USE OF IT IN SME
1. DATA VS. INFORMATION : Book
2. DATA-INFORMATION-KNOWLEDGE It is a common misconception for people to use terms such a
data, information, and knowledge interchangeably, but the truth is that they all mean very different
things.
Definition of Data:
Data is understood differently in various sectors. In its basic form, data is a set of different symbols
and characters whose meaning only becomes clear when they connect with context. Collecting
and measuring observations generates data. Usually machines send, receive and process data.
The confusion between data and information often arises because information is made out of
data. In addition, data often gets interpreted as facts in the context of the colloquial meaning and
are therefore regarded as information. It can be noted that computers are very good at crunching
data; they are only now learning now to make sense of it to derive information with the help of
Machine Learning.
Definition of Information:
Data reaches a more complex level and becomes information by integrating them to a context.
Information provides expertise about facts or persons. Example of information: The information
about a date of birth still has very little value when it is unknown to which person it belongs. By
adding more information like the name, inter linked pieces of information and context represent
knowledge.
Definition of Knowledge:
Knowledge thus describes the collected information that is available about a particular fact or a
person. The knowledge of this situation makes it possible to make informed decisions and solve
problems. Thus, knowledge influences the thinking and actions of people. Machines can also make
decisions based on new knowledge generated by information. In order to gain knowledge, it is
necessary to apply such information.
Key Differences Between Data, Information and Knowledge
 Data is fragmented pieces of symbols and characters strung together, information is
refined data whereas the knowledge is useful information. Additionally, data can lack
context when looked at singularly, whereas information gives context to data and
knowledge brings depth in understanding to such information.
 It is noteworthy that data is incomprehensible independently, but the outcome of
information is comprehension while the outcome of knowledge is understanding. Data is
meaningless without being compiled into a sensible structure, while information
improves representation and knowledge amplifies consciousness.
 Data and Information alone are not sufficient to make any predictions while in knowledge
prediction is possible if one possesses the required experience.

You can’t cannot use Data to make any statements, while information is data strung
together, forming statements. Knowledge brings the ability to have a deduced conclusion
using pieces of information together.
 Data cannot independently be a basis for question formation; Information is a text that
answers the questions a who, when, what, or where while knowledge is a text that
answers the questions of why and how. The final difference we can take into
consideration is that data and information are easily transferable while to transfer
knowledge one requires learning.
3. HOW CAN INFORMATION TECHNOLOGY HELP SMES : follow the Slides +
From boutiques to at-home jewlery start-ups, small businesses use technology.
Small businesses rely on technology to help them operate on a daily basis. From laptop computers
with Internet capabilities to printers, online file storage and Web-based applications,
technological advances impact small businesses across various industries. Technology has the
potential to affect small business in positive and adverse ways, depending on the goals a business
has a in place, the products they chose to use, and how well entrepreneurs and their employees
adapt to new systems.
 Share and Collaborate
Small businesses work closely with their clients to provide them products and services that add
value to their lifestyles. Going from an idea to a finished product or service requires small business
owners and their employees to collaborate with each other and external vendors. E-mail and
instant messenger tools paved the way for online sharing and collaboration. With the ability to
instantly connect, share information and get feedback, e-mail and instant messenger are
beneficial technological advantages for small businesses. Web-based project management
programs such as 5pm, Basecamp and Zoho Projects offer a Web-based approach to keeping track
of projects, delegating tasks, updating team members and clients, tracking time, and sharing
documents in real-time. For small businesses, this means up-to-date information available in a
central hub, regardless of a person’s location.
 Flexible Work Environments
Technology gives small business owners and their employees the option to work in the office,
from home, on the road and even from across the country. Affording small business owners the
opportunity to hire talent from all over the world, technology can help businesses gain a
competitive edge in the global environment.
 Instant Connection With Customers
Small business owners no longer have to mail surveys to customers and wait for weeks for replies,
nor do they have to call customers for feedback. Technology gives small businesses the ability to
connect with their customers via e-mail, through blogs, social networks and forums. Small
business owners can take advantage of this instant connection by getting feedback from
customers and applying it to their businesses immediately, if they see fit.

Online Stores
Technology allows crafters, clothing and accessories designers and painters an option to set up
online stores, rather than investing in costly storefronts. With consumers migrating to the Internet
to find everything from gifts to ordering groceries, the popularity of online shopping increases
with the variety of products and services. Businesses with storefronts can create online stores to
expand their visibility and reach target markets beyond their neighborhoods and surrounding
communities.
 Employee Training
As small businesses implement new technologies into their processes, they are tasked with
providing training to new and veteran employees. While new employees are likely to easily adapt
to the technologies, veteran employees may resist the new technologies or experience a learning
curve, which may temporarily reduce productivity.
