BUSINESS PERSPECTIVE OF IT
The impact of IT on a
business has been tremendous. One of the advantages of IT systems for a
business is the cost-performance ratio, which is better in case of computers.
The labor cost increases every year but the cost of computer does not increase.
A better and more powerful computer can be bought for the same price after a
year. It is better to use computers for routine jobs as far as possible. The
IT has been used in every business and for every function of a business. Some
of the applications are as follows.
Finance and Accounting : IT has been used for forecasting revenues, determining the best
sources and uses of funds and managing cash and other financial resources. IT
has also been used to analyze investments and perform audits.
Sales and Marketing : IT has been used to develop new services, which may not exist
without IT. IT has helped management of various organizations to determine the
best location for production and distribution facilities. The operational data
has been analyzed using IT to determine the best advertising and sales
approaches. The product prices have been set using IT to get the highest total
revenues. In other words, IT has been used for product analysis and price analysis.
Manufacturing : IT has been extensively used for processing customer orders, controlling
inventory levels, developing production schedules and for monitoring product
quality. A whole new discipline - Computer Aided Design and Computer Aided
Manufacturing has evolved due to application of IT to design and manufacturing.
The manufacturing is not what is used to be due to the use of computers,
Computer Integrated Manufacturing (CIM) dominates the manufacturing sector.
Human Resource Management
: Companies are using IT systems for screening
applicants and conducting various tests.
Project Management : A range of software packages are available in the market for
managing projects. These software products let the management set the
schedules, milestones, facilitate communication among group members, and monitor
the project progress. These products help in document and report preparation.
Data Analysis : Investment firms heavily use information systems to analyze stocks,
bonds and options to provide better service to their clients.
INTERNET AND ITS BUSINESS
APPLICATIONS
