INFORMATION TECHNOLOGY

FOR BUSINESS-I

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Unit-1
Information Technology &
Information System

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 Introduction
● Information technology (IT) is the application of computers and
telecommunications equipment to store, retrieve, transmit and
manipulate data, often in the context of a business or other enterprise.

● The term is commonly used as a synonym for computers and computer

networks, but it also encompasses other information distribution
technologies such as television and telephones. Several industries are
associated with information technology, including computer hardware,
software, electronics, semiconductors, internet, telecommunications
equipment, engineering, healthcare, e-commerce and computer services.
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Data Storing
● Data storage is the retention of information using technology
specifically developed to keep that data and have it as
accessible as necessary.

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 Data Retrive
● Data retrieval is the process of identifying and extracting data
from a database, based on a query provided by the user or
application.

Data Transmit
● Data transmission, sending and receiving data via cables
(e.g., telephone lines or fibre optics) or wireless systems.

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Data Manipulation
● Data manipulation is the
process of organizing
information to make it readable
and understandable. Engineers
perform data manipulation
using data manipulation
language (DML) capable of
adding, deleting, or altering
data.
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 What is information technology and what does it encompass?

Application of technology to solve business or organizational problems on a broad scale. No matter the role, a
member of an IT department works with others to solve technology problems, both big and small.

There are three primary pillars of responsibility for an IT department:

1. IT governance: This refers to the combination of policies and processes that ensure IT systems are
effectively run and in alignment with the organization’s needs.
2. IT operations: This is a catchall category for the daily work of an IT department. This includes providing
tech support, network maintenance, security testing and device management duties.
3. Hardware and infrastructure: This focus area refers to all the physical components of IT infrastructure.
This pillar of IT includes the setup and maintenance of equipment like routers, servers, phone systems and
individual devices like laptops.
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Why is information technology important?

● Data overload: Businesses need to process huge amounts of data. This requires large amounts
of processing power, sophisticated software and human analytical skills.
● Mobile and wireless usages: More employers are offering remote work options that require
smartphones, tablets and laptops with wireless hotspots and roaming ability.
● Cloud services: Most businesses no longer operate their own “server farms” to store massive
amounts of data. Many businesses now work with cloud services—third-party hosting platforms
that maintain that data.
● Bandwidth for video hosting: Video Conferencing solutions have become more and more
popular, so more network bandwidth is needed to support them sufficiently.
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 Server farms
A server farm is a group of computers acting as servers and housed together in a single
location.

According to numerous publications, the world's largest data center is the China
Telecom-Inner Mongolia Information Park. At a cost of $3 billion, it spans one million square
meters (10,763,910 square feet) and consumes 150MW across six data halls.

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What is an Information System?

An information system is defined as the software that helps organize and analyze data.
So, the purpose of an information system is to turn raw data into useful information that
can be used for decision making in an organization.

An information system is the information and communication technology (ICT) that

an organization uses, and also the way in which people interact with this technology in
support of business processes.

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 Typical Components of Information Systems

1. Hardware: Computer-based information systems use computer hardware, such as processors,

monitors, keyboard and printers.

2. Software: These are the programs used to organize, process and analyze data.

3. Databases: Information systems work with data, organized into tables and files.

4. Network: Different elements need to be connected to each other, especially if many different
people in an organization use the same information system.

5. Procedures: These describe how specific data are processed and analyzed in order to get the
answers for which the information system is designed.

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Types of Information Systems

1. Transaction Processing System (TPS):

● Transaction Processing System are information system that processes data resulting from the
occurrences of business transactions
● Their objectives are to provide transaction in order to update records and generate reports i.e
to perform store keeping function
● The transaction is performed in two ways: Batching processing and Online transaction
processing.
● Example: Bill system, payroll system, Stock control system.

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2. Management Information System (MIS):

● Management Information System is designed to take relatively raw data available
through a Transaction Processing System and convert them into a summarized and
aggregated form for the manager, usually in a report format. It reports tending to be used
by middle management and operational supervisors.
● Many different types of report are produced in MIS. Some of the reports are a summary
report, on-demand report, ad-hoc reports and an exception report.
● Example: Sales management systems, Human resource management system.

