Information technology (IT) is a term that describes the processes and strategies for using technology to provide business solutions on a broad scale.
Often, the term IT is used to reference the department that oversees the installation and maintenance of hardware and software within a company. This is the side of IT that most professionals are familiar with—the experts that get called in when there are computer issues that need to be fixed. But the scope of IT in business goes well beyond general repairs.
IT encompasses every aspect of technology within business. This includes the study, conceptualization, development, execution, and support of information systems. IT may also refer to the systems themselves, specifically software applications, artificial intelligence, cloud technology, and the physical hardware on which they run. Finally, IT also includes IT governance, which ensures that information technologies are being correctly used to help organizations reach their business goals while effectively managing IT risks that could impact business operations and user experience.
As such, IT has very broad application across industries and organizations; every business today includes some IT components, even if they do not field a separate IT department. Today, IT is at the heart of digital transformation, and includes such technologies as telecommunications, security, cloud computing, data centers, networks, storage, computers, and servers.
As previously stated, IT can refer to any digital tool or resource used in business. To better understand the scope of these technologies, they are typically categorized based on function and application. Key types of IT that modern businesses rely on include:
- Cybersecurity technologies
These technologies help protect IT systems and data from unauthorized access. Cybersecurity incorporates tools such as firewalls, encryption, antivirus software, intrusion detection systems, and multi-factor authentication.
- IoT devices and technologies
Interconnected physical devices that collect and exchange data over the internet (such as smart sensors, industrial monitoring systems, and wearable technology) are collectively known as ‘internet of things’ (IoT) technology. They make possible real-time monitoring, and data-driven insights for businesses.
- Internet and web technologies
Internet and web technologies are the foundational tools and protocols that allow users to interact with web-based services. These consist of web browsers, servers, HTML, CSS, JavaScript, and HTTP.
- Artificial intelligence
Artificial intelligence (AI) use algorithms and machine learning to perform tasks that typically require human intelligence, such as speech recognition, data analysis, and process automation. AI solutions, including agentic AI and generative AI, are increasingly used for strengthening predictive analytics, personalizing customer service, and optimizing internal operations.
- Data analytics
Data analytics (including customer analytics and performance analytics) involves the examination and interpretation of data to extract actionable insights. This includes data mining, statistical analysis, and data visualization.
- Business intelligence (BI) technologies
These combine data collection and analysis tools to help organizations make more informed decisions. BI tools simplify reporting, dashboards, and data visualization, providing actionable insights to improve business performance.
- Databases
Databases (including configuration management databases) are systems for storing, organizing, and retrieving data. Efficient database management is critical for organizations across every industry, helping ensure quick access to relevant information and maintain data integrity for business operations.
- Telecommunications technologies
Companies rely on secure, consistent communication across multiple platforms. VoIP, video conferencing, and unified communications platforms are all examples of telecommunication technologies, and are particularly important in remote and hybrid work environments.
- Cloud computing
One of the most impactful IT advancements of the 21st century, cloud computing provides on-demand access to IT resources (such as storage and software), over the internet. This allows businesses to improve collaboration and easily scale their operations to meet changing demand—all without investing in extensive on-premises hardware.
Just as IT is an umbrella term that includes a range of systems, processes, strategies, and resources, there are many different roles and responsibilities associated with information technology. These include the following:
- Chief Information Officer, Chief Technology Officer, and Chief Information Security Officer
- IT vice president or director
- Systems engineering manager
- IT project manager
- Business analyst
- Network administrator
- Hardware technician
- IT agent
- Help desk analyst
- Help desk support
Modern business runs on information technology. From incorporating management information systems to help gather, analyze, and report valuable data, to ensuring the correct functionality of essential communications equipment in an increasingly remote workforce, IT has a hand in everything. And those organizations that are able to effectively employ IT across departments and use cases are gaining an undeniable competitive edge.
The current push towards increased IT has also resulted in increased IT responsibilities. The following are new and upcoming IT needs that businesses must be capable of addressing:
Organizations are turning to AI to automate tasks, improve employee productivity, and serve users with 24/7 IT services. AI technology is rapidly advancing, requiring IT organizations to develop flexible systems, policies, and processes that allow AI solutions to seamlessly integrate into current IT services while reducing risks and protecting critical business data.
More organizations are adopting BYOB policies in the workplace. Additionally, the COVID-19 pandemic and subsequent quarantine forced many businesses to adopt remote-work policies, taking on some or all the responsibility of managing mobile devices, wireless hotspot, and roaming for employees.
Quickly supplanting traditional conference calling and precipitated by the need to enable face-to-face communication during the global pandemic, digital video conferencing has become increasingly common in business. IT must ensure proper network bandwidth to promote effective video hosting.
Rather than host large ‘server farms’ in-house, many organizations now work with third-party cloud vendors to store their data. IT must be able to work effectively with these vendors to ensure data security and usability.
As data-collection capabilities improve, the amount of available data increases exponentially. Organizations depend on IT to process substantial amounts of data, incorporating significant processing power, advanced software, and analytical insight.
