Q. Describe Breaking Cost Business Barriers?

IT is as well helpful for a business to gain strategic reductions in operations costs. Using Intranets as well as other telecommunications networks to interconnect key business areas can reduce the costs of inventory, distribution, production or communications for any business firms. Information technology has facilitated companies to minimize inventory levels, cut labour costs and decrease the number of distribution centres and lower communications costs.

Exp- Hewlett Packard Co had decentralized purchasing departments as a result couldn't take an advantage of high volume discounts from suppliers. As an alternative of centralizing purchasing HP telecommunications networks to link the computers of divisional purchasing department to a corporate procurement centre database.