Importance of IT

What is Information? This is processed data with a meaning or an

organized, meaningful and useful interpretation of data.

What is Technology?  Technology is humans using objects (tools,

machines, systems, and materials) to change the natural and human-made environment.

Importance of IT

What are the characteristics of good Information?It has to be accurateMust be relevant to basic purposesComplete in respect to the key elements of the problemIt has to be Timely (should be communicated in time to

be used )It has to be consistent and reliableIt has to be Up-to-dateEasy to understandIt has to be tailored to the needs of managers and end

users

Importance of IT

What are the characteristics of Technology?

Technology is human knowledgeTechnology uses tools, materials and systems.Its application will result into artifacts

(human-made things )Technology is developed by people to modify

their environment.

Importance of IT

The Six Important Business Objectives of Information Technology

Product DevelopmentStakeholder IntegrationProcess ImprovementCost EfficienciesCompetitive AdvantageGlobalization

Importance of IT

Importance of information technology to users and organizations:

IT helps in re-engineering of work practicesSpeedConsistency and accuracy ReliabilityTeam productivity 

Importance of IT

Functions of information technologyData captureData ProcessingGeneration of Information  Storage of informationProtection of InformationRetrieval of Information 

Importance of ITAdvantages and Disadvantages of information

technology in BusinessAdvantages:Increases production and saves timeImproves communication through communication technologyImproves data storage and file managementImproves financial managementCuts costs of operation and increases on ROI Improves business to consumer relationship Improves on business competitive advantageAutomated ProcessesWork RemotelyCommunicationChange Management

Importance of ITBusiness model transformation:Production and operations optimization—e.g., deploying and

then acquiring Kiva Systems robotics for Amazon.com warehouse logistics, or, e.g., making the Amazon Web Services “cloud” fully self-service with highly automated provisioning of computing, storage, and network resources

Eliminating intermediaries—e.g., bypassing publishers to connect authors more directly with customers, capturing a larger portion of industry revenues

New monetization models—e.g., creating Amazon Web Services and offering computing resources for rent

Shaping customer preferences—e.g., leveraging “big data” and recommendation engines to cross-sell products

Transforming underserved markets—e.g., taking a fragmented market of used booksellers and creating a single virtual storefront

Importance of IT

Disadvantages:Implementation ExpensesJob EliminationSecurity Breaches 

Importance of IT

Does IT Really Matters?HBR Article May 2003 Issue by Nicholas Carr

“ IT Doesn’t Matter”Book by Nicholas Carr; “Does IT Matter”

published in 2004.Nicholas G. Carr is an American writer who

has published books and articles on technology, business, and culture.

Importance of IT

Lets find it out ourselves……..