Marquand Says: Information Technology Has Had Its Biggest Impact on Business

question 58

Short Answer

Marquand says: Information technology has had its biggest impact on business in communication and access to data. With the networking and streamlined communication modalities now available to businesses, businesses can collaborate with each other as well as within a business at different locations with the greatest of ease. Businesses also have access to a greater range of information and at a greater speed than ever before. And with this information being constantly updated, businesses now have the ability to plan in response to market conditions with much greater efficiency than before.
Stevenson responds: Information is important, but what's most important is how that information is used. And there is no more direct way that information technology has helped businesses than the ability to sell directly. Selling online has opened up entirely new markets that allow businesses to make greater profits, with greater efficiency, than ever before. Many businesses, such as Amazon, have been able to use online selling exclusively to dramatic effect: without having to spend money on bricks-and-mortar storefronts, they can make billions in profits selling products at low prices.
Which of the following is assumed by Marquand?
All businesses now use information technology for communications and information.
Relatively few businesses sell products online.
Less information was available to businesses before the information technology revolution than there is now.
Consumers preferentially choose to buy from businesses that use the latest information technology.
Selling online is relatively unimportant to most businesses.

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Definitions:

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Revenue from providing services.

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