Analyzing the Importance of IT in Modern Business Strategies

This report comprehensively examines the pivotal role of Information Technology (IT) in modern business operations, spanning from individual entrepreneurships to multinational corporations. It begins by highlighting the benefits of IT implementation for individual entrepreneurs, including enhanced operational speed, improved data organization, and the utilization of project management tools for goal setting and project planning. The report then transitions to the significance of IT in small and medium-sized enterprises (SMEs), emphasizing the advantages of cost-effective implementation, increased team spirit through virtual communication, improved client connectivity via websites, and efficient marketing strategies. Finally, the report explores the use of IT in multinational corporations (MNCs), focusing on the facilitation of communication across geographically dispersed branches and the maintenance of data security. The report also details the usage of IT in various business processes. The report concludes by underscoring the transformative impact of IT on business growth, efficiency, and overall success.

Running head: IT IN BUSIENSS
IT IN BUSIENSS
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Abstract
This report discusses the importance of IT in business process. This report provides an
understanding of the concepts regarding usefulness of Information Technology in individual
entrepreneurship business. This report also provides a precise understanding regarding
importance of IT in Small and Medium Scale business organization. Proper discussion regarding
importance of IT in Multinational Corporation is made as well.

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Table of Contents
Introduction......................................................................................................................................3
Usage of IT in Individual Entrepreneurship....................................................................................3
Importance of IT in Small and medium scale organization.............................................................5
Usage of IT in Multinational Corporation.......................................................................................6
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The acceptance rate of IT platform has been high. With the implementation of IT the
benefits that are received are more than that of the disadvantages that are faced by the
organization and hence the usage of this technology has been increasing as well. Individual
Entrepreneur, Small Medium Enterprise and Lare Multinational Enterprise are the major
business sections that have been using the platform of IT for having a better operational
processing. This report is focused on describing the basics of IT concepts that has been helping
the operational process of the Individual Entrepreneur business. This report also discusses about
the functional section of Individual Entrepreneur that will be getting affected due to the
implementation of IT. This report also discusses about the usage of IT in case of Small and
Medium Enterprises. This small and medium and business organization instills usage of IT
platform as this technology has been benefitting the entire sectioning. This report also discusses
about the usage of IT platform for different MNC’s operational process as well.
Usage of IT in Individual Entrepreneurship
It can be stated that implementation of a proper blend of entrepreneurial aspect along
with the IT segments helps the organization reach the destination. Individual Entrepreneurship
plays an important role in developing economic stability in the country (Whitaker, Ekman and
Thompson 2017). IT implementation has been benefitting the business operational process the
main benefits that are received includes the likes of increase in speed in the operational process.
Another major aspect that is to be considered is that organization of data is also
facilitated. Several tools are used. Tools, namely project management tools helps in proper
developing of the scope and the objective of the entire project. This scope development acts very
important to the process. Being an individual entrepreneur setting up of the goal acts important.
With the help of the IT tools it gets easier and highly specific goals can be achieved (Mao and
Zhang 2016). This is the main reason that usage of IT tools can be helpful for performing the
scope development section. As the business organization is an individual entrepreneurship
organization, developing a complete plan for execution of the project is required. Usage of IT in
developing a proper project plan will also be beneficial (Cantwell 2017). With the help of the IT
tools the project plan that will be generated will be having a proper scheduling of tasks. After