Because IT’s purpose is to manage and optimize every aspect of technology within business, the benefits it brings to the table are nearly limitless. Any business advantage offered by digital technology can be viewed as a benefit of IT. That said, these benefits usually fall within the following categories:
Software-based communication tools and organizational platforms make it possible for large numbers of teams and individuals to coordinate effectively, establish processes, and prioritize tasks.
Improved communication and technology support allows businesses to respond more quickly to changes within their markets. Additionally, automation and machine-learning facilitate better product development with reduced turnaround time, allowing organizations to do more with less.
Outsourcing to cloud vendors significantly reduces the investment costs of many IT services. AI and automation reduce manual processes. Improved productivity means more returns in shorter amounts of time. Finally, IT advances (such as e-commerce stores) represent new revenue streams for many already-established companies
Legacy data-storage solutions are often hard to manage and tend to result in data silos that make it difficult to access essential information. IT advances, such as cloud-based data storage, organize and allocate data, making it available to authorized users from anywhere in the world.
Even a small data breach can end up costing a business millions of dollars in lost or corrupted data, on top of the reputational damage when it fails to protect customer information. The right IT approach strengthens data security, ensuring that every system is up to date with the most recent security measures.
Whether serving customers or employees, the main function of IT is the same: To enable better, more-effective processes that increase user satisfaction.
In short, an organization that embraces effective IT solutions will see improvements across the board.
One of the most difficult aspects of IT is its inclusiveness. IT extends across the physical hardware and through the software that runs on it.
IT software consists of applications and systems software. Applications include email servers, web servers, databases, transactional systems, and customer management systems. System software includes operating systems, boot programs, basic input/output systems, and device drivers. IT software consists of the programs, in all their forms, that run on IT hardware.
Hardware consists of the physical devices that run the software. Hardware can also be abstracted, incorporating virtualization and cloud computing to meet application requirements. Hardware includes input/output devices, processing devices, and storage. Hardware servers communicate with one another through computer networks and via the internet.
All of this is to say that IT is everywhere, and it plays a pivotal role in the day-to-day operations of modern businesses. Below are just a few examples of standard business activities that make use of information technologies:
Monitoring security
Security monitoring involves using IT tools to continuously observe networks, systems, and applications for potential threats. IT teams receive alerts about suspicious activities, such as unauthorized access attempts or malware detection, and investigate logs to find the root cause.
Upgrading servers
As hardware ages, IT teams are responsible for upgrading servers to ensure continued performance. This process includes selecting new servers, backing up data from the old ones, transferring it to the new hardware, and validating system functionality.
Developing or integrating new software
When businesses need new capabilities, IT teams collaborate with developers to build or integrate software solutions. This could include custom applications for customers or internal tools to improve workflows.
Supporting internal and external users
IT departments provide support to both employees and customers, ensuring that hardware, software, and networks function correctly. This may involve troubleshooting technical issues, offering training, or providing help desk services.
Organizing digital resources
Businesses use IT to manage vast amounts of digital assets. From document management systems to inventory databases, IT helps structure and organize these resources, allowing employees easy and direct access to the information they rely on.
Making general improvements to business processes
IT teams constantly look for ways to optimize systems and processes. This could include enhancing system performance, implementing data backups, automating routine tasks, or performing almost any other activity that seeks to improve the internal workings of the organization.
For smaller businesses with less-complex IT needs, maintaining an in-house solution may be the easier approach. Likewise, because on-premises IT excludes outside vendors, the organization in question maintains complete control. They have final say and responsibility over security and uptime, and they tend to see a lower total cost of ownership.
However, in most cases these benefits are offset by certain disadvantages. Initial investment for on-premises solutions can be extremely high, and ongoing maintenance and repairs bring with them their own expenses. Additionally, on-premises IT means longer implementation times. Simply put, on-premises IT demands that the businesses themselves handle every aspect of IT on their own, as well as account for all associated costs. This can lead to an increased need for IT personnel, increased installation, maintenance, and repair costs, and difficulty scaling effectively as the business grows.
Cloud-based IT is seeing increasingly widespread use throughout essentially every industry and market. This is because cloud computing offers several clear advantages over on-premises options.
Cloud IT allows businesses to use a pay-as-you-go model, paying only for the cloud resources they use, and easily maintaining established budgets. Organizations can also free up professionals to focus on other essential tasks and considerations, rather than forcing them to invest their valuable time into maintenance, repairs, security, and IT management. Cloud IT solutions are also extremely scalable; instead of having to purchase, install, and configure new IT hardware to account for business growth—or deactivate and remove hardware in the event of negative growth—organizations can work with their cloud vendor to scale available resources to meet business needs.
As for the downsides to cloud computing, they are few and far between. These include the risks of sub-par cloud security and undependable cloud accessibility. When a company chooses to work with a cloud provider, they rely on the provider to secure their data and ensure that their service meets minimum up-time requirements. That said, given the increasingly competitive cloud landscape, cloud vendors know that their continued existence relies heavily on their ability to meet client expectations and take their responsibilities accordingly.
More than ever before, organizations need reliable IT service management solutions that can meet the growing needs of their business. That’s why organizations turn to ServiceNow.
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