Unit 1.

Information Technology in a Business Environment

This unit introduces the basic concepts of business and information technology, its fundamental
roles in a modern business environment, and its impact on business organizations. It provides
real-world examples and scenarios that explain how technologies help solve business problems
and create a competitive advantage.

UNIT OUTLINE
1.1 Business and Information Technology
1.2 Business in the Information Era
1.3 The Changing Role of IT in Business

LEARNING OBJECTIVES
At the end of this unit, the student should be able to:
1. understand the concepts and theories of business and information technology;
2. identify various aspects of technologies in the Digital Age; and
3. recognize and describe the role of information technology in today's modern business
environment.
1.1 BUSINESS AND INFORMATION TECHNOLOGY
Many people believe that business nowadays could not survive without the integration and use of
information technology (IT). Business organizations rely on computers to perform their daily
operations and transactions. Multinational corporations, the government, non-government
organizations (NGOs), local businesses, and even small businesses such as stores and shops
use computers and IT to support their business activities. Therefore, in this modern world, it is
essential for a business organization to integrate IT in their daily business activities.

For example, banks have developed and designed new mobile banking apps to replace traditional
banking. These mobile banking apps have powerful features such as a user-friendly interface,
secure log-in account, accessible customer service, ATM and branch locator, notifications,
currency converter, loan calculator, complaint registration, top-up and bill payments, service
request, bank account management (viewing of statement and money transfer), wallet, and credit
card payments. Banks that deliver comprehensive and functional mobile banking apps to their
customers can provide quality service that would lead to high customer satisfaction (Kelly &
Palaniappan, 2019).

Business Organization as a System

Any type of business organization, whether multinational or local and large, medium, or small,
can be viewed as a system because it consists of various parts that work collaboratively to attain
a certain goal. The main goal of many organizations is to provide added value to their clients and
customers. In government agencies, for example, delivering added value means a government
agency or organization provides useful and quality service to citizens that is more than the worth
of the resources used for rendering such service.
Business Concepts
The word "business" is traditionally defined as the exchange of products. However, its concepts
and activities have changed tremendously through time. At present, the word has taken on a
technical meaning as it focuses not only on trade but also on production, distribution, and the sale
of goods and services.
The business concepts of an organization illustrate that businesses in the modern world have a
clear engagement of activities, people, and IT resources.
Information Technology and Its Discipline
IT comprises a wide range of hardware and software solutions that support organizations and
evaluate data that help them accomplish their targets. It also describes technology. based
workflow processes that enhance the proficiency of an organization to provide services that
produce profits.
IT makes the most of handling high-performance communication links to wide-ranging information
from one location to another. One of the main components of IT is the use of an electronic device
known as a computer, which allows users to input data, process them into information, and store
them for later use, and because of the advancement in IT, the world has turned into a "global
village," defined by Merriam-Webster as a world viewed as a community in which distance and
isolation have been dramatically reduced by electronic media such as television and the Internet.
IT is said to have two faces. In general, it is commonly used to refer to all computing functions. In
education, it applies to a bachelor's degree program that helps students prepare for tasks related
to computer technology in organizations such as schools, the government, healthcare facilities,
business environments, and the like. At the moment, these organizations are completely
dependent on what IT has to give and do to people who need a suitable system in place. A suitable
system is one that responds properly, is secured from any form of threats, and is always ready
for upgrades and maintenance. Graduates of IT programs attend to these needs and problems
that occur from time to time.

Modern Information Technology

IT is defined as the study and application of computers, network, and telecommunications that
store, manipulate, retrieve, manage, and send information. It includes a combination of software
and hardware resources that are used together to perform various functions that people need in
their everyday life.

Modern IT is simply more than high technology and gadgetry. There are sophisticated computers
available in the market today that are fully equipped with modern software and capable of solving
a multitude of business and technical problems. However, famous software and hardware
vendors use technology buzzwords in order to sell more complex software products for big data,
machine learning, artificial intelligence (Al), Internet of Things (loT), augmented and virtual reality,
data mining, and so on.

IT is used to support the business activities of an organization to increase its profit and improve
its service quality. These business activities include administration, production, sales, and
management. These IT tools can be accessed by customers, clients, staff, and even employees.
IT is everywhere. At the moment, millions of people use social networks across the globe. Through
social networks, people could conveniently access updates on their preferred brands such as
MaxFactor, H&M, and Charles & Keith by simply following these brands' pages. In Instagram, for
example, approximately eighty percent (80%) of its users follow at least one (1) business.

The integration of advanced IT tools into a business makes it more competitive. For example,
companies that integrate a queue management system (QMS) into their daily operations promote
convenience to client/customer and employee/staff. The main purpose of QMS is to facilitate the
customers' waiting process, monitor the time spent in a queue, and later solve customers' inquiry.
This system is useful for service sector companies such as banks, medical institutions, internet
service providers, insurance companies, and others. Companies with QMS guarantee high-
quality services, efficient processes, less customer waiting time, and better employee working
conditions (Ghazal, Hamouda & Ali, 2015).

