INFORMATION

TECHNOLOGY
FOR MANAGERS
Introduction to IT in
Business
What is Information Technology?

Are IT and CS same?

Information Technology VS Computer Science

◦While often used interchangeably, IT and Computer Science

(CS) are distinct fields. IT focuses on applying and managing
technology in business settings, prioritizing the use and
maintenance of systems. In contrast, CS is more theoretical
and focused on creating and understanding computing
systems and software. CS delves into algorithm theory,
programming, and the architecture of computers.
What Is Information Technology?
◦Information Technology (IT) involves using and managing
computers, networks, software, operating systems, and other
digital systems for processing and distributing electronic data.

◦It encompasses a wide range of technological solutions that

enable organizations to handle information efficiently and
securely.
Why Is IT Important?
◦ In the modern digital age, the importance of IT is paramount
across various sectors, including education, healthcare, finance, and
more.

◦ It enables seamless communication through computer networks, facilitates

efficient data management, and automates many routine tasks, thus
enhancing transferable skills within the workforce.

◦ IT also plays a crucial role in ensuring data security, driving digital

transformation, and supporting business professional practice. This leads to
innovation and competitiveness, with data science and analytics becoming
integral in deriving insights and decision-making processes.
The Evolution Of IT
◦ The evolution of Information Technology (IT) marks a journey of rapid and
transformative change, featuring a shift from basic computing machines in the mid-
20th century to a complex array of technologies today.

◦ Early developments in IT provided the foundation for professional practice among

computer scientists and the growing IT departments.

◦ The advent of the internet and mobile computing significantly accelerated this
evolution, leading to the current landscape where cloud computing, big data, artificial
intelligence, and sophisticated operating systems prevail.

◦ This progression reflects the continuous adaptation and enhancement of technical

skills and theoretical knowledge, aiming to meet the ever-changing needs of
businesses and society.
◦ Moreover, the evolution of IT has been instrumental in developing
information systems that are now vital to ensuring data integrity and
delivering technological solutions.
Examples Of Information Technology

◦ Cloud Computing

◦ Network Security

◦ Data Management Systems

◦ Data Management And Analysis

◦ Enterprise Resource Planning (ERP)

◦ Telecommunication Systems
Role of Information Technology in Modern
Business Environment:
◦ In today's fast-paced and interconnected world, information technology (IT) plays a
pivotal role in the success and growth of modern businesses.

◦ The integration of IT into various aspects of business operations has transformed

the way companies operate, communicate, and compete.

◦ Businesses, from small start-ups to big multinationals, depend on IT systems and

tools to make things run more smoothly, be more efficient, reach customers, spur
new ideas, and, in the end, get ahead of the competition.

◦ If a company doesn’t use new technologies, it might fall behind and not be able to
compete with other multinational businesses.
◦ The IT department is at the epicenter of the building and maintenance of
communications networks for small and large businesses.

◦ Not many companies, big or small, could survive without having a good IT
department.

◦ The role of information technology in business is making them imperative

to a business’s day-to-day existence. From sending an email, to changing a
password, accessing databases, and everything in between IT are there to
facilitate every step of the way.

◦ Ultimately, IT in business is helping the business to be more efficient and

productive.
IT in Business has a number of different roles including but
not limited to:
 Facilitating the company to be more productive, time = money.

 Optimizing business performance

 Troubleshooting and safeguarding data

 Saving the business cost

 Enhancing customer experience, satisfaction, and communication

 Streamlining various communication systems

 Improving managerial decision-making

 Helping the business expand internationally

 Offering staff access to company information

How IT supports business process, decision-making & innovation

Role of information technology in business processes

◦Information technology extends across business processes like
a mesh that holds your organization together.

◦It impacts performance and connects teams in ways that allow

day-to-day operations to flow smoothly while also facilitating
communication with customers.

◦The major business processes that exist within most

organizations and how each is impacted by information
technology is present in the next slide.
◦ Marketing
◦ Information technology is the engine that drives modern marketing
strategies.

