Buy our Kindle eBook. Importance of Customers. Every service provider today is in the process to acquire new customers as well as retain their old customers. The liquidity of a company means the liquid assets held by it that can be easily converted into cash. Innovation can be applied in each and every activity of an organisation. A business can easily take steps and face competition and prevailing market conditions. *You can also browse our support articles here >. Funding is important for thestart-upbusiness so that it can survive in unforeseen situations and circumstances. The main reason for innovation in public sector is direct comparison with performance with the private sector. For producing the goods and services, business needs finance. But to continue the advantage, the company needs to continually innovate their services and add new services to retain their customers and partners. 3M produces over 55000 products with numerous patents and trademarks registered worldwide. The founders of ihavemoved.com started the company with their own funds and resources in the initial stages. The importance … HC1041 IT for Business – Trimester 1 2016 You are to research an actual business examples and the impact of IT on that business. Along with the best employees, the managers also need to be at their best in harvesting talent and inculcate innovation amongst their employees to get the best out of them. No plagiarism, guaranteed! A similar concept of road tax or toll is already in place in a lot of areas but the application of such a concept in the city was used for the first time and was very successful indeed. But Gillespie says it's important to determine whether the economic downturn is … You are to research an actual business examples and the impact of IT on that business. Strategic enablers of innovation are those things within an organisation that help innovation to happen. The founders of ihavemoved.com invested their own wealth in the company to start it off and later on got £30,000 unsecured finance from HSBC bank under the UK government Guarantee Scheme. Finally, 38 percent of respondents said that, when they do manage to hire the right creative force, they cannot … This is not always a downbeat for the idea on the whole but a formalised approach can help the entrepreneurs to analyse the idea in a better way and thus reduce the chances of error or failure in the project. Due to this, implementation of innovation is quite a challenging scenario. Thus this proposition was beneficial for all the parties involved thus resulting in a successful service. Generally public service organisation are complex in structure, very bureaucratic and tightly controlled. 2) Why IT is important for business survival? This is only possible when the right people are recruited which have an inner drive to excel in their position. White label integration takes place where one company rebrands the service of another company to make it appear as their own. Ihavemoved.com provided the information to the partners in the format compatible with their existing database. Business Every customer taking up the service of ihavemoved.com just had to fill up one single form online and select the partners to change the address with. The service provided by ihavemoved.com gave the partners information in a format which could be directly integrated into their database. Why IT is important for business survival? Survival for public services is never an issue but costs reduction is the major criteria. On January 27, 2020January 27, 2020 By admin_admin. It is not just in this digital age that customer relationships are relevant. The London Congestion Charge is a classic example by a public sector organisation to solve problems of traffic and earn revenue. Reference this. Data helps you understand and improve business processes so you can reduce wasted money and time. We're here to answer any questions you have about our services. Ihavemoved.com was one such idea which was very innovative and had a high probability of success. Every new customer gained the company revenue depending upon the service availed. If the business does not make enough profit it will not survive in the growing competitive world. Well, of course. That's why … On August 29, 2019August 29, 2019 By admin_admin. This helped the company to retain the web designing company Bluewave to further develop and expand their project and launch it at a larger scale. While the majority of respondents cited innovation as essential to the survival of the firm, business culture and recruitment remain impediments to success. Customer feedback in every step and its adaption in service delivery and define whether the service is acceptable or not. Motivation should also be in the sense of innovation in the current activities and process to increase efficiency. Just a small change in the manufacturing process of a product can be an innovation; a small change in the service delivery process can be an innovation; any change in the management of the company can be an innovation. These services are available to all regardless of wealth or social status. All work is written to order. This reduced the administration expenses of the partners such as call centres, data entry and administration. Also being the first company, it would be a lot easier for them to establish a suitable relationship with their partners. Advertisement. The original idea of a property selling website was changed to an address changing service for home movers due to its unique and innovative nature. Goals and objectives: Every business has some goals and objectives. The revenues out of this venture could be received from three main sources. It is the duty of the top managers to see to it that the organisation culture is such set that all employees have a say in process they are incharge and change them for good. For this, they had to hire a Chief technical officer, Andrew day who helped the company to meet their time constraints. In the era of Technology if your business is not aware of the latest technology you will not be able to… But the main reason for innovation is customer satisfaction. Need for financing and credit. This created a passion amongst them to perform and excel to innovate for best customer services. Why IT is important for business survival? It depletes resources, squanders time, and ultimately impacts the bottom line. