Information Technology: positive and negative effects

The introduction of new technology to assist in the processing of information has had the following impacts on business:

Increased speed (and productivity). Information technology can perform mundane repetitive tasks, such as ordering and filing information in a fraction of the time it would take under a manual system. In theory this can free up staff to undertake more creative work. In practice, it may lead to job losses.

Wider access to information. In the past, staff wishing to share information stored in different departments would have to request a copy of the information on paper. This could take time if another person was already using it. With a computerised system, authorised staff can access useful information from other departments across the firm, or even information from other organisations, simply by calling it up on a networked computer. Furthermore, the information can be imported into a variety of computer applications and be subjected to further processing if need be.

Improved communications. Computerised information processing systems mean that firms can be immediately and constantly in touch with their markets and branches world-wide. The use of Information Technology means that information can be shared more easily among those who need it and decisions can be made more quickly.

Cost reductions and improved accuracy. The cost of computer hardware and software has fallen rapidly over time as technology has improved and sales increased, making mass-production possible. However, purchasing the hardware and software needed to set up even a small network still involves a significant cost, and business managers need to weigh the costs against the expected benefits. The rapid growth in the use of computerised information processing suggests that, for most firms, the long-term benefits of quick access to accurate information which is capable of further processing more than outweigh the short-term costs of purchase. Computerised information processing systems will also allow employees greater flexibility in their work, and provide them with the information needed to innovate and develop better products and services for customers. Technological improvements such as voice recognition and generation software, Braille printers and a host of other software has also enabled blind people and others with disabilities to gain access to more information. Accuracy is also likely to be improved because networked computers allow managers to monitor very closely the quantity and quality of work produced by employees in a way which has never been possible before.

Training and health & safety implications. Information processing systems based on new technology require staff to be trained with the skills to operate the technology efficiently. A firm that fails to provide employees with sufficient training will find that their new computer system may be less efficient than their old manual systems, simply because staff cannot use it efficiently. New technology can bring significant benefits. However, if not introduced properly, it can lead to increased stress among employees, ill health, and lower productivity. Any large-scale change in working practices is stressful, and some staff will cope better than others. Careful management of the process can assist the introduction of new technology. An increasing number of computer users are complaining of repetitive strain injury (RSI) – disorders in the joints and muscles in the fingers, hands and arms, caused by repeated actions in using the keyboard, or by sitting in a particular way. To overcome this, many firms now issue guidelines on how long staff should work at a computer screen without a break, and provide anti-glare screens to fit over monitors to protect users’ eyesight. Some manufacturers are also re-designing keyboards which have for a long time been based on the so-called QWERTY layout of old typewriters. For example, Apple Macintosh and a number of other companies have produced alternative keyboards with keys arranged in a broad circle around the outstretched hand of the user.