RAJIV ACADEMY FOR TECHNOLOGY AND MANAGEMENT,

MATHURA

RESEARCH REPORT ON

“ Marketing Strategy Mother Dairy ”

Submitted for the fulfillment towards the award of the degree in Bachelor of
Business Administration
Of
Dr. B.R. Ambedkar University, Agra

By

Name: - Tanu singh

University Roll no.:-20001045071116

Under the Supervision of:

Faculty name: - Dr.Vaishnavi sharma
( Department of Management )

1
 PREFACE

In its broadest sense project report is necessary to make the

students of business school familiar with the industrial environment
prevailing in the world. To be competitive and work aggressive,
students need to know the policies, procedures and the trends going
on in the present industrial world.

2
 ACKNOWLEDGEMENT

“At the onset I must bow down in reverence to the almighty that
blessed us with the understanding & prevalence that is needed in
this kind of project report.

With great pleasure we express our heartiest thanks to Dr.Vaishnavi

I would like to extend my sincere thanks to Mohd. Zahid Sir (HOD-
BBA) without whose unrelated support and guidance, this project
would just not have been possible. I am very thankful for her
valuable guidance, support, and affable & friendly nature. she guided
me at each and every stage of project.

I am equally indebted to my friends who always inspired and

motivated me to do something better throughout this project.

At last I would like to extend my sincere thanks to all the

respondents to whom I visited for giving their support and valuable
information, which helps us in completion of project.

3
 STUDENT DECLARATION

I Tanu singh , Hereby declare that this work entitled “MOTHER

DAIRY” is the result of project under taken. The findings and
conclusions expressed in this report are genuine, authentic and are
for academic purpose. Any resemblance to earlier project work is
purely coincidental.

Name: Tanu singh

BBA III SEMESTER

ROLL NO. : 20001045071116

4
 CERITIFICATE

This is to certify that Tanu singh, student of BBA III SEM of

Rajiv Academy for technology and management, Mathura has
done this project work under my supervision.

As per knowledge She has done this project work with

sincerity. This project work is the result of her hard work. Any
part of this project is not copied from anywhere else for the
fulfillment of any degrees or diploma.

I really appreciate his\her hard work & wish his\her all the
best for the future ahead.

DATE:

Dr.vaishnavi sharma

RATM, Mathura

5
 CONTENTS

1) ABOUT MOTHER DAIRY

2) FUNDAMENTAL KNOWLEDGE OF MILK

3) MILK SAMPLING & PROCESSING

4) MAIN LABORATORY TESTING

5) CHEMICAL ANALYSIS

6) MICROBIOLOGICAL ANALYSIS

7) PRODUCT SPECIFICATION

8) CONCLUSION

9) REFERENCE

6
 ORGANISATIONAL BACKGROUND

Mother Dairy was set up in 1974. Mother dairy Delhi is a government of West
Bengal project, was started under Operation Flood II of National Dairy
Development Board . It was set up initially to cater to the demand of the Delhi
urban agglomeration spread over the Delhi Metropolitan area, later it reached out
to the consumers of other districts also. The commissioning of the Dairy started in
July 1978. Initially, the management of Mother Dairy was looked after by the
National Dairy Development Board . On 24th March 1982 , the then Honourable
Chief Minister Shri Jyoti Basu dedicated Mother Dairy Calcutta to the rural milk
producers and urban milk consumers of West Bengal.

Mother Dairy is an IS/ISO 9002, IS 15000 HACCP and IS 14001 EMS certified
organization. Moreover, its Quality Assurance Laboratory is certified by National
Accreditation Board for Testing and Calibration Laboratory (NABL)-Department
of Science and Technology, Government of India.

At Mother dairy milk is produced by mixing raw milk, white butter and skim milk
powder. Skim milk powder is made by mixing cow and buffalo milk obtained
during breeding seasons through various co-operatives in West Bengal and
converting them into powder in order to store for a longer period. Raw milk is
obtained on a daily basis from the co-operatives. It is then stored in chilling plants
and transferred to the Mother dairy factory through insulated tanks. While raw
milk is stored in the cold chain at 2°C skim milk powder and white butter is stored
under normal temperature. This milk is then pasteurised at 78° C in order to make

7
it free from germs and then it is homogenised.