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. The following are the factors which facilitate the innovation drive within a company. Productivity means to become efficient, effective, and abundant. General Electric Company started with manufacturing incandescent bulbs but today, with constant innovation is a leader in healthcare, energy and technology. For companies, it helped them to retain their customers thus was beneficial for both parties. You are to research an actual business examples and the impact of IT on that business. 3) What is required to apply IT into business? It took the founder’s months of hard work and research before the innovative idea took the shape of a new and successful business. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Why IT is important for business survival? Innovations in the service industry always need to be customer centric and oriented towards customer satisfaction. They fail because they run out of customer’s orders… Knowing primitive and societal survival skills may provide you with meditative exercises that might help with relaxation. One of the most crucial aspects of business throughout the history of business has been customer relationship. Your email address will not be published. For the best results, the marketing campaign should be such designed that the target audience is reached in the least possible resources and cost. Unless the customer is not satisfied, the organisation cannot say the innovation applied has been successful. Taking care of ne It covers everything from antenatal screening and routine treatments for coughs and colds to open heart surgery, accident and emergency treatment and end-of-life care. Now we discuss the Key drivers for innovation for the organization, strategic enablers within the organization, strategic blockages within the organization and recommendations to ensure improvements in the innovation process. This is not an example of the work produced by our Essay Writing Service. Here are 11 reasons why profit is essential to the longevity, growth and safety of the business: Essential for survival – Any entity cannot spend more money than it takes in. As the business environment about the required changes to be taken in the policies of the concerned business. But the service was not simple to develop. Apple Computers Inc. has been in the computers business since decades together with their ups and downs but with the launch of Mac OS and Ipod and Iphone products, apple became a key player in the respective markets within a short period of time. 0. It is not easy for any … This is very important when the business commences, as the owner will need to pay out cash before receiving some coming in. 3. It enables the business to grow, helps employee motivation, eases negotiations with banks, attracts investors, and gives clients and customers a confidence in business. Do you have a 2:1 degree or higher? 21% of respondents, for instance, said that their organisation is struggling to recruit the innovation people they need for success, while 82% believe that their performance management approach rewards uniformity over creativity. Also the population of the age group 15-44 is more likely to try new things and services which allowed the founders to gain a better market access. Because it takes so much money to start a business (often tens or hundreds of thousands of dollars) it takes months or years for the company to start making profit. According to Mulgan and Albury (2003) “Successful innovation is the creation and implementation of new processes, products, services and methods of delivery which result in significant improvements in outcomes efficiency, effectiveness or quality”. The company needs to be more careful in future for white label integrations so that the goodwill increases and its name is not hidden behind the partner’s goodwill. The Role of Technology in Business In the last two decades, technology has changed the way we interact, the way we shop, the way we do research, and the way businesses operate. The stages of idea screening, selection, implementation and results in the innovation process can be of great use in putting the project into a proper place so as to get optimum feedback for the idea and best results from the project. These mediums can be cost effective as well as more effective than traditional mediums of advertising. It consists of money in the company's safe and balances in banks and iinancial institutions. Here are the top reasons why liquidity is very important for any business. While the majority of respondents cited innovation as important to the survival of the firm, business culture and recruitment remain impediments to success. A small grocery store on the corner of the road or a departmental store giant like Tesco with a service like home delivery can increase its business. Also the dotcom boom gave the internet idea a great impetus due to which the project was flagged off successfully. What a stupid thing to say. Profit means survival. Ihavemoved.com is an internet service developed by MBA students in London Business School as a part of their project. 2) Why IT is important for business survival? In this blog, I’m going to discuss Why Technology is Important for Modern Business Survival? Since there is no tangible transfer of any goods, the service delivery plays a very important role in defining whether the service delivered was satisfactory or not. Why IT is important for business survival? The founders of ihavemoved.com came from diverse backgrounds and experience in various organisational fields. This is also the beauty of the simplicity of the “selfish gene” concept, although of course we know molecules, even DNA cant be selfish… the idea is helpful. Companies do not fail because they run out of money. This service gave the company high gross margins from notifications and commissions and a database which would be beneficial in the long term. One of the most difficult and dangerous situations, however, is extreme cold weather. Public Services are those services which are provided by government organisations or authorised by government organisations for welfare of common man. They had maxed out their credit cards and sold their houses to fund this project. Ihavemoved.com provided a service which was much different from all other current ideas in