INFORMATION TECHNOLOGY FOR BUSINESS

( EXCEL AND DBMS )

V SEMESTER BBA

Prepared by
SOUMYA SINGH E
M.com , B.ed , CS ( Executive )
Assistant Professor
Department of Management
New Horizon College
( Affiliated to Bangalore North University )
Kasturinagar, Bangalore

References
Information Technology for Business : Vision book House
Information Technology : Himalaya Publications
 Syllabus
Unit 1: Technology and Information System
Introduction to IT, Introduction to IS, Difference be IS and IT, Need for Information System, Information Systems
in the Enterprise, Impact of Information Technology on Business (Business Data Processing, Intra and Inter
Organizational communication using network technology. Business process and Knowledge process outsourcing),
Managers and Activities in IS, Importance of Information systems in decision making and strategy building,
Information systems and subsystems.

Unit 2: Subsystems of Information System

Transaction Processing Systems (TPS), Management Information System (MIS). Decision Support Systems (DSS), Group
Decision Support System (GDSS), Executive Information System (EIS), Expert System (ES), Features, Process, Advantages
and Disadvantages, Role of these systems in Decision making process.

Unit 3: Database Management System

Introduction to Data and Information, Database, Types of Database models, Introduction to DBMS. Difference between File
Management Systems and DBMS, Advantages and Disadvantages of DBMS, Data Warehousing, Data Mining, Application of
DBMS, Introduction to MS Access, Create Database, Create Table, Adding Data, Forms in MS Access, Reports in MS Access

Unit 4: Microsoft Excel In Business

Introduction to MS Excel, Features of MS Excel, Cell Reference, Format Cells, Data Validation, Protecting Sheets, Data
Analysis in Excel: Sort, Filter, Conditional Formatting, Preparing Charts, Pivot Table, What if Analysis(Goal Seek, Scenario
Manager), Financial Functions NPV, PMT, PV, FV, Rate, IRR, DB, SLN, SYD, Logical Functions. IF, and OR, Lookup
Functions: V Lookup, H Lookup, Mathematical Functions, Text Functions.

Unit 5: Recent Trends in It

Virtualization, Cloud Computing, Grid Computing, Internet of Things, Green Marketing, Artificial Intelligence, Machine
Learning.
 UNIT - 01 - INFORMATION TECHNOLOGY AND INFORMATION SYSTEM
Meaning of Information Technology
Information Technology refers to the branch of engineering that deals with the use of computers and telecommunications to
retrieve and store and transmit information. It is the combination of systems, procedures, software, and hardware involved in
establishing an effective and leading-edge methodology for enabling a total supply chain network of response from incoming
materials through delivery and satisfaction with finished goods and services.

Meaning of System
A system is simply a group of activities and elements, which have been arranged to achieve a certain objective. An information
system is a combination of hardware, software and telecommunication systems, which can support business operations to
increase productivity, and help managers make decisions.

Definition of System
According to Barry Boheam, "A system is an orderly grouping in interdependent components linked
together/according to a plan to achieve a specific objective."

Characteristics of System
A system has following characteristics:
(i) Components: A component is either an irreducible part or an aggregate of parts, also called a subsystem. The simple
concept of a component is very powerful. For example, in case of an automobile we can repair or upgrade the system by
changing individual components without having to make changes the entire system.
(ii) Organization: Organization implies structure and order of the system For example, the hierarchical relationship in a
business organization/system represents the organization structure.
(iii) Interrelationships: Interrelationships is the manner in which each component functions with other components of the
system. For example, in a computer system, CPU must interact with input, output devices, main memory holds data and
program and ALU does computation.
(iv) Boundary: A has a boundary, within which all of its components are contained and which establishes the limits of a
system, separating it from other systems.
(v) Purpose or central objective: Central Objective or Purpose means all components of a system assemble together towards
a common goal, purpose or objective.
(vi) Environment: A system operates within an environment - everything outside the system's boundary. The environment
surrounds the system, both affecting it and being affected by it.
(vii) Interface: The point at which the system meets its environment are called interface
(viii) Constraints: A system must face constraints in its functioning because there are limits to what it can do and how it can
achieve its purpose within its environment Some of these constraints are imposed inside the system (Ex., a limited number of
staff available). Others are imposed by the environment (Ex., due to regulations)
(ix) Input: Input is anything entering the system from the environment.
(x) Output: Output is anything leaving the system crossing the boundary to the environment. Information, energy, and
material can be both input and output in relation to the environment.
(xi) Interdependence : Interdependence means how various components of the system depend on each other Output of one
system may be the input to another system(xii)Integration: Integration means how a system is tied together Components of a
system may work independently and each component performs a unique function but they have to work together within the
system to achieve the system goals.
Types of Systems :
Systems can be classified into a number of categories which are given below:
i. Open and Close System : An open system is one which interacts with its environment. It has many interfaces with its
environment. An open system is influenced by its environment and has exchanges with the environment.On the contrary,
a close system does not interact with its environment. It doesn't accept or provide any inputs or outputs to the external
environment.
ii. Adaptive and System : A system that reacts to its environment in such a way as to improve its functioning, achievement
or probability of survival is called an adaptive system. For the success of the business, the organizations need to change
and adapt to the changing environment, like they need to change as per the changing customer demands.
iii. Physical (Empirical) and Abstract (conceptual) System : A conceptual system is an orderly arrangement of ideas. A
physical or empirical system is a set of tangible entities that may be static or dynamic and operates together to accomplish
an objective Physical systems may be derived from or based upon conceptual systems and thus represent the conversion
of concepts into practice.
iv. Deterministic and Probabilistic System : A deterministic system operates in a predictable manner. It is a system where
inputs, process and outputs are known with certainty. If the given state of the system and all possible operations are
known, then the next state may be determined or predicted. A probabilistic system is one whose exact state at any given
time cannot be predicted An inventory system is an example of probabilistic system.
v. Temporary and Permanent System : The policies of a business operation are permanent as far as year-by year
operations are concerned. A small group-research project in the laboratory is temporary Very less man-made systems are
permanent Truly temporary systems are designed to last a specified period of time and then dissolve.
vi. Natural and man-made Systems : There are natural and man-made systems. Natural systems may not have an apparent
objective but their outputs can be interpreted as purposes. Man-made systems are made with purposes that are achieved
by the delivery of outputs. Their parts must be related; they must be "designed to work as a coherent entity"- else they
would be two or more distinct systems.

