The Role of Information Technology in Economic Growth

 

In the last few decades, technology has developed very rapidly. If in the previous decade, people were still familiar with postal services, telephones, typewriters, or telegrams, then at this time everything had begun to be abandoned. Along with the rapid innovation and development of technology, people have now switched to using smartphones, tablets, the internet, and various other sophisticated devices. It is difficult to imagine how this modern society can live without gadgets or an internet connection.

 Information technology is now like a reliable assistant, which can do many things in all human activities, including economic activities. Many business units use this information technology to develop their business. Previously, information systems were only used for communication purposes, showing great benefits in the business world. The benefits of information technology in the business world are to assist processes and operations, make decisions, and form strategies to gain competitive advantage.

In the business world, both small and medium to large scale, the use of technology is an absolute and dominant thing as a means of communication, disseminating information, or establishing business cooperation. The era of globalization has eliminated the boundaries of time and space resulting in the emergence of new industries that take advantage of technological developments. This is what has resulted in economic movement, from which the exchange of goods was originally carried out physically into exchanges through the media of technology. This economic movement that occurs indirectly affects economic growth. At the macro level, technological developments promote economic development and contribute to economic growth.

The development of information technology can also strengthen a country's competitiveness in developing its economy. Settled companies can increase national income which can later be used to support the welfare of their residents.