Information Technology Improving Productivity

In a highly technical and rapidly evolving world and workplace, technological systems and devices play a significant role in determining how information is managed and stored. Information technology — generally applied to describe the set of machines and telecommunication networks used to transport and manipulate data — is widely used in business to improve productivity through process development, product innovation and new employee skills. Implementing new information technology in a business is not without its dangers, but, correctly implemented, it can have a significant positive effect on productivity.

Process Improvement


Systems like digital file transfer solutions, email and Internet calling function to accelerate data transfer and communication while reducing costs. To use email for instance, organisations can move data and send messages to providers and customers in seconds with the click of a button, instead of systems like conventional mail and face-to-face communicating that require longer travel times and bigger investments. In communication, the productivity benefits of IT implementation are two-fold, both decreasing the time necessary to transfer or access data and raising the productivity of investments in communicating through lower costs.

Product Innovation

In a market shaped by technology, customers often find information regarding products and make purchases via IT platforms such as online shopping websites, as well as demanding certain technological features from the goods they purchase. A user looking for a digital camera, for instance, might be influenced by features like online photo storage or sharing included in the item. Since these digital add-ons tend to come at a lower cost point than physical extras but can still influence consumer behaviour, investments in these areas can be quite profitable.

Employee Skills

Information technology can simplify how clients interact with client support services. Online aid and support chat solutions, as an example, put a large amount of searchable information in the customer’s lap, reducing the likelihood that a client will have to call a representative to fix a problem. This permits workers to communicate with clients through more efficient platforms. The end result is an increase in worker productivity while still maintaining high levels of customer satisfaction.

Possible Risks

IT implementation may be an important tool for increasing workplace productivity, but without a careful choice of the ideal technologies for a particular industry and in-depth employee training, it may also serve to decrease productivity and employee satisfaction. Between new devices and network services, IT systems can frequently be a substantial business investment, cutting into profits if they do not pay for themselves within the course of their life. The return on investment depends on whether the technology implemented is suited to the company’s needs and whether employees are prepared to use them. So, before you invest in a business coaching program or expanding your e-business first consider how it will affect your business and your employees.