Components of System
The most common components of system are:
I. Input: It involves capturing and assembling elements that enter the system to be processed, for example, raw materials,
money, labor, data etc.
II. Process: Processing involves transformation process that converts input into output. For example manufacturing process,
human breathing process etc.
III. Output: It involves transferring elements that have been produced by the transformation process to their ultimate
destination. For example, finished products, human services, information etc.
IV. Feedback: The feedback component gives feedback on the performance of the system. A negative feedback indicates that
the system is deviating from its goal while a positive feedback indicates that the system performance is towards the
achievement of the goal. It is a self regulatory.
V. Control: The control component helps to take the corrective action, if required, to bring the system back towards the
achievement of the system goal. It is a self monitoring system.
VI. Environment: A system does not exist in a vacuum, rather, it exists and functioning in an environment containing other
systems. Several systems may share the same environment. If a system is one of the components of a large system, it is a
subsystem and the large system is its environment.
VII. Boundary or Interface: A system by defining its boundary, this means choosing which entities are inside the system and
which are outside - part of the environment. Some of these systems may be connected to one another by means of a
shared boundary or interface.
Meaning Information System
An Information System (IS) is a collection of interrelated components that collect, process, store and provide as output the
information needed to complete a business task.

Features/needs of information system

A. Promptness: Decision making is to be taken within a time frame and therefore Information must be available within the
desired time frame Some types of information are required periodically and should be made available to the user regularly
and timely so as to avoid delay in decision making.
B. Accuracy: It means that information is free from mistake sand errors this implies that the information is totally correct. It
is an essential and important feature of good information Increasing the accuracy may have a cos. It is therefore. It's
Necessary to determine the acceptable levels of accuracy for each type of information.
C. Precision : Precision is an important virtue of good quality information Too much. of information sometimes results in
dumping of important information in the heap of details that may not be required at a particular point of time only precise
information is respected and used by the management.
D. Adequacy or Completeness: Adequacy generally refers to the complete and full detailed information. It means the
information must contain sufficient quality information may be said to be complete if the decision maker can
satisfactorily solve the problem by using the information If the information is incorrect or inadequate than it can be quite
harmful to the organization.
E. Unambiguity: Clarity of information is an important attribute of good information. Information must be unambiguous
and should be communicated in such a way that it conveys the same meaning to different levels of management.
F. Timeliness : Timeliness is important information essential. This explains that information should reach the managers or
users within the prescribed time for effective decision making Information must be delivered at the right time the right
place to right person or user.
G. Exception bored: In moderns business the organizations are exception based organization. This means the management
and mangers are provided with only those items of information that are of particularly interacted to the management. This
type of information is quite useful in saving time and resources of the top management.
H. Availability: Information always should available in right time and right place to take the decisions. If information is not
readily available at the time of decision making the information that information is considered to destroy.
I. Format: For making and information useful it should be made available in a form which suits the recipient most.
Information may be communicated in visual written or verbal form.
J. Frequency: Frequency of useful information should be based on the actual requirements of a management or managers.
The requirements depend on the recipient's organizations positions and his interaction with other departments.

Process of information system

The basic activities that occur in any information system would involve:
(a) Inputting Raw Data: Data about business transaction and other events must be captured and prepared for processing by
data entry activities such as recording, editing, typing. For example, optical scanning of bar-coded tags in the retail outlets.
(b) Processing of Data into Information: Data once entered is subjected to processing activities like calculating, sorting,
classifying, summarizing etc. For example, in a payroll system, calculating net salary involves processing like deduction of
taxes, addition of commission earned etc.
(c) Output of Information Product: Information thus produced by processing activity needs to be transmitted to appropriate
end user. This is done by the output activity. Information produced by the Information Systems may be in the form of text,
images, videos, forms, reports etc. For example, manager might see reports about the sales performance.
(d) Storage of Data Resources: Data and information are required to be stored for future reference. For example, maintaining
the records of the customer, employees, products etc.
(e) Control of System Performance: Controlling is to keep a check on the performance of the information system. An
information system should produce feedback about its input, processing, output and storage activities, which must be
monitored and if the system is not in-line with the achievement of its goals, then the corrective control action needs to be taken.
For example, generating audio signals to indicate proper entry of sales data.

