IT IN BUSI

8/12/2019 IT IN BUSI

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Presented by : Group 5


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What is Information Technology?

Information technology (IT) is the application ofcomputers and telecommunications equipment to store,

retrieve, transmit and manipulate data, often in the

context of a business or other enterprise.

Information Technology & Business

In a business context, the Information Technology

Association of America has defined informationtechnology as "the study, design, development,

application, implementation, support or management

of computer-based information systems to business

process"


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A traditional business is an organisational

entity which is mostly thought of as a store,

restaurantor agencyand it is designed to offer

consumer goods or services. It is all aboutenormous transactions in order to pay off bills,

salaries and also get the owners' worth in

investment.

Traditional Business


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Cons of traditional business


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Why IT in Business


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Reach

Conventionally refers to the potentialnumber of customers a business can

interact with.

The internet enables reach to be

increased nationally and internationally

at a very low cost.

And from customer point of view reach

will be referred as the amount of product

that he can reach thru the use ofinternet, Which is larger than his previous

experience in traditional business.


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Richness

This is a characteristic of the

information itself.

The internet enables moreinformation that can be made

available about products, prices

and the availability in the market.

It enables more interactivity andcustomization to engage the

customer and also provide more up-

to-date information


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Affiliation

This refers to the effectiveness of links with the partners .

In and online context, an organization which has the most

and richest links with othercompatible organizations will

be able to gain a larger reach and influence.


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What are the benefits of technology for a business? There are

many, but most fall under a few categories:

Reach more potential customers, develop a business

relationship with potential customers

Streamline operations, reduce costs, improve efficiency,

maximize profit, minimize waste, devote talent to core business

instead of overhead

Provide better service to customers

Support better relationships with key partners

Allow customers to guide the business in a better way.

The very first question businesses should ask before spending any money or time

on technology is, why am I doing this? If there is not a core business benefit tobe gained, why do it in the first place?

Why am I doing this?


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A retail store. If the store sticks to merely doing

physical transactions from its brick and mortarstore, it limits the possible clientele to the

people within its location.

But by using the internet, the store can be

part of a nationaland even global

marketplace.

This is the basic concept that makes websites

such as eBay and Amazon a success.

A small example


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Areas where IT can be applied in

business

Inventory, sales, receivables and

payablesstored in Excel, Open Office

or a similar program keeps these

figures at your fingertips. Accounting software stores your

payroll information, tax records and

specialized data for your business.

You can eliminate much of the

physical storage at the office byusing information technology to scan

and store old personnel and payroll

files, tax files or client files.

You may need less square footage

with information technology.


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Producing the best products and services willnot guarantee

business success. You need to use technology to promote your services and

products.

Internet marketing is affordable and if it is well executed, its

impacts can be great.

You can have a web presence, take orders, buy merchandise, sell

excessor even operate some businesses entirely online

Many small businesses have resorted to internet

technology to reach big masses of consumers online.


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With the rise of social networks such as Facebook, Myspace,

Diggand others, a form of crowd-based media known associal media has emerged.

Businesses can take advantage of social media as another

aspect of business communication, by performing such tasksas creating profiles on social networks, submitting online

media to sites such as Digg, and using websites like Twitter

to answer consumer questions.

Many businesses have already jumped on the social media

bandwagon, with some having experimented with their own

social networks.

Eg: Microsoft and Wal-Mart


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The Internet is a wealth of information to keep youcurrent with trends, techniques, software and human

resources.

You can draw on online databases and websites tolocate potential employees, compare insurance

proposals, tackle employee issues or check out the

competition.

Managing your business with information gleaned

from the Internet keeps you knowledgeable and on

the cutting edge.


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Small businesses have had a chance to gain competitive

advantage in highly competitive markets.

If technology is well implemented, a small business can

produce the best products basing on their customer needs

and wants.

They can also use technology to deliver services and products

to potential customers on time.

