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Information Technology helps businesses in many ways. Now a day¶s

Information Technology have become a dire need of each organization when
it helps the businesses to run in a profitable, organized, upto date, and a
highly productive out puts. Let mention some of the benefits which are only
caused by the influence of Information Technology.

1.Ê enefits Management and its applicability in practice

2.Ê Increases management¶s external knowledge
3.Ê International distribution channels (from the perspective of exporting
companies)
4.Ê Impact of information technology on productivity

Productivity is an important economic factor which has a key role in

evaluating the economic growth. It is identified as the foundation for
economic prosperity, a prerequisite for national development and also an
important indicator of organizational competitiveness. Information
Technology (IT) is one of the important resources for increasing the
economic growth. It causes companies to use their input resources as much
as possible in an effective way. As investment in IT capital accounts for an
ever-increasing share of capital investment, it is important to understand
how these investments might pay off (Gilchrist et al., 2001).There has been
much debate on whether or not the investment in IT provides improvements
in productivity and business efficiencies. IT investment may make little
direct contribution to overall performance of companies until they are
combined with complementary investments in business activities, human
capital, and company restructuring. Therefore, according to role of IT in
usiness Process Reengineering, as a facilitator and enabler, PR is valuable
for companies to increase the impact of IT on overall performance of
companies. On the other word, both IT and PR investments, together, are
able to improve productivity drastically. In this research Cobb-Douglas
model was used to examine the impact of Information Technology
investment on productivity at Telecommunication Company of Tehran ,
financial and economic data were collected since 1997 up to 2007 for driving
the corresponding model. Weighted Least Square (WLS) was run by SPSS 15
to test hypotheses. The results have indicated that IT investment not only
makes the positive contribution to output of Telecommunication Company of
Tehran but also this contribution is positive after deductions for depreciation
and labor expenses. Further productivity analysis exposed the positive
correlations between IT, Total Factor Productivity and Labor Productivity. In
order to reveal the importance of PR approach as a complementary
investment for improving IT influences, the appropriate questionnaires
distributed through Employees and Experts of TCT in the second phase of
this study. Evaluation of PR factors proved the necessity of employing this
complementary investment at Telecommunication Company of Tehran.

Information technology can be an important tool for private company owners

trying to put their companies on a course to sustainable growth. Information
technology not only keeps business owners one step ahead of the
competition by allowing them to analyze costs and markets; it also makes
them more efficient by freeing up badly needed manpower. Yet, despite the
critical roles it can play, particularly in a small or mid-size business, IT is
often a forgotten ally when companies build their long-term growth plans.

Small businesses and private companies sometimes neglect to factor IT into

their company¶s growth strategy, observes Stephen Mansfield, partner with
Deloitte¶s Technology practice. Mansfield explains that it¶s usually one of two
reasons: either the cost of updating a system seems prohibitive, or it may
be that management fails to grasp the untapped potential of IT. ut a cost-
benefit analysis can change attitudes quickly, says Mansfield. ³Private
company owners tend to be very focused on cost issues. ut once they
understand that saving two hours of work per week for 10 people will save
$100,000 a year, a business owner may recognize that IT could help drive
growth in unexpected ways.´

It¶s not uncommon for private company owners and CEOs to overlook the
potential of a fully integrated IT strategy. In fact, in a Deloitte survey of
private company leaders, 37% of respondents said increasing sales volume
was key, while only 3% said better use of their IT systems would have the
most impact on increasing the value of their business. The survey also found
a performance gap between strategy and execution. For example, while 59%
of those surveyed said they could make better use of technology, only 42%
said they were able to do so.

To close the performance gap, Mansfield says private company owners and
managers have to understand why a particular IT system was chosen in the
first place. Information technology is often selected to tackle a specific
problem, such as Y2K or inventory management, but is rarely deployed
across the entire company. ³There is usually a lot more that companies can
do with the IT they already have,´ says Mansfield. ³It often comes down to
education and implementation.´

Achieving sustainable growth is an overwhelming challenge for small and

mid-sized companies. Many Canadian private companies have forged their
own path to success, but few feel they have attained their full potential.
Companies must examine the key challenges to sustainable growth and
develop a comprehensive long-term strategy to overcome them. Long-term
growth comes from understanding the competition, developing new markets,
hiring and retaining the right employees, optimizing cash flow and using
information technology more effectively. Learn how to navigate your way to
sustainable growth.

Owners and CEOs of private companies must recognize the importance of

information technology systems in implementing a growth strategy and
driving revenue ȸ or they could find themselves lagging behind competitors
who do. A Deloitte practitioner discusses how private company owners can
unlock the potential of their existing IT systems.