Benefits of Information Technology for Small Businesses

When it comes to the use of IT resources, small businesses have been lagging behind larger entities due to the fact that less of them see the value of the same. Small businesses do not fully appreciate the benefits they stand to gain by initiating a sound IT strategy. It is up to IT service providers to take their time and convince these entities of the value proposition envisaged in adopting IT services. With a rapidly changing business environment, small businesses are finding themselves with a reducing customer base and increasing operational costs, as their competitors adopt IT processes which increase their efficiency as well as reduce their costs.

IT services offer small businesses the chance to improve the efficiency of their internal operations and reduce the time taken to adjust to changing industry norms. IT services are mainly concerned with capturing vital industry and market information, disseminating the same as fast as possible within the organization, resultantly providing useful information for decision making. Below we have compiled a simple description of how IT services can benefit small businesses.

E-Procurement

Effective IT systems usually help businesses communicate with their suppliers faster and better helping them make orders in a more efficient manner.

Inventory Management Systems

Once a supply order has been made and received, the IT system will then be employed in inventory management. This is vital as it enables automatic inventory monitoring and will originate notifications at certain inventory levels, especially when restocking is necessary.

Global Communication Networks

IT systems also enable the maintenance of global communication with partners in a timely fashion to respond to growing/changing market needs. Partnerships can be forged using IT systems.

E-marketing

From a marketing point of view, e-commerce is supported by the implementation of IT systems. Businesses can be able to serve more customers and initiate successful online marketing campaigns on a local and global scale for small businesses.

Customer Relationship Management

IT has become one of the main customer relationship management tools. Customer feedback and notifications can be made using IT systems such as the internet. The business can use this information to make timely responses to changing customer needs.

Internal Operations

The internal operations of a business also stand to improve by deploying a sound IT system. Accounting, human resource and Communication functions can all be improved using IT. Accounting records can be processed and models produced using computer systems. Employee training can be done through e-learning applications; whereas communication throughout the organization can be conducted faster using intranet.