Business and Finance

Impact Of Information Technology On Our New Era

One important way information technology affects work is by lessening the importance of distance. The geographical distribution of work is changing significantly in many industries. For example, some software companies have found that they can outgrow the tight local software engineer market. by sending projects to India or other countries where salaries are much lower. In addition, these agreements can take advantage of time differences so that critical projects can be dealt with for most of the day. Companies can outsource manufacturing to other countries and rely on telecommunications to keep marketing, RandD, and sales teams in close contact with manufacturing groups. In this way, technology can allow for a finer division of labor between countries, which in turn affects the relative demand for different skills in each country. work and employment are decoupled from one another.

Companies have more freedom to locate their businesses. micro, which leads to increased competition between regions in the markets for infrastructure, labor, capital and other resources and opens the door to regulatory arbitrage: companies can increasingly choose which tax authorities and other regulations apply, and communication technologies also encourage more market – similar forms of production and distribution.A communication and information technology infrastructure that offers inexpensive 24-hour access to almost all product and price information requested by buyers will break down information barriers to efficient market operations. Intermediaries such as sellers, brokers and travel agencies, whose job it is to provide an essential information link between buyers and sellers, are superfluous. The elimination of middlemen would reduce costs in the production and distribution value chain.

Information technologies have made evolution easier. Expanded mail order business, where goods can be quickly ordered over the phone or computer network and then shipped by suppliers through integrated mail order companies that rely heavily on computers and communication technologies to run their operations. electronically transmitted, eliminating the need for the entire transport route. Payments can be made in new ways. The result is disintermediation across the distribution channel with lower costs, lower prices for the end user and higher profit margins. Illustrated in the ecommerce example Some of the most important areas of cost reduction when selling through ecommerce, rather than a traditional store, include physical setup, order placement and fulfillment, customer care, inventory maintenance, and distribution search our website on https://www.google.com.

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