business sector under a technological advancement. Some way or the other the businesses have been using information technology, either for payments, production, recording transactions, distribution, facilitate marketing online etc. Airlines have too adopted the technological advancements; everything is done online from getting tickets, payments, cancellation, refunds, and other facilities that they may provide. Air Asia Airlines are the cheapest and the largest airlines in the Southeast Asia and was also voted as the Worlds Best Low Cost Airline in 2009 and 2010 (Worland, 2014). With the change in its management Air Asia rapidly grew from starting with only two planes to be at present a major airline in Asia. Use of IT It has been considered to be an important part for the survival of a business. It is to be noted here that IT plays a major role in innovation, which is the most attracting factor for any business to grab the attention of the customers. The use of IT not only attracts customers but also makes the business transaction easy on both the ends. Air Asia has recently added new features in its services through information technology. It had an online application that could be used to make bookings and enquiries. Earlier the application was compatible with windows phone 8.1, but now it has created and updated the UWP app for Windows 10 via Neowin, which is accessible by computers and mobile phones both. Another feature that it has added to it is the intellect feature called cortana which is an intuitive user feature (Baxi 2016). All these innovations through information technology have brought about an alarming change in the technology and has made it easy for the airlines and the customers to conduct the business with ease and hassle free. The application so formed has made it easy for the customers to access Air Asia without taking the pain of coming to the airport or going to a travel agent in order to get their tickets. The application has also made it easy to select the seats and make payments for bookings or get refunds for cancelations. The use of information technology is not only limited to be make the business customer friendly but also in order to make the working of the business internally easy and effective. The employees have biometric system to keep a track on their activities; there is facilitation of communication via intercoms and other devices. There working of the business is done under continuous surveillance through camera and recordings are kept with the IT staff in the IT department. Advantages of IT Information technology as discussed above has created ease and caused innovations to happen, other advantages of information technology are: Cost effective: a lot of cost is cut down from the side of the airlines by reducing staff for manual ticketing, use of paper, time, and also from the side of the customers as a lot of money is wasted on travel agents, transportation etc. Time saving: Information technology has made the business transaction so easy that it saves a lot of time that was earlier wasted by standing in ques for booking, taking refunds and making cancellations. Revenue and productivity(Wen, 2004): the above two factors have increased the productivity of the airlines by enabling easy transactions and working and due to maximum utilisation of time and cost effectiveness, generation of profits has also increased. Specialisation: the technological advancements have led to specialisation in the field of aviation. Now airlines specialise in providing certain services in a particular area. Like Air Asia has specialised in the Southeast of Asia and provides cheaper and readily available flights easily in Malaysia and adjoining areas (Baxi 2016). Connectivity/ flexibility: due to information technology, it has become easy to connect with the airlines all over the world. Availability of seats in other flights, availability of connecting flights etc can be easily found out. Under business to business transactions there has been a connection established sue to which the businesses have become more easily accessible (Lucking-Reiley Spulber, 2001). Threat of Information Technology on Aviation sector Information technology has been a boon to the people and the business sectors due to the increase in revenue generation, flexibility etc. but this same instrument of innovation has been a threat and proved to be monstrous for the people. The disadvantages of IT are: loss of jobs: due to technological advancements, airline businesses are cutting down the workforce in order to generate more profits, as due to technology most of the work can be easily done through various application provided online, therefore there is no use of having so much of a workforce for operating the business (Scott, 2016). Negative Competition: the use of technology has reduced the costs incurred by the businesses, which has resulted into generation of increased revenue, which in result has lead to competition. But this competition has reached to such an extent that airlines have started offering services at such a lower rate in order to compete that they themselves are going into losses and in order to cover those loses they are cost cutting and cutting down the workforce (Scott, 2016). Cybercrime: since, everything has been made electronic, and all the information is vulnerable to hackers and other mal practitioners in the field of cyber technology, there is always a fear of cyber crime. Terrorism: as stated above, there is a fear of the information getting into the wrong hands as the information has become vulnerable. Therefore, in the past terrorist actions have taken place. Confidentiality: as all the information about the airlines is available online, there is no confidentiality. Also because airlines have to disclose information in order to facilitate easy flight bookings that are connecting, therefore confidentiality is lost. Recommendations Information technology has its advantages and disadvantages as anything else. But only because there are a few disadvantages of it, its advantages cannot be ignored in the light of the cons. With technology the world has become easy but also at the same time it has lead to vulnerability, but it is important that the fact, that ease is granted should always be considered and the disadvantages should be left behind. It is recommended after going through the research that there must always be innovation with the help of technology but that should not be done at the cost of the work of other people. Competition is important to bring changes but a negative competition would only lead to be disadvantageous to both the public and the business itself. Conclusion Air Asia being the cheapest airlines in the Southeast Asia have become extremely popular for that region. An additional feature of an online application for booking, cancellation, viewing boarding pass, checking flight status etc., added to the services provided by them has made it more popular and easy to use and customer friendly. The information technology applied by these airlines is not restricted to only making customers accessibility but also has been used to govern their day to day functions within the workplace by use of IT. Connectivity with other airlines has also been established in order to facilitate the connectivity of flights from one place to another. It is to be noted that IT cannot always be advantageous, it has its own threats to the business and the society at large and sometimes even technology can lead to failures as it is doing at present, but cutting down the workforce due to negative competition and the tendency of businesses to make maximum profits. Bibliography Articles: Subirana, B., Eckes, C., Herman, G., Sarma, S. and Barrett, M. (n.d.). Measuring the Impact of Information Technology on Value and Productivity using a Process-Based Approach: The case for RFID Technologies. SSRN Electronic Journal. Heil, D., Prieger, J. (n.d). The Macroeconomic Impacts of E-Business on the Economy. 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