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 videoconferencing 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 Thats help
business achieve their goals & objective.

Components of Information Systems

Five Component Framework
Hardware

Software

Data

Procedur
e

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
Companys 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.

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.

Th

ank you