Importance of IT

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. 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. 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. Importance of IT
 The Six Important Business Objectives of
Information Technology
 Product Development
 Stakeholder Integration
 Process Improvement
 Cost Efficiencies
 Competitive Advantage
 Globalization

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. Importance of IT
 Functions of information technology
 Data capture
 Data Processing
 Generation of Information
 Storage of information
 Protection of Information
 Retrieval of Information

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. Importance of IT
 Business 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

9. Importance of IT
 Disadvantages:
 Implementation Expenses
 Job Elimination
 Security Breaches

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. Importance of IT
 Lets find it out ourselves……..