¶ … Strategic Importance of IT for Business
The birth of information technology has changed a lot of things in the business world that proved its importance in the business sectors. One of the primary reasons that one could immediately deduct is the ability of information technology to automate and accelerate the "used-to-be" manual tasks in many business activities. This thus saves a lot of time in completing many business endeavors while allowing more opportunity for more business transactions. This fact can be supported by the improvements in the business sectors of Canada and United States of America. From their online article, The Importance of Information Technology: A Canada-U.S. Comparison, Baldwin and his colleagues indicated the following regarding the two countries economy during the second-half of 1990.
For businesses, a substantial part of the increase in capital spending has been in new information and communications technology (ICT). Not only has the increase in investment been focused on new...
The coincidence of an improvement in overall economic behaviour with the prevalence of ICT investment has led to the suggestion that technological innovations in ICT have caused structural shifts in the economy -- especially in terms of its ability to avoid inflation-causing bottlenecks.
The strategic importance of information technology in businesses was analyzed further by Baldwin and colleagues by investigating the impact of IT equipments in the productivity and growth of the business sectors. Baldwin and his colleagues refer to the increase of IT equipments in businesses as "capital deepening." Based from their investigation, this capital deepening, along with the increase in labour, contributed in the annual growth rate of Canada and the United States.
The changing market in today's business arena motivates many business sectors to implement and use the many elements of information technology. Businesses need to do this…
