09-12-2022

Chapter 1 - Information Technology in a Business Environment

● Businesses cannot survive without the use of IT.

● IT is important in business for the collection of data.
● Businesses can/cannot survive without IT depending/varying on the particular type and
size of business.
● Businesses with less than 10 employees are not using IT in their businesses.
● Some micro types of businesses are not using IT for their business.
● Sari-sari stores and vendors in the streets usually don't use IT in their business.
● Some businesses go bankrupt because they cannot provide services to their clients/
they cannot provide/meet the needs of their clients.
● Online shops now are crucial with the help of IT, especially when a pandemic strikes.
● Mobile shopping, contactless payment, and online banking use IT.
● Technology is improving now that we are in the modern world.
● Businesses must embrace IT to cater to the needs of their customers.
● EX: Nokia doesn’t embrace IT and maybe they didn’t cater to the needs of their clients.
● IT is crucial in different businesses/organizations whether they are public or private,
especially in modern days.
● IT or technologies are needs of every people

Business Organization as a System

● A lot of businesses use a system.
● Added value (quality services that a business can offer to their clients/ potential clients)
● They can earn a lot of profit because a lot of businesses can provide added value.

Business Concepts
● Business not only refers to the exchange of products.
● We also offer them services wherein this will help
● The businesses now also offer themselves/ offers their services. (intangible
goods/services)
● When it comes to business, we are no longer talking about products, but as innovation
happens, we are also talking about providing services when it comes to business.
● Businesses ofofferheir skills
● Not all businesses are after the non-monetary (not money)
● There are businesses that offer non-monetary (hindi nagfofocus sa profit but sa
satisfaction ng clients)
● Tip in creating your own business: Business that you loved to do
● Businesses have their own different goals (which vary depending on what type of
business).

Different Goals/Objectives of Different Businesses

1. Economic objectives
 ● The economic goals/objectives depend on the financial needs of their
businesses.
● Depends on the survival and growth of your business.
2. Human Objectives
● The individuals that are part of the organization or the clients
● Own people/employee
● Trying to provide the needs and satisfaction that you can give them
3. Organic Objectives
● Focusing on the business improvement of one company.
● Raising the capital of the business
4. Social Objectives
● The people/society
● You as a certain business, have an objective to focus on the betterment of the
society.
● The satisfaction of the clients/customers
● Must provide quality Products/services

Types of Business
● Four categories:
1. Manufacturing
● Makes and sells finished products.
● From raw materials to finished products/goods
2. Merchandizing
● Buys and sells finished products.
● Retailed
3. Services
● Provide services at a fee.
● Intangibles goods/services that you offer
● Services that you offer in exchange for a fee.
4. Hybrid
● Combination of two or more types of businesses.
● Manufacturing+Merchandizing
● Ex: restaurants

Types of Business
1. Sole proprietorships
● 1 person
2. Partnerships
● Two or more people
3. Corporations:
● More than 5 members
● Owners are called shareholders.
4. Limited Liability Companies (LLCs)
● Owners are called members
 5. Limited Partnership
● Private companies that originate from the US
● Liabilities are limited depending on investments.
● Separate the business and personal property
● General and Limited Partnership
6. Co-op
● Owners are called "Members."
● Owners usually serve and work within the organization.
● Co-op is known as an association.
7. Non Profit
● They are not after profit, but still, gain profit through donations.
● The goal of the business is not to earn a profit but to provide satisfaction to the
need of the society
● Usually, they earn a profit through donations.
● Ex: Red Cross, religious groups, foundations, free education, etc.

Business Size
● The number of employees depends on the references.
● Hindi lahat ng number ng employees ay magkakamukha
● Hindi fixed yung number ng employees na naka-list sa ibaba
● Yung iba can be a micro with more than 10 employees
● Depending on the references,
● Reference: “Australian Bureau of Statistics Classification of Business Size".

1. Micro
● Fewer than 5 employees (including the owner)
2. Small Businesses
● Between 5 and 19 employees
3. Mid-Sized Enterprises
● Between 20 and 199 employees
4. Large Businesses
● 200 or more employees

Data vs. Information

A. Data
● Data are facts that are collected
● Data are insufficent for decision making.
● Data are raw facts.
● Data are raw facts that are not yet processed and are not yet organized
● Data are those we get from searching online
● Four Categories of Data:
1. Alphanumeric data
● Consists of numbers, letters, and other characters
1. Image Data
 ● Graphic Images and pictures
2. Audio Data
● Pertaining to sound, noise or tones
3. Video Data
● Moving images or pictures
● Data that are moving
B. Information
● Data becomes information when we try to process the data.
● Information are processed data/organized data.
● The data process depends on what kind of information we want to produce.
● Categorizing, categorizing, and summarizing depend on the data produce.
● There is a process for turning data into information.
● When it becomes information, we can get knowledge about it.
● We can make a good decision based on the information we get
● Gathering and collecting the data is the most difficult part of processing
information.