place, rather their own idea of a property selling website. Reward for risk taken: It implied that cars entering a specific area in London Zone 1 in the day time had to pay a fix charge either before or after visiting the designated area. When people move houses, they generally feel it as unnecessary to change their addresses with service providers which are not very important such as departmental stores, membership, charities etc. The traffic in central London was reduced by 15%, congestion reduced by 30% and emissions reduced by 12%. The public service organisations should innovate so that they can react to the requirements of the common man which are changing with time, reduce costs due to severe monetary situations and enhance the service delivery process and achieve their purpose. If it was not for him, the launch would have been delayed and ultimately affected the company’s reputation. This enabled the company to establish a strong foothold in a market and create a brand image among consumers. The basic objective of commercial firms is to maximize the profit and sustain in the competitive environment. #2 You Need a Flexible Team for Business Survival. These two innovations have laid an example for public organisations world over for public welfare and government revenues. Important points 1) Does business need IT? Survival strategies take many forms. 3) What is required to apply IT into business? While our day to day survival is no longer dependent upon them, there are still reasons why it is important to have at least basic know-how and capability when it comes to the following ancient techniques: making friction fire, building primitive shelters in various climates, collecting and purifying water, finding, processing, and cooking food, navigating over challenging landscapes, making tools and other implements, and understanding weather patterns. Every organisation tries to be different and accelerative from their competitors to achieve their goals and become market leaders. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! these organisations need to keep a track of their customers and loose the customers once they move their house. Financial resources are very essential for any organisation to start off and especially for a new service which needs to be developed from scratch. The Importance of Business Objectives A business plan cannot exist without objectives much in the same way as the business itself cannot exist without knowing its purpose or intention. For example, bad advertising decisions can be one of the greatest wastes of resources in a … 2) Why IT is important for business survival? This starts the process of launching new products and services, value additions to current products and services, rigorous marketing activities and cost-saving measures to perform better and increase profitability. The most important thing is to educate yourself – you can’t do the planning or take the action that will be needed to turn around a company unless you fully understand your business’s key numbers. Key drivers of innovation are those factors that lie outside the orga3sation and drive the organisation to think about the need for innovation. Entrepreneurs with a new service idea generally are driven by a fresh drive to get the project off with the help of their expertise in the particular sector. They needed more staff, new premises, a major upgrade to the website and a marketing campaign to keep subscriptions going on. A business uses working capital in its daily operations; working capital is the difference between a business's current assets and current liabilities or debts. This hampered their innovation process and growth plans. In this way the idea of the consumers wanting less hassles while moving and changing addresses was one of the key drivers of this innovative idea. HC1041 IT for Business – Trimester 1 2016 You are to research an actual business examples and the impact of IT on that business. Considering such a huge market space with no direct competition, the founders took the opportunity to be the first in the market and capitalise on the situation. These examples illustrate how important is innovation is for companies from every sector to sustain the tough market conditions and remain competitive in an evolving market place while maintain smooth customer relations. It helps bridge the gap between expected service and service delivered. When consumers buy a product or service, they aren't just buying a product or service; they're buying what your brand stands for. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Hardly have they taken into consideration the need to take a formalised approach to innovation in their project. None of the directors had a technical expertise to identify or fix the issues. Creative problem solving gives that competitive edge that any business is striving to achieve. I upvoted but want to elaborate on Lorri’s simple but elegant answer. Important points 1) Does business need IT? Also in the later stage, the founders introduced a manual form based service for people who did not have access to internet. The result was a very successful international address notification network. Important points 1) Does business need IT? 2. Along with a perfect human resource team, it is very essential that the employees and management of a company are motivated and believe in the values of the organisation. Second on the list to answer why are survival skills important is the fact that it can be very rewarding. Such a new service gave them a competitive advantage over the regular full service airlines currently in the market and made air travel affordable. Public relations and marketing are very essential for a service which is new. PowerGen incorporated the services of ihavemoved.com for their own customers. The company is so dedicated towards innovation that 30% sales of the company comes from product innovations in the past 3 years. Company Registration No: 4964706. For all this they required funding which was very difficult to procure under current market conditions. The founders of Ihavemoved.com first proposed to first launch a website which would be listing and selling properties. Also the entrepreneurs formed a very close bonding amid each other which enabled them to avoid complications and provide a boost to the fast-growing business. Home » Blog » 14 Reasons Why CRM Is Important For Every Business In 2020. The value of the business drops dramatically. With no such player in the market, there was huge scope for the concept to be a success. Why is productivity important? A lot of test runs and demonstration activities are undertaken before the actual service is launched. Your question is basically just like "Why is survival important for humans ?" 