Resources of Information System

The model of Information system shows the following resources :
i. People Resource : People Resource mainly include users of information system. It includes - End Users: End users use
an Information System or the information it produces. For example, accountant, manager customer etc. Information
System Specialists: Information system specialists develop and operate information systems. For example, system analyst,
programmers, computer operators etc.
ii. Hardware Resource : Hardware resource include all physical devices and materials. It includes Machines: For example,
computer systems and other peripheral devices. Data Media: Data media is all tangible objects on which data is recorded.
For example, magnetic disks, paper etc
iii. Data Resource : Since data has become very vital resource for a manager, it should be viewed as more than the raw
material for an information system. It includes - Database: Database that holds processed and organized data. Knowledge
base: Holds knowledge in the form of facts, rules and case. For examples, about successful business practices.
iv. Software Resources : Software resource include all sets of information processing instructions. It includes - Program: A
set of operating instructions which direct and control computer hardware is known as Program. It is classified as
Application Software and System Software. Application Software: That are meant for a particular end user's application.
For example, word processing application, payroll application etc.. System Software: That control and support operations
of a computer program. For example, operating system. Procedures: A set of information processing instructions that are
needed by the people is known as Procedure. For example, a set of instructions given to people before filling up a paper
form or the set of instruction on usage of a software package.
v. Network Resources : Internet and e-commerce have become very common and vital for an organization. The concept
stresses that communication networks are fundamental resource components of all information systems. It includes:
Communication Media: For example, twisted-pair cable, fiber-optic cable, microwave systems, and communication
satellite systems. Network Support: Network support includes all people, hardware, software and data resources that
directly support the operation and use of a communication network. For example, Network Interface Card (NIC) with NT
Operating System.

Functions of information system

Functions of information system are describing below :
1) Information system help managers, works analysis problems, visualize complex subjects and create new products.
2) Information system will contain information about people, place and things with the organization.
3) It will contain data that have been shaped into a form, which are meaningful and useful to human beings.
4) Information system will produce information so that organizations will take decisions, control operators and analyze
problems.
5) Information system will encompass the understanding of the management and dimensions of system.
6) Information system is used for building and managing system.
7) Information system designates a specific category of serving management level functions.
8) Information system is saving as foundation for new services and products.
Difference between Information System and Information Technology
Sl. no Information System
1. It is a software used to organize and analyze data.
2. Its main purpose is to turn raw data into useful that
in turn will provide useful information for making
decision within organization or business.
3. It mainly focuses on providing support to
operations, management, and decision-making.
4. It is generally composed of four components i.e..
task. people, structure, and technology.
5. It works as technology and people bridge between
technology and people.
6. It simply incorporates technology, people and
processes involved with information.
7. It includes how people and processes can support
or hinder performance of their organization,
managing computer networks and applications
within modern business environments.
8. It helps in storing operational data, communication
records, documents, and revision histories.
Information Technology
It is a sub system of Information system.
Its main purpose is to help people perform their work
properly and effectively and achieve their objective within
organization or business.
It mainly focuses on improving productivity and efficiency
using technology.
It is generally composed of three components ie.,
hardware, software. Networks and data.
It helps people to utilize and make sense of that system.
It designs, implement, maintain and support information or
data within information system.
It includes rolling out new software updates,
troubleshooting problems of user's technology. replacing
outdated hardware, etc.. to meet operational demands.
It helps in implementing communication, build and grow
commerce and business sector.

Types of Information System

The Information systems found in most businesses include :
a. Transaction Processing System (TPS)
b. Management Information System (MIS)
c. Executive Information System (EIS)/Executive Support System (ESS)
d. Decision Support System (DSS)
e. Expert System (ES)
f. Communication Support System (CSS)
g. Office Support System (OSS)/Office Automation System (OAS)

Transaction Processing System (TPS)

Transaction processing systems capture and record information about the transactions that affect the organization. A
transaction occurs each time a sale is made, supplies are ordered, an interest payment is made. Usually these transactions create
credit or debit entries in accounting ledgers. This kind of ISs were among the first to be automated by computers. The modern
TPS use state-of-the-art technology, for instance, in the form of on-line transaction processing system.

Management Information System (MIS)

Management information systems are systems that take information captured by TPS and produce reports that management
needs for planning and controlling the business. MIS are possible because the information has been captured by the TPS and
placed in organizational databases.
Executive Information System (EIS)
Executive information systems provide information for executives to use in strategic planning. Some of the information comes
from the organizational databases but much of the information comes from external sources-news about competitors, stock
market reports, economic forecasts and so on.

Decision Support System (DSS)

Decision Support Systems allow a user to explore the impact of available options or decisions. Whereas an MIS produce
reports, DSS provide an interactive environment in which decision makers can quickly manipulate data and models of business
operations. A DSS has three parts.
 The first part is composed of a database (which may be extracted from TPS or MIS).
 The second part consists of mathematical or graphical models of business processes.
 The third part is made up of a user interface (or dialogue module) that provides a way for the decision makers to
communicate with the DSS.
An EIS is a DSS that allows senior management to explore data starting at a high level of aggregation and selectively drill
down into specific areas where more detailed information and analysis are required.

Expert System (ES)

Expert Systems replicate the decision-making process rather than manipulating information. If-then-else rules or other
knowledge representation forms describe the way a real expert would approach situations in a specific domain of problems.
Typically, users communicate with an ES through an interactive dialogue. The ES asks questions (which an expert would ask)
and the end user supplies the answers. Those answers are then used to determine which rules apply and the ES provides a
recommendation based on the rules.

Communication Support System (CSS)

Communication Support Systems allow employees to communicate with each other and with customers and suppliers.
Communication support system includes e-mail, fax, Internet access and video conferencing.

Office Support System (OSS)

Office support systems help employees create and share documents, including reports, proposals, and memos. OSS also help to
maintain information about work schedule and meetings.

Users of Information System

A. Support Business Processes: information systems that support the business processes and operations at the many retail
stores. For example, most retail stores now use computer-based information systems to help them record customer
purchases, keep track of inventory, pay employees, buy new merchandise, and evaluate sales trends. Store operations
would grind to a halt without the support of such information systems.
B. Support Decision Making: Information systems also help store managers and other business professionals make better
decisions, for example, decisions on what line of merchandise need to be added or discontinued, or on what kind of
investment they require, are typically made after an analysis provided by computer based information systems. This not
only supports the decision making of store managers, buyers, but also helps them look for ways to gain an advantage over
other retailers in the competition for customers.
C. Support Competitive Advantage: Gaining a strategic advantage over competitors requires innovative application of
information technologies. For example, store management might make a decision to install touch-screen kiosks in all their
stores, with links of their e-commerce website for online shopping This might attract new customers and build customer
 loyalty because of the ease of shopping and buying merchandise provided by such information systems. Thus, strategic
information systems can help provide products and services that give a business a comparative advantage over its
competitors.