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3. Decision Support System (DSS):

● Decision Support System is an interactive information system that provides information,
models and data manipulation tools to help in making the decision in a semi-structured
and unstructured situation.
● Decision Support System comprises tools and techniques to help in gathering relevant
information and analyze the options and alternatives, the end user is more involved in
creating DSS than an MIS.
● Example: Financial planning systems, Bank loan management systems.

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4. Experts System:
● Experts systems include expertise in order to aid managers in diagnosing problems or in
problem-solving. These systems are based on the principles of artificial intelligence
research.
● Experts Systems is a knowledge-based information system. It uses its knowledge about
a specify are to act as an expert consultant to users.
● Knowledgebase and software modules are the components of an expert system. These
modules perform inference on the knowledge and offer answers to a user’s question

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Difference between Information technology and Information System

SL.No Information System Information Technology

1 It is a software used to organize and analyze data. It is a sub system of Information system.

2 Its main purpose is to turn raw data into useful Its main purpose is to help people perform their
information that in turn will provide useful work properly and effectively and achieve their
information for making decision within organization objective within organization or business.
or business.

3 It mainly focuses on providing support to operations, It mainly focuses on improving productivity and
management, and decision-making. efficiency using technology.

4 It is generally composed of four components i.e., task, It is generally composed of three components i.e.,
people, structure, and technology. hardware, software. Networks and data.
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SL.No Information System Information Technology

5 It simply incorporates technology, people and It designs, implement, maintain and support
processes involved with information. information or data within information
system.

6 It includes how people and processes can It includes rolling out new software updates,
support or hinder performance of their troubleshooting problems of user’s
organization, managing computer networks and technology, replacing outdated hardware,
applications within modern business etc., to meet operational demands.
environments.

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 Information Systems in the Enterprise

● Enterprise systems are a set of digital applications that help support

organizational goals and initiatives by providing and encouraging a
cross-functional, company-wide communication system.
● Implementing an enterprise software system in your business can help
improve employee access to valuable consumer knowledge, prevent
repetitive duplication of company data, and increase overall organizational
productivity.

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The Four Types of Enterprise Systems

1. Enterprise Resource Planning (E.R.P.) Systems

Enterprise resource planning systems are integrated business management

software systems that are able to efficiently collect, store, manage and interpret
data and information
1. Enterprise from a (E.R.P.)
Resource Planning wide variety
Systemsof different business processes. These

include financial management accounting, human resource allocation,

manufacturing and distribution operations.

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2. Supply Chain Management (S.C.M.) Systems

Supply chain management or SCM systems are inter-organizational systems that

can help a business execute supply chain transactions and operations, track
inventory and manage supplier relationships more effectively and productively.
The
1. key objective
Enterprise ofPlanning
Resource SCM systems
(E.R.P.) is to enable
Systems businesses to efficiently track the
flow of goods and services from suppliers to customers. Supply chain
management systems can also automatically track when raw materials are
required and send orders to suppliers autonomously.

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3. Customer Relationship Management (C.R.M.) Systems

Studies have shown that CRM systems can increase a business’s overall sales
productivity by 34%. Customer relationship management software can help your
business collect, record and display customer data and information in a more
systematic, productive and methodical way. It can also further analyze these
statistics to draw valuable insights which can help your business improve
1. Enterprise Resource Planning (E.R.P.) Systems
customer relationships and overall consumer engagement.

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4. Knowledge Management Systems (K.M.S.)

A knowledge management system can use its vast knowledge database to

automatically answer customer queries in real-time. This will help improve your
overall organizational productivity, as sales representatives can then use their time
working on higher-level tasks instead of producing repetitive responses to
customer challenges.

1. Enterprise Resource Planning (E.R.P.) Systems

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 FAQ

A frequently asked questions (FAQ) list is often used in articles, websites, email
lists, and online forums where common questions tend to recur, for example
through posts or queries by new users related to common knowledge gaps.

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Major Impacts of Information Technology on Businesses

The role of technology in modern business is vital, to say the least. In recent
decades, technology has optimized the way business is managed, by making
transactions faster and more efficient. Technology is changing many aspects of
business, such as accounting, data collection, logistics and sales, and promotion,
among others. And this is just the tip of the iceberg.