◦ Technology solutions help businesses identify and effectively reach

their target audience, as well as automate email campaigns, social
media posts, and other repetitive tasks.

◦ Data-focused analytics depend on AI-driven marketing platforms

that provide leadership with the insight necessary to make accurate
and informed business decisions.

◦ IT for marketing comes in the form of digital marketing tools,

customer relationship management (CRM) platforms, and tools used
to manage social media and search engine advertising.
◦ Sales
◦ The sales process has become increasingly complex and requires
multiple touch points throughout the customer journey in order to
drive conversions.

◦ IT provides automation for email, appointment scheduling, lead

tracking, customer engagement through chatbots, and helping your
sales team ultimately improve lead engagement.

◦ Technologies that support your sales process include lead scoring

tools, booking software, live chat tools, email automation platforms,
lead management tools, and other software platforms designed to
automate and manage the sales process.
◦ Operations management
◦ Operations management is the central nervous system of your
organization, ensuring each department is aligned with your business
goals.

◦ The IT infrastructure that supports operations management improves

service and product delivery and maximizes pipeline velocity in the service
channel.

◦ IT also helps to improve productivity, mitigates risk for the organization,

focuses on a stable user experience with minimal downtime, and
introduces workflow automation across teams that help identify gaps in the
IT infrastructure.

◦ IT services and software that aid a business in operations management

include platforms for strategic planning, service operation, help desk,
project management, and strategic planning.
◦ Finance
◦ Finance is a business process that has seen a complete
transformation due to information technology.

◦ IT automation and advanced analytics combined with improved data

quality have allowed shifts in accounting practices to emerge such
as continuous accounting. This live tracking and reconciliation
approach to accounting introduces efficiencies and insights that
provide leadership with the necessary financial information to make
informed decisions.

◦ Accounting information systems (AIS) are one of the main solutions

leveraged in the accounting IT sphere. AIS platforms collect, process,
and correlate financial data, which can then be used by accountants,
analysts, leadership, and auditors and regulatory bodies.
◦ Human resources
◦ Information technology leveraged by human resource specialists
streamline and simplify the hiring process and helps to improve
engagement and retention of existing employees.

◦ In addition to workforce management tools, HR technology improves

payroll processes and removes redundancies in HR processes.

◦ Combined with accounting and operations platforms, HR software

tools can project staffing needs and identify gaps, helping leadership
make crucial hiring decisions.
There are three major types of software platforms leveraged
by HR specialists.
◦ Human resource information systems (HRIS) help increase efficiency
and productivity across primary HR responsibilities.

◦ Human resource management systems (HRMS) offer more services

than HRIS systems and include a focus on attendance tracking and
automation of onboarding workflows.

◦ Human capital management (HCM) systems focus more on

employee experience and performance, satisfaction, and retention.
 How IT supports business decision making:
◦ In an era dominated by rapid technological advancement and
digital transformation, the role of information technology & information systems
in enhancing decision-making processes has become more pronounced than
ever.

◦ Organizations are increasingly reliant on robust data analytics, sophisticated

digital infrastructure, and well-crafted IT strategies to gain competitive
advantages and streamline operations.

◦ Information technology (IT) uses computers and other technological tools to

process, store, and transmit information. It includes various technologies and
systems, such as computers, software, networks, databases, and the Internet.

◦ IT can change how people work, redefine their roles and expectations, and
disrupt the social and psychological processes that help individuals understand
their identity and roles.
◦ Decision-making is the process of choosing among alternative courses of action. It involves
gathering and evaluating information, considering the potential consequences of different
options, and choosing based on this analysis.

◦ Decision-making is a critical part of organizational and individual life, and it can involve a
range of issues and complexity, from simple daily decisions to long-term strategic
planning.

◦ A decision is a response to a situation and involves judgment, expectations, and

evaluation.

◦ Information technology is often used to support decision-making by providing tools and

systems that facilitate the gathering and analysis of information.