Application of Information System

a) Manufacturing and Production System : Manufacturing and Production systems supply data to operate, monitor and
control the production e.g. purchasing, receiving, shipping, process control, robotics, inventory systems, scheduling,
engineering, operations, quality control, resource etc.
System Description Organisational Level
Machine control Control the actions of machines and Operational
equipment
Production planning Decide when and how many Management
products should be produced.
Facilities location Decide where to locate new Strategic

b) Sales and Marketing System : Sales and Marketing Systems help the firm identify customers for the firm's products or
services, develop products and services to meet customer's needs, promote products and services, sell the products and
services, and provide ongoing customer.
System Description Organisational Level
Order processing Enter, process and track orders Operational
Market analysis Identify customers and markets, data Management
on demographics, markets, consumer
behaviour and trends
Pricing analysis Determine prices for products and Management
services

c) Finance and Accounting System : Finance and Accounting Systems maintain records concerning the flow of funds in
the firm and produce financial statements, such as balance sheets and income statements .e.g, for Budgeting: General
Ledger, Billing: Cost Accounting, Accounts Receivable/Payable, Funds Management Systems, Payroll. They were
among the earliest systems to be computerized.
System Description Organisational Level
Accounts receivable Track money owed the firm Operational
Budgeting Prepare short-term budgets Management
Profit planning Plan long-term profits Strategic

d) Human Resources System : Human Resources Systems deal with recruitment, placement, performance evaluation,
compensation, and career development of the firm's employees. For examples, personnel record keeping, applicant
tracking, positions, training and skills, benefits.
System Description Organisational Level
Training and development Track money owed the firm Operational
Compensation analysis Prepare short-term budgets Management
Profit planning Plan long-term profits Strategic
Levels of Management and Information Systems
Businesses need different types of information systems to support decision making and work activities for various
organizational levels and functions. Information systems can be classified based on the organizational level they support.

1. Operational Level
Operational level systems support operational managers by keeping track of the elementary and transactions of the
organizations such as sales, receipts, cash deposits, payroll and flow of materials in a factory. The main purpose of systems at
this level is to answer routine questions and to track the flow of transactions through the organization. Example of operational
level systems include a system to record bank deposits from ATM, a system that tracks the number of hours worked each day
by a daily wager in a factory shop floor.

2. Management Level
Management level systems serve the monitoring, controlling, decision making and administrative activities of middle
management people. Management level systems typically provide periodic reports rather than instant information on
operations. Some Management level systems support non-routine decision making. They tend to focus on less-structured
decision for which information requirements are not always clear.

3. Strategic Level
Strategic level systems help senior management tackle and address strategic issues and long-term trends, both in the firm and
in the external environment. Their main role is matching changes in the external environment with existing organizational
capabilities.
Specific types of information systems that correspond to each organizational level are :
 Operational level: Transaction Processing Systems (TPS)
 Management level: Decision Support Systems (DSS)
Management Information Systems (MIS)
 Strategic level: Executive Support Systems (ESS)
Role of Information Technology in Various Sectors

1. Education : Teachers can make use of different ICT tools like computers, laptops etc, to make conceptual
comprehension easier for students. It aids them in implementing a variety of strategies in the classroom environment to
improve learning outcomes. They can effectively present ideas to the students using ICT and leave a long-lasting
impact on them. For the learning process to be effective, it has to be a two-way process. ICT makes this possible. Even
in online learning scenarios, there are different tools that different online softwares provide for the students to actively
participate in the learning process. It provides students with the opportunity to exhibit their thoughts and opinions in
the most effective manner. The important roles of technology in education is to students as they can learn at any time and
from anywhere. With the technology-based E-learning process, one can study in their comfort zone. Students can play,
pause and re-watch complex topics using online educational applications until the concept is clear. Technology has
evaluated the learning process through video graphics, which helps the human mind understand the concept faster and
remember it for a long time. This can be only possible because of the visual information system.

2. Health and Medicine : The technology used by modern healthcare providers allows them to analyze
patient information like never before. IT in healthcare aids in improving the quality of healthcare delivery,
increasing patient safety, decreasing medical errors, and strengthening the engagement between patients and
providers. Health IT empowers patients to take greater control over their health data by providing access via patient
portals. Patient portals enable individuals to view medical test results, download their patient data, communicate with
their doctor, schedule visits, and more—all via a website application or mobile app. Healthcare in rural communities
presents unique challenges of distance, isolation, and limited resources that complicates rural healthcare delivery. Health
IT can help ease these problems. Telemedicine proved its worth during the COVID-19 pandemic by allowing patients to
seek non-emergency care while doctor’s offices were closed. With the development in IT, there has been a significant
change in medical education all over the world. The changes is that majority of the medical students are computer literate
these days. New information on medical topics is readily accessible via the Internet and handheld computers

3. Science : Information technology enables scientists and engineers to collect, store, and process large amounts of data
efficiently. Advanced sensors, data loggers, and monitoring systems provide real-time data on various parameters, such as
temperature, pressure, and chemical composition. This data can be analyzed using powerful algorithms and statistical
tools, allowing researchers to extract meaningful insights and make informed decisions. Information technology enables
the creation of complex models and simulations that replicate real-world phenomena. Scientists and engineers can
simulate experiments, test hypotheses, and predict outcomes using computer-based models. This saves time, and
resources, and reduces the need for physical prototypes. It also allows for the exploration of scenarios that may be
challenging or dangerous to replicate in the real world. Data Collection and Analysis: Information technology enables
scientists and engineers to collect, store, and process large amounts of data efficiently. Advanced sensors, data loggers,
and monitoring systems provide real-time data on various parameters, such as temperature, pressure, and chemical
composition.

