AIS LESSON 1
Chapter 1 - Information Technology in a Business Environment
BUSINESS AND INFORMATION TCEHNOLOGY
Many people believe that business nowadays could not survive without the integration
and use of information technology (IT). Business organizations rely on computers to perform
their daily operations and transactions. Multinational corporations, the government, nongovernment organizations (NG0s), local businesses, and even small businesses such as stores
and shops use computers and IT to support their business activities. Therefore, in this modern
world, it is essential for a business organization to integrate IT in their daily business activities.
Business Organization as a System
Any type of business organization, whether multinational or local and large, medium,
or small, can be viewed as a system because it consists of various parts that work collaboratively
to attain a certain goal. The main goal of many organizations is to provide added value to their
clients and customers. In government agencies, for example, delivering added value means a
government agency or organization provides useful and quality service to citizens that is more
than the worth of the resources used for rendering such service.
Business Concepts
The word "business" is traditionally defined as the exchange of products. Business is
an enterprise or activity with the intention to make profits. The term business refers to an
organization or enterprising entity engaged in commercial, industrial, or professional activities.
Business also refers to the efforts and activities undertaken by individuals to produce
and sell goods and services for profit.
Objectives of Business
A business may have different goals depending on its financial standing,
products, industry, etc. However, generally, we can categorize business objectives in four
different ways.
1. Economic Objectives
2. Human Objectives
3. Organic Objectives
4. Social Objectives
Types of Business
A business may be of different types, but generally, we can categorize business into
four widespread types.
FOUR CATEGORIES
1. Manufacturing - the manufacturer or producer produces one or more products and then
sells them to the end consumer to earn profits.
2. Merchandizing - a type of business in which the seller/business sells tangible products
to the customers/consumers.
3. Services - a type of business where the seller offers intangible goods to other businesses
or consumers.
4. Hybrid - are those businesses where an organization practices two or more business types
at the same time.
TYPES OF BUSINESS
 Sole proprietorships - owned and operated by a single person.
 Partnerships-a business relationship between 2 or more people who together conduct
business.
 Corporations - a business in which a group of people acts as a single entity.
 Limited liability companies (LLCs) - A limited liability company combines the pass
through taxation benefits of a partnership with the limited liability benefits of
a corporation.
 Limited Partnership - defined as having limited partners and a general partner, which has
unlimited liability.
 Co-op - a legal business structure that is owned and governed by, and functions for, the
benefit of those who use its services. Cooperatives are owned by those who work for it,
are served by it, or both.
 Non Profit - a group organized for purposes other than generating profit and in which no
part of the organization's income is distributed to its members, directors, or officers
Business Size
 Micro
 Small Businesses
 Mid-Sized Enterprises
 Large Businesses
Data vs. Information
Data are facts that are collected, recorded, stored, and processed by a system. Insufficient
for decision making.
Types of Data
 Alphanumeric Data
 Image Data
 Audio Data
 Video Data
 Information is data that have been organized and processed to provide meaning
and improve decision- making.
 Turning data into information is a process, or a set of logically related tasks performed to
achieve a defined outcome.
 The process of defining relationships among data to create useful information requires
knowledge, which is the awareness and understanding of a set of information and the ways
in which that information can be made useful to support a specific task or reach a decision.
Information Technology and Its Discipline
 IT is the study, design development, application, implementation, support or management
of Computer-Based Information System (CBIS), particularly software application and
computer hardware (Laudon and Laudon, 2009).
 IT is the application of technology to solve business or organizational problems on a broad
scale.
 IT compromises a wide range of hardware and software solutions that support organizations
and evaluate data that help them accomplish their targets.
 It also describes technology-based workflow processes that enhance the proficiency of an
organization to provide services that produce profits.
 IT is defined as the study and application of computers, network, and telecommunications
that store, manipulate, retrieve, manage, and send information.
 IT includes a combination of software and hardware resources that are used together to
perform various functions that people need in their everyday life.
A business can be easily established but difficult to sustain. For a business to
be successful in a greater market, it must take the challenge and be aware of the various factors
of the modern business environment. Businesses must learn how to adapt easily to the changes
in the market as quickly as possible.
The business environment is considered the most fundamental aspects of any business.
It presents both threats and opportunities for a business. Businesses must be aware of the
ongoing changes and use these changes as opportunities.
The Following Are Some Businesses That Are Popular In The Digital Age:
1. Call Centers.
a. A call center agent refers to a person who handles incoming or outgoing customer calls
for a certain business. He/She might handle technical support issues, customer
complaints, and account inquiries.
