Discuss specific ways information technology can benefit as well as negatively impact the business with respect to hardware, software, and trained staff.

Discuss specific ways information technology can benefit as well as negatively impact the business with respect to hardware, software, and trained staff.

Information technology has benefits as well as a negative impact to the business. IT benefits businesses in different ways. It brings people together by making it easier for co-workers to communicate and collaborate using sites like Stride and Slack, team-chat, and email. Moreover, basic technologies like text messages and email speed up response time in emergencies and offer more leisure time frame for less urgent issues. Additionally, information technology helps in speeding up processes using manufacturing technology. For instance, assembly lines enhance productivity by consolidating processes and moving more quickly than a human being.

Computers have helped in organizing information in a manner that would take workers considerably more time. Workers use seconds to get a profit and loss statement using QuickBooks, which would take hours for humans to compile it by hand. By saving time, information technology, in turn, helps in saving money for the business. Additionally, up-to-date and meaningful information assist in realizing problems and opportunities quickly and react proactively. Information technology also enhances customer data. By gathering data concerning the customers’ wants and behavior, organizations can effectively target advertising and promotions. A business can use technology to monitor workers’ behavior and performance.

Although information technology benefits businesses, it also has a negative impact. Information technology is known to save money for the business, but upgrading software, maintaining computers, and training workers have expenditures, which may be costly than the time saved. Businesses have also been falling victim to unscrupulous people who hack into their computer systems and get essential data. Social media platforms distract employees, and they don’t replace face-to-face interactions during meaningful actions that create robust and resilient teams. In the HR department, information technology helps in streamlining benefit solutions and keeps and scan applications to screen prospects effectively. However, it has a negative impact since computerized software processes are rarely enough substitutes for a face-to-face meeting to know if the software is a good fit for the business.

Explain how a customer relationship management system can help improve profitability

The customer relationship management system helps in increasing customer retention. Businesses can improve customer retention rates by using CRM, which will lead to increased revenue for the business. Study shows that reducing customer defection by 5 percent increases a business’ profit from around 25 to 85 percent. Using the collected data, the organization can proactively deal with at-risk accounts and reach out to satisfied clients at the right time to encourage repeat purchases.

CRM also helps in optimizing business marketing. It lets the company have a more targeted and cost-efficient marketing program. Having a better understanding of customer behavior and the customer wants helps in identifying the right time to promote the products. It is also possible to segment consumers and get insight into which are the more profitable customer groups. Having this information helps in setting up relevant promotions for the group and executes them at the correct moment. Optimizing marketing resources of the business, it helps in getting the best likely opportunity to increase revenue.

Moreover, customer relationship management helps in gaining valuable insight. It keeps every information in a single centralized point, making it easier to analyze performance. It becomes easy to generate reports by pinpointing information like marketing campaigns, leads, and revenue generated. If data is better reported, it becomes easy to make efficient business decisions and enhance revenue.