◦ For example, IT can process and analyze large amounts of data, access and share
information with other stakeholders, or support decision-making tools and models.
However, using IT in decision-making can also bring challenges, such as data privacy and
security concerns or the ethical considerations of using technology to support data-driven
decision-making.
◦ Using information technology improves the speed and accuracy of decision-making
in organizations. is could be due to factors such as the ability of technology to
process and analyze large amounts of data quickly or access and share relevant
information more easily.
How IT supports business innovation:

◦ Business innovation is defined as the process of creating and implementing

new ideas, methods, products, or services within an organization to
improve its sales performance, competitiveness, and value creation of
customers.

◦ It involves introducing new products/ services, adding new features or

simply making improvements to existing processes, products, or services
to achieve a strategic advantage in the market.

◦ The rise of information technology has paved the way for various innovations.

◦ With the digitization of information, more and more businesses are increasingly
leveraging the benefits of digital tools to improve their prospects. Information
technology has been crucial in turning this process into a sustainable and
economical business endeavor.
◦ With the digitization of information, more and more businesses are
increasingly leveraging the benefits of digital tools to improve their
prospects. Information technology has been crucial in turning this
process into a sustainable and economical business endeavour.

◦ Information technology has dramatically transformed the lives of

individuals.

◦ It provides businesses the scope to analyze data and plan business

strategies accordingly. Utilizing information technology means that
the data analysis is accurate, thus optimizing profits.
There are several ways information technology has impacted businesses
innovation. The following list is just a few ways that IT has impacted
businesses innovations across the globe.

1. Automation
◦ With the help of information technology, businesses can automate certain
processes and tasks including customer support, data entry, and
bookkeeping.

◦ This reduces the need for manual labor and frees up time for employees to
focus on their core competencies.

◦ Automation can help businesses become more efficient and save time,
money, and resources.
2. Artificial Intelligence
◦ Information technology has enabled businesses to use Artificial
Intelligence (AI) to streamline their operations.

◦ AI can analyze data quickly and accurately, making it easier for

businesses to make well-informed decisions quickly.

◦ It also helps reduce the need for manual labor and the associated
costs. This is especially helpful when large amounts of data need to be
analyzed and processed.
◦ 3. Improved Productivity
◦ Information technology helps businesses increase their productivity
by allowing them to access data quickly and accurately, which can
help improve decision-making processes.

◦ In addition, it enables businesses to communicate more effectively

with customers and staff, helping ensure that projects are completed
on time and within budget.

◦ Improved productivity can lead to increased profits, as businesses

will be able to produce more products or services in less time.
4. Improved Customer Service
◦ Information technology helps businesses interact with customers in
real-time, thus providing them with better customer service.

◦ Businesses can also use AI to handle complex customer queries and

provide personalized experiences to customers. This helps build
customer loyalty and improves brand reputation.
5. Cloud Computing
◦ Cloud computing is another way that information
technology has revolutionized businesses. By using cloud-
based applications, businesses can store and access data
from any device or location.

◦ This can help businesses save resources and time by

eliminating the need to install software on individual
devices or maintain server hardware. In addition, it makes
collaboration between employees easier as they can
access the same data from anywhere.

◦ Increasingly, businesses are shifting to the cloud

computing to leverage its many benefits. It has been
predicted that more than $1 trillion will be impacted in IT
spending.
◦ 6. Remote Working
◦ Information technology enables businesses to provide their employees with the
option of remote working. This can help reduce costs associated with office space
and increase productivity by allowing employees to work from anywhere in the
world.

◦ In addition, it helps businesses become more flexible as they can hire employees
without having to worry about geographical boundaries.

◦ Implementation of information technology provides the ability to remotely access

your company’s network, throw on a headset, and get things done with your
team.

◦ As a result, it equips employees with the ability to get the work done even if they
are not physically present at the workplace.

◦ Such agility has a number of benefits. Therefore, it has gained massive

◦ 7. Mobile Technology
◦ The increasing use of mobile technology has enabled businesses
to access data and communicate with customers in real-time.

◦ Businesses are now able to offer their customers a wide range of

products and services via their mobile devices. This increases
customer engagement, which can lead to increased sales and
revenues.