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performing the scheduling of tasks, deadline of the project will also be set. In this case the main
aspect that is to be considered is that the project tha6t is undertaken by the organization will be
completed within the stated deadline. In all kind of projects it is obvious that the project will be
having a scheduled deadline. For an individual entrepreneur it gets difficult to handle all the
sectors. Hence if the entire project is subdivided in different phases and hence wise scheduling is
performed, it will get easier in the execution department. Another major advantage that will be
received is that the accuracy of the estimation and execution process will increase in case of
using IT tools. Reducing the size of the data that is being used in the operational process also
helps in increasing the efficiency of the business (Ricken and Malcotsis 2016).
The main aspect that is to be included is with the help of IT tools, data that are to be
stored can be stored in the databases rather than storing the same in traditional manner. This
storing of data in the databases provides high mobility to the data and this acts as a positive
aspect as well. Along with storing of the data, proper analysis of the data can be performed as
well. This ensures that the data that are required and not required can be differentiated
(Kandachar and Halme 2017). Along with this analysis the data structuring of the data is also
performed. This structuring of the data helps in elimination of data that are reiterative in nature.
This helps in reducing the excess data. With increase in preciseness in the data that is stored in
the database, the entrepreneur feels at ease to go through them (Andersen and Andersson 2017).
Another aspect that is to be considered is that with the help of the IT tool installation, corruption
in the managerial section can be eliminated as well. In case of corruption in the administrative
section is present there will be indirect loss of revenue for the individual entrepreneur. The
reason behind this loss is that due to corruption, retention of employee’s mighty get affected.
Again improper evaluation of the employee performance will also be affecting the
organization and hence wise decision might be lesser accurate in nature. Client handling might
also suffer due to the corruption that is present in the administration sector (Kotabe and Kothari
2016). In case of implementation of ERP tools the management department will be under survey
and all the tasks that are performed by the employees will be recorded. This recording of the
tasks will ensure that deserved treatment will be provided to the employees and elimination of
corruption can be made. The decisions that will be made will be on behalf of the data that the
recorded. Hence increase in accuracy of the decision making can be seen.

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Importance of IT in Small and medium scale organization
Small and Medium scale organizations have been increasing in a rapid rate. It is seen that
there is a total of 33% of the total employment is provided by the SMEs. Despite the growth in
the stature of SMEs, funding and financial section has been the major concern of these
organizations. This is the major aspect that is to be considered. Hence wise implementation of IT
in the operational process might seem a bit difficult choice due to the high implementation cost
for the first time. However once the implementation of IT is performed, the return of investment
is high and the ROI is received in 2-3 years of implementation. Henceforth the benefits that will
be received will not be incurring any excess amount as it is a single time investment.
Again it is to be considered that the cost that is to be paid for incorporating IT in the
business can be paid in easy loans (Lai, Jackson and Jiang 2018). Keeping in mind that the Small
and Medium scale industries face issues financially and investing such a huge amount at a go,
loan system is also available. Encouraging team spirit is one of the major aspect that is received
after incorporating IT in the SMEs. It is seen that the operational process is often in different
floors and different buildings at times even. Meeting ne to one with each employee acts difficult
for the mangers as well as the employees of the organizations (Reim, Parida and Sjödin 2019).
Hence establishing a virtual connection in between the members of the organizations has been
one of the major benefit. Again establishing proper communication with the customers also acts
as a major advantages of IT implementation (Zelazny 2015).
The growth of Small and medium scale organizations are highly dependent on the
connectivity they establish with the clients. Retaining the clients with proper connectivity is one
of the goal of the SMEs.IT provides a platform for the SMEs for performing proper connectivity.
Creation of websites and usage of the same helps in succeeding in the project goal. Websites
helps in creating a brand awareness as well. This ensures that the clients get a virtual address in
which they will be connecting with the organization. Hence wise in time of problems they can
reach out to the organization and availability of the communication process remains 24*7. This
throughout the day connectivity not only helps in retaining the client but also increases the good
will of the organization. This increasing in the good will of the organization helps in attracting
new clients (Khalique, Shah and Hina 2018). This attracting of new clients helps in increasing
the business and hence wise IT is indirectly responsible for increase in the revenue collection

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process. With the help of the websites that are created the clients are always updated with the
new products that are being launched. This ensures the fact that the clients stay attached with the
organization and the products are well assessed by them even before launching of the product.
Tracking of the shipping products are also one of the major advantages that will be
achieved due to the implementation of IT. The time span in which the product is in dispatch and
is out for delivery the product can be traced both by the organization as well as the client. This
also helps in establishing a better connectivity in between the client and the organization. The
client can contact with the delivery status checking the status of the delivery process.
Marketing of the products is also one of the major aspect that is considered. As the
dealing are made B2B as well as B2C in case of SMEs, proper understanding of the requirements
of the clients plays an important role. Developing marketing strategies is also benefitted with the
implementation of the IT. With proper understanding of the demands of the clients tailored
marketing strategies can be developed. Closing of sales gets enhanced due to creation of tailored
marketing strategy. This also helps in increasing the revenue of the business. Mobility is another
aspect that is received and enjoyed due to the implementation of the IT (Niazi 2017).
Establishing a global presence and brand awareness is one of the major goal of SMEs. This goal
is fulfilled with the hell of the IT implementation. With the help of IT implementation, gaining
access to several audience base gets easier. With the help of website creation and usage of tools
that are used for digital marketing reaching out to the mass gets easier and hence wise higher
success can be received.
Operational efficiency can be received as well. Warehouse inventory helps the business
owners to reduce the cost of data storage. Meetings are also helps via internet and video
conferences are set. Security of data is one of the major concern. It is seen that in case the data
are stored in traditional manner, losing of data is viable. To mitigate this issue using of IT system
can be made. With the help of the database system the data that are stored in the system also has
a backup. This data that are backed up can be retrieved once the data is lost. Hence the stability
of the data present increases.

