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Information Technology in

Management
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IT in Management

Introduction to Information Technology Business Values Of IT


Role Of Computer in Modern Business Current Trends
Business in Digital Economy.

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Introduction to Information Technology

Information technology ( IT ) is the application of computers to store, study, retrieve, transmit, and
manipulate data , or information , often in the context of a business or other enterprise.

The term is commonly used as a synonym for computers and computer networks, but it also
encompasses other information distribution technologies such as television and
telephones.

Several industries are associated with information technology, including computer Hardware,
software, electronics, semiconductors, internet, telecom equipment, and e-commerce

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Introduction to Information Technology

Data is unprocessed facts and figures without any added interpretation or analysis.

Information allows us to expand our knowledge beyond the range of our senses. We can capture
data in information, then move it about so that other people can access it at different times.

Knowledge is a combination of information, experience and insight that may benefit the
individual or the organization.

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Introduction to Information Technology
Business Value of Information Technology

Business values are the core principles or standards that guide the way you do business. They
sum up what your business stands for and what makes it special.
While business plans and strategies may change the core values of your business remain the
same.
Various factors affect the business value impact of Information Technology (IT). The most
important factor is the alignment between IT and business processes, organization
structure, and strategy.
At the highest levels, this alignment is achieved through proper integration
of enterprise architecture , business architecture , process design , organizatio design, and
performance metrics.

At the level of computing and communications infrastructure, the following performance factors
constrain and partially determine IT capabilities:
Usability
Functionality
Availability
Reliability, recoverability
Performance (throughput, response time, predictability, capacity, etc.)
Security
Role Of Computer in Modern Business

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Current Trends 1. Cloud Computing:
the practice of using a network of remote servers hosted on the Internet to store, manage, and process data,
rather than a local server or a personal computer.
Services provides by Cloud: Software as a service Platform as a service
Infrastructure as a service
2. Mobile application :
Another emerging trend within information technology is mobile applications (software application
Smart phone, tablet, etc.)
They are designed to run on Smartphone, tablets and other mobile devices.
They are available as a download from various mobile operating systems like Apple, Blackberry, Nokia , etc.
Some of the mobile app are available free where as some involve download cost.
3. User interface:
It has undergone a revolution since introduction of touch screen. The touch screen capability has
revolutionized way end users interact with application. Touch screen enables the user to directly interact
with what is displayed and also removes any intermediate hand-held device like the mouse

Green Computing:
Green computing, also called green technology, is the environmentally responsible use of computers and related
resources. Such practices include the implementation of energy-efficient central processing units ( CPU s),
server s and peripheral s as well as reduced resource consumption and proper disposal of electronic waste
(e-waste).

5. Virtualization:
Virtualization is the creation of a virtual -- rather than actual -- version of something, such as an operating
system, a server, a storage device or network resources. You probably know a little about virtualization if you
have ever divided your hard drive into different partitions. A partition is the logical division of a hard
disk drive to create, in effect, two separate hard drives.

Major IT Characteristics in Digital Economy

Globalization
Digital Systems Speed
Information Over load, Search, retrieval Online Markets
Digitization: eg: ebooks Innovations:
Opportunities:
Six Major Trends By Lucas

The use of technology to transform the organization . The cumulative effect of what all the technology firms
are installing is to transform the organization and allow new types of organizational structures.

The use of information processing technology as a part of corporate strategy . Firms that prosper in the
coming years will be managed by individuals who are able to develop creative, strategic applications of the
technology.

Technology as a pervasive part of the work environment.


The use of technology to support knowledge workers. The personal computer has tremendous appeal. It is easy
to use and has a variety of powerful software programs available that can dramatically increase the user's
productivity. When connected to a network within the organization and to the Internet, it is a tremendous tool
for knowledge workers.
The evolution of the computer from a computational device to a medium for communications.

From the large centralized computers, the technology evolved into desktop, personal
computers. When users wanted access to information stored in different locations, companies
developed networks to link terminals and computers to other computers. These networks have
grown and become a medium for internal and external communications with other organizations.

The growth of the Internet and World Wide Web. The Internet offers a tremendous amount of information
on-line, information that you can search from your computer.
Digital Economy -New Economy

E-Business: The use of electronic technologies to transact business.

Collaboration: People and Organizations interact, communicate, collaborate and search for information

Information Exchange: Storing, processing and transmission of information.


Digital Business

Telecommunications Networks

Field Sales

Internet

Consumer
In-office

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The Old Economy Taking Photos

1. Buy film in a store 2. Load your


camera 3. Take pictures
4. Take roll of film to store for processing 5. Pickup the film when ready
6. Select specific photos for enlargement 7. Mail to family and friends

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The New Economy Taking Photos

st
1 Generation Digital Photography
Old economy except 6 and 7 were replaced by using a scanner and emailing
nd
2 Generation Digital Photography
rd
Use a Digital Camera, no film, no processing. 3 Generation Digital
Photography
Your Digital Camera is now your mobile phone, in your binoculars or a palmtop computer.

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Business Models

A business model is a method of doing business by which a company can generate revenue to sustain
itself. The model spells out how the company adds value to create a product or service. (Value Chain)
Nokia makes and sells cell phones
A TV station provides free broadcasting. Its survival depends on a complex model involving advertisers
and content providers.
Internet portals, such as Yahoo, also use a complex business model.

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Drivers Forcing Changes In Business Models

Business Pressures
Environmental, organizational, and technological factors are creating a highly competitive
business environment these factors or forces can change quickly, sometimes in an
unpredictable manner.
Business Critical Response Activities
Therefore, companies need to react frequently and quickly to both the threats and the
opportunities resulting from this new business environment.
A response can be a reaction to a pressure already in existence, an initiative intended to
defend an organization against future pressures, or an activity that exploits an opportunity
created by changing conditions.

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The Drivers of change

Business Pressures on an Organization that force change. Technology

Market Society

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