Information technology in the business world through the years and beyond!

Journal of the Academy of Business and Economics, March, 2004 by Ihssan Alkadi, Ghassan Alkadi

ABSTRACT

Information Technology (IT) can be defined as a collection of individual technology components that are typically organized into computer-based information systems. Information technology has changed the way the world does business. Businesses no longer have to rely on a trail of paper work to conduct everyday's transactions. Slow snarl mail is a thing of the past. Customers no longer have to leave their homes to buy products or transfer money from their savings account to their checking account. By just sitting in front of a computer screen, businessmen can attend meetings that take place several miles away. As the business environment continues to evolve at a rapid rate, management of every type of industry is searching for new ideas and possible core competencies to capitalize on. One area that has been closely examined is information technology. Over the past decade the importance of IT has been stamped upon the minds of top executives worldwide. In the past, computers were just an object that people thought only the rich and large companies possessed, but today computers run our world. Information technology has become more and more prevalent in businesses and our daily lives. Information is now available instantaneously and in incredible amounts across the globe. How these emerging technologies are affecting the personal, social educational and political aspects of the business world and of our fives you ask. Probably the one aspect of Information Technology that has the largest affect on the business world is the World Wide Web Garson. The Web has basically eliminated any limitations on communication around the world and has provided efficiency and productivity in the business industry and the world economy.

1. INTRODUCTION

The most competent business strategy that companies have now is electronic commerce. Electronic commerce is defined as a multifaceted concept involving the exchange of products, services, information, or money with support of computers and networks. Currently, $80 billion is traded over the internet annually, and by year 2030 the number is estimated at $4 trillion. Levi Strauss & Co. has effectively incorporated information systems with their business. Levi Strauss was forced into the information age in the early 1980s by the competition from designer-label jean manufacturers. The company wanted to get closer to the retailers who were selling their products. Levi Strauss came up with LeviLink which is a global connection of the retailers that puts the right pants, in the right sizes, colors, and styles on retailer's shelves. LeviLink uses bar codes that record the garment's color, size, and style in the database. Levi Strauss is then sent the information from LeviLink. The retailers then reorder the right jeans, shirts, or pants in the right color, size, and style. LeviLink has increased the annual sales of stores 26 percent to 30 percent. Overhead costs have dropped since the retailers now use just-in-time inventory software to cut holding costs and provide more accurate inventories.

Most plastics companies are using desktop computer systems to run their inventory control, accounting, and human resource management. Information technologies have changed the plastics manufacturing workplace by using new computer-base programs. Machines have reduced cycle times, increased productivity, and safeguarded superior product quality by using microprocessor controls. Remote computer diagnostic systems are linking the process machine to their customers to shorten maintenance downtimes. Information technology has also limited the time that human supervision of the manufacturing process requires. Machines can monitor their functions in order to anticipate part failure without the aid of humans (Dickerson, 2003). Due to this process, the maintenance programs have become more flexible than it has been in the past.

The Canadians have come up with a network known as CertaPay. CertaPay is the world's first e-mail payment network of its kind and scale. CertaPay's Universal Funds Transfer Platform will make possible an ample range of next-generation payment capabilities. The transactions take place through e-mails. The persons involved do not have to physically visit an office to conduct of banking transactions. The user sends the recipient an e-mail and provides information on the payment amount, account from which funds are to be drawn, a security question and an optional personal message. When the e-mail is received by the recipient, the sender's account is debited and the recipient's account is credited. The transaction becomes electronic and instant. CertaPay makes their money by charging a fee on each online transaction somewhat like an ATM fee. There are five million Canadians who use this online banking system to send and receive money transfers. There are fifteen million Canadians with an e-mail account who can receive a money transfer. This makes CertaPay the first and largest person-to-person interbank network in the world.