This paper explores how the efficiency resulting from utilizing information systems plays a central role in shaping modern businesses. The paper further explores cloud technology in details and how it impacts on the current trend of technology. Moreover, the paper discusses the importance of information technology on issues of planning and protecting confidential information thus preventing major losses. Finally, the paper concludes by explaining the importance of planning to enhance efficiency in utilizing new technologies in businesses. One of the major technological advances that can make a business more effective and efficient is the use of ERP software applications. Moreover, a business is better off when it employs an accounting package. Such packages ensure accuracy and effectiveness in accounting / financial work. Accounting packages are designed in a way that they carry out huge amounts of transactions almost instantly which would otherwise consume a lot of time to be performed manually hence costing a lot for the business (Newman 2009, p.58). Database management systems software plays a crucial role in managing organizations’ information. The DBMS software ensures that an organization or businesses can easily collect information, securely store, manage and update the same as necessary. For example, most organizations have a wide customer bases. With a wide customer base, it is difficult maintaining customer related files or information especially when it comes to personal details. However with a data management system (DBMS), such an endeavor is simplified. The software allow for customer data to be stored in a sequential order to facilitate sorting, referencing and enquiries (Newman 2009, p.96). A data warehouse, which is a central storage area, can be used to facilitate easy storage and retrieval of information. The digital technology has enabled more robust online selling because it allows for retrieval and storage of a wider array of information on products and customers/ clients. This technology allows for interactive transactions between organization and customers over the internet. An interactive way of doing online business helps towards elimination of delay times for transactions, orders and payments. Another technology that organizations are adopting is data mining technology. Data mining technology is critical for organizational information management because it allows for sorting and fast retrieval of data from archives (Newman 2009, p.111). Data mining enables easy gathering, arranging and analyzing of information in an organization. Such ease comes in handy for example when trying to establish or determine trends or when an organization seeks to compare performance of products in the market (John, 2009, p. 60). Data mining technology also comes with tools that allow for reporting or querying for data from databases. When reporting and querying technology is incorporated in most databases, it allows employees to easily generate reports and interpret the same for execution of plans in the organization. Other packages may also be used e.g. word processors to perform typing work and report writing (Newman 2009, p.134). All these software applications must be accompanied by the relevant hardware, so businesses must invest in efficient computers, printers, scanners and other hardware to be able to run its operations