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 1. Business Communication

Technology improves communication within a company. Workers and technicians

in the field, for example, do not need to travel to the office to receive new tasks.
Now they can simply receive a call or message while they are working regarding
their next task. They can even get new tasks on their company’s application. The
technology allows field workers to be connected with each other and with the
central office. Developments in communication and information technology have
helped companies to stay connected at all times, increasing their efficiency,
productivity and ability to be proactive to tackle sticky situations.
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2. Optimization of Management

Technology is already changing the way we manage resources and, over time, it
will change the way we work. No matter what is your industry, or the size of your
business or its main activities, the technology offers opportunities to optimize
management and production. Small businesses can now compete with large
organizations in operational efficiency, thanks to technological equipment and
digital tools.

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 3. Efficient Operations

Technology can optimize the operations of a company. It plays an important role

in the development of efficient processes. It can help you reduce or eliminate
duplications, errors, and delays in the workflow, as well as accelerate the
automation of specific tasks. Inventory technologies allow business owners to
efficiently manage production, distribution and marketing processes. With the
right technology in place, entrepreneurs can save time and money and make their
businesses more productive and competitive.

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4. Improved Security

Information technology helps us keep important data safe and less exposed to
vulnerabilities. It is vital for any business owner to implement security measures
so that cybercriminals can be diverted to easier targets. Especially in the US,
where a number of targeted attacks has been higher than any other country,
entrepreneurs need to be extra safe. The effective use of IT security applications
is vital for all sizes of businesses.

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 5. Globalization

Information technology has enabled businesses to succeed in having a greater

reach in the global market. Globalization has become an undeniable reality,
thanks to the wonders of technology. Anyone can now do business from
anywhere in the world. Technology has driven the development of electronic
commerce, which has brought new dimensions to the globalization of companies.

The high speed of global communications has also allowed trade and
collaboration in real time and has increased international trade.

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6. Better Customer Segmentation

The vast availability of data has made it easier than ever before to understand
customer preferences and what they are looking for. The expansion of analytics
services on search engines and social networks means that it is possible to make
even more concentrated segments of customers and target them specifically.
Information such as the location of a customer, what platforms are they using to
access your website, what are they doing when on your portal, the length of their
stay, and the page or point where they decide to leave is very easily available
without having to do any digging.
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 7. Cost Reduction-Increased Functionality

There was a time when implementing technology was expensive and was a
luxury. But, that has changed now and with the increasing affordability and
usability of the latest tech has upped the ante in the business world. Moreover,
this has allowed the number of tech-savvy entrepreneurial geniuses to increase
exponentially. These people know how to capitalize on this opportunity and
exploit the crumbling barriers that we have in becoming successful today.

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8. Providing Customer Satisfaction

Customer experience and satisfaction are crucial aspects of all businesses. The
key to customer satisfaction is a strong customer support team and its availability
to cater to the requirements of the customers.

Information technology provides the best tools for communicating with

customers and solving their problems in real time. It has unlocked the facilities
like Email, social media and other messaging platforms for this purpose.

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 Data Processing
Data processing is the process of taking raw data and converting it into usable
information. A team of data scientists and data engineers at a company often does
it in a step-by-step method. Raw data is gathered, filtered, sorted, processed,
analyzed, and stored before being displayed in a usable way.

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Types of Data Processing

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Data Processing Cycle

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 Business Data Processing

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Steps Involved in Business Data Processing

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 Network Technology
The technology which is used to exchange the data between small and large
information. This technology can be used in educational institutions as well as
businesses.

Network technicians know the installation; configuration & troubleshooting of

the network technology and this can be used to send digital data like audio, data
and visual files. By using networking, users can send messages, files through
e-mail or other channels based on the organization’s requirement.

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Types of Network Technology

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a. Network Technology based on Transmission
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The network technology based on transmission can be done using the two

concepts like point-to-point and multipoint.

a. Point to Point

In point to point, when sender & receiver (nodes) are connected directly, then the

data transmission can be done with the help of a guided medium, used for the

wired network and unguided medium, used for the wireless network. The

following image shows the point to point network technology. 71

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a.
B. Multi-point

In multi-point, several nodes are connected directly with the help of a common

medium in a linear manner. The following image shows the multi-point network

technology

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a. Network Technology based on Scale

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Intra and Inter Organisational Communication

using Network
Interorganizational means between two organizations. Therefore, interorganizational
procedures occur when two or more organizations join together and share information or
collaborate.