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Usage of IT in Multinational Corporation
In case of Multinational Corporation, the main aspect that is to be considered is the
distance in between each branches. It is seen that the branches of a same MNCs are located not
only in different countries but also in different continents. Hence establishing proper
communication process in between them acts as a major challenge. With the implementation of
the IT in the business organization has eliminated this issue. It is seen that with the help of the IT
platform, connectivity in between employees are maintained in a proper manner. With creation
of a common mail domain in an organization, it gets easy for employees to stay connected (Kim
and Min 2015). This process also helps the managerial teams to create a proper communication.
This proper communication helps in developing better relation in between the employees and
management of the organization. Hence transparency is created in between the management and
the employees, the goals and objectives that are conveyed via platform of IT.
Innovation in business process is also one of the major aspect that has been getting
benefitted due to the implementation of IT. It is seen that any business format that is not evolving
is in a declining stage. Hence to redeem this statement development in business process is
required (Andersson, et al, 2016). Information Technology has been one of the ever developing
aspect and the business orghanizati0ons that have implemented IT in their business process has
been incorporating innovation as well because once the IT platform gets outdated usefulness of
the platform reduces.
It is seen that in case of MNCs, the business process is performed in between business to
business, hence products are transacted in huge quantity. In this process understanding the
feedback of the client is very important. With the help of the IT platform, it is possible to take a
feedback once the product is delivered, the client shares their feedback on the company portal
and the delivering company checks whether the client is satisfied or not (Kupfer, Tiefenbeck and
Staake 2018),. In case of any issue in the product, a detailed understanding is also provided. This
ensures that the changes that are to be made in the product is easily understood. Hence wise
changes are made. This ensures that client retention can be performed in an easier manner. A
goodwill will also be established. This will help in growth of the organization.
Performing digital marketing is also one of the major aspect that is to be considered in
case of the MNCs. Despite the fact that their transaction is made in between business companies,

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the aseptic that they require a huge number if employee base to complete the projects that they
have undertaken, they need to perform digital marketing and hence wise teach to the aspirants.
With the help of digital marketing the demands of the aspirants and the potential employees cans
be well understood (Heikkilä, Rentto and Feng 2017). This ensures that advertising strategies can
be developed as per the need.
Data storage is also another major advantages that is received by the MNCs due to the
implementation of IT platform. The main aspect that the data that is required for completion of
projects in the MNCs are huge, it can be stated that it would have not been possible to maintain
each data without the usage of the IT platform (Kaymak and Bektas 2017). Cloud computing is
used for storing of data and accessing the same in the future. Proper backup of the data is also
taken. In case the data gets distorted, the original data can be retrieved from the cloud platform.
IT implementation also helps the MNCs to provide a constant customer support to the
clients. Usage of chat bots is seemingly increasing in a drastic rate. With the help of the chat
bots, clients are entertained 24*7. Chat bits collect the data that are provided by the clients and
engages the clients and forwards the call to the respective department (Li and Found 2017). This
process increases the efficiency of the business management. Usage of CRM and Google
analytics helps in better estimating of the demands of the clients and hence wise perform the
tasks.
Conclusion
Information Technology have been an essential constituent that is used by every business
organizations in today’s society. The diversity of business that uses Information Technology in
its operational process is very high. The diversity ranges from legal businesses to financial
business. In this process the main aspect that is considered is that Information technology not
only acts as a cost of performing business but also acts as an opportunity to perform more
business and grow as a unit. Despite the fact that there are difference in usage of IT platform in
different business sectors.

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References
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