◦ In addition, it enables businesses to better manage their

operations, as they can easily monitor and track data in real-time.

◦ Mobile technology has become an integral part of businesses in

today’s digital world and its importance is set to continue growing.
8. Cyber Security
◦ The use of information technology has created a need for businesses to
secure their networks from cyber threats. Businesses are now investing more
in cyber security solutions such as firewalls and antivirus software to protect
their data from hackers and malware.

◦ In addition, businesses are also taking steps to educate their employees on

the importance of cyber security and how to stay safe online.

◦ This is crucial as cyber attacks can have a devastating effect on businesses,

resulting in financial losses and damage to their reputation.

◦ Therefore, it is essential for businesses to invest in cyber security solutions

to ensure the safety of their data.
◦ 9. Management of Resources
◦ Information technology has enabled businesses to better manage their
resources.

◦ This includes the ability to monitor and track employee performance,

inventory levels, customer data, and financial information in real-time.

◦ Businesses can also use software applications such as enterprise resource

planning (ERP) systems to manage their operations more efficiently. ERP
systems enable businesses to manage their resources in a more cost-
effective way.

◦ Information technology is at the core of such software. The implementation

of ERP is progressing at a rapid rate with more and more businesses
implementing this efficient technology to make certain business processes
hassle-free.
◦ 10. Open Source Software
◦ Open source software has become a popular choice for businesses looking to
reduce their IT costs.
◦ These software solutions are typically free or available at low cost and can be
easily customized to meet the specific requirements of the business.

◦ In addition, open source software often comes with user-friendly features and
support from a large online community.

◦ The primary benefit of open source software is its flexible license. This allows
modifications to the source code. This means that you have the facility to
customize its functions according to your requirements.

◦ Almost every software that businesses use has open source variants that are
widely available on the Internet.

◦ Utilizing these could mean multiple benefits at reduced expenses.

◦ 11. Customer Support
◦ The use of information technology has enabled businesses to provide
better customer support.

◦ Businesses can now offer their customers a wide range of services such as
online chat, email support, and self-help options.

◦ This helps to reduce costs and improve customer satisfaction. It also

enables businesses to quickly respond to customer queries, which is
essential for creating a positive customer experience.

◦ Businesses are increasingly investing in customer relationship

management (CRM) software to manage their customer interactions more
effectively.

◦ CRM systems enable businesses to collect, store, and analyze customer

data. This helps them understand customer behavior and identify
opportunities for improvement.
The strategic importance of enterprise systems in business
operations
Enterprise systems (ES), also known as Enterprise Resource Planning (ERP)
systems, are essential tools for modern businesses. They integrate various
departments, functions, and processes within an organization into a single
unified system. Here's how enterprise systems are strategically important in
business operations:

1. Streamlined Operations
◦ Efficiency: Enterprise systems automate core business processes (such as
finance, supply chain, human resources, and customer relationship
management), reducing manual work, minimizing errors, and optimizing
the workflow.
◦ Real-time Data: They provide real-time data and updates across the
organization, enabling faster decision-making and ensuring consistency in
data.
◦ 2. Enhanced Decision Making
◦ Centralized Information: With integrated data across different business
functions, executives and managers can access up-to-date, accurate
information to make well-informed decisions.
◦ Analytics and Reporting: Modern enterprise systems often come with
powerful analytics and reporting tools that help businesses track
performance, identify trends, and forecast future demand.

◦ 3. Improved Collaboration
◦ Cross-functional Collaboration: By bringing together different
departments (sales, finance, HR, etc.) into a single platform, enterprise
systems improve interdepartmental communication and collaboration.
◦ Shared Goals and Insights: They help align departments around
common goals, making it easier for teams to share insights and work
together more effectively.
4. Cost Reduction and Operational Savings
◦ Elimination of Redundancy: With integrated systems, businesses can
eliminate redundant data entry, manual processes, and errors, leading to
cost savings.
◦ Resource Optimization: Enterprise systems can track inventory,
production, and human resources, ensuring optimal use of resources and
reducing waste.