1.2 BUSINESS IN THE INFORMATION ERA

Most businesses established in the Information Era mostly depend on the use of advanced
technologies. It is a fact that people currently live in the Information Era, commonly known as the
Digital Age. The rapid digital transformation caused a shift from traditional to modern
industrialization and to an economy that is based on IT. Today, new ideas, concepts, movements,
and inventions make huge changes in everyone's lives.
The Information Era is described as enormous and incredible, where huge amounts of information
can be shared around the world in just one click of a finger. Everyone has the ability to be
knowledgeable about almost anything with the help of the Internet that can be accessed anytime
and anywhere.
Many business activities were done in an old-fashioned way. Businesses before ran their daily
operations completely different from what businesses are presently doing. There were no mobile
phones, particularly smart phones. There were no electronic businesses and mobile apps, and
software is limited. Using the Internet is intended only for special purposes and offered to selected
people. However, despite the absence of such IT tools, people were able to thrive.

Today, people are largely dependent on technology. The evolution of the IT industry, combined
with advancements in technology, has made it possible for people to simply do business in real
time. IT has managed to include many aspects of technology needed by society such as
information systems, networking, social media, mobile applications, online banking, e-business,
e-commerce, m-commerce, and so on.

Business Environment in the Information Age

The Information Age enables businesses to compete in a marketplace that is complex, global,
and customer focused. Thus, companies must know exactly how to react to opportunities and
problems that might come up from this modern business environment, which is a combination of
various factors (internal and external) that might affect business activities and influence a
company's operations. These factors may include clients, suppliers, owners, technology, laws,
and economic, social, political, legal, and government activities.
A business can be easily established but difficult to sustain. For a business to be successful in a
greater market, it must take the challenge and be aware of the various factors of the modern
business environment. Businesses must learn how to adapt easily to the changes in the market
as quickly as possible. For example, a business needs resources such as: (1) finance, which
depends on support from financial institutions; and (2) sales of products, which depend on the
needs of customers. These are just a few of the many factors of a business environment that
businesses must consider. In addition, the changing needs of customers and the need for new
innovation are part of the business environment. The biggest challenge for businesses in this
technological era is surviving in the market.

The business environment is considered the most fundamental aspect of any business. It
presents both threats and opportunities for a business. Businesses must be aware of the ongoing
changes and use these changes as opportunities.

The following are some businesses that are popular in the Digital Age:

a. Call Centers. Among the most in-demand jobs all over the world are call center jobs. A
call center is a unified type of company that handles inbound and outbound calls from
current and potential customers. It is either located within a company or outsourced. A call
center agent refers to a person who handles incoming or outgoing customer calls for a
certain business. He/She might handle technical support issues, customer complaints,
and account inquiries.

b. Banking (Online Banking and Mobile Banking). Online banking is one of the many
business banking services that banks offer. It is popularly known as Internet banking.
Transactions can be done over the Internet through a bank's website with the use of a
desktop computer or laptop. These transactions include an online payment system, online
checking, and viewing of account and transactions, online application requests, and
transfer of money between accounts. Services traditionally offered in local bank branches
are also offered in online banking. IT eases the work of business owners, bank employees,
and individual customers through Internet banking. The benefits of online banking includes
reliability, security (e.g., data privacy), easy access, transparent charges, and convenient
account monitoring.

On the other hand, mobile banking allows an account holder to perform many online
transactions through an app using mobile phones (smart phones) instead of a desktop
computer. Mobile banking requires an account holder to register on a mobile app.
Although the features of online banking and mobile banking are relatively the same, mobile
banking requires a mobile banking app and SMS notifications.

1.3 THE CHANGING ROLE OF IT IN BUSINESS

IT is about telecommunication networks; all kinds of hardware such as computers, routers,
memory, cables, servers, and printers; and all types of software including both systems and
applications such as operating systems, productivity tools, office application tools, data
management tools, and social and mobile applications. IT facilitates the storage, distribution,
retrieval, management, manipulation, sharing, acquisition, collection, delivery, and even
processing of information and other digital content.

IT has replaced the traditional or conventional methods of business activities with modern and
innovative technological tools. These technological tools help business organizations increase
profit, efficiency, and productivity.
Many years ago, business organizations have shifted majority of their operations in anticipation
of the Digital Age; they used IT to actualize this shift. Most of them turned to giant IT companies
that provide IT solutions. Others required tailor-made technology for specific clients. As time went
by, many companies became so eager to digitalize their operations that providers created each
IT setup as unique, making it expensive and complicated. As a result, businesses engaged with
IT infrastructure, which is so expensive to operate and maintain at the same time, require a lot of
staff.
At present, we enjoy technologies that are designed and developed to revolutionize old concepts.
Many of the tasks that involve complex solutions can now be automated by simpler and cheaper
IT. Mobile apps, social media, cloud computing, grid computing, and networking have ushered in
the technological era. Furthermore, technological industries are moving toward developing
software models rather than hardware. Google, Microsoft, and Amazon spend plenty of money to
be connected in the Cloud where everyone is at now, thereby giving a sense that
this new era of IT is inevitable.

