Information Technology for Managers

Unit – 1

 Fundamentals of IT

Information Technology (IT) may be defined as technology that is used to acquire, store ,
organize, process and disseminate processed data which can be used in specified applications.’

 Information is processed data that improves our knowledge, enabling us to take decisions and
initiate actions.
 Information Technology is the design and implementation of Computer networks for data
processing and Communication.
 This includes designing the hardware for processing information and connecting separate
components for developing software that can efficiently distribute this data.
 In a modern workplace, it is imperative that IT works both effectively and reliably.
 Computers and Information System Managers plays a vital role in the implementation and
administration of technologies.
 They plan, coordinate and direct Research on the Computer related activities of firms like
technical aspects.
 Software Development.
 Network Security
 Internet Operations
 Components of a System

Computers are information Processing Machines. IT can be viewed as a system, which consists of
a number of interrelated components that work together with the aim of converting data into
information.

Definition:

A Computer is an electronic machine, used for performing calculations and controlling

operations that can be expressed either in logical or numerical terms.

There is an electronic device that performs different operations with the help of instructions
to process the information in order to achieve desired results.\

There are several computer systems in the market with a wide variety of makes, models
and peripherals.

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1. Central Processing Unit [CPU]

This unit performs processing of instructions and data inside the computer.
2. Input Unit: This unit accepts instructions and data.
3. Output Unit: This unit communicates the results to users.
4. Storage Unit: This unit stores temporary and final results.

1. Central Processing Unit [CPU]

Central processing unit is the administration section of the computer system. IT interprets,
coordinates the operations and supervises the instructions.

CPU works with data in discrete form, that is, either 1 or 0.

The circuit necessary to create a CPU for a Personal Computer. The CPU itself has three
parts.

a. Arithmetic Logic Unit [ALU]

 This unit performs the arithmetical and logical operations on the stored numbers.
 The data is transferred from the memory unit to the arithmetic logic section, processed, and
returned to internal storage.
 Before the completion of the processing, data may be transferred back. Subsequently, the
results are transferred from internal storage to an output device.

b. Control Unit

 This unit checks the correctness of sequence of operations. It batches the program
instructions from the primary storage unit, interprets them, and ensures correct execution
of the program.
 It also controls the input/output devise and directs the overall functioning of the other unit
of the computer.
c. Memory Unit
 This unit holds the intermediate results during the course of calculations and provides the
data as and when required. This internal storage is also called Primary Memory or Main
Memory.
 This memory takes the data from an input device and stores it until the Computer is ready
to process it.

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 It also stores processed data and intermediate results. When the processing is finished, it
transfers the results to an output device.

Instruction Flow
Data Flow

2. Input Unit

 A Computer system also incorporate input and output devices, which are the
communication media between human and the computer.
 An input unit accepts instructions and data from the user and communicates them to the
computer.
 The basic unit is to gather the data and convert into the form that the Computer can
understand some of the input devices are Keyword, Mouse, and Light Pen and so on.

3. Output Unit

 Just as humans communicate with Computers through input devices. These devices take
the machine coded output results from the processors and convert them into a form that
can be used by the people or as a machine input in another processing cycle.
 Some of the output devices are Printer, Monitor and Plotter etc.

Storage Devices

 These devices are extensively used for storing data or instructions.

 The Physical components or materials on which data is stored permanently are called
storage units or devise.
 It supplies the stored information to the other units of Computer when required.
 Some common storage devices are floppy disks, hard disks and tape drives.

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 Meaning and Nature

Technology is the knowledge generated for the purpose of development of new systems to
help in solving practical problems.

 Using technology, information can be easily gathered about various fields such as weather
forecasting, space exploration and much more.
 For the development of technology, information is essential.
 Information is the collection of facts gathered through various means of communication.
 Technology makes information gathering fast and easy.
 Information along with technology has created a new branch called “Information
Technology”
 IT involves the processing of information by a computer.
 This is possible through the use of hardware, software, services and the supporting
infrastructure to manage and deliver information.
 Information is the processed data, on which decisions are taken and the subsequent
actions are performed.
 Technology is the human innovation that involves the generation of knowledge and
processes to develop systems capable of solving problems.
 Information Technology is a combination of telecommunication and computing to obtain,
process, store, transmits and output information in the form of voice, pictures or text.