Many well established big companies ignore customer needs

and wants, so they end up losing potential customers to small

enterprises.

We live in a world where products and services are supposed

to be tailored basing on what customers want.


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Technology is being used to simplify communication in a business.

New communication technologies like electronic mails, e-fax, cell phones,videoconferencing tools, text messaging and social networks have

simplified the way business owners communicate with their teams and

customers.

Communication by email is faster and costs less than sending a paper

letter in the mail.

These advanced communication tools can be used in customer care

department.

Also communication technology helps in the flow of information with in anorganization, this process will create a certain degree of efficiency within a

business and it also helps in the decision making process.


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The main goal of any business is to serve its customers.

It does not matter whether your business makes dog food, or

serves big organizations, the only reason you will stay in

business is to serve your customers well and on time.

Serving the needs of customers goes beyond offering thebest service or product.

If your customers find it easy to contact you and get

response on time, they will gain confidence whenever

they deal with you and this will help your business growand expand.

It involves understanding what your customers want, so

even though your product or service is good, do yourcustomers need to use it? .


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As opposed to human labour, technology is efficient and fast.

Most businesses are involved in manufacturing of products and these

business need to utilize the two factors of production which include timeand efficiency.

A business can use technology to automatecertain areas of production,

this will help the business increase on its output and it will also enable the

business to serve its customers on time.

People want to get what they want when they need it on time.

So if a business implements technology in its production process, they will

save time and deliver the product to the end user on time.


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Technological change in production

Computer-aided manufacturing ( CAM) this reduces labour costs, is

more accurate and faster and can work at any hour of the day. Thecomputer controls the machinery.

Computer-integrated manufacturing (CIM) here, computers control

the whole production line. Best example is in car production where

robots undertake much of the work, reducing the need for labour to

perform boring, routine tasks.

Computer-aided design (CAD) Computers are used to help design

products using computer generated models and 3D drawings.Reduces the need to build physical models to test certain conditions,

known as prototypes. This can be expensive to produce just for testing

purposes . e.g. aircraft or new cars.


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A business can not operate without experienced employees. However

small businesses many be, it will need to hire experts to complete

specific tasks. So how does a business use technology in its human

resource management?

A business can use the internet to recruit experienced labour. Now

days their so manyjob portals which allow business post jobs for free and

get applicants.

Human resource managers can use technology to assign tasks to new

employees and test them; the same technology can be used tomonitor the performance and behaviour of the employee.


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IT applications are everywhere in the modern business and their

great advantage is the way that they can lower costs.

One way that costs can be lowered is in time saving. For

example, time is saved in the retrieval of information from a

database or website. Rapid searches can be carried out by

simply cueing in a key word

Another way that time can be saved is in the rapid duplication of

information. For example, an e-mail can be sent to all of the

relevant members of an organisation simply by creating a pre-

prepared mailing list for all communications of a certain type.

Material can be rapidly edited and altered using modern desktop

computers.


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Automation or automatic control, is the use of various controlsystems for operating equipment such as machinery, processes

in factories,switching in telephone networks, steering and

stabilization of ships or aircraft and other applications with

minimal or reduced human intervention.

Some processes have been completely automated.

The biggest benefit of automation is that it saves labour,

however, it is also used to save energy and materials and toimprove quality, accuracy and precision.


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The List is endless but we can use IT in the following

fields as related to business:

Meetings and Scheduling

Financing

Banking

Transaction

Translation

Stocks

Business Monitoring Ordering

Spread sheets

Inventory Records

Communication

Promotion and Marketing

Networking and Relaying Information

Advertising

Collaborations

Calculation

Integration Analysis

Business News

Research


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Limitations of usages of IT in business

Requires training- implementation expenses

Cyber crime- Hacking

Require additional infrastructure- increase in costs

Replaces human labour-job elimination

Dependency on electricity

ReliabilityThe integrity of data

Difficultly reaching the right people - Phishing

Bad publicitySocial Media gone wrong


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IT IN BUSI