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The Effects of Information Technologies Use on Business Productivity
Business Tech

The Effects of Information Technologies Use on Business Productivity

Technology is present in all areas of human life and it does not allow people to be in urban life without using it. The speed and convenience brought by information technology is too important for businesses to ignore. Considering the technologies used by businesses, no technology has been able to affect businesses as quickly as information technology before. This technology has made great contributions to businesses in establishing new opportunities and new business relationships.

The Concept and Importance of Productivity in Business 

For the first time, Agricola used the word productivity in the 16th century. The word gaining meaning and conceptualization coincides with the 18th century. Adam SMITH, who examined the relationship between labor and division of labor with his work ‘The Wealth of Nations’ in 1776, who made great contributions to economics being a science with positive content, brought this word as a concept to the modern world.

Efficiency is defined in two ways. The first is the definition of efficiency and sensitivity as an abstract concept of the means to achieve economic goals, and the other is the relationship between the output produced in the production and / or service system and the input used to create this output. In the second definition, there is feedback from the environment in which the input, process, output and output are consumed. While there are items such as labor force, raw materials and materials, energy, information and capital as input items, output includes goods and services. In line with these definitions, we can say that productivity is a dynamic measure.

When we look at the productivity in terms of countries, it appears as a development indicator. It is used in determining the resources in consumption versus production, and it is important to protect the environment, to provide employees with a better standard of living, and to use the resources in the most rational and balanced way under current conditions. The high efficiency means that there is the power to produce in the temporary problems experienced in that country.  

  • Employees have better working conditions and receive more wages.
  • The employer provides resources for new investments.
  • Producer gains higher profit at cheaper cost.
  • The consumer has more opportunities for goods / services for cheap.
  • The country has economic growth.
  • Society reaches a better standard of living.

Productivity is of great importance to businesses. Businesses need to make a profit, which is one of their main objectives and to ensure their continuity. In a competitive environment, the necessity of making rational decisions, maximizing profit and minimizing costs has shown itself to be important, that efficiency reflects the success level of the enterprises and profitability status information. How much product does the resources in production allow us to produce, are they sufficient? Can we produce more products with less cost? It is a criterion for performance measurements in all these questions. Every manager wants to do this based on some data or information obtained from the data when making an evaluation or making a decision. Efficiency defined ratio between the amount of production available and the factors used to produce it must be reasonably considered in the main system and subsystems of the enterprise. The idea of ​​increasing productivity is not just content with increasing productivity in production. It is dominant in the whole process from the procurement of the raw material to the distribution of the produced product to the end user.

Businesses have to change the shape and functions of the products they produce after a certain period of time. Other companies and consumer needs are constantly monitored and necessary changes are made. If the changes to be made will facilitate the work of production, if the cost is low and the amount of goods produced is high, productivity will increase. For output, the time in the operation of the process has reduced the input, so we start production at lower cost, which allows us to compete more easily, an important step in dominating the market. Techniques used in production, changes in the scope of the process, decommissioning of units with high costs and risks, positive changes in organization, transportation of materials, correct management of assets are important in increasing efficiency. While doing these, no compromises should be made on quality. The poor quality of the inputs may cause deviations from the specified and promised product quality, slow down the production process, or even be effective enough to stop it.

Information Technology Concept 

In the developing and changing world, many countries are experiencing the transition to the information society or are trying to be involved in this process. We can define the concept of information technologies, which has made the greatest contribution to the formation of this wave, as follows; “It defines technologies that enable effective and efficient operations such as recording, storing data, generating information by passing it through a certain process process, accessing, storing and transmitting this information” Briefly, it covers information technologies, computer and communication technologies If another definition is made; We can say that it is the technology that provides specific point-to-point access to information collection, processing, storage, presentation or transfer when necessary.

Information technologies can be classified as computers, communication technologies, work centers, robots, and computer chips, or tools that analyze, store, send or collect information, digital computer processes that make the information available to the user in decision-making, and tools that provide communication or aid communication. 

In line with the definitions, this technology is divided into two main headings as hardware and software for use in different areas. It has many uses such as Computer Aided Manufacturing (CAM), Computer Aided Design (CAD), Data Storage and Retrieval, Internal – External Business Communication, Presentation of Information. 

