Information Technology and Business (Movie Review Sample)

Information Technology and Business
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Executive Summery
The video is about the talk by Michael Porter at TED function where he gives his opinion on how business can be used as the best solution to both economic and social problems. He mentions that businesses have got the hidden resources than when tapped can be sources of everlasting wealth. He argues on why the society should not always focus on the NGO’s, the government and other nonprofit organizations as the solution to problems. He believes that the business has got all the potential that is required to rescue the society from the frequent problems like pollution, climate change and access to clean water.
How to Use Technology in a Business Environment
Enhancement of Supplier and Customer Relationship
Utilization of information systems can be used to strengthen connections between suppliers and their respective customers. Companies can use these systems to establish direct contact between the supplier and the areas of production and at the same time they can be able to decide when the supply can be done.
Differentiation of Products
Use of technology can be appropriate if there is a need to produce new goods or if a company wants to ascertain that their customers increasing demands are constantly met. Companies can do this by providing individually customized products using the computerized machines in production.
Pros and Cons of Technology
Revolution in the world of technology has its own advantages and disadvantages which both affects business sustainability.
Pros of Technology
Use of information technology may increase the bargaining ability of buyers since they can easily get access to the information concerning substitute goods and also prices to these goods.
Information technology can be employed to enable efficiency of various processes in a company. This may make the firm to realize cost reduction in production of its goods and services. With improved efficiency the company can also be able to create barriers to entry of new companies into the market.
Cons of Technology
Internet usage has drastically increased rivalry between companies. For example, International banks have claimed a bigger market share due to their mode of marketing over the web. They have made several people to abandon the local banks so that they can try out the other banks.
Technology has made customers to begin having a mixed reaction about the locally available products and services. Customers also have an increased bargaining power due to the increased number of suppliers.
Porters Forces in Relation to Technology and its Effect on the Environment
Threat of New Entrants
Majority of people across the world h...