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Explain how the use of Information Technology (IT) can bring about improvements in productivity within a business organisation

      

Explain how the use of Information Technology (IT) can bring about improvements in productivity within a business organisation.

  

Answers

gregory
Use of information technology in bringing about improvements in productivity within a
business organisation.
i) Information technology can be used as part of the commercial strategy in the battle for
competitive advantage. For example, IT can be used to improve productivity and
performance through the use of computer aided designs (CCAD) and computer
Integrated Manufacturing (CIM)
ii) Information technology has generally succeeded in reducing the costs of information
processing. This has an impact on the overall costs of the organisation thus commercial
organisations can be able to operate more economically and thus improve productivity.
iii) Information technology has brought about greater speed/accuracy and efficiency in
data processing and availability of information thus generating speeding up the
production process and improved production.
iv) Use of information technology involves the use of machine systems which ensure
greater or high level of diligence and ability to perform tasks without fatigue or
tiredness. Some more recent technology also allows for the automation of production
processes thus improving the productivity of an organisation.
v) Information technology can also be used to generate new products and services so as
to out with those competitors and gain a larger market share. I.e. through the use of
computer aided designs (CADs).
vi) IT can also be used to lock out competitors so that larger market shares are obtained
and greater productivity so as to satisfy new markets. This can be achieved through
faster provision of services and delivery. For example, banks use automatic teller
machines to improve customer services.
vii) IT can be used to commit customers to investment and reducing their likelihood of
them changing suppliers. This ensures that the current customers are retained and new
ones wooed. This is obviously achieved through the use of provision of quality and fast
services to customers by utilising information technology such as the automated teller
machines, electronic point of sale terminals etc.
viii) IT provides a straightforward performance advantage thus organisations are able to
improve productivity.
ix) Routine processing can be done in bigger volumes at greater speed and accuracy.
x) IT improves the nature of management information in terms of its quality such that
better production decisions are made.
xi) IT frees the workforce from more skilful and judgemental work such that they
concentrate on more important duties of production.
gregorymasila answered the question on November 29, 2017 at 09:19

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