Development of Information Technologies 

Computers have been used around the world for more than 50 years. If we evaluate the development of Information Technologies in terms of commercial life, it can be seen that there are some periodic changes. The first of these periods is information processing / information processing. In this period, which lasted until the 80’s, computers called mainframe and software specific to these computers were available, and these systems could only be owned by large-scale enterprises because of their expensive. Although they were expensive, expectations from these systems were not too high. However, it could be used in the execution of simple and simple accounting transactions within the company. Expectations from these efficiency-oriented systems started to show themselves mostly after the 70’s. These mainframe systems are big, cumbersome, The need arising due to expensive and high expectations and the desire of middle-level management to benefit from computer technology contributed to the birth of micro-technology computers. Another reason for this is the lack of a complete automation development. The most advantageous aspect of this period is that an administrator can use programs on microcomputers without programming knowledge, word processing, spreadsheet.

Information Technologies in Business 

Today, almost all businesses benefit from this technology in the conduct of business activities. Information technologies, which are used in many ways from planning to control, in decision-making, provide important advantages to enterprises in increasing productivity, decreasing costs and introducing higher quality goods and services to the market, and increasing competitiveness. However, this technology has led to the development of different, positive management models and strengthened the communication between the structures within the enterprise. The problems experienced were quickly understood and contributed to the shaping of the management behaviors used in its solution. The main reason for its widespread today is speed, quality increase, cost reduction, convenience, security being at high levels, However, keeping this technology in the business does not have very high costs. While it is used by lower-level managers for simulation and design purposes, it is also important for upper-level management who needs to make strategic decisions. In addition to supporting decision-making, coordination, and control, it helps managers and employees in analyzing problems, approaching complex issues, and creating new products.  Managers of companies that have reached a large trade volume in the world have to benefit from information sources at the highest level in order to be superior in competition. With this change in management thinking, information has become the most important strategic weapon of the business world.

The advantages offered by Information Technologies are too many to ignore and it has become one of the most important tools to be used for the success of the business. Today’s organizations refine a wide variety of information obtained from many sources through information technologies and present them to the use of managers. While information technologies in organizational processes contribute to the operational efficiency of the organization, it also contributes to the realization of its strategic goals (Daft, 1991, p.564).

Information Technology Applications in Business 

In enterprises, there are subsystems in information technologies to support ordinary employees who have undertaken the tasks of performing standard tasks from top managers, whose job is to make strategic decisions. Each subsystem constitutes information technologies. If we talk about the systems used in businesses, these are; Executive support systems, management information systems, Decision Support Systems, Office automation systems, Internet / Intranet / Extranet usage, auxiliary systems.

Executive support systems  are systems that are used to make plans developed for top managers and to provide analysis opportunity for this level in the development of modeling. The management support system needs the output of decision support systems. According to this output, it allows some information to be stored, filtered, calculation, summary information presentation, graphical display / modeling for these managers in the office environment using graphical interfaces.

Management Information Systems are systems that provide management of the information to be used in the decision-making process in a certain period with minimal cost. Like final expense leads, the data storage processing function serves the strategic, tactical and operational levels that generally concern the internal activities of the enterprise, where control and statistical data can be retrieved when requested, and access in line with the authorities.

Decision Support Systems are an important system for people who need to make decisions and managers. The best feature of these systems is that they do not require programmers. It enables the planning of the relationship with the future and supports the entire decision-making process. It allows comparison of decision options depending on the databases prepared as desired.

Office Automation Systems are systems formed by computerization in order to automate the routine work done in the office working environment. These are the systems used to control other processes such as order, stock, operational, etc. and to make routine decisions. The software used for the preparation of the writings in the electronic environment, the physical printouts, are the applications that enable the planning of functions such as e-mail, meetings, etc.

Intranet Applications , the use of services such as e-mail, web server, which are restricted to use the Internet but access based on the communication protocols of the Internet, which allows only a defined group to meet the information needs, between groups, between people and of course between resources, preventing external / external access to the enterprise. is a system that provides.