4. Business : IT is the cornerstone of most business operations, providing the infrastructure that supports a great deal of
both front-end and back-end processes. Without IT to manage a business systems and computer network information, any
unexpected breakdown or failure could bring all daily business activity to a halt. As such, it’s vital for organizations to
have an experienced, reliable team of IT technicians who can adequately monitor business systems to ensure the smooth
functioning of core operations without interruption. Information technology also allows businesses to adopt innovative
processes that can increase productivity and improve customer experience. Without access to the latest technologies and
tools, a business runs the risk of falling behind competitors, making it essential for organizations of all sizes to implement
strong IT systems in order to stay ahead of the curve. IT is the cornerstone of most business operations, providing the
infrastructure that supports a great deal of both front-end and back-end processes.
Personal, Social and Ethical issues in Information Technology

I. Personal Issues

An increase in work load and / or responsibilities can trigger job stress. Many employees feel information anxiety because
other people are better than they in using computers, because they are slow in learning new technology and because of the need
to continuously learn new things. Exposure to terminals can cause radiation exposure which is associated with cancer and other
health related problems. It can also affect eyesight. Other hazards are backaches and muscle tension in the wrist and fingers.

II. Social Issues

They are mainly positive issues. There is now flexibility in jobs that can greatly improve the quality of leisure time. There are
also great opportunities for people with disabilities. Those who cannot type are able to use voice-operated typewriters or work
from home. It has brought about major improvement in health care delivery, ranging from better diagnosis to research of new
drugs, to more accurate monitoring of critically ill patients.

III. Ethical Issues

Many companies and professional organizations develop their own code of ethics. A code of ethics is a collection of principles
intended as a guide for the members of a company or an organization. There are four kinds of ethical issues privacy, accuracy,
property and accessibility. Information privacy is the right to determine when and to what extent information about oneself can
be communicated to others. The issues to be considered here are electronic surveillance and personal information in databases.
Millions of computer users are being monitored without their knowledge. Information about individuals is being kept in many
databases. Intellectual property is the intangible property created by individuals who are protected by trade secrets, patent and
copyright laws.

Inter and Intra Organizational Communication using Network Technology

Inter-communication takes place "outside". In other words, it is in the open domain and may be considered in the three ways
below:

 Inter-personal communication involves the exchange of message/information/ data across communication channel from
one person to another or one group to another.

 Inter-organizational communication describes communication between separate organizations for example, a negotiation
for a long-term business agreement such as a supplier and development chain or network.

 Internet communication uses a computer-based system that is open to the users for example World-Wide-Web.
Individuals and companies are able to buy, sell, advertise, investigate - in fact, conduct all manner of communication
processes- in a way that might be person-to-person, person-to company, or company-to- company.

Intra-communication takes place "inside" the individual/body/group/ network/organization and may be considered in the three
ways below:

 Intra-personal communication takes place "inside" the person; the process of intra- personal communication involves the
transmission of data/information/feelings between the various senses or pathways.

 Intra-organizational communication classifies communication that is internal within the organization: it describes the use
of company magazines or newsletters which are used as the communication channel.

 Intranet communication is a form of communication channel using computer- based technology harnessed by the
organization to allow internal communication to take place for example an internal email network.
Advantages of Information Technology

The advantages of Information Technology can be summarized as follows:

1. Globalization

True globalization has come about only via this automated system. The creation of one interdependent system helps us to share
information and end linguistic barriers across the continents. The collapse of geographic boundaries has made the world a
'global village'. The technology has not only made communication cheaper, but also possible much quicker and round the clock.
The wonders of text messages e-mail and auto-response, backed by computer security applications, have opened up scope for
direct communication.

2. Cost-effective

Computerized, internet business processes have made many businesses turn to the Internet for increased productivity, greater
profitability, clutter free working conditions and global client. It is mainly due to the IT industry that business has been able to
make their processes more streamlined, thereby becoming more cost-effective and consequently more profitable. People are
able to operate their businesses 24x7, even from remote locations only due to the advent of information technology.

3. Communication

Quick and effective communication is vital to any business anywhere in the world. Information technology gives an
entrepreneur or business the tools, like e-mail, video conferencing, SMS, etc., essential to communicate efficiently and
effectively. To the business world, and information technology gives your company the resources it needs to communicate
quickly and effectively. Not only do people connect faster with the help of information technology but they are also able to
identify like-minded individuals and extend help, while strengthening ties.

4. Storing and Information

IT provides a low-cost business options to store and maintain information that may be important from a business or service
point of view. Virtual vaults and other such security systems not only store vital data but also allow control over the access to
such information. IT security systems will also protect virtual data from being hacked or wiped out in case of any technical
failure.

5. Creation of New Jobs

One of the biggest advantages of IT has been the creation of a whole new field of opportunity for skilled personnel leading to
new and interesting jobs. Hardware and software developers, computer programmers, web designers, system analyst, the list of
new jobs created could go on. IT has also been attributed to be the major cause of surge in the economies of certain Third
World nations too. Things that were once done manually or by hand have now become easier and faster due to the advent of a
computing technology.

6. Saves Time

In today's world, time is money. As a result, the technique enables saving a lot of time and boosting productivity. We can do
large assignments faster. Everything in the world today is automated, and this innovation helps save a lot of time by
automating tasks that are impossible for people to do. For instance, if you don't have time to go shopping for clothes, you can
order them online and deliver them to your home. Therefore, one may utilize time on other crucial matters by using technology.