8
 NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

The National Dairy Development Board (NDDB) was designed in 1969 on Anand
Dairy Cooperative outlines of creating district cooperative of milk producers at
village level which aim at collection of whatever amount of milk they produce and
payment to them according to the quality of milk they supply. Then this milk is
processed and supplied to the people at metropolitans and other cities at nominal
charges.

For about 5 yr., NDDB was dormant till the time they received
presents of Whole Milk Powder and Butter Oil from European
Union and came into action with the help of Indian Dairy
cooperation.

Operation flood was started in 1970 under the guidance of Dr.

Kurein, Chairperson NDDB, Anand and Mr. Jamnadas Patel in
Khera, Gujarat. The objectives of Operation Flood are:

To buy the milk from the farmers and villagers as

much milk as they could supply at reasonable prices and keep
the price of milk stable whole year.
To operate, procure, process and market milk and milk
products.
Production of good milk after its qualitative and quantitative
estimation.
System to eliminate middleman.
Providing technical inputs and services to yield of milk
animals.
Organizing an efficient transport system to collect milk from
villagers.
Set up of balancing dairies and storage system to
convert excess milk to milk powder and butter oil.
Train personnel to plan and manage the system as
well as operate the services described.
To meet out these objectives, NDDB started dairy
plants all over India and Mother Dairy was one of them. It was
set up in 4 major cities at Delhi, Mumbai, Chennai and Kolkata.

9
 Operation flood was a major dairy development program. Funds
were generated by the sale of dairy commodities donated by the World
Food Program (FAO-UN) which assisted project to carry out its
mission.

This included establishing dairy cooperatives in rural milk sheds, setting

of animal husbandry units, constructing modern dairies in cities,
organizing storage and long distance transportation and project planning
with manpower development. The first phase of operation flood was
completed in 1979, followed by second phase (1979-1988), assisted by
European Economic Community. Its third phase ended in 1996.

10
 MOTHER DAIRY PROFILE

Mother Dairy was set up under the operation flood project on second
December 1974. It is equipped with latest technology. Products are
prepared as per the PFA standards.

The dairy was established on behalf of the Govt. of India, Ministry of

Agriculture (Dept. of Animal Husbandry and Daring). Mother Dairy is
being managed by NDDB as a subsidiary unit retaining its independent
character.
For the purpose of managing the dairy NDDB appoints managing
committee. All the policy matters decided by the management
committee but the execution of all the policy decision and management
of dairy rests with General Manager.

11
 QUALITY ASSURANCE
Mother Dairy follow a strict system of quality assurance to
maintain a high quality of milk provided to the consumer. Every batch
of incoming milk is tested for Fat, SNF, Acidity and
bacteriological quality, adulterants and presence of any preservative or
neutralizer which are not permitted by the law. The outgoing milk is
also checked for bacteriological and keeping quality besides Fat and
SNF.

QUALITY POLICY

Our commitment is to excellence. The evolving needs of our customers

drive our continuous innovation in product development, application of
state-of-the art technology and selection of appropriate processes to be
used by our employees and our vendors. To ensure that we are second to
none:
 We maintain a vibrant work environment that encourages excellence.
 We empower our people that lead to continuous
improvements in our processes and systems.
 We choose such processes that ensure quality at
competitive price while protecting the environment, in

12
 which we work and live.
 We apply HACCP (Hazard Analysis Critical Control
Points) principles for safety of our products to customers.

We shall constantly strive to be leaders in the dairy

industry in Delhi, in India and in the World.

Information Technology
Information technology is a growing field that offers relatively secure
positions for those with solid technical skills and at least a bachelor's
degree in an IT-related field. From support to engineering, there are
several specializations that deal with the various facets of information
technology.

Inside Information Technology

The field of information technology (IT) covers the design,
administration and support of computer and telecommunications
systems. Some of the positions in this field include database and
network administrators, computer support specialists, computer
scientists, software programmers and system analysts. The majority of
career tracks in IT entail design and operational tasks related to
computer hardware components, networks and software applications.

Professionals in the IT field work with businesses and organizations to

set up and support viable computer networks that will keep systems

13
efficient and reliable. IT encompasses all hardware and software used in
the storing, creation and accessing of information. Examples of
technologies that professionals work with are firewalls, databases, media
storage devices, networks and the Internet.