5. Scalability and Growth

◦ Support for Expansion: As a business grows, enterprise systems can
scale to accommodate more users, increased transactions, and additional
functions. This scalability supports both national and global business
expansion.
◦ Standardization: With standardized processes across departments and
locations, the system helps maintain consistent quality and business
practices, even across multiple branches or regions.
6. Improved Customer Satisfaction
◦ Better Customer Service: Enterprise systems often include customer
relationship management (CRM) tools that help businesses track customer
interactions, preferences, and history, enabling personalized service.
◦ Faster Response Time: With integrated workflows, businesses can
respond more quickly to customer inquiries, complaints, or orders.

7. Compliance and Risk Management

◦ Regulatory Compliance: Many enterprise systems have built-in features
to help businesses adhere to industry regulations and standards. This
includes tracking financial transactions, audit trails, and ensuring tax
compliance.
◦ Risk Mitigation: Enterprise systems help identify and mitigate potential
risks by providing insights into potential weaknesses or issues in
operations, helping businesses avoid costly mistakes.
8. Competitive Advantage
◦ Agility: The ability to respond quickly to market changes or customer
demands is a significant advantage. With enterprise systems, businesses
can adapt faster, innovate, and capitalize on new opportunities.
◦ Data-Driven Strategy: The insights generated from enterprise systems
help businesses make more strategic decisions, from product development
to marketing and sales strategies.
IT and Ethics
The intersection of IT (Information Technology) and ethics is a critical
area of focus in today’s digital age. As technology advances, it brings both
opportunities and challenges, particularly regarding ethical considerations.
Here's a breakdown of key ethical issues in IT:
1. Privacy and Data Protection
◦ Personal Data: With the vast amount of personal data being collected and
processed by businesses, one of the central ethical issues is how this data
is handled, stored, and shared. Organizations must ensure that they
respect user privacy, get informed consent, and adhere to privacy laws
(e.g., GDPR, CCPA).
◦ Data Security: There is an ethical responsibility for companies to protect
users' sensitive information from breaches, hacks, or misuse. This also
includes being transparent about how data is collected, used, and
protected.
2. Digital Divide and Accessibility
◦ Inequitable Access: The gap in access to technology and the internet is
known as the digital divide. Ethical considerations include ensuring that
marginalized groups, such as those in rural or underserved areas, have
access to essential digital resources and tools.
◦ Inclusive Design: IT professionals must ensure that technology is
accessible to people with disabilities. This includes creating websites and
software with accessibility features, such as screen readers or voice
commands.

3. Intellectual Property and Copyright

◦ Piracy and Plagiarism: Ethical concerns arise around the use of
copyrighted material. IT professionals must respect intellectual property
rights and avoid engaging in piracy or the unauthorized sharing of
software, music, movies, or written works.
◦ Open Source Software: While open-source software promotes
collaboration and innovation, ethical concerns may arise about how
intellectual property and contributions are credited.
4. Cybersecurity and Hacking
◦ Ethical Hacking: The practice of ethical hacking (penetration testing) is
crucial for identifying vulnerabilities in systems. However, ethical hackers
must have clear permission to test and must act within the scope defined
by their employer or client to prevent malicious use.
◦ Cybercrime: Illegal activities such as hacking, identity theft, and online
fraud raise significant ethical questions. Companies must be proactive in
ensuring their systems are secure to prevent harm to users.

5. Social Media Ethics

◦ Misinformation and Manipulation: Social media platforms often face
scrutiny for facilitating the spread of misinformation or harmful content.
The ethical issue here involves balancing freedom of expression with the
responsibility to prevent harm, hate speech, or the spread of false
information.
◦ Data Harvesting: Many platforms harvest user data for targeted
advertising. Ethical issues arise around the transparency of data collection
practices, user consent, and whether users are aware of how their data is
being used.
6. Environmental Impact
◦ E-Waste: The rapid growth of IT leads to large amounts of electronic waste
(e-waste). Ethical issues emerge around how to dispose of this waste
sustainably and how businesses can implement responsible recycling
practices.
◦ Energy Consumption: Data centers and large-scale computing
infrastructures require significant energy resources. Ethical considerations
involve minimizing environmental impact, including reducing carbon
footprints and using renewable energy sources.
Impact of Emerging Technologies on business strategies &
operations
◦ Emerging technologies are enablers of efficiency gains, cost reductions, and process
improvements. From automated workflows to data-driven insights, businesses are
reimagining core operations to stay agile and responsive in a dynamic marketplace.