2. Banking (Online Banking and Mobile Banking).
a. Online banking is one of the many business banking services that banks offer. It is
popularly known as Internet banking.
b. On the other hand, mobile banking allows an account holder to perform many online
transactions through an app using mobile phones (smart phones) instead of a desktop
computer. Mobile banking requires an account holder to register on a mobile app.
Although the features of online banking and mobile banking are relatively the same,
mobile banking requires a mobile banking app and SMS notifications.
1.2 BUSINESS IN THE INFORMATION ERA
o Most businesses established in the Information Era mostly depend on the use of advanced
technologies.
o It is a fact that people currently live in the Information Era, commonly known as the Digital
Age.
o Information Era is described as enormous and incredible, where huge amounts of information
can be shared around the world in just one click of a finger.
Business Environment in the Information Age
The Information Age enables businesses to compete in a marketplace that is complex,
global, and customer focused. Thus, companies must know exactly how to react to opportunities
and problems that might come up from this modern business environment, which is a
combination of various factors (internal and external) that might affect business activities and
influence a company's operations. These factors may include clients, suppliers, owners,
technology, laws, and economic, social, political, legal, and government activities.
1.3 THE CHANGING ROLE OF IT IN BUSINESS
IT is about telecommunication networks; all kinds of hardware such as
computers, routers, memory, cables, servers, and printers; and all types of software
including both systems and applications such as operating systems, productivity tools,
office application tools, data management tools, and social and mobile applications.
IT has replaced the traditional or conventional methods of business activities with modern and
innovative technological tools.
Productivity
Technological tools and applications such as computer - aided design (CAD), office
application tools (word processors, spreadsheets, and presentation software), programming
software, database technology, and the like, improve business productivity.
Monitoring
IT tools are used for monitoring purposes in various areas of business organizations.
The main reason for this is to ensure that all resources are being utilized efficiently.
Business performance management
Developed as monitoring method that most businesses use to achieve their goals.
Role of Information Technology in Other Fields
Technology is no longer about luxury; instead, it has become a necessity. Technology has
become very popular in various fields such as education, manufacturing, communication, and
banking. Industries use technology mainly to improve their services and increase their productivity.
Health
IT also plays a significant role in the field of medicine. For example, a patient
record management system (PRMS), which is designed to record all transactions made
by patients, are common nowadays in hospitals. Medical doctors take pictures of patients' body
parts to detect illnesses or disorders using machines like the computerized axial tomography
(CAT) or magnetic resonance imaging (MRI).
Information Technology Career Opportunities
Education
IT plays a vital role in providing quality education to students. Nowadays, technology is a
staple part of most classrooms. For example, in experiential learning, students use simulates their
learning activities.
1. Help Desk Technical Jobs: Technician must be knowledgeable about computer system
and have good customer service skills.
The following are some examples of emerging educational technologies:
2. Technical Support Analyst Jobs: Technical support analyst are considered professionals
who assist staff within an organization and support non- IT computer users.
 Glogster EDU.
o Students can use this tool to present their research creatively. It allows students to
create unique projects or research presentations.
 Mentimeter.
This is a website specifically designed to support teaching and learning in schools,
colleges, and universities. This website increases the participation of students in the
classroom. It allows teachers to prepare practice exercise questions online and ask
students to answer virtually.
 Electronic Learning Organizer.
o This is a cloud-based technology that helps language teachers produce activities for
their students in the form of digital learning objects.
 Constant Therapy.
o This is a mobile app-based educational technology for students with special needs. It
provides personalized therapy for students with disorders in communication, learning,
language, and others. It also allows educators to monitor students' progress
Learning Management System
Learning management systems (LMSs) address this drawback. These systems
are powerful online applications containing designed and developed courses for
students. Course contents can be uploaded anytime in LMSs. Through them, educators
can prepare online assessments such as a quizzes, assignments, and discussions. LMSs
host forums and post announcements to answer the queries of students and cater to their needs.
3. Business Intelligence Analyst Jobs: Business intelligence analyst are computer science
graduate who use computer software programs to go through big data and trace specific
information to formulate reports and create presentations by considering the company’s
level of efficiency and its departments advancements over a selected timeline.
TRENDS IN INFORMATION TECHNOLOGY DEVELOPMENT
The Adaptability of the Internet of Things (loT)
loT is a system of interconnected computing devices, mechanical and digital machines,
objects, animals, or people. It has the ability to transport data over a network without requiring
human-to-human or human-to-computer interaction.
Development of Web Applications
These are web applications that are composed of web pages or websites similar to
traditional and most mobile application, program that is stored on a remote server and delivered
over the Internet through a browser interface.
The Brainpower of Artificial intelligence
(Al) is the simulation of human intelligence processes by machines,
particularly computer systems. These processes include learning, reasoning, and selfcorrection. Specific applications of Al include expert systems, speech recognition, and machine