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Module 8 - Information Technology
Module 8 - Information Technology
These industry groups are made up of organizations that provide internet services, as well as
businesses that provide software and IT services. Internet services include companies that
provide online databases or interactive services like search engines or social networks. IT
services comprise organizations that provide IT consulting or data processing services to other
companies. Finally, the software comprises any form of software for business or consumer
application, ranging from enterprise software and systems software to video games.
Industry Sub-Industry Description
The IT industry is a broad, sweeping word that embraces various information technology-
oriented enterprises. No organization even in corporate, government, or non-profit) can thrive
without Information Technology.
The IT industry includes any organizations or departments within enterprises that develop,
maintain or run Information Technology systems.
1. Software Product Companies: These are companies that work on products meant to serve a
specific use for a customer. Also included in this category are the hundreds of thousands of start-
up companies looking to make their idea the next big idea (e.g., Google, Microsoft, Apple, etc.)
2. Services Organizations: These organizations provide IT services to their customers. They are
some which specialize in providing services only to the product companies. Others provide a
wide range of services ranging from network maintenance, business process outsourcing, system
support, and bespoke application development.
3. The IT function of some of the largest organizations may be bigger than many standalone IT
companies. This function typically functions like a cost center that provides IT services for the
core business. For example, the IRCTC, which gives the Indian railways, builds and supports
some of its most complex systems.
Challenges
IT is one of the youngest businesses in the world, and hence the issues facing IT firms are varied.
Global Competition: IT goods and services are able to bypass geographical constraints easily
with the widespread connection around the globe, which is increasing quicker and more
dependable.
Rate of Obsolescence: It is safe to claim that the IT sector re-invents its own technological
infrastructure every few years. Moore’s law and Nielsen’s law have proved themselves to be
remarkably robust. Modern systems (including hardware and software) look nothing like they
did only a few years ago. This means the rate of adaptability to new technologies has to be quite
fluctuating high.
Quality and Security: As IT becomes more ingrained in conventional goods and traditional
organizations, it is vital to guarantee that quality and security are not compromised. Imagine if a
software flaw causes a space shuttle mission to fail or an automobile to malfunction. Security is
an even more significant worry. Recent virus and ransomware assaults have highlighted how
strongly dependent we are on the seamless operation of IT systems. A sizeable worldwide firm
like Maersk shipping was down on its knees for almost a week, attempting to recover from these
attacks.
Solutions
Agile product development: Flexibility and quick deployment cycles is the need of the hour.
Agile approaches aid in keeping the development process flexible as well as accomplishing
speedy time-to-market.
Focus on Realizing Business Benefits: Technology may be addicting, but firms must employ
the correct technology that solves the most pressing business concerns. The product or system
being produced must answer the business concerns that businesses confront.
Stakeholder Engagement: Information Technology is one of the most man-power-heavy
businesses. The engagement and collaboration between the business and the development are
crucial as IT goods and systems are complex and frequently intangible. Therefore the success of
IT efforts may rely upon the efficacy of stakeholder relationships.
Leadership Development: Train the next generation leaders to drive transformation. For a
people-oriented sector, the development of people is perhaps the primary motivator for success.
Reference/s:
https://www.pmsoft.com/the-information-technology-industry/
https://www.valuepenguin.com/sectors/information-technology