Improves Customer experience and engagement

Cybersecurity and risk management

Data analysis and decision-making

Sustainability and green technologies

Choose targeted technology solutions

Boost organizational productivity

Enhance collaboration

 Improve security

Supply chain and logistics

◦ Advancements in supply chain technologies include:

◦ Demand Forecasting: AI and machine learning enable more accurate demand forecasting,
reducing errors and optimizing inventory management.10

◦ Self-Driving Trucks: Investments in autonomous vehicle technology aim to improve last-mile

delivery, addressing concerns about driver shortages and sustainability.10

◦ Warehouse Robotics: Speeds up fulfillment processes for e-commerce orders, allowing

employees to focus on complex tasks, such as packaging innovations and workflow
enhancements.
 What is Innovation Management?
 Innovation management is the practice of controlling, guiding, and managing the
ideation and implementation of new strategies and technology to support
business growth.

 The need for this integrated role spans about every sector of private and public
business, and it will only grow as organizations create more advanced solutions.

 The four key pillars of innovation management provides a foundation for IT

professionals to identify the areas where an organization can and should
innovate,
 Competency: The things that your company does really well and better than your competition
(independent of whether it aligns with the needs of your target market).
 Structure: The systems and business processes within your organization. A well-structured organization
is empowered to operate efficiently and execute great ideas.
 ◦ Culture: How your company values new ideas. A “best idea wins" and
“leave your ego at the door" approach to company culture sets the stage for
successful innovation.
◦ Strategy: The long-term growth plan for your organization. This prevents you
from pursuing dead-ends and repeating failures, and it helps you allocate
funds strategically.

◦ As innovation becomes more sophisticated, the need for management becomes more
imperative.

◦Technological innovation is the cornerstone of growth and prosperity, so why

does it need to be managed?
◦ Innovation management informs high-level business objectives to create maximum value
for the organization. To implement effective innovation management, organizations need to
embed the expertise of an IT professional in their business strategy, informed by the
four key pillars.
What is technological change in business?
◦Technological change refers to developing and applying novel or enhanced
technologies, tools, systems, and procedures that result in noteworthy
advancements or breakthroughs across diverse fields, sectors, or
organizations.

◦For example, the evolution of machine learning algorithms, particularly deep

learning, has improved in substantial enhancements within the sectors of
image recognition, natural language processing, and data analysis.

◦For example, 3D printing, a disruptive additive manufacturing innovation, has

revolutionized manufacturing and prototyping methods.
◦ What is the purpose of technological change?
◦ Technological change aims to strategically harness technology to improve
operational efficiency, foster innovation, and deliver outstanding customer
experiences.

What are the phases of technological change?

◦ Invention
Invention denotes the initial discovery of an idea or a groundbreaking concept, often the
result of extensive research efforts. These discoveries are typically integrated into the
product development process.
◦ Innovation
‘Innovation’ can sometimes be used interchangeably with “invention” or refer to exploring
novel ways to utilize or apply existing technology.
◦ Diffusion
Diffusion refers to the widespread acceptance and integration of technology within a
society or industry. It represents how a new idea, product, or behavior gains acceptance in
the market.
How to implement technological change in the business?

◦ Align technological change goals with business strategy

◦ Stay informed to innovate - Keep up with emerging technologies, industry

trends, and market dynamics relevant to your organization.

◦ Set clear objectives for the change

◦ Stay aware of the ethical considerations of technological change

◦ Give employees advance notice of the change

◦ Promote continuous learning and training

◦ Have a system to measure and analyze technological change results