Why Good IT is Inevitable If You Want To Increase Business Value

If you are in business and you do not invest in a fully-fledged information technology for your business, be ready for closure. Your competitors are already so much into IT. In the last 10 years or so, IT has become an integral part of business, whether a start-up, small, medium or large. No one can afford to ignore the integration of information technology into their business and survive.

However, here comes the big riddle ... since IT is a big cost of doing business, remember the systems, infrastructures et al that cost up to hundreds of thousands of dollars, why then is it so important for a business? It may be a big cost on the implementation side, but on the other side of doing business, it is a big benefit because:
•    You can reach more customers
•    Keep track of your regular and old customers
•    Do more business by streamlining and automating processes
•    Reduce manpower thus save money
•    Get feedback from customers and rectify errors thus ensuring they come back for more

From the few points highlighted above, you can see that there are more benefits than downsides to having IT in your business. Thus, it should not be a question of why you should invest in IT. Rather, it should be a question of when. And the answer to that is right now!

But just how much should you spend on IT for your business?

This is the sixty-four dollar question… how much money should you spend on IT, seeing as it is so important a cost of business? Typically, most businesses take anything from 1 to 10 percent of their annual revenue and invest it in IT. Is that enough? Maybe, or maybe not, it depends on the size of your business, but it is a good place to start.

In any case, not all IT components are a recurring expenditure. Some of them just require a big initial fee for setting up and then after that, all that you will need to pay is the maintenance fee, which should be something affordable. In addition, if you have an in-house IT team, they will do a good job of making sure that all systems are up and running all the time.

IT enhances productivity from your employees

As we have already said in another post on this blog, if an employee wakes up to a bad computer, not only is their work affected, but their mood too. Poor systems will bring your productivity down and if they can do that, you can just imagine what no systems at all would do to your business.

Every business needs IT. Whether it is just the hardware and the software, they are still important. It could also be the host applications, customized applications that are only applicable to your business or even the basic infrastructure – all are very important to your business. All these are meant to make the work of the employees easier and better. Another thing that you must know is that with the use of information technology, employees can do more in a shorter time and if they are allowed unrestricted use of the internet, they can even find ways to market your products and services.

IT must be embedded into every part of business to increase value

For the value of the business to increase, the use of information technology must be embedded in every part of the business. For example, human resource department needs to build a database of employees, potential employees in all positions as well as interns that they can recruit. Database management is a very important branch of IT.

Accounting needs the right software and of course, the storage of all data generated is paramount, and safe storage too. Production needs software and applications that support production, and so on. IT will be integrated into every part of the business.

Using IT to generate sales leads that increase revenue

In business, the person who has the information/data has the higher chance of getting the market. Thus, a business must generate a lot of data and store it on cloud. This data will then be analyzed to generate leads that will be pursued to make more business. This increases the value of the business. Cloud systems have become an integral part of modern information technology.

Conclusion

We could go on and on about how IT increases the value of business, but the truth is that the use of IT in business cannot be overemphasized. The value that IT adds to a business is a lot, thus making it a necessary expenditure.