The technological revolution has improved businesses this century in the
following five primary ways:
1. Information technology has given business the tools to solve complex
problems.
Improved hardware (more memory, faster processors, sharper visual displays,
etc) combined with smarter applications (Mindmapping software like X Mind,
collaborative software like Kanban boards, organizers like Google calendar,
etc) have made it easier to research data, analyze it, and plan scalability. Many
tools available to solve complex problems.
2. Information technology allows businesses to make better decisions.
Good decisions in business are based on solid market research. This can be
done through engaging teams through video conferences, reviewing public
sentiment on social media and industry forums, and using online surveys to get
customer feedback. There are also tools like Microsoft CRM Dynamics and
Google Analytics.
3. Information technology has improved marketing.
Internet marketing using online advertising methods (SEO, PPC, Facebook
Ads) are far more accurate ways than traditional marketing of finding target
audiences, discovering their needs, and building a marketing campaign to
persuade them to buy. It’s difficult to see how many people read a newspaper
ad. It’s easy to figure out how many people clicked on an online banner.
Information and communications technology systems include desktop computers,
laptops and tablets, fixed and mobile telephone systems, communications networks and
software – even wearables. Your business can use ICT systems to benefit from
improvements such as reducing costs, increasing efficiency, improving decision-making
and increasing your competitiveness in the marketplace.
Better Decision-Making
ICT systems allow your business to store, process, analyze and share vast amounts of
data. The information available from corporate data enables managers and employees
to make decisions quickly and accurately so that they can manage operations effectively
and respond rapidly to business opportunities or threats. Communication networks also
enable decision-makers in different locations to work together easily when they need to
take joint decisions.
Improved Customer Service
Quality of customer service is an important differentiator for businesses. Your company
can use ICT solutions to offer faster response to and higher standards of service to its
customers. If you run a call center, for example, your agents can access databases that
provide comprehensive customer information, including purchase history and product
preferences. The information helps them deal quickly and efficiently with inquiries,
boosting customer satisfaction. Service personnel working in the field can access
customer, service and product databases using smartphones with secure Internet
connections. This enables them to fix problems quickly and effectively, again boosting
customer satisfaction.
Improved Financial Performance
ICT solutions can help your organization reduce costs, increase revenue and improve
profitability. Using videoconferencing to host meetings between members in different
locations, for example, reduces travel costs. Production data can help staff identify
quality problems, reducing waste and reworking costs. Call center agents can use
information available on their customer databases to increase revenue by identifying
opportunities for selling additional products or services. Cost reductions and revenue
gains make an important contribution to overall profitability.
How Technology Adoption can help SMEs
4. Helps in Automation: Automation is the need of the hour and it is something that India’s vast
SME sector needs to adopt to avoid inefficiencies and enhance productivity. Adopting right
technology can help SMEs focus on the core business. Manual and Repetitive tasks can be
avoided by using automated technology. Moreover the chances of errors are reduced
greatly. This can help the SMEs to save time and cost and thereby increasing productivity
and efficiency.
5. Focus on core activities: Running a small business comes with its own challenges. The
business owner has to juggle between different tasks. Due to limited number of employees,
the burden on the owner increases. By using right technology, SME owners can focus on
what matters the most rather than focusing on daily chores of the business.
6. Customer Communication: With proper technology, SMEs can enhance their
communication levels. Customers appreciate prompt response to their queries. Using CRM
tools will help SMEs build long lasting relationships with their customers.
7. Ease of Marketing: Having the business technologically inclined allows SMEs to reach a
wider group of customers. Creating a digital presence could help SMEs differentiate their
business from the competitors in a cost-effective manner.
4.INFORMATION
TECHNOLOGY
COSTS
What Are the Real Costs of Your Technology Project?Understanding
the real cost of a technology project helps you to determine if you should start, stop, or continue a
project. It also helps you with vendor selection and project valuations. It is invaluable input for good
decision making.
Total Cost of Ownership (TCO)
The real costs of your technology project can be found through the Total Cost of Ownership (TCO)
of
the
solution
your
project
is
implementing.
TCO is an analysis meant to uncover all the lifetime costs that follow from owning a solution. As a
result,
TCO
is
sometimes
called
'life
cycle
cost
analysis.'
When evaluating the TCO, there are four main types of costs (or buckets) to consider:
1) Acquisition
2) Implementation
3) Operation
4) Improvement
costs
costs
costs
costs
The length of the TCO period depends on the expected lifetime of the solution. This can be any
number of years, but typically for technology projects five years is used.
