п»їHow IT can put value to a company straight and not directly. Information technology can add value to a company both directly or indirectly. Minimizing the cost linked to a given products/services. Cost decrease could happen everywhere within purchase of raw materials to delivery of ultimate product/services. Price reduction happens in different varieties, it usually occurs because it allows the same activity or set of actions to be performed more efficiently (Diann, n. deb. ). It could either decrease or eliminate the workforce to perform repetitive task but not minimizing its creation level. Cost reduction is usually possible mainly because it redesigns a current process to get more efficient just like by keeping away from wastages. Cost can be reduced by applying standardization policy, for example creating and distributing standard desktop pictures or employing a unified set of devices tools and processes across the enterprise brings about simplification and reduce the work insert on personnel that could result in reducing employees or to employ work force in other items to improve production. IT can add value indirectly by elevating revenues that may by adding more quality to customers or to reach wide viewers. For example , flight companies companies put extra benefit to customers by allowing them to check-in on the web, also if the company can be delivering an answer in computer system could catch the attention of more buyers or preserve existing consumers on delivering the same answer in mobile phones. Increase in earnings could also arise when a company is able to possibly produce more or support more without having to hire more employees.

Businesses can gain competitive benefit by adding worth, rarity and " appropriability” characteristics to the resource that it delivers. IT can make the reference as beneficial and unusual to provide competitive advantage to firms. Appropriability refers to the capacity of the company to create income through the useful resource. On top of delivering competitive benefits, firms...

Recommendations: Diann, Deb (n. g. ). Decrease Information Technology Intricacy, Costs with Consolidation. Gathered December 3, 2014, by http://www.cio.com/article/2437692/infrastructure/reduce-information-technology-complexity--costs-with-consolidation.html.


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