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Unit 1: IT for Managers

media sites and processing online orders on an e-commerce site. Small business owners Notes
can use online search engines to research consumer buying trends and identify profitable
marketing opportunities. Software systems also allow companies to track visits on websites,
clicks on Internet ads and the amount of time spent on each section of an e-commerce sites.

Process Improvement: Companies can leverage IT to improve processes and achieve cost
savings.

Example: A small business could insist on paperless communication inside the company
to save on printing and duplication costs, while achieving reliable data transfer.

Virtual collaboration saves on expensive travel costs and improves productivity because
employees do not have to spend hours or days on planes and at airport terminals. IT can make
human resource processes more efficient.

Example: A small business can organise Internet-based training sessions for its customers
and employees, thus saving cost and time.
Enterprise Resource Planning: Enterprise resource planning is the use of software systems
to link together business functions, including sales, manufacturing, human resources and
accounting. Management gets access to real-time aggregated information, which helps in
operational and strategic decision-making. For large companies, these systems can be
expensive and the installation can disrupt operations for months. However, small businesses
can install the software modules for one function at a time, thus minimising costs and
disruptions.

Task Explain how IT enables efficient and high-speed communications.
Self Assessment

Fill in the blanks:
4. Businesses use ................................... to store, manage and access vast amounts of data.
5. ................................... is the use of software systems to link together business functions,
including sales, manufacturing, human resources and accounting.

1.3 Network IT

Information and communication are two of the most important strategic issues for the success of
every enterprise. While today nearly every organisation uses a substantial number of computers
and communication tools (telephones, fax, and personal handheld devices), they are often still
isolated. While managers today are able to use the newest applications, many departments still
do not communicate and much needed information cannot be readily accessed.
To overcome these obstacles in an effective usage of information technology, computer networks
are necessary. They are a new kind (one might call it paradigm) of organisation of computer
systems produced by the need to merge computers and communications. At the same time they
are the means to converge the two areas; the unnecessary distinction between tools to process
and store information and tools to collect and transport information can disappear. Computer
networks can manage to put down the barriers between information held on several (not only
computer) systems.

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