IT Innovation’s Rising Importance in Business

As internet users grow at a tremendous speed, it leads to a new decade where information technology becomes the vital element of a business. Performance gap between companies that embrace technology and companies that resist it, is called productivity gap between “leaders and laggers” by Erik Brynjolfson.¹

Rising data flood and emerging tools for analyzing it are changing the ways how innovation gets done in olddays. More and more companies have shifted their tradition ways in organizing data to what has been called “higher information metabolism” in order to use data effectively.

Information technology not only contributes in improving business model for the company but also makes a company operate more effectively based on its analysis system. For instance, Monster, a popular job recruiting website that collecting huge data from job seekers. Jean-Paul Isson stated that information is critical to his company’s success- he can understand what are his clients’ wants through data analysis which helps him better target their needs. In fact, this is also true for most companies that IT helps them in analyzing big data through daily access and narrowing down what their target market wants; hence, provide the right services and products and increase productivity.