2) Why IT is important for business survival? It won't make money. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. 14 Reasons Why CRM Is Important For Every Business In 2020. The new customer commissions, the partners and ad space on the website. Twenty-one percent of respondents, for instance, said that their organization is struggling to recruit the innovation people they need for success, while 82 percent believe that their performance management approach rewards uniformity over creativity. Yes, you need a very flexible team that will want to make a difference in your business. But later they came up with a better idea of setting up a service that would enable home movers to change their address with multiple partners without much hassle and give the partners data in the exact format that matches their database. It means producing new wealth or more wealth without additional cost. In order to meet its goals and objectives, the business needs to provide a high standard of service to its clients as well as to the customers. This would affect revenues as well as partner number within the industry. This meant customers could change their address with PowerGen using the service of ihavemoved.com. You can view samples of our professional work here. But what good does a profit do? 3) What is required to apply IT into business? Innovation within an organisation can only be fostered when the organisational values and culture are so incorporated. Terms of Use and Privacy Policy, Buyer Readiness Stages: How to Get Your Customers to Buy, 10 Low-Investment Home Business Ideas You Can Start Online for 2020, Are you thinking of starting a business but don’t know where and how to start? These factors are the basis which motivate an organisation to innovate and ultimately create a product or service which would help achieve the goals of the organisation, A first movers advantage is the benefit that a company gains by being the first player in a new and developing market segment so as to fully capitalise on the potential in the segment. Last Updated On January 23, 2020 by Rinki Sharma. A business could do well just deploying a proven business model. The most important thing for the survival of a company is a four-part concept: Bookings of products that can be shipped at a profit. Whereas, on the other hand, public sector organisations do not exist to maximise profit but function mainly for public welfare. The culture should always be such that employees have that instinct to innovate in every aspect of the organisation, be it marketing, sales, clients, partners, etc. Businesses are almost like living entities. This led to a lot of entrepreneurs taking up internet ideas relating to goods and services which were never imagined before. It's dead. Usually this applies in economy but productivity is also important in some aspects. This increased their target market to people who were not accessing the internet as well. Every company feels the effects of waste. At ihavemoved.com, the founders did not take up the formalised innovation process but did a detailed analysis of the idea and only then launched the project for their clients. Also partners paid the company a fixed amount per notification provided the data was delivered in the format of the partners existing database. Read below to learn why technology is essential for businesses to not only survive, but to thrive. Study for free with our range of university lectures! But even after putting in the extra resources and funds, Bluewave was struggling with technical flaws and design issues which was looking difficult to rectify before the deadline of the launch of the new website. When we talk about survival skills, we consider ways in which we can fulfill our most urgent needs in any situation: in the wilderness, in urban environments, in war zones or any other life threatening circumstances. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Think about it. Why IT is important for business survival? Lastly, the company had a specific target market with specified demographics which gave the company banner revenues above the average rates. Important points 1) Does business need IT? The era in which ihavemoved.com was established, was a period when internet ideas were cool and had a lot of potential considering the increasing popularity of the internet. Also more concentration on the managing the current operations put innovation on the secondary preference. Survival and growth are the two main objectives of any organisation in today’s competitive world. The National Health Service, established in 1948 is the world’s largest government funded healthcare institute providing every possible health remedy at free of cost or at a nominal price for certain services. The movers could easily change their address with all the service providers and partners they are registered to, free of charge and without any hassles. Everyone knows that!!!! There can’t be a better example than 3M if innovation is being discussed. They act as catalysts in the innovation process and enable the organisation to achieve their goals. Home / Why IT is important for business survival? To be successful and remain in business, both profitability and growth are important and necessary for a company to survive and remain attractive to investors and analysts… In the UK, every year 10% of the 60 million population moved their houses every year of which almost 80% were aged between 15 and 44. Survival and growth are the two main objectives of any organisation in today’s competitive world. You wouldn’t attempt completing an obstacle course blindfolded, and you shouldn’t try to create a business plan without knowing the figures – it won’t be pleasant. 17th Jul 2017 A more in-depth understanding of these blockages can enable the process of innovation to continue and get the most out of it. Free resources to assist you with your university studies! 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