This includes the following:

 Software applications and operating systems.

 Web-based information and applications such as e-learning.
 Telephone and means of telecommunications.
 Video equipment and multimedia products.
 World Wide Web.
 Electronic devices such as photo copiers.
 A key to the technology advances in IT sectors is the interweaving of computation,
communication and content supporting by theories of information and Computer Science.
 Components of Information Technology
 The Components of information Technology include hardware software, data and people.
 These components are essential in the proper functioning of a system in IT.

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Hardware

 Hardware consists of Physical components that form a computer system or any other
electronic gadget.
 To run a Computer both hardware and Software are required.
 Hardware is the physical unit, that stories and transmits information.
Ex: Monitor, Keyboard, Processor, and Mother Board etc.

Software

 Software is a set of instructions in the form of programs, which control the sequence of
operations.
 Software runs along with the hardware on the Computer System.
Ex: Software present in mobile phone allows users to perform various functions like
sending messages, recording a person’s voice and taking photographs.

Data

 Data is an unprocessed collection or representation of raw facts, concepts or instructions.

 Those are suitable for Communication, interpretation, and processing by humans or by
automatic means.
 Data includes Constants, variables, arrays and character strings.
 Data can be meaningful and/or meaningless.
 Data is gathered for the purpose of communication, interpretation or processing of tasks.

People

 People play an important role in Information Technology.

 They perform various functions with the help of hardware and software to produce the
desired output using IT.

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Data Hardware

Components
of Information
Technology

People Software

Fig: Components of Information Technology

 Role of IT in various sectors

Information Technology plays a vital role in today’s global economy. It has made a
significant impact in research and development.

The Research is being carried out in networking, computing data Representation and many
other areas for exploring the existing methodologies and multimedia electronic libraries which
help in improving the sharing of knowledge and the education practices.

The major areas impacted by the advent of information technology include business,
media, education etc.

Information Technology in Business

Information Technology plays an important role in business environment as every

organization adopts it is some form or the other to perform the tasks in effective manner.

Electronic Commerce or E-Commerce refers to the electronic means to conduct commerce

between business communications and transactions over Internet.

It includes buying and selling over the Internet, electronic fund transfers, smart cards,
digital cash and all other ways of doing business over digital networks.

Information Technology in Manufacturing

Corporates are developing a manufacturing society to provide manufacturing, distributors,

and researchers with structures methods and practices for implementing technologies in
manufacturing environments. Initial implementation of this collaborator enhanced research in
robotics are welding.
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Information Technology in Mobile Computing

Mobile Computing is a technology of wireless networking that uses common frequencies

for transmission to permit networked devices connected to network.

Mobile Computing enables people to access network services anytime and anywhere and
allows the transmission of data, with the help of Computers.

This is done by integrating the cellular telephone technology with the portable Computers
having cables network.

Mobile Computing is used in many fields such as in emergency services, stock information
control, credit card verification and e-mail.

Information Technology in Public Sector

The IT sector has become important for public sector companies by helping them to
increase their output and efficiency.

Information Technology in Media

With the advent of Information Technology two powerful forces have emerged to change
the Media.

 The first is the use of Computers used as a means of Processing and analysing information.
 The second is the constantly accelerating capacity of the technology to enhance
communication in areas such as entertainment and social awakening.
Ex: Print Media, Electronic Media.

Information Technology in Education

The emerging technology are constantly changing the world around us.

 These technologies have affected the way of learning and the way of processes are carried
out.
 Technology is becoming a powerful tool for communication problem-solving and as a
means of research for learning in education area.
 Information Technology has helped learners to develop problem-solving, analytical and
research skills.
Ex: E-Learning: Virtual Class Rooms.

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Information Technology in Publication

In this ever-changing world, publishing houses, Universities and e-book stores have started
to use information written in printed version of books, on their Computer screen through the use
of technologies.

