A

Assignment Report
On

How does Information Technology influence

Business Decisions?
Submitted in Partial Fulfilment of the Post Graduate Diploma in Management-Information Technology

2018-2020

Shikha Mishra
Roll no.:19
IT-2
Under the Guidance of
Prof. Dr. Sushil Ranjan Roy
Information Technology Programme
Xavier Institute of Social Service, Ranchi

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 ACKNOWLEDGEMENT

This is a proud privilege to express my deepest sense of gratitude and

ineptness to my Supervisor Prof. Sushil Ranjan Roy, Programme of
Information Technology, Xavier Institute of Social Service, Ranchi-834001.
Words perhaps would fail to express the gratitude I owe to him. It would
have been impossible for me to complete the assignment work on the
topic of “How does Information Technology influence business
decisions?” without his constant and inspiring guidance and valuable
suggestion at every stage of the project.
I am also indebted to all other teachers of the same Programme for their
constant support, inspiration and suggestions.
I also express my gratitude to my parents and friends for their help and
inspiration to complete the project.

SHIKHA MISHRA
IT-2
ROLL-19

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 TABLE OF CONTENTS

SL. NO. CONTENTS PAGE NO.

1. Abstract 4

2. Keyword 4

3. Introduction 5

4. What is Decision Making 6

5. Types of Decision 6

6. Role of IT in Decision Making 7

7. Use of IT in Decision Making 7

8. Effects of IT on Business Decisions 8

9. 9
Conclusion

10. 10
Bibliography

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ABSTRACT

This article infuses the query about how Information Technology impacts on
business decisions. The main objective of the report is to analyze the
importance and effects that Technology beholds in making valuable decisions in
an organization and build relationships. The process of collection of data from
varied resources and analyzing the data to make informed decisions with the
present day restrictions and limited options is a hefty task to do. Making
business decisions in today’s modern world keeping in mind the behavior of
business is something that requires the best use of technology along with
experience and expertise. The expertise needed here for making business
decisions is the knowledge about the proper use of models, systems, tools and
procedures to implement decision-making process in various situations. A
proficiency in this area result in successful decisions and thus growth of any
organization.

Keywords
Information Technology, Analyze, Decision making, Business Decisions, Tools.

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INTRODUCTION

There is constant requirement of making a choice among all possible solutions

in not only business but also our day to day situations. The process involved in
selection of these choices is what decision-making is all about. These simple or
complex decisions have both short term and long term impact on the growth of
an organization based on the success rate of the decision or choice made at the
appropriate time. To minimize the ill impacts of these decisions, the decision-
makers should take steps to follow the route taken previously to arrive at a
particular decision. The main objective of making a critical decision is to
achieve a positive result because a quality decision is of utmost significance for
the success of any organization. A successful decision is cost-effective, timely
and is procured by avoiding wrong choices but inspecting these wrong choices
is a difficult task for the decision maker. To serve as a savior, technology comes
for the rescue by providing necessary and useful information to the decision
maker to enhance the speed and quality of any decision. Continuous innovations
add the extra bit so that individuals work together to make a decision and help
in the growth of an organization.

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What is Decision Making?

According to the Oxford Advanced Learner’s Dictionary the term decision

making means - the process of deciding about something important, especially
in a group of people or in an organization.
Decision making is an essential segment of any organization involving the
selection of a specific course of action from among various other alternatives to
arrive at a solution at the appropriate time. Every manager in an organization
has the responsibility of taking rational decisions on an everyday basis to
determine the managerial and organizational activities. The process of decision
making is never ending. These decisions determine the sustainability of an
organization.

Types of Decision?
There are two types of decisions affected by information technology:

 Structured Decisions: Such decisions are the ones which involve

handling of certain type of information in a particular way to arrive at
the correct result. These kinds of decisions can be programmed with a
specified set of inputs and can be processed exclusively to get the
right answer.
 Non-structured Decisions: Such decisions are the ones which are
exactly opposite of structured decisions. There is more than one
correct answer in such decisions and there is no specific way to find
out the most correct out of them. In other words, there exists no
criteria to ensure the best result.

