Role of it in business
- 1. ROLE OF IT IN BUSINESS
- 2. Introduction • Technology plays a vital role in the business world. • It provides the tools and functions on which almost all companies throughout the world run. • With the advent of new technologies, the use of computers and Internet has increase. 1. History. • Before the development of modern technology, there was the trade and barter system. • Advances led to a skeleton of what we know as business today. • People handled every aspect of running a business, even the responsibility of making machines work manually.
- 3. 2. Significance. • Technology and business are practically inseparable today. • Without technology and computers, the routine business would be severely slowed. 3. Benefits. • Business has become so entrenched with technology because of the benefits that technology provides. I. It decreases the time it takes to perform a task . II. Ability to take on multiple tasks at once. III. Increases the volume of information that can be processed etc. IV. There is a minimal chance of error . V. Low acquisition costs .
- 4. 4. Opportunities. • The use of technology in business has created opportunities for more technological advances. • Many business functions are able to operate autonomously with the use of technology. • This has led to the need for software development companies and business consultants domestically. 5. Considerations. – While there are innumerable benefits of using technology in business, there are some downsides. – According to the United Nations University, it has led to increased dependency. – According to the Small Business Bible, it has also led to a decline in the skill level of the end users. – It has eventual reduction of incomes.
- 5. Role of IT in Business • Information technology (IT) has become a vital and integral part of every business plan. From multi-national corporations who maintain mainframe systems and databases to small businesses that own a single computer, IT plays a role. • The reasons for the omnipresent use of computer technology in business are 1. Communication. • • For many companies, email is the principal means of communication between employees, suppliers and customers. Over the years, a number of other communications tools have also developed, for e.g. live chat systems, online meeting tools and video-conferencing systems etc. 2. Inventory Management. • Inventory management systems track the quantity of each item a company maintains, triggering an order of additional stock when the quantities fall below a predetermined amount
- 6. 3. Data Management. • Companies are able to store and maintain a tremendous amount of historical data economically, and employees benefit from immediate access to the documents they need. 4. Management Information Systems. • Management Information Systems (MIS) enable companies to track sales data, expenses and productivity levels. • Managers can track sales on a daily basis, allowing them to immediately react to lower-than-expected numbers by boosting employee productivity or reducing the cost of an item. 5. Customer Relationship Management. • Customer Relationship Management (CRM) systems capture every interaction a company has with a customer, so that a more enriching experience is possible. • It helps to improve the way they design and manage customer relationships.
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- 8. COMPETETIVE ADVANTAGE OF INFORMATION TECHNOLOGY 1) INTRODUCTION : A fundamental change is happening in companies’ competition due to changes in global business environment. 2) DEVELOPMENT IN BANKING SECTOR : banking sector have speed up communication & transaction for client. 3) ECONOMY OF PRODUCTION : The emergence of I.T. sets another trend. 4) FUNDAMENTAL REQUIREMENT : Competitive advantage for an organization if it is survive in long term.
- 9. 5) I.T. HAS BEEN PERCEIVED : it means to provide more efficient process that would lead to lower cost. 6) WIDESPREAD IMPACT : increasing new technology continues to progressively penetrate into core business 7) ENORMOUS & DIVERSIFY : The usefulness of information technology depending on the kind of product & goods.
- 10. MIS FRAME WORK What is MIS ? MIS – Management Information Systems is the development & use of Information That’s help business achieve their goals & objective.
- 11. Components of Information Systems Five Component Framework Hardware Software Data Procedure People 1. Hardware – Desktops, Laptops. 2. Software – Operating System , Application Programs. 3. Data – Facts & figures entered into Computers. 4. Procedures – How the other four components are used. 5. People – User, Technologists, is support.
- 12. Goals of MIS Provide managers with Information. Regular, Routine Operations. Control, Organize & Plan Better.
- 13. MIS & Web Technology Data may be made available from management Information Systems on a Company’s internet. Employees can use browsers & their PC to gain access to the data.
- 14. Financial MIS Provides Financial information to all financial managers within an organization. Marketing MIS Supports managerial activities in Product Development, Distribution, Pricing Decisions & Promotional Effectiveness.
- 15. Human Resource MIS Concerned with all of the activities related to employees & potential employees of the organization.
- 16. Conclusion Technological change can bring the following benefits to a business: • Reduced running costs, Improved productivity, Improved competitiveness etc. However it may also consider the social costs of new technology: • • • Job losses Motivation of workers – worried about machines taking over their jobs (though extra training to work with machines may provide some increased motivation) Loss of traditional skills etc. Technological change can be very expensive. • Purchasing the equipment, Installation, Training staff, Maintenance etc.
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