Business Information Technology (IT)

As a webmaster, it is vital you understand what trends in Information Technology mean for your business. Information Technology has revolutionised the world of business so profoundly, that it now forms the foundation for management, accounting, sales and procurement functions. Most industry sectors are entirely dependant upon business information technologies to survive and prosper.

Since the birth of computing, the cost of processing power has transformed every aspect of how we do business. Large mainframe data centres automated back-office accounting and payroll functions. In later years, client/server computing moved low cost computing power, into the workplace of millions of businesses. Personal computers spawned a low cost software revolution, that has helped to automate most business processes.

More recently, the use of the Internet has allowed businesses to share computing power and information, target new markets, streamline work practices, locate workers from home, sell online, create secure employee networks and deliver on-line applications.

The main trends in information technology are as follows:-

• Online Business Trading - there are now many online shopping markets, for traditional firms to target their products and services. Consumers and businesses have become accustomed to trusting secure ecommerce payments gateways, to enter credit card information. This email and encryption technology has allowed many small firms to target vast global markets, and sell directly to millions of potential customers. Such access would have not been thinkable, prior to the creation of the Internet.

Likewise, internet based business-to-business markets have been created. Many firms can electronically trade with suppliers, (as opposed to relying on paper-based orders, invoices and delivery documentation). These low-cost extranets have speeded up transactions by avoiding inefficient post and couriers, fax and telephone services.

• Outsourcing and Managed Services - there is a strong information technology trend, of hiring outsourcing service providers to manage core IT operations. As computing equipment becomes more and more commoditised, so servicing that infrastructure now represents the largest overhead for businesses. System integrators have responded by devising an end-to-end package of total managed services. Service providers take away the everyday hassles of the IT management. These professional services, originated from the traditional 'break-fix' services for PC hardware problems. Complex offshore call centres now exist, that remotely support software applications and networks. These outsourcing specialists take away non-core decisions, freeing up customers to focus on core business decision-making.

• Security Threats - there is a relentless increase in the number and diversity of computer security threats, businesses experience each year. The increase has been largely propagated by the widespread adoption of the Internet and email. Criminal gangs, hackers and other groups, invent new types of virtual threats. These include viruses, worms, Trojan horses, adware and spyware. The attacks intend to steal businesses identities, access bank accounts, obtain customer credit card information. A denial of service attack can be disastrous for large organisations. This combines the power of distributed computing, by exploiting large numbers of innocent infected PC's, to force unplanned downtime of a specific website.

• Mobile Computing - one of the fastest-growing information technology trends, is the use of new mobile devices. These devices enable employees to access e-mail, browse the web and communicate directly with colleagues, customers and suppliers. With the innovation and development of cellular and WiFi technologies, many new devices utilise location based services. Mobile devices include mobile phones, PDAs, notebooks, laptops, tablets, MP3 players and other interconnected storage devices.

• Business Networking - business networking is an increasingly popular information technology trend. Like-minded business people can share ideas and information in a virtual business network. Traditionally, business networking has utilised regional conferences or local breakfast club meetings. Like-minded individuals meet, to discuss common interests and enrich their network of contacts. These clubs are now supplemented by online alternatives. Millions of busy business professionals are members of online business networks. The system enables them to anonymously keep up-to-date with topical news, access job opportunities, share ideas, browse forums and develop new business contacts.

• Improved Communications - employees can now communicate with each other, using a mobile phone, texting, e-mail, fax, video conferencing and instant chat. Faster communication leads to faster decision-making and improved productivity. It also helps to keep increasingly agitated and fickle customers satisfied with faster response times. Access to communication technologies, has also opened up the sharing of ideas and information across cultural divides and political boundaries. With the emergence of social networking hundreds of millions of users are using collaborative means to make friends, share opinions and access valuable information.

• Globalisation and New markets - companies that could not afford to advertise overseas can now compete on a level playing field using search engine optimisation and online advertising. As a result firms can enter new markets and gain visibility from their website.

• Productivity and Cost Effectiveness - there is little doubt that computerisation of traditionally labour-intensive business tasks can reduce overheads. Streamlining of operations leads to improved efficiency and greater profits.

• Privacy and Business Data - the more a business becomes reliant upon storing data and sharing information online, the greater the likelihood that this information could be misused or illegally accessed. Email hacking, identity theft and telephone intercepts, are just a few of the security threats users are facing, when storing personal details in numerous online places. Despite fast moving privacy laws, the potential for new information technologies to slip through the regulatory gap, continues to create many legal dilemmas. Despite much media attention on data protection laws, many companies are failing to protect their customers personal data from unwanted access.

• Threat of Market Entrants - many traditional industries have seen stiff competition, from new and nimble competitors exploiting new technologies. In an online marketplace, the greater the resistance to learn new technologies, the more new market entrants seem to chip away at traditional monopolies and secure markets. Many see this as promoting free trade and natural competition. However, it businesses are finding it increasingly difficult, to retain or attract UK skilled technical staff.

• Job Insecurity - there is no doubt that information technologies have made many people redundant, through computer automation and 'downsizing'. With the beginning of knowledge-based systems, the threat of job insecurity is not only isolated to traditional lower-level administrative type jobs.

• Over Reliance on Business Information Technology - the 'slow creep' towards relying on computer systems to make decisions is increasingly the acuteness of problems when systems go wrong. Stock markets, insurance, banking, healthcare and many other rely on information technology systems, designed to always be online. Likewise, for small firms that have tiny budgets for disaster recovery plans, the impact of over reliance on IT can be catastrophic. An over dependence on computer generated processes, (that replace human 'checks and balances'), mean common sense decision making sometimes flies out of the window.

Lastly, cloud computing deserves a particular mention, as its effect is changing the balance of power in the IT industry. More and more software and services providers, are choosing to deliver their applications as an online subscription service. The move towards 'in the cloud computing', is being driven by companies like Google and Microsoft. The argument for in the cloud computing is that it is cheaper, faster and more efficient to keep business data in a safe virtual environment. This business data can be accessed using applications stored online (not locally on the users PC). Therefore, the need to purchase expensive server and PC technology becomes almost redundant. It means users can access and collaboratively work from anywhere, while not having to worry about computer hardware failures or managing software bugs and upgrades. This reliance upon online connectivity poses many intriguing dilemmas regarding security, broadband usage and cyber threats to private data.