Top 10 reasons “Why businesses invest in IT”

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Some time back, in the media there was huge discussion around whether or not IT really matters and why on earth companies are investing in IT. Is it really strategic and the discussion went on and on…

It is very evident that IT has become the back bone of many companies over the last few decades. The technology has evolved even further in the last few years and makes things possible which were never dreamt of before.

In the next article, we will see why this is the right time for business who have embraced IT decades ago to reinvest in IT. For example, 5 years back, storing terabyte would be unthinkable and systems that were built decades ago have always been designed to capture only very limited amount of information due to storage considerations. This could have resulted in not capturing some key contextual information surrounding that transaction today.  So it would be right time to rethink that system now. I will store further thinking on this topic on why business should invest more on IT now  for the next article and here focus on laying the foundation on why businesses invest in IT in the first place.

Here is my top 10 list of  “Why businesses invest in IT”.

1. Innovation : Software systems make it easy, cost effective and quick to design, proto type and innovate core “products” of any company which is the main source of income
For example, an automobile manufacturing firm invests in systems which will help them design computer models of their next generation cars. An architect firm invests in systems which will help them design blue prints and come out with innovative designs and test it through software systems.

2. Administration : Regulatory needs , company governance, financial information
Show me the money and obey the rules. 

3. Operations : Automate Business Processes to capture vital data and enable workflow. Digitized data captured in transactions are the source of information of about your business, which could be turned into knowledge and knowledge would result it new opportunities.

4. Relationship : Give the power back to customers, vendors and employees to fulfill their needs through self service. Also track, maintain and improve the business relationship.

5. Productivity : Better Resource Management/ Improve productivity /Reduce time to complete a task/Schedule Management
Getting things done quickly and efficiently with less error is the main motto of implementing any system.

6. Management : Understand your business at ground from the top
The further you are up from the ground level of your business, the more you need to rely on systems to understand the status and ground reality of the business. Track, control and respond to your business instantly

Having an eye on the dashboard and control is the only way you will have safe ride. Otherwise it is like blindfolded and feel like driving. There is very less success rate, if not none with that approach. Empowering everyone with necessary data, information and knowledge and making the decisions happen at all level at lightening fast is the key to any agile business.

7. Intelligence : Harness the power of huge digital information captured in every walk of life in the business and get different perspectives and understand business opportunities and issues and better at it.

8. Communication : Build  easy and effective communication channel
No two people hear the same thing the same way and get exactly the same sense and purpose. Constant, clear, concise communications is vital in having everyone on the same page and run the business like a well oiled and coordinated machine and execute tasks precisely.  Also digitized communication content could be turned into knowledge and could be used to keep track of commitments.

9. Agility : Make quick and well thought out “educated” decisions to respond to changing business needs.Ability to respond to every changing business needs in the complex world is the ultimate weapon to stay successful. Thos who can adopt new competitive landscape and respond will perish. Effective Change Management systems are vital for business agility.

10. Commerce : Trading and doing business in the global marker beyond boundaries pushes eCommerce higher on the IT investment side for many companies.