Intraorganizational means within an organization.

1. Company Newsletters

With the rise of social media, your employees are used to going to the same sources for daily
information. Why not include yourself with an effective internal company newsletter.

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2. Employee Feedback Apps
With the right questions, managers can best understand how their employees are
invested in their work and the company. Through an employee feedback app,
managers can share surveys, polls, use a suggestion box, and more to best
understand motivation levels and overall satisfaction from its employees.
3. Emoji Reactions
Increase employee engagement by collecting feedback from your employees.
They’ll know best what’s working for them in the work environment provided
by their employer, and what sort of changes would make their day-to-day easier.
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4. Videos

Video Killed the Radio Star back in 1980, and almost 40 years later, video is more
dominant than ever. With Millennials (born between 1980-1995) representing some 50%
of the workforce, and Generation Z (1995-2015) beginning to join the workforce, video
for your internal communications is a force to be reckoned with.

5. Video Conferencing

When it comes to choosing from one of the best internal communication tools, the
answer may be to look for an old fashioned video conferencing software. With satellite
offices, remote workers, and the odd external freelancer or consultant, it’s important to
get it right the first time when it comes to conference calling.
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6. Intranet

Sometimes called “corporate social network,” Intranet can be a powerful tool for
fostering internal communication across large organizations. Intranet makes it easy for
employees to see new content, and share relevant articles, guides, and ideas across teams
and departments.

7. Apps

How to use an app as an internal communication tool:

● Publish news, articles, and other company updates

● Host resources including employee directories and resources
● Replace or supplement your intranet
● Send push notifications 89

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8. Forums and Chat
Sometimes, internal communications isn’t about passing news down the chain,
sometimes it’s about fostering ways for employees to collaborate, and forums help
do exactly that. Rather than be the point person for everything and everything, an
effective communicator also facilitates other channels for people to speak to the
right person.
9. Surveys
Metrics are a subject on every communicator’s mind, and you can be sure surveys
are one of the surest ways to get metrics on internal communications and employee
engagement. Surveys can mean many different things to many people.
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10. Podcasts
Regardless of where your employees work, whether it’s at a desk, in a factory, or
on the road, one thing remains certain: human attention is a scarce resource.
Screens are everywhere, so you need to help your employees keep their eyes on
the prize.
11.Digital Signage
One of the best ways to generate a buzz with your internal communications is to
put them on display for the whole team to see! Consider digital signage which
essentially takes over wall-mounted television screens to display your internal
communications messaging. 91

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12.Social Media
No, we’re not suggesting that you blast your internal communications all over
Facebook or LinkedIn (although if you can, more power to you). Nor are we
suggesting you have to build your own social network from scratch like
Shopify’s unicorn.

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Business Process Outsourcing

❏ Business Process Outsourcing is a contractual agreement where businesses
pay an external service provider to manage specific tasks.
❏ These are usually essential front-office or back-office tasks and can
sometimes be fairly complex.
❏ This kind of outsourcing is very common for both inbound call centers and
outbound call centers.
❏ BPO is also used to refer to a ‘Business Process Outsourcer’ i.e. the company
which performs the tasks.
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 What is BPO Used For?
Organizations contract with BPO vendors for two main areas:

1. Back office operations: They include payment processing, information

technology services, quality assurance, etc.
2. Front office operations: They include marketing, sales, customer relations,
and grievance redressal.

In many cases, organizations outsource one or more functions. For example,

instead of outsourcing all HR functions, the company will outsource just the
payroll processes.

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Types of BPO
BPO companies can be divided into several types based on their location:

❏ Onshore outsourcing: When an organization hires a service provider that is

located in the same country. It is also called domestic outsourcing.
❏ Nearshore outsourcing: When an organization hires a service provider in a
neighboring country.
❏ Offshore outsourcing: When an organization hires a service provider in a
different country. It is also called offshoring.

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 Benefits of BPO
1. Lower costs
One of the main reasons organizations outsource is cost reduction. Instead of buying IT equipment and hiring more employees to
do different tasks, they can outsource the tasks to a service provider, reducing or even eliminating overhead costs.

2. Higher efficiency
BPO companies are experienced in different fields and perform at the highest level. They also adopt best practices and use the
latest technology. It naturally results in higher efficiency and greater productivity.