7. Improved safety

Technology has improved people's safety. CCTV cameras have been created with the advancement of technology to protect
your assets at your house and place of business. Lock mechanisms on mobile phones, computers, and Godrej lockers protect
our data and other possessions.
Disdvantages of Information Technology

1. Over reliance on technology

A lot of people believe that because computers and the Internet has become such a regular part of modern life, some people
particularly children who grow up with it, will not be able to function without it. Some people think that the Internet is making
people lazy, particularly when it comes to essay or project research as instead of reading books in a library, one can just
perform a Google search.

2. Loss of communication skills

with the ever increasing variety of social networking sites such as Face book and Twitter, a lot of people are worried that
traditional communication skills will be lost. This worry is particularly about children who often engage in these websites
because communication and interactive skills are not important with computers.

3. Job losses technology

In an organization, company or business, the number of hours that a human works at that company are reduced. This may even
result in some people losing their jobs because technology is doing it for them. However this is beneficial for the organization
as their profit is increased because they don't need to pay their workers as much because they aren't required as much.

4. Loss of personal touch

E-mails and instant messaging have replaced the old tradition of handwriting letters. And although this is advantageous
because of time constraints, a personal touch and sense of feeling is lost compared to taking the time to sit down and hand
write a letter.

5. Health problems

Research has shown that technology can cause a number of problems with a person's health. Many scientists, doctors and
researchers are concerned about possible links between technology and heart problems, eye strain, obesity, muscle problems
and deafness. Waste emitted from technology can pollute the environment which not only makes people ill, it also damages the
environment.

6. Data security

In the modern world, some people are knowledgeable about technology and have become hackers, so your data isn't safe with
you. They can hack your system, bank accounts, business data, and much more from the comfort of their home using the most
recent technologies.

7. People are easily distracted

Instead of reading anything productive, they are more likely to use various unnecessary stuff. Young people, adults, and
children are all involved in social media, which prevents them from completing their daily tasks. Since most children today
own a laptop or a phone, they might need help to focus on their schoolwork.

8. Job Losses

Information technology can lead to the potential for job losses due to automation and computerization. As technology advances,
machines and computer algorithms replace many manual and even skilled jobs, leading to high unemployment and decreased
quality of life.

9. Cost

Technology can be expensive, and businesses must know the potential costs of implementing new technology. Additionally,
businesses must ensure they are getting a return on their investment by ensuring the technology is helping them improve their
processes and operations.
IMPACT OF INFORMATION TECHNOLOGY ON BUSINESS (BUSINESS DATA PROCESSING)

The process of generation of information must focus on the quality of information by aiming at improving the degree of each
of these attributes. The following are the essentials of good information system.

i. Promptness : Decision making is to be taken within a time frame and therefore. Information must be available within the
desired time frame. It is well said 'Information delayed is information denied". Some types of information are required
periodically and should be made available to the user regularly and timely so as to avoid delay in decision making.

ii. Accuracy : It means that information is free from mistake sand errors this implies that the information is totally correct. It
is an essential and important feature of good information. Increasing the accuracy may have a cos. It is therefore. It's
Necessary to determine the acceptable levels of accuracy for each type of information.

iii. Precision : Precision is an important virtue of good quality information. Too much of information sometimes results in
dumping of important information in the heap of details that may not be required at a particular point of time only precise
information is respected and used by the management.

iv. Adequacy or Completeness : Adequacy generally refers to the complete and full detailed information. It means the
information must contain sufficient quality information may be said to be complete if the decision maker can
satisfactorily solve the problem by using the information. If the information is incorrect or inadequate than it can be quite
harmful to the organization.

v. Unambiguity : Clarity of is an important attribute of good information. Information must be unambiguous and should be
communicated in such a way that it conveys the same meaning to different levels of management.

vi. Timeliness : Timeliness is important information essential. This explains that information should reach the managers or
users within the prescribed time for effective decision making. Information must be delivered at the right time the right
place to right person or user.

vii. Exception bored : In moderns business the organizations are exception based organization. This means the management
and mangers are provided with only those items of information that are of particularly interacted to the management. This
type of information is quite useful in saving time and resources of the top management.

viii. Availability : Information always should available in right time and right place to take the decisions. If information is not
readily available at the time of decision making the information that information is considered to destroy.

ix. Format : For making and information useful it should be made available in a form which suits the recipient most.
Information may be communicated in visual written or verbal form.

x. Frequency : Frequency of useful information should be based on the actual requirements of a management or managers.
The requirements depend on the recipient's organizations positions and his interaction with other departments.

BUSINESS PROCESS OUTSOURCING

Meaning of Business Process Outsourcing

Business Process Outsourcing, or BPO, is a business practice in which one organization hires another company to perform a
process tank that the hiring organization requires for its own business to operate successfully.

Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and
responsibilities of specific business functions (or processes) such as payroll, customer service, accounting, data recording and
much more to a third-party service provide.
Objectives of Business Process Outsourcing

Business Process outsourcing has many objectives. Some of them are as follows :

I. To decrease costs

Outsourcing cuts down on costs for in-house labor. particularly for staffing and training and for the work space to
accommodate local employees. An outsourcing company physically located in a developing country leverages lower-cost labor
markets.

II. To concentrate on key functions

Outsourcing allows businesses to hone in on their main offerings instead of company functions that aren't directly tied to their
core processes.

