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Importance of IT

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Importance of IT

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Importance of IT

  1. 1. 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.
  2. 2. Importance of IT  What are the characteristics of good Information?  It has to be accurate  Must be relevant to basic purposes  Complete in respect to the key elements of the problem  It has to be Timely (should be communicated in time to be used )  It has to be consistent and reliable  It has to be Up-to-date  Easy to understand  It has to be tailored to the needs of managers and end users
  3. 3. Importance of IT  What are the characteristics of Technology?  Technology is human knowledge  Technology uses tools, materials and systems.  Its application will result into artifacts (human-made things )  Technology is developed by people to modify their environment.
  4. 4. Importance of IT  The Six Important Business Objectives of Information Technology  Product Development  Stakeholder Integration  Process Improvement  Cost Efficiencies  Competitive Advantage  Globalization
  5. 5. Importance of IT  Importance of information technology to users and organizations:  IT helps in re-engineering of work practices  Speed  Consistency and accuracy  Reliability  Team productivity
  6. 6. Importance of IT  Functions of information technology  Data capture  Data Processing  Generation of Information  Storage of information  Protection of Information  Retrieval of Information
  7. 7. Importance of IT  Advantages and Disadvantages of information technology in Business  Advantages:  Increases production and saves time  Improves communication through communication technology  Improves data storage and file management  Improves financial management  Cuts costs of operation and increases on ROI  Improves business to consumer relationship  Improves on business competitive advantage  Automated Processes  Work Remotely  Communication  Change Management
  8. 8. Importance of IT  Business model transformation:  Production and operations optimization—e.g., deploying and then acquiring Kiva Systems robotics for 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
  9. 9. Importance of IT  Disadvantages:  Implementation Expenses  Job Elimination  Security Breaches
  10. 10. 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.
  11. 11. Importance of IT  Lets find it out ourselves……..