ROLE OF IT IN BUSINESS

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.

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. 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.

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 pre-determined amount

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.

• The other role of IT in terms of Productivity……

1. Productivity.2. Speed of Processing.3. On-line storage.4. Dis-Intermediation.5. Replacing human labour.6. Scalability.7. Advertising.

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.

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.

MIS FRAME WORK

What is MIS ?

MIS – Management Information Systems is the development & use of Information That’s help business achieve their goals & objective.

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.

Goals of MIS

Provide managers with Information.

Regular, Routine Operations.

Control, Organize & Plan Better.

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.

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.

Human Resource MIS

Concerned with all of the activities related to employees & potential employees of the organization.

ConclusionTechnological 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.

Thank you……