Possibilities of Information Technologies for Businesses

Continuous changes in information technologies have led to the emergence of different job opportunities. Businesses that benefit from these advantages have gained significant gains in marketing their products and services in terms of competition compared to other companies in the same market. However, a lot of work has become easier, more convenient and remotely done with computerization. Banking transactions are an example. With information technologies, enterprises have earned income by selling their idle capacities formed within themselves to other businesses. However, with the opportunities provided here, managers should evaluate well what kind of a change will occur in the structure of their businesses in the sector in which they operate, and how and how much the sector will use this technology. Managers will have the opportunity to see how they can create new job opportunities from existing jobs. In order to take advantage of information technologies, businesses must have action plans. In other words, managers should have a plan of strategic investments in order to get the technology required to benefit from this technology. With remote access, online ordering system and management for businesses, they have made great convenience, so that their services have become widespread and efficient. Computer aided production – control processes have enabled the production functions to be carried out effectively. Information technologies have provided many opportunities in input supply, production, output management, marketing, sales and service management, reducing costs,

The Importance of Information Technologies in Affecting the Efficiency of Businesses

Efficiency can be expressed as input / output. It has a connection between the existing resources and the produced product and the resources that entered the same period. While there are activities such as easier, better and faster production with less cost in efficiency, the most important parameter used is Information Technologies. Software, automation, Internet, robotic technologies etc. These parameters, which are used to be strong and competitive in the sector, are constantly changing. The intermediate success required for the main success is to see this change in time and to meet it.

In an enterprise that has switched to information technologies;

  • €€ €      As the production and management process will work at high speed, profit can be made by saving time.
  •       By employing qualified personnel, savings from unqualified personnel numbers and costs can be achieved.
  •       Competitiveness can be increased and strategic success can be achieved.

         Productivity can be increased by preventing waste of resources. (KAZAN Halim, KARADAL Himmet, UYGUN Mutlu)

Nowadays, businesses need to offer products supported by processes that will create added value to the market. The best way to achieve this is by investing in Information Technologies. It will be understood that even having a website belonging to the company will have positive effects on the increase of company productivity. Considering that continuing the activities of the enterprises and making profit are among the main objectives of the enterprises, it is used as a tool to determine the methods of achieving this goal in information technologies and provides great flexibility for businesses. The convenience and flexibility of selling the products or services of a business that has a website is experienced by the business. However, the number of employees is an important factor in the productivity of enterprises. Since the personnel to be employed in enterprises where information technologies are used at higher levels are fully equipped, highly educated and dynamic, it is easier to implement innovations quickly and to adopt / transition. Employees’ use of technology resulted in the completion of individual jobs in a much shorter time, which has had a positive effect on increasing productivity. It makes a difference such as making the information flow of enterprises using information technologies and accessing information much earlier without changing between the personnel who use this technology and those who cannot use it. Predicting what kind of dangers and risks the businesses using information systems may experience in a competitive environment, By establishing effective communication with the internal and external environment, they have become more advantageous compared to other enterprises. The use of these systems is possible for businesses to produce a fast product and a low-cost product when it comes to production. Making the design molds etc. modeling of the product very quickly in the computer environment, such as taking orders online, causes the business to grow economically.

Technologies of the agricultural and industrial era have also increased the speed of human development, but the speed provided by both is proportionally far below the communication and information technologies. Because, with the combination of communication and information technologies, the distance of humanity has increased in millions. The effects of information technologies on individuals and organizations can be listed as follows:

  • Individual Authorization
  • Individual Two Way Communication
  • Multiple Personality
  • Increasing Horizontal Relations Between Institutions
  • Increasing Market Activities
  • Facilitating the Participation of Individuals and Groups in the Management Process

When viewed only from the perspective of organizations, information technologies cause changes in the industrial structure, bring competitive advantage and create new job opportunities. Change is not a one-way concept. Every change has positive and negative consequences with it, it creates its advocate as well as its opposite. Information technologies have started to affect all areas of social life and will become more widespread. Information technologies in every field from economy to education, health to defense industry, daily life to public sphere will be effective in the formation of a new structuring.

As a result, it is inevitable that businesses that follow the change in information technologies and succeed in applying them will gain a competitive advantage over other enterprises with the many capacity increases that this technology gives them. Nowadays, it is possible and indispensable to make it easier and faster to decide what is best for the business by taking advantage of this technology. It is clearly realized that if the enterprises do not benefit from the opportunities provided to them by this technology, the scarce resources of the enterprises will not be used efficiently.

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