Advantage and Disadvantage of Information Technology in Business




  • Increases production and saves time– Business use technology to automate tasks. A good example is a bakery which uses automated temperature censored to detect any drop or in crease in room temperature in bakery. These censor will send information directly to the operator and report any temperature change. This saves the bakery time and it also result into quality product.
  • Improve communication use communication technology- with the help of communcationtechnology tools like handphone , video conference, electronic mall, database just to mention but a few. employees can easily moves information across the department without having any interruptions. tools like electronic mailed, fax, mobile phone and text messaging enhance the movement of information among employees, customers and business partner or suppliers.
  • Improve business to consumer relationship- Business have embrace the social technology to interact with their consumer and fans. This creates the strong business to consumer relationship and it results into business growth and expansion. For example, business cam use internet to inform customers about sales and discount, this makes customer feels special and it can drive their desire to buy. A good customer service can be used as a great tool by any small business to gain competitive advantage.
  • Cut costs of operation and increase RIO- Communication technology and social technology have made business promotion and product launch affordable. Many small business have found ways to use social technology to increase on their brand awareness and get more clients at a minimum cost. In business, factors like cost of operation play a big role in development and growth of that business. So when business use information technology to cut down costs of operation, when their ROI will increase which will result into business growth.



  • Implementation expenses– Small business fail to afford this expensive technology so they end up losing their clients to a small business which has improve its technology and provide a better service of product.
  • Job elimination-Technology have re[place most  position which human used to occupy. Accounting is now being done by software, so accountants runs out of opportunities.



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