Productivity
Technological tools and applications such as computer- aided design (CAD), office application
tools (word processors, spreadsheets, and presentation software), programming software,
database technology, and the like, improve business productivity.

Monitoring
IT tools are used for monitoring purposes in various areas of business organizations. The main
reason for this is to ensure that all resources are being utilized efficiently. For example, there are
companies that implement real-time inventory management for monitoring business transactions
to reduce production cost.

Business Performance Management

In the world of business, methods are continually being evaluated to determine more effective
and efficient business activities and processes so business organizations can achieve their goals
and profit. Business performance management was developed as a monitoring method that most
businesses use to achieve their goals. It refers to a management culture that helps businesses
optimize their performance by evaluating and analyzing various processes using software
applications, such as online analytical processing (OLAP) and executive information systems
(EIS).
Role of Information Technology in Other Fields
Technology is no longer about luxury; instead, it has become a necessity. Technology has
become very popular in various fields such as education, manufacturing, communication, and
banking. Industries use technology mainly to improve their services and increase their
productivity.

Education
IT plays a vital role in providing quality education to students. Nowadays, technology is a staple
part of most classrooms. For example, in experiential learning, students use technology to
simulate their learning activities.
Educational technology is widely used to support teaching and learning. Many schools, colleges,
and universities all over the world recognize the potential and contribution of educational software
in learning. However, despite the wide coverage of educational technology in terms of forms and
purposes, establishing it in a classroom setting can be costly.

The following are some examples of emerging educational technologies:

a. Glegster EDU. Students can use this tool to present their research creatively. It allows
students to create unique projects or research presentations.

b. Mentimeter. This is a website specifically designed to support teaching and learning in

schools, colleges, and universities. This website increases the participation of students in
the classroom. It allows teachers to prepare practice exercise questions online and ask
students to answer virtually.

c. Electronic Learning Organizer. This is a cloud-based technology that helps language

teachers produce activities for their students in the form of digital learning objects.

d. Constant Therapy. This is a mobile app-based educational technology for students with
special needs It provides personalized therapy for students with disorders in
communication, learning, language, and others. It also allows educators to monitor
students' progress.

Learning Management System

Choosing the most appropriate educational application to be integrated into a curriculum can be
difficult. A primary consideration of educational institutions when selecting curriculum materials is
the materials' long-term utility. One drawback of using educational software, however, is that a
software application often changes; thus, it requires frequent upgrades, updates, and purchases
of newer ones.

Learning management systems (LMSs) address this drawback. These systems are powerful
online applications containing designed and developed courses for students. Course contents
can be uploaded anytime in LMSs. Through them, educators can prepare online assessments
such as quizzes, assignments, and discussions. MSs host forums and post announcements to
answer the queries of students and cater to their needs. Furthermore, with the use of LMSs such
as Blackboard, Canvas, Ranger, Moodle, and so on, student progress can be monitored and
evaluated online.
Educational institutions could also maintain the quality of their services using LMSs by
establishing technical support through these systems.

Health
IT also plays a significant role in the field of medicine. For example, a patient record management
system (PRMS), which is designed to record all transactions made by patients, are common
nowadays in hospitals.
Medical doctors take pictures of patients' body parts to detect illnesses or disorders using
machines like the computerized axial tomography (CAT) or magnetic resonance imaging (MRI).

Information Technology Career Opportunities

Generally, IT specialists manage and maintain technology products, but they are not limited to
technology companies. They may work with businesses and organizations that use technology
and control large amounts of information. IT specialists work with services related to software,
hardware, databases, and networks, provide technical support to businesses, and train non-
technical workers on the business' information systems.

Help Desk Technician Jobs: Technicians must be knowledgeable about computer systems and
have good customer service skills. They are trained to address the computer problems of clients
through electronic mail and telephone instructions to customers.
Technical Support Analyst Jobs: Technical support analysts are considered professionals who
assist staff within an organization and support non-IT computer users. They assist clients who
encounter technical issues while using a particular company's products.
Business Intelligence Analyst Jobs: Business intelligence analysts are computer science
graduates who use computer software programs to go through big data and trace specific
information to formulate reports and create presentations by considering the company's level of
efficiency and its departments' advancements over a selected timeline.

Trends in Information Technology Development

The Adaptability of the Internet of Things (loT) loT is a system of interconnected computing
devices, mechanical and digital machines, objects, animals, or people. It has the ability to
transport data over a network without requiring human-to-human or human-to-computer
interaction.

Development of Web Applications.These are web applications that are composed of web
pages or websites similar to traditional and most mobile applications. A web app is an application
program that is stored on a remote
server and delivered over the Internet through a browser interface.

The Brainpower of Artificial Intelligence. Artificial intelligence (Al) is the simulation of human
intelligence processes by machines, particularly computer systems. These processes include
learning, reasoning, and self- correction. Specific applications of Al include expert systems,
speech recognition, and machine vision.