III. To achieve better results in non core functions

Outsourcing companies specialize in what are considered non core functions of other businesses, delivering world-class
capabilities for its clients. In fact, an outsourcing company that invests in specialized processes and technologies can deliver
cutting-edge breakthroughs to its clients

IV. To expand their global presence

Some outsourcing companies can serve customers in multiple languages, around the clock, thus relieving the local company of
the responsibility

V. To enable flexibility

Companies that outsource their noncritical functions can act more quickly and more efficiently when managing the risks
associated with introducing new products or services

VI. To improve speed and efficiency

Companies that outsource processes are opting to let specialists handle those tasks, thus saving time, improving accuracy, and
increasing their capacity

CATEGORIES OF BPO

The BPO industry is divided into three categories, based on the location of the vendor. A business can achieve total process
optimization by combining the three categories:

A. Offshore:

Offshore vendors are located outside of the company's own country. For example, a U.S. company may use an offshore BPO
vendor in the Philippines.

B. Nearshore:

Nearshore vendors are located in countries that are neighbouring to the home country. For example, in the United States, a
BPO in Mexico is considered a nearshore vendor.

C. Onshore:

Onshore vendors operate within the same country as the contractor,although they may be located in a different city or state. For
example, a company in Seattle, Washington, could use an onshore outsourcing vendor located in Seattle, Washington, or in
Huntsville, Alabama.
Services of Business Process Outsourcing

1. Information technology-enabled services (ITES) BPO

This form of BPO leverages information technology (IT) over the internet or data network to deliver services Some examples
of ITES BPO jobs are service desk analyst, production support analyst, and IT analyst.

2. Knowledge process outsourcing (KPO)

KPO has changed BPO a bit Some KPO vendors support functions that are considered core in business, although they may not
be core functions in the particular business that hires them KΡΟ firms offer more than process expertise, they may also provide
business and domain-based expertise Some examples of KPO services include research, analysis, or Microsoft Word and Excel
work KPOs may be capable of making low level business decisions if they do not conflict with higher level business policies,
but those decisions may be undone easily KPO vendors are usually linked to the business's value chain, and they hire people
who are competent in a specific field.

3. Legal process outsourcing (LPO)

LPO is a subset of KPO and encompasses a huge range of higher-level legal work not merely lower level legal transcription
LPO firms can draft patent applications and legal agreements, as well as perform legal research. Some LPO firms even advise
clients. In-house legal departments usually retain LPOs. Experienced paralegals using industry standard databases do the work.

4. Research process outsourcing (RPO)

A subset of KPO. RPO specializes in research and analysis functions RPO companies perform research and analysis work that
supports business, investment, biotech, and marketing firms.

5. Travel

This pertains to all the operations a business needs to support its travel logistics, from reservations to hotel and vehicle
bookings Travel BPO saves money for the company because it cuts costs while increasing customer satisfaction Airline and
travel companies also engage in BPO for either front or back-office process streamlining For example, an airline could
outsource its ticketing process.

Advantages of Business Process Outsourcing

I. Achieve savings

When a company outsources certain business processes to an external supplier, especially a foreign one, it can increase its
profits thanks to the reduced costs of the tasks. In the case of purchasing outsourcing, for example, the company can obtain
better prices on products and - in the long run - increase its margins.

II. Gaining flexibility

By entrusting certain missions to an external service provider, the company has a better reactivity and can react more quickly
to changes in the market. It can also - in the event of unforeseen events - quickly turn to other partners.

III. Paying less

Outsourcing allows you to gain flexibility in your workforce and avoid the need to hire. In addition to the legal obligations
relating to the employment contract, the company does not have to bear any expenses related to the recruitment of an employee
(salary, wage costs, etc.).

IV. Increasing its competitiveness

By delegating certain business processes, the company saves precious time that it can devote to high value-added tasks and
strategic missions.
Disadvantages of Business Process Outsourcing

i. Security

It is possible that this information could be stolen by a third party, or exploited by an ill-intentioned supplier. It is essential to
verify the guarantees related to security and data protection.

ii. Unforeseen costs

Outsourcing can sometimes involve costs that can be difficult to predict. The company may underestimate the amount of work
required, or it may simply not think about calculating costs properly in advance.

iii. Work-Life Balance

Most of the BPOs function in a client environment which would require agents in India to work as per the timings of the US,
UK or Australia. This means frequent night shifts or early morning shifts as the normal working hours.

iv. Communication difficulties

In case of offshore outsourcing, there is a risk that it may be difficult to communicate with the supplier, or that cultural
differences may be encountered. For this reason, it is recommended to choose a supplier nearshore, and that has already a
global presence, and especially for purchasing outsourcing.

v. Health Issues

Most of the work here involves sitting in front of computer and speaking over headphones. Working in such an environment
for years on leads to long-term health complications in an individual. This includes gastric problems, hormonal imbalance and
sleep disorders amongst other things.

Knowledge Process Outsourcing

Knowledge Process Outsourcing (KPO) means information related business task or knowledge-based processes such as
research, analysis, consultancy or any other high level task are outsourced e done by the workers of another company or
allocated to the subsidiary of the same organization.

Advantages of Knowledge Process Outsourcing

a. Cost-effectiveness

One of the biggest advantages of a KPO is obviously the cost advantage The company does not have to set up any
infrastructure or bear any operational or running costs. And it gets effective, expertizes services at a fraction of the cost.

b. Access to the best talent

KPO's provide the company with the best, most knowledgeable and skilled professionals available in the global talent pool.
And if the KPO is in a developing country like India or Philippines then the cost of such talent is also relatively low.

c. Focus

Outsourcing some of the processes, allows the company to focus on its core functions. The KPO handles the peripheral
functions, and the company can better focus on its core functions and improve their efficiency and results.

d. Better utilization of resources

If the company outsources the process that is not at the core of their business strategy, it can use the resources it saves in better
places. Say a company outsources its supply chain management. Then the resources it saves on this can be utilized to
streamline the manufacturing process, R&D activities, better marketing etc
Activities of Information System

Regardless of the type and use of information system, the basic activities that occur in any system would involve:

A. Inputting Raw Data: Data about business transaction and other events must be captured and prepared for processing by
data entry activities such as recording, editing, typing.

