This created a passion amongst them to perform and excel to innovate for best customer services. The best examples of public services which have benefitted the government and the public in the United Kingdom are NHS and the London Congestion charge. 2) Why IT is important for business survival? Such a new service gave them a competitive advantage over the regular full service airlines currently in the market and made air travel affordable. There can’t be a better example than 3M if innovation is being discussed. Think about it. Every company feels the effects of waste. Our academic experts are ready and waiting to assist with any writing project you may have. Ihavemoved.com was one such idea which was very innovative and had a high probability of success. 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. Your question is basically just like "Why is survival important for humans ?" No plagiarism, guaranteed! Funding is important for thestart-upbusiness so that it can survive in unforeseen situations and circumstances. Reference this. Important points 1) Does business need IT? The idea was actually accidently developed after the original idea was rejected. Need for financing and credit. Companies do not fail because they run out of money. A business could do well just deploying a proven business model. PowerGen incorporated the services of ihavemoved.com for their own customers. Every organisation tries to be different and accelerative from their competitors to achieve their goals and become market leaders. 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. Home / Why IT is important for business survival? The service provided by ihavemoved.com gave the partners information in a format which could be directly integrated into their database. 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. Even in the later stages, if the founders had little knowledge about the innovation approach and followed the process, the outcome could have been better in all aspects. Important points 1) Does business need IT? You are to research an actual business examples and the impact of IT on that business. They spent a whole lot of time in fine-tuning the idea, seeking appropriate legal advice and developing a website which would be simple, customer friendly and cater the needs of partners and the company. This gap can be closed by applying service innovation and consequently customer satisfaction. Survival for public services is never an issue but costs reduction is the major criteria. 3) What is required to apply IT into business? Reward for risk taken: Collaborations of ihavemoved.com with particular companies in a sector like PowerGen was a great development but that increased costs of the company because every partner associated in that way would need dedicated designs and maintenance. 2) Why IT is important for business survival? While the majority of respondents cited innovation as essential to the survival of the firm, business culture and recruitment remain impediments to success. They fail because they run out of customer’s orders… This reduced the administration expenses of the partners such as call centres, data entry and administration. The importance … Innovations in the service industry always need to be customer centric and oriented towards customer satisfaction. 3) What is required to apply IT into business? Productivity means to become efficient, effective, and abundant. Buy our Kindle eBook. This enabled the company to establish a strong foothold in a market and create a brand image among consumers. Read below to learn why technology is essential for businesses to not only survive, but to thrive. All these activities are a result of innovation in an organisation. Finally, 38 percent of respondents said that, when they do manage to hire the right creative force, they cannot … It helps bridge the gap between expected service and service delivered. 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. They needed more staff, new premises, a major upgrade to the website and a marketing campaign to keep subscriptions going on. The founders of ihavemoved.com did not did not take up a formalised approach to innovation. Data helps you understand and improve business processes so you can reduce wasted money and time. 0. 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. Also. Survival strategies take many forms. As the business environment about the required changes to be taken in the policies of the concerned business. If the business does not make enough profit it will not survive in the growing competitive world. Last Updated On January 23, 2020 by Rinki Sharma. 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. But Gillespie says it's important to determine whether the economic downturn is … 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 basic objective of commercial firms is to maximize the profit and sustain in the competitive environment. 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. 0. Every organisation tries to be different and accelerative from their competitors to achieve their goals and become market leaders. 2) Why IT is important for business survival? White label integration takes place where one company rebrands the service of another company to make it appear as their own. 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. This is a very innovative method to gain greater market exposure and customers due to the goodwill of both the brands. Key drivers of innovation are those factors that lie outside the orga3sation and drive the organisation to think about the need for innovation. But to continue the advantage, the company needs to continually innovate their services and add new services to retain their customers and partners. Study for free with our range of university lectures! The various skill sets of the entrepreneurs were complimentary and very effective for the smooth functioning of the company on the whole. For all this they required funding which was very difficult to procure under current market conditions. This step provided a new outlook to the company wherein collaborations with various partners could provide fixed income on the basis of their services and a higher rate of commission for notifications and other services. The founders of ihavemoved.com started the company with their own funds and resources in the initial stages. 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… What a stupid thing to say. HC1041 IT for Business – Trimester 1 2016 You are to research an actual business examples and the impact of IT on that business. Also Andrew Day who was appointed as a Chief Technical Officer redesigned the website and saved the company a lot of money. 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. This hampered their innovation process and growth plans. Efficiency was not a prime directive. 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. 3) What is required to apply IT into business? The company is so dedicated towards innovation that 30% sales of the company comes from product innovations in the past 3 years. 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. Home » Blog » 14 Reasons Why CRM Is Important For Every Business In 2020. 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. Public Services are those services which are provided by government organisations or authorised by government organisations for welfare of common man. 3. I upvoted but want to elaborate on Lorri’s simple but elegant answer. 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. 17th Jul 2017 Today, technology is central to the success of most businesses. It won't make money. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. The following are the factors which facilitate the innovation drive within a company. Businesses are almost like living entities. These cumulative activities help the organisation to create a competitive advantage over the competitors. Yes, you need a very flexible team that will want to make a difference in your business. 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. Here are the top reasons why liquidity is very important for any 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. 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… these organisations need to keep a track of their customers and loose the customers once they move their house. All work is written to order. It depletes resources, squanders time, and ultimately impacts the bottom line. Second on the list to answer why are survival skills important is the fact that it can be very rewarding. Whereas, on the other hand, public sector organisations do not exist to maximise profit but function mainly for public welfare. 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. 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. Everyone knows that!!!! The liquidity of a company means the liquid assets held by it that can be easily converted into cash. 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. Why IT is important for business survival? You don’t need a hundred questions as to why something must be taken. 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. 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. When Ihavemoved.com was established, there was no other company offering such a service to consumers. It relied on reduced costs and overheads caused by services like catering, baggage allowance, cabin crew low turnaround time, fleet of small aircraft which would result in higher load factor. 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 public services are generally those which cannot be undertaken by private organisation due to their sheer size like NHS or their nature like defence. 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. The result was a very successful international address notification network. 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