3. Focus on core business functions

Many companies, usually start-ups, encounter a difficult time with ancillary business activities. Transferring non-core processes
to a BPO company gives the organization more time to focus on its main business activities.

4. Global expansion
If an organization decides to enter an overseas market, some activities that require local market knowledge, national law
expertise, or fluency in a foreign language can be assigned to a BPO company. It helps in boosting efficiency and quicker
expansion.
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Drawbacks of BPO
1. Security issues
There is the possibility of a security breach while working with a BPO company as sensitive data needs to be shared and processed.

2. Overdependence on the BPO company

When work is outsourced to a BPO company for a long period, an organization can become accustomed to the way they work and tend to
get over dependent on them. It leads to the organization paying higher than the usual costs if demanded.

3. Communication problems
When working with an offshore BPO company, the language barrier may turn out to be a hindrance to efficiency. Outsourcing work such as
development or IT services, where a lot of people are involved, can lead to mistakes due to miscommunication. It can be extremely costly
sometimes.

4. Unforeseen or hidden costs

As work is not always hard and fast, the organization may underestimate the quantity of work, and it can lead to costs that are higher than
expected. Working with a BPO company can lead to legal expenses in case of a dispute or disagreement. Delay in delivery of work can also
result in indirect costs.

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Knowledge Process Outsourcing

❏ Knowledge process outsourcing (KPO) is the practice of contracting out high-level,
information-focused business operations and tasks to third-party specialists or firms.
❏ KPO providers offer their research skills and industry expertise to help facilitate
productivity and spearhead new initiatives within the host organization. In many cases, the
provider will actually take complete ownership over the procedural changes to be
implemented altogether.
❏ KPO is technically a subset of business process outsourcing, or BPO. However, knowledge
process outsourcing is the more complex and dynamic of the two — and often involves
outsourcing core processes as a way to further differentiate your brand from the
competition.
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What Knowledge-Related Processes are Outsourced?

KPO can be employed in a number of different areas of an organization:

● Business Operations and Management KPO can be used to optimize standard operating procedures, employee
policies, and other more foundational aspects of a company.
● Legal KPO is used to ensure a company’s operations remain compliant, and to mitigate risk at every turn.
● Finance KPO helps teams optimize their investment strategies, cut unnecessary costs, and maximize their returns
across the board.
● Marketing KPO takes ownership of a team’s marketing initiatives to ensure they’re reaching the right audience
with the right content and offers at all times.
● Product Design and Engineering KPO has specialists provide guidance to optimize product usability,
durability, and other value-focused factors — and to minimize waste and resource consumption during the
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 Information systems manager
An information systems manager is an IT professional who oversees the IT department within an
organization. They work closely with their team to troubleshoot IT problems, administer computer
system updates as well as install hardware and software for different departments.

Responsibilities of the job vary according to employment sector. However, typical tasks include:

● managing a team of staff including programmers, analysts and support specialists

● evaluating the functionality of systems
● consulting computer users to ascertain needs and to ensure that facilities meet user or project
requirements
● selecting and purchasing appropriate hardware and software
● managing IT budgets
● ensuring software licensing laws are followed
● implementing and managing security or integrity and backup procedures
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Key skills for information systems managers

● Analytical and problem solving skills
● Strong technical skills
● The ability to work well under pressure
● Attention to detail
● Team Working skills
● Organisation and time management
● Interpersonal and communication skills
● Management and leadership skills
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 H ow to become an information systems manager

1. Earn a bachelor's degree in computer science, information technology, IT

project management or a related field.

2. Complete internships and tech support work

3. Consider earning a master's degree such as a Master of Information

Technology or Master of Business Administration.

4. Obtain a few years of experience in an IT role

5. Determine which industries you want to work in the most

6. Tailor your resume and cover letter for an information systems manager role
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Roles and responsibilities about an IT manager:

● Conducting routine evaluations of network and data security
● Locating and seizing chances to enhance and update software and systems
● Creating and implementing the organization’s IT policy and best practice manuals
● Creating workshops and training programmes for staff
● Performing routine system audits
● Organizing and establishing deadlines for major IT projects such system updates,
migrations, upgrades, and outages
● Managing and reporting on the IT budget allocation
● Advising the IT staff
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Importance of Information systems in decision making
and strategy building

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Types of Information system

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