So, to estimate the TCO you calculate the cost for each bucket for each year of the chosen lifetime.
In the end you add all costs up.
Acquisition Costs
Typically, this bucket will include the outright purchase of hardware and software. It is usually
accounted for as a capital expense in the organization’s budget and can be depreciated over time.
There may also be a people component that should be accounted for in determining the total
acquisition cost, represented by the time required to evaluate different vendors or solutions.
Additionally, acquisition cost may include the necessary pre-conditions to enable the new
technology to function properly, such as new hardware to support a new software platform or the
purchase of upgrades to existing hardware and software. In effect, any one-time purchase should
be
counted
towards
the
acquisition
cost
of
the
technology.
With software as a service (SaaS) solutions like Salesforce or ServiceNow your acquisition costs
are usually limited to the evaluation process. You will pay for the software on a monthly basis.
Implementation Costs
Once any necessary hardware or software has been acquired, it has to be set up, made operable
according to its intended use, and deployed to the intended users. Costs in this category generally
consist of the installation of hardware, software, and network connectivity.
Let’s take for example a Salesforce implementation. The increased use of web-based solutions
might require a faster, more robust internet connection, which, depending on the organization’s
office situation, could require installation costs on the part of the broadband vendor (or even a
change in vendor), as well as the time cost of configuring and deploying the system.
Typically the bulk of your implementation costs come from the many people inside your company
that will be key to your project’s success. Give a rough estimate of how many hours per week each
of them will be involved in the research, implementation, and subsequent maintenance of your
Salesforce implementation. In some cases, you may even want to hire a new staff member to
oversee
your
implementation
and
maintenance.
Additionally, it’s also important to include the cost of training users on the new technology and have
some sense of the impact of the change on productivity and efficiency. In almost every case,
implementation of a new system causes a short-term dip in efficiency as users get used to working
in
the
new
environment.
Depending on accounting interpretations, much of the implementation cost may be treated as a
capital expense, and it is often the largest visible cost of a project, particularly when using external
consultants
to
do
the
implementation.
As with acquisition costs, implementation costs are generally one-time expenses, although they
may fall within multiple budget years depending on project timing. Training and adoption support
don’t usually qualify as capital expenses.
Operation Costs
Although often not highly visible in planning for projects, there are ongoing costs of keeping a new
solution up and running in the long run, as well as scaling it to additional users. These are known
as
operation
costs.
Operation costs include warranties, support contracts with external vendors, ongoing license costs
and, occasionally, upgrade costs. The project charter must be able to forecast these recurring costs
based not just on current numbers, but also on the organization’s planned future state.
For example, if Salesforce costs $25 per user per month with 3,000 current users, but the
organization plans to scale it to 5,000 users in three years, the cost will also scale, which can
provide an unwelcome surprise from a budgeting perspective unless it’s been planned for from the
outset.
In addition to Salesforce licenses, you may need licenses for other applications. This could include
a form solution, a payment processing solution, an email marketing solution, and more. After all,
one of the biggest reasons people move to the Salesforce ecosystem is the ability to integrate thirdparty
apps.
Additionally, future costs planning must take into account the staff resources necessary to meet
the organization’s needs. This could include support or administrative staff for the technology,
general technology support to keep up with the organization’s growth, and management capacity
to keep up with the organization’s strategic planning. This capacity may be maintained in-house
or provided by external partners. Both having different impact on your TCO.
Improvement Costs
Deploying new or additional functionality or moving into a higher tier of an implemented SaaS
solution with more features are typical improvement costs. Custom development and integrations
with
legacy
systems
are
also
very
common
business
needs.
In my opinion you should take a certain percentage of your operation costs and budget these as
improvement costs, because this is reality. Fifteen percent is a good value to start discussions.
The Real Costs of Your Project
Now that you've made estimates for each of the four bucket areas for each year of the chosen
solution lifetime you can compute your project's Total Cost of Ownership.
With that, you're one step ahead in understanding the real costs of your technology project. You
understand now the cost drivers for implementation as well as operation. You can compare
different solutions as well as offers from different vendors and implementation partners.
5.USES OF INTERNET (GOOD & BAD)
Here is a list of the most popular reasons people use the Internet today.
Search information
News
Communicate and collaboration
File and data transfer
Social networking
Entertainment – relax, watch video, listen to music
Gaming
Business promotion
Earn on the Internet
Shopping (E-commerce)
Education
Online services
Blogging
Dating
Remote work
1. Search information
We search for information every day, whether that be a product, news story, video or similar
thing. To do that, we use search engines like Google Chrome, Mozilla, Safari or search for
information on websites surfing on the web.