 Many stories, like Amazon, E-Books and E-Reader provide readers with affordable
electronic books in one of the popular formats.
 Information Technology Management

Information Technology is a fundamental force in reshaping organizations by applying

investment, in computing and communications to promote competitive advantage, customer
services.

It Management is the discipline where by all of the Information Technology resources of a

firm are managed in order with its needs and priorities.

 Managing this responsibility within a company entails many of the basic management
functions, like budgeting, staffing, change management, organizing and controlling.
 The aim of IT Management is to generate value through the use of technology.
 To achieve this, because strategies and technology must be aligned.
 IT Management is different from Management Information System.
 IT Management refers to IT related Management activities in organizations.
 The primary focus of IT Management is the value creation made possible by technology.
This requires the alignment of technology and business strategies.
 Technology plays an important role in important role in improving the overall value chain
of an organization.
 Information Technology Management System Issues
1. Developing effective change Management System.
2. Ethical use of Information Technology.
3. Determining an outsourcing strategy.
4. Deploying global information systems.
5. Ensuring regular performance measurement.
Most Information Technology Management programs are designed to educate and develop
managers who can effectively manage the planning, design, selection, implementation, use and
administration of emerging and converging information and communications technologies.

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Challenges

1. Rapid technological change.

2. Exploding applications and data.
3. Frequent external shocks.

Data Management is a key in Information Technology function. Technological advances

and increasingly complex business have increased text, voice and video data.

Functions

 Communication
 Data Management
 Marketing
 Process Improvement
 ERP – Enterprise Resource Planning

IT is a general term that describes any technology that helps to produce, manipulate, store,
and communicate the information.

Two different parts of Information Technology Management.

1. Computer Technology
Programmable data – Process – Output.
2. Communication Technology

Electromagnetic Devices & Systems for Communication over long distance.

Fig: Information Management through Technology

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Conclusion

Information Technology management is the process whereby all sources related to

Information Technology are managed according to an organization priorities and needs.

 Strategies for gaining IT advantages

IT strategy is a comprehensive plan that Information Technology management

professionals use to guide their organizations.

 IT strategy should cover all aspects of Technology management including cost

management, human capital management, hardware and software management, risk
management and all other considerations in the enterprise IT environment.

Strategies

 Differentiation strategy
 Cost leadership strategy
 Focused differentiation strategy
 Focused cost leadership strategy
Degree of Differentiation

Focused
High

Differentiation
Differentiation

Focused cost Cost

Low

leadership Leadership

Narrow Broad
Scope of Business Activities
Differentiation Strategy

It is an approach that a business takes to develop a unique product service that customers
will find better than or in another way distinctive from products or services offered by competitors.

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 Differentiation Strategy is a way for a business to distinguish itself from the

competition.
 It allows the business the opportunity to charge a premium for the good or service.
 A company that employs a differentiation strategy does so with the intention of
creating a product or service that is valued and perceived by its customers unique
as and better than the competition.

Cost Leadership Strategy

 This strategy describes away to establish the competitive advantage.

 Cost leadership, basically means the lowest cost of operation in the industry.
 Cost leadership is often driven by company efficiency size, scale, scope etc…
 A Cost leadership strategy aims to exploit scale of production well – defined
scope and other economic producing highly standardized products using the
advanced technology.
 Cost leadership is different from price leadership a company could be the lowest –
priced products or service if so, that company would have a higher than the
average profitability.

Focused differentiation strategy

A focused differentiation strategy provides unique features that fulfil the demands of a
narrow segment of market.

 Focused differentiation strategy use the efforts on a particular sales channel, such
as selling products online only.
 A differentiation strategy includes providing unique features to attract a variety of
customers.
 It is specialized.
 In the case of focus differentiation, very high prices, can be charged. Indeed, these
firms often price their good far above the general, following a differentiation
strategy.

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Focused Cost Leadership Strategy

A Focused cost leadership strategy requires competing based on price to target a narrow
market.

 A firm that follows this strategy does not necessarily charge the lowest prices in
the industry.
 Instead, it charges low prices relative to other firms that compete within the target
market.
 The nature of the narrow target market changes across organizations that use a
focused cost leadership strategy.
 The target market is defined by demographics.

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