IT Strategic Value

IT is as important for developing countries as it is for developed countries. Without up-to-date IT, companies will find themselves at a severe disadvantage when it come to competing in business. Information Technologies allow companies to process data faster, keep track of inventory more efficiently and process orders more quickly, among other things.

Companies who use Just-in-time (JIT) delivery systems are able to utilize IT in such a way that they are able to minimize the amount of goods stored in any one location because the necessary items are delivered only when they are needed. This greatly reduces storage costs and costs associated with having surplus inventory. Wal-Mart is one such company that uses this technology and while it does not necessarily provide a competitive advantage for them, since most other large companies have this same technology; it certainly provides a competitive disadvantage for those smaller companies who do not have access to it.

Data mining companies have seen an increase in demand for their services through the use of their information gathering technologies, allowing companies to gain access to data about their customers shopping preferences, income, age, marital status, and a variety of other attributes.  Possessing this customer information can help companies customize their product, service, shopping experience, or all three to better fit their market.

Even aspects of IT that are as boring as payroll applications can provide a value to the company. With an efficient application to manage payroll or other aspects of the company like accounting, that company can lessen the amount of people required to staff those departments and use that money and resources elsewhere.

Companies like FedEx or UPS that use package tracking software are able to set themselves apart from the competition by allowing customers to become a part of the shipping process and see where their order is at all times.  In addition to this companies also use radio frequency identification (RFID) technology which helps them keep track of their goods easily and efficiently. By simply scanning a products packaging, a company can instantly know exactly what that product is, how much of they have, and also add it to the inventory.

Websites are another extremely important aspect of IT that let companies who have their own websites recognize a significantly large and new market. People can now buy that companies' product without ever having to set foot in a store; and have it directly delivered to them. Whereas before if someone was elderly or did not have a vehicle, they may have been restricted to where they could shop. Now these same people are able to shop wherever they like whenever they want.  IT is an ever expanding industry that is constantly shifting toward new, faster and more efficient technologies and companies that do not stay on top of this trend will find themselves left in the dust as their competition surges forward.