The search is done by typing a query or question for which we seek specific information or
answers.
Search engines through their active search algorithms, provide us with valuable and useful data,
information and knowledge at any time, instantly upon our request.
2. News
People want to know what is happening around the world immediately. They want fast
information and stay updated on a daily basis.
They don’t bother to wait for the morning newspaper or the news broadcast on their TV or radio.
Therefore, people prefer news websites on the Internet and consume the top daily news there.
Most people prefer known, relevant and authoritative websites such as CNN, Huffington Post,
BBC, New York Times, NBC and similar.
There are also news aggregators where there is top information even by topic like:
Feedly
Google News
Alltop
Panda
Flipboard
3. Communicate and collaborate
The first significant and most popular use of the Internet is Email. Email is still the first thing that
most people check after they have logged on to the Internet.
Through time, people shared information and data files via this channel but communication is the
priority purpose. Email has enabled easy, fast and efficient communication between people and
businesses. Besides the email, today, there are many other online tools and software apps for
audio and video communication via an internet connection such as:
Whatsapp
Viber
Skype
WeChat
With the rise of smartphones, these apps and email are now even more accessible than ever.
4. File and data transfer
Probably the second major use of the Internet in the early days is file and data transfer. This is
done by the FTP – File Transfer Protocol that enables secured exchange between two participants
over the Internet.
This Internet use was essential because the email services restrict the size of a file that can be
shared and cannot guarantee the security of sensitive and confidential data.
Today there are many other ways of file and data sharing like cloud services and peer-to-peer
network distribution, also know as torrenting.
Torrenting is a widely popular file-sharing protocol (P2P technology), allowing vast numbers of
users to connect and share content without having to rely on a single source for downloads.
On the other hand, there are also different modern ways for storing and transferring larger data
files on the Internet offered by software tools like WeTransfer, Google Drive, Dropbox and others.
5. Social networking
Social networking helps in connecting the world in a more humane approach. One of the most
desired new things to do on the Internet is to express yourself and make new friends via popular
social networks.
Social media has become a worldwide sensation in the past few years.
The boom started with the launch of Facebook, where other similar platforms followed. Now they
are used more frequently from people with various interests and age groups.
We are familiar with these platforms like Instagram, Twitter, Pinterest and many others that
occupy a large proportion of our daily time.
6. Entertainment – relax, watch video, listen to music
Today the Internet is the main source of entertainment. You can watch or listen to anything online
by your choice and at any time you want.
Those things can be:
Movies
TV Shows
Music
Sports
Audiobooks
Podcasts
The rise of online streaming platforms like Netflix, HBO, Amazon Prime, YouTube, Twitch and
many others have revolutionized the way we watch movies or TV shows and how we pick them.
On the other hand, digital music streaming services like Spotify, Apple Music, Deezer and YouTube
Music have made a serious impact on how we listen to today’s music.
In the end, are also social media networks like Facebook, Instagram, Twitter and Reddit, where
we see various types of photos, GIFs, memes and videos with entertaining content on a daily basis.
7. Business promotion
Major search engines, social media, and advertising services have made an affordable and easy
way to promote your business online.
The process of internet marketing allows for better data collection as well as personalization,
reaching a big chunk of the online’s population.
To do that, businesses should be really creative to stand out from the crowd and get to their
potential customers.
8. Earn on the Internet
Earning a small amount of money with the use of the Internet has never been easier. There are
many people for doing the same things that an Internet user does but get paid for that.
You just need a computer and an internet connection to start doing this. There are few good
trustworthy websites where you can answer surveys, shop online, watch entertaining videos,
search the web and similar great deals to earn money with no effort.
The only investment here is your time.
9. Shopping (E-commerce)
With the rise of the e-commerce industry, our habits of buying online stuff have evolved a lot.
In the beginning, many people didn’t have trust in the e-commerce website, but that has changed
over time. Now we can order anything like clothing, fashion accessories, machines, books,
technology stuff and lots of things that are available on the Internet.
There are many websites where you can buy products and place products like Amazon, eBay,
Aliexpress, Etsy, and many other personal businesses that are creating their online shops every
day.
10. Education
The Internet plays a vital role in effectively shaping today’s education process.
It has the availability and the quality of learning for many students because they can study what
they want and whenever they feel most productive. Here, with the help of e-learning, you can
attend classes and take exams online at your home.
We are witnessing the rise of informal education where you can sharpen your skills online and get
faster progress in a specific field.
11. Online services
To adapt to the digital transformation process, many businesses step into the game to bring their
services online.
This has happened with online banking, telecommunications, governmental services, online
booking, and more.
