February 12, 2019 Yubin Park

The impact of information technology on Entrepreneurship

As technology is advancing, companies started to incorporate this as a medium to expand their business. Technology includes but is not limited to the collection of techniques, skills, and more that connects people and makes people’s lives convenient. Technology contributes to business in diverse ways. The impact of data collection through the advent of modern-day technology is shown in the development of businesses.

Information technology is one of the most important economic and social value a company upholds. Depending on the amount and variation of information companies hold, companies are able to come up with a better product that better suits consumers’ needs. For example, in the book Search it states “search has a potential to get better the more people use it”(Battelle). Google, one of the most well known company worldwide, also developed its company through usage of information technology. The way their search engines worked is through massive collections of data. Dividing the search engine to three main sections, crawl, index, and query processor, Google was able to maintain its quality and speed of searching by analyzing the data they’ve collected. By looking at the cluster of words users have input, google came up with an algorithm to make a search engine that really knows what one is searching for and not just looking for same words. By encompassing information technology, Google was able to create a web search engine that corresponds people’s needs. 

Picture of Google’s cloud database

This strategy is also shown in Amazon, one of the world’s biggest company by market value. Amazon uses information technology to collect data and to create algorithms to figure out the product the customers are most likely to buy, and put those items in the front for that particular customer. Amazon also keeps track of what customer buys and makes an algorithm of what a customer likes and dislikes. By doing so, Amazon is purposefully utilizing information technology to create a website that better suits each customer. This makes a higher possibility for customers to purchase goods, because they easily see the products they are interested in. Likewise, information technology serves to create a big data of what people are looking for. 

This not only satisfies consumers but also creates a good marketing strategy for companies. A recent study showed that 44% of marketers use insights from big data to improve responsiveness (Forbes). It is important to recognize this because this shows how IT is used in different ways. This also means that utilizing data collection; companies can target ads more accurately to each user. Thorough data suggests a better chance of optimizing the usage of ads. In this case, both hit and miss are equally worthy in the database. By specifically targeting the audience and coming up with a marketing plan that encompasses people’s needs, companies are able to promote their product leading to the potential growth of their business.

Companies will continue to rely on Information Technology seeing an increase in productivity, effectiveness, and efficiency.

Sources 

https://www.forbes.com/sites/louiscolumbus/2016/05/09/ten-ways-big-data-is-revolutionizing-marketing-and-sales/#573cc3e321cf

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.402.9790&rep=rep1&type=pdf

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4923257/

https://www.goodreads.com/book/show/10146.The_Search