Education Information
Aspiring IT professionals typically need a bachelor's degree in a
technology field, such as computer science, information systems
management, programming or networking. Even without a degree,
experience in an entry-level help desk position could help IT
professionals advance with professional certification or vocational
training. The fundamentals of a degree program generally include
computer hardware, programming, networking, and technical theory.
Depending on the major, students could also learn IT management,
website development, computer circuitry, systems analysis and database
management. Some programs also include internship opportunities. To
work as a computer research scientist, a Ph.D. degree is often necessary.

Information technology degree programs are widely offered at many

community colleges, vocational schools and universities. Certification
preparation programs are also offered at many of these schools, though
testing for credentials typically takes place at an approved testing
facility. Look into these articles from Study.com to learn more.

 Bachelor's Degree in Computer Science

14
  Information Technology Major
 Bachelor's Degree in Software Design
 Computer Science Ph.D. Program Information

Additionally, many schools offer IT programs online, including stand-

alone courses, certificate programs, undergraduate degree programs and
graduate degree programs. Check out these articles to learn about what
you can expect from an online degree program in information
technology.

 Online Associate Degree in Information Technology

 Online Bachelor of Information Technology
 Online Master's Degree in Information Technology
 Online Ph.D. in Information Systems Management

Certification
Almost all hardware and software manufacturers offer certification
options that allow IT professionals to demonstrate their proficiency with
particular technologies. There are also many industry-standard IT
certifications that cover fundamental and advanced understanding of
general hardware, software and communications technologies.
Certification isn't required to work in the field, but is often preferred by
employers. Here is a sampling of some professional IT certifications:

 Microsoft Certified Solutions Expert Information

15
  Overview of Cisco Certifications
 CompTIA's A+ Certifications
 Sun Certified Java Programmer
 Oracle Certified Associate

Required Skills
Individuals who aspire to enter the IT field should develop solid logical
and critical-thinking skills. Those who enter support positions should
also possess the ability to listen, communicate and maintain a
professional, calm demeanor when faced with end users and frustrating
problems. Computer, component and network designers, such as
engineers and scientists, need to be able to envision the current needs
and growth potential of users or businesses.

Career Options

Software Developers

Software developers create and write programming code for computer

applications and hardware. This may include operating systems,
business productivity software, Web functionality tools, video games
and device drivers. Developers could take a concept from planning and
design through to its final testing and implementation.

Network Engineers and Administrators

16
Network engineers are primarily responsible for the design and
implementation of computer and telecommunications networks.
Administrators typically support and maintain existing local area and
wide area networks (LANs and WANs). This includes both intranet and
Internet communications and server maintenance. Some degree of
ongoing troubleshooting and system design adjustment is inherent in a
network administrator position. Administrators also monitor an
organization's network security and develop preventive strategies against
hackers.

Computer Scientists

Computer scientists innovate, develop and design new computer

hardware and devices. These professionals may specialize in one
component of hardware, such as processors, modems, routers or
motherboards. While computer scientists often work with a team of
internal test users and engineers, they typically have little to no contact
with the end users of the products they develop.

17
Mother Dairy and IT

New Delhi-based Mother Dairy Fruit & Vegetable wanted to integrate its IT and
OT environment for augmenting operation efficiencies at the plant level. Their
solution: plant automation. It's been three months since the project went live and it
has resulted in myriad business benefits for the milk and dairy products company.

Sneha Jha spoke to Annie Mathew, CIO, Mother Dairy Fruit & Vegetable on the
eve of International Women’s Day to find out how she orchestrated a project such
a vast scale and enhanced process efficiency.

Plant automation systems like DCS have been isolated from the traditional IT
domain due to various issues like different technology stacks, perceived security
risks, non-standardized and fragmented approach to OT deployment as opposed to
a more standardized approach to IT systems. OT systems typically support real-
time production requirements and an analytical view of the data was required by
the Production team. This was also considered as a golden opportunity to break
traditional barriers between IT and OT systems. Thus this initiative was started
about a year back so as to capture real-time operational data and monitor and
analyze process parameters to assess impact on product quality.

While the project started off as a very simplistic requirement to generate MIS
reports for DCS systems, the technology solution looked in danger of escalating
into a full-fledged MES deployment.

18
Some innovative solution resulted in the project getting deployed at a fraction of
the cost