B. Processing of Data into Information: Data once entered is subjected to processing activities like calculating, sorting,
classifying, summarizing etc. For example, in a payroll system, calculating net salary involves processing like deduction
of taxes, addition of commission earned etc.

C. Output of Information Product: Information thus produced by processing activity needs to be transmitted to
appropriate end user. This is done by the output activity. Information produced by the Information Systems may be in the
form of text, images, videos, forms, reports etc. For example, manager might see reports about the sales performance.

D. Storage of Data Resources: Data and information are required to be stored for future reference. For example,
maintaining the records of the customer, employees, products etc.

E. Control of System Performance: Controlling is to keep a check on the performance of the information system. An
information system should produce feedback about its input, processing, output and storage activities, which must be
monitored and if the system is not in-line with the achievement of its goals, then the corrective control action needs to be
taken. For example, generating audio signals to indicate proper entry of sales

Importance of Information Technology in Decision making and Strategy building

Fundamentally all organizations use and implement Information System in following three phases -

 Automating: Organizations use IS to automate its various business operations.

 Information: Organizations use IS to share information and remain connected to one another in a firm.

 Strategizing: Organizations at this stage try to use IS to gain strategic advantage over its competitors.

There are three fundamental reasons for all business applications of information technology. They are found in the three vital
roles that information systems can perform for a business enterprise.

 Support of its business processes and operations.

 Support of decision making by its employees and managers.

 Support of its strategies for competitive advantage.

Support of its business processes and operations :

The use of information systems at various retail stores where computer-based information systems help employees record the
customer purchases, evaluate sale trends, keep track of inventory etc.

Support for Decision-making :

Information system helps store managers and other business professionals make better decisions. For example, decision on
what line of products need to be added to the inventory etc.

Support Competitive Advantage :

Information systems help in gaining strategic advantage over competitors. For examples, some companies sell their products
through e-commerce which gives them the advantage over their competitors.
Recent trends in Information System

Information management is becoming increasingly important in both the private and public sectors because of its
enormous benefits. The recent trends in Information System are as follows :

1. Increased focus on information quality : With the growing importance of information and their types, companies are
starting to pay more attention to ensuring its quality. This includes ensuring accuracy, completeness, and
consistency.Businesses must only collect high-quality information and properly preserve it in order for it to be evaluated
later and provide insights to drive business decisions and efficiency.

2. Greater adoption of information governance : As information becomes more critical to business operations, companies
are implementing formal information governance programs to ensure its quality and control its use. Information
governance programs are designed to help organizations manage, protect and control the information they have.

3. Automate Business Processes : Automation of business processes is critical for businesses that want to be agile and
prosper in the digital age. The recent COVID19 pandemic has highlighted the need for digitalization among
enterprises.Organizations that rely on papers and paper-based processes were unable to do business as usual during the
lockout.

4. Wide usage of Artificial Intelligence: Leveraging artificial intelligence in information management has become vitally
important for organizations. AI can help organizations with ; Automatic information by types, Extract useful information,
Auto-populate metadata to drive a more personalized search, Hide personally identifiable information (content redaction)
from unauthorized access, Process large amount of information, Complete information life cycle management

5. More use of analytics: Companies are using analytics to gain insights into their business operations and make better
decisions. This includes using information to improve customer segmentation, target marketing, and product
development.Proper analytics can help organizations improve their business model, release new products, improve
customer experience, and understand how certain products are being utilized.

6. Federated search : Many companies store and manage their information using more than one information management
system. This adds needless steps for employees looking for information to carry out a specific business task. Federated
search enables enterprises to overcome information silos by searching for information using a single location and
receiving results regardless of their original location. This reduces the number of time employees spend looking for
information, increasing productivity and efficiency.

7. Leverage RPA technologies : RPA software robots are used to automate manual repetitive operations that employees
spend the majority of their time doing. These robots can replicate employees’ actions and execute them without human
intervention, enhancing efficiency and completing tasks more quickly.

8. Overcome information silos: Information silos refer to the isolated storage of information within an organization. When
information is not shared across departments or business units, it leads to inefficiencies and can result in duplicate work.
In worst-case scenarios, it can lead to business failures. Information silos are a problem that can be solved with AI. This
is because AI has the capability to aggregate information from different sources, and then present it in a coherent manner.

9. Increased integration with other systems : Most organizations rely on a variety of systems to do business. In order to
have an efficient information management program, there should be a wide range of integrations available to allow all
systems to obtain information without the need for human intervention.
Conceptual Type
1. Give the meaning of System
2. Define System
3. What is Information Technology?
4. What is Information System?
5. What do you mean Business System?
6. What is Business Information System?
7. What is Operating personnel?
8. Define Data.
9. What is Hardware?
10. What is Software?
11. What is Networking Procedures?
12. State the Components of Business Information Systems.
13. State the Application of Information system.

Analytical Type
1. Explain the Characteristics of System.
2. Briefly explain the Types of System.
3. Difference between Information Technology and Information System.
4. What are the Feature of Information?
5. Explain the Good Quality of Information.
6. Explain the Importance of Information.
7. Explain the Features of Information system.
8. What are the Objectives of Business Information System?
9. Discuss the various Users of Information Systems.

Descriptive Type
1. Explain the Components of System.
2. Briefly explain the Types/Classification of Information.
3. Explain the Functions of Information system.
4. Explain the Process of Information system.
5. Discuss the Resources of Information system.
6. Discuss the various Uses of Business Information Systems.
7. What are the Components of Business Information Systems?
8. Explain the Application of Information system.
9. Explain the Recent trends in Information system.