Effects of Information Technology on the Business World

Article type: Research Article

Authors: Alkadi, Ihssan^{a; *} | Alkadi, Ghassan^b | Totaro, Mike^a

Affiliations: [a] Department of Business Systems, Analysis, and Technology, University of Louisiana at Lafayette, Lafayette, LA 70504, USA | [b] Computer Science Department Hammond, Southeastern Louisiana University, LA 70402, USA

Correspondence: [*] Corresponding author. Tel.: +1 337 482 5378; E-mail: [email protected].

Abstract: This paper will address the effects of Information Technology on the business world. Technology is increasingly playing a crucial role in the success of organizations in the information age. The impact of Information Technology on business has been enormous. Computers and the information they process and store have permeated every aspect of the business world. The fundamental role of Information Technology is to enable businesses to find new ways to drive down the costs of products, processes, and improve performance. We use examples from five different companies/industries to show the different and dramatic effects that IT can have on a business. The television industry is using high-speed Internet to send digital dailies from location to directors and producers in Hollywood. The use of this technology eliminates the old method of dubbing tapes and then sending them via FedEx back to L.A. General Motors has used aggressive outsourcing and web-based services to increase production time. Where it used to take up to four years to get a vehicle on the market, it now takes less than two. With new management and a greater focus on quality and customer satisfaction, an aircraft company has seen its $ 15 million in debt turn into $ 243 million in revenues. These increased revenues were attained by using new software to help it get better organized. AT&T, the once Titan of the phone industry, utilized IT to get out of debt. Specifically, AT&T used web-services to allow all of its different systems to communicate. By using new software to translate three different business processes into one usable code, Cybex International used IT to fix its supply-chain mess.

Keywords: Information Technology (IT), Information Systems (IS), E-commerce, Internet, E-mail, People Soft, Cybex, business, telecommuting, decision making

DOI: 10.3233/HSM-2003-22301

Journal: Human Systems Management, vol. 22, no. 3, pp. 99-103, 2003