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ROLE OF IT IN DECISION-MAKING

Information Technology supports decision making in a business through various

support systems like, Decision Supportive Systems (DSS) and Artificial
Intelligence (AI) framework. These IT frameworks provide data through Online
Analytical Processing (OLAP). Information Technology helps any business by
processing its information into useful data to provide valuable outputs.

 IT enhances speed: Information Technology speeds up the activities of

an organization by processing large amount of sophisticated information
into valuable data. A business owner should know how to make use of
this processed information for the betterment and growth of the
organization.

 Information Processing Capabilities: Information Technology provides

businesses with various tools which help them make quick business
decisions. The huge amount of data in the data warehouse can be
processed through data mining tools such as slice and dice, through which
the data can be grouped on the basis of its dimensions.

 IT Supports Group Decision Making: To make quick business decisions,

a business organization can make use of various decision support systems
like GDSS (Group Decision Support System). A GDSS is a decision-
making tool through which quick business decisions can be made with
the support and output of a team. GDSS helps in promoting the spirit of
team work and facilitates group decision-making through DSS
capabilities, telecommunications and integration of groupware.

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USE OF IT IN DECISION-MAKING

Information Technology provides the following systems to promote critical and

quick decision-making:

 Decision Support Systems (DSS) – DSS supports decision-making

through its adaptable and collaborative IT system, when the problems are
not organized properly.

 Group Decision Support System (GDSS) – GDSS supports decision-

making by formulation of solutions of a problem by team effort.

 Geographical Information Systems (GIS) – GIS supports decision-

making by making use of spatial information and data.

 Artificial Intelligence (AI) – AI is the art of making machines imitate the

actions of a human being. It supports decision-making by making human-
like decisions.

 Expert Systems – An Expert system makes use of AI and reasoning to

make crucial business decisions.

 Neutral Network – Such a system helps in decision-making by

segregating between various patterns in a business activity.

 Genetic Algorithm – This system also makes of AI to find out the best
solution through the developmental techniques of survival-of-the-fittest.

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EFFECTS OF IT ON BUSINESS DECISIONS

 Effect on operating costs

Businesses can use Information Technology in order to decrease their
operating costs. Basic software of any enterprise systematizes many
back-end services like, accounting, payroll, and record keeping. Mobile
phones and tablets allow real time interactions in both homes and offices.

 Sensitive Information Securing

Information Technology also helps the businesses in creating an
environment which is secure enough to maintain confidential and
sensitive consumer or business information. Most of the software of
business technology tools are very easy to use and understand allowing
the employees with minimal technology knowledge to work easily with
the tools and make the best use of them.

 Better Communication Process

Information Technology also helps business organizations in enhancing
their communications with consumers or others businesses with the help
of texting, emails, apps, and websites. Information Technology helps the
business owners in evaluating the economic value of their communication
method. Such evaluations are also done through customer feedbacks
through electronic communication methods. Not only this, but
Technology also enhances the inert-office communications in businesses.

 Improved Employee Productivity

Information Technology also helps in increasing the productivity of the
employees working in a business organization. Employees can now
process more information in less time, thus improving the effectiveness
and efficiency of their output. Use of Technology in businesses also
reduces the labour costs as most of the manual work is now done through
technology.

 Widens Customer Base

Information Technology plays a vital role in broadening customer base by

providing a great platform for all kinds of businesses to promote their
goods and services on online websites, hence improving their economic
market.
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CONCLUSION

Information Technology has transformed the way in which a business is

conducted by providing equal opportunities to small scale businesses to level up
their game in the fast-growing online business world. The small businesses now
get a fair chance through websites which run handily on mobiles, tablets and
computers without much of input cost. Information Technology is a boon not
only for small scale businesses but also for growing and large-scale businesses.
The business organizations make use of Information Technology in nit only
storing and processing of data but also for making vital business decisions. The
organizations make use of various data mining tools, decision support systems
to make quick and crucial business decisions. Information Technology helps a
decision maker by providing required assistance in finalizing the best available
alternative out of various other alternatives.

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Bibliography

 https://www.managementstudyguide.com/what-is-decision-
making.htm
 (https://bizfluent.com/info-8586491-technology-affect-business-
decisions.html, 2019)
 (https://www.slideshare.net/RobbieA/h-bm-decision-making-
presentation?qid=3c372a92-9dc8-4374-b2fb-
10586a60f254&v=&b=&from_search=4, 2019)

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