At the same time, it has reduced the need to visit them locally or go through intermediaries who
offer these internet services in the name of the actual companies and give people more flexibility
in saving their precious time.
Wrap up
We are free to use the Internet and how we do that depends on our desires and goals.
The Internet can provide us with useful information which helps us to make decisions and
conclusions, making our life more comfortable and simple in many ways.
Spending a lot of time on the Web, It is vital to use it in a positive and productive way, being
careful and ethical when sharing and consuming a specific content.
The Internet is a huge revolution in information technology and it is up to us how we use it and
utilize our time on the world wide web.
What are the disadvantages of the Internet?
Although the Internet has various benefits and is one of the most powerful creations, it also
contains many disadvantages. Below is given a list of the complete disadvantages of the Internet.
What are the disadvantages of the Internet
1. Addiction, time-waster, and causes distractions
If any person is spending much time on the Internet connected devices, he can be addicted to the
Internet. An Internet addictive person can lead to spending his precious time on the Internet,
rather than doing something productive. Thus, anyone who is addicted to surf the Internet can
hamper workplace productivity as well.
2. Bullying, trolls, stalkers, and crime
A person who uses the Internet very frequently can face abusive or trolls’ people. Another issue
cyberbullying is also increasing rapidly over the years. Sometimes, you can be tracked on the
Internet by hackers or unauthorize persons; they can be harmful to you by stealing your personal
information.
If you are spending your more time on the Internet, so it will be easier for hackers to find your
personal information through various means. To run business without as much fear of being
caught, the web deep, and the hidden places on the internet can also be a place for criminals.
Additionally, there are several people that provide criminals more ways to solicit their goods.
3. Spam and advertising
The Internet is the best place to advertise any service or product as compared to traditional
advertising methods (for example, TV, newspaper, and radio). But you might see more spam in
your inbox than junk mail in real life because digital advertising can be sent on a massive scale.
4. Pornographic and violent images
In modern times, there is a huge amount of content available on the Internet. Also, there are
various resources that contain a large amount of data, such as Wikipedia, and some sites are also
available that have less desirable content. Accordingly, users can see pornographic or violent
images that they may not want to see while using sites.
5. Never being able to disconnect from work
The Internet is the best creation to offer connectivity and enable people to work from anywhere.
Therefore, anyone can expect you to be available any time to work, even if you are not available
to work there. For instance, you have received an important work-related e-mail while you may
be at home and then without getting paid, end up working on the content of that e-mail.
6. Identity theft, hacking, viruses, and cheating
There are various malicious users and computer hackers that can steal your personal information
and hack accounts, which can be used for identity theft and can be harmful to you personally. As
the Internet connects all computers to each other, so hackers can quickly identify what computers
are vulnerable to attack by scanning millions of computers. Additionally, the Internet also enables
students to find others to do their homework and offers ways to cheat on their studies.
7. Health issues and obesity
If you are surfing the Internet frequently, playing games and spending too much time on the
computer, it can also lead to obesity and an unhealthy lifestyle. Also, a person who spends too
much time on the computer can face a problem like carpal tunnel syndrome as a computer
requires a lot of repetitive movement.
You are required to move your body parts to operate the computer, for example, typing and
moving hand to the mouse are repetitive actions that can cause injuries. Understanding computer
ergonomics, keeping the proper posture, and taking breaks can all help delay or prevent these
injuries.
8. Depression, loneliness, and social isolation
The Internet also becomes a reason lead to depression as many people tend to compare their
lives with others on social networking sites. Social networking sites provide users the option to
make thousands of friends and communicate with each other. There are also available online
games that allow players to communicate with others. Although social networking sites can give
you benefits to find new connections all over the world, you may find yourself disconnected from
your real-life friends.
9. Not a safe place for children
The Internet may not be more useful for children as they are spending much time on the Internet.
Also, there are many unethical and pornography communities are available on the Internet that
can cause to distract their mind. Therefore, the Internet is not beneficial for children as they can
bypass parental protection with the help of different tools available on the Internet. Furthermore,
if children are allowed to use the Internet, they can be addicted to it, which is also very dangerous.
10. Viruses/Malwares
The frequently use of the Internet may infect your system from viruses that can damage your
valuable data, which is difficult to recover. These viruses enter into the system through USBs,
CIDs, and the Internet. Also, because of viruses, your system can become totally worthless.
6. IMPLEMENTING TECHNOLOGY : Hand note.
7. Hard ware decision: Book
8. IT AS STRATEGIC INVESTMENT : Laudon chapter 1- it isn’t just technology
Chapter3- 3.2
Chapter5- total cost of ownership of technology assets
Ai shb gula mile hocche “ IT as strategic investment” ai topic