How can IT improve the operations of a company?

Due to globalization, companies are trying to find better ways to improve their operations every day to be able to reduce their costs. They want to be able to produce the same product or service for a lower cost. This is a real challenge when you look at the way costs are increasing; energy cost, wages, materials, etc…

In a lot of cases, companies decide to invest in information technologies. Sometimes, the investment in these technologies is accompanied by a significant cost. To assure that the implementation of the information technology works, it has to be aligned with the business processes. It also needs to have a really good implementation plan and to be flexible and ready to adapt to any problems that may occur during implementation.

An example of a good use of information technology is the automatic replenishment of Walt-Mart. When a product is sold at the store, the information is sent to the distribution center to replenish and that information is also sent to the suppliers to replenish the distribution center. This helps the Walt-Mart stores to reduce the inventory they carry and that helps them to reduce their costs. Another technology used by Wal-Mart is the RFID. The RFID helps managing and tracking inventory faster and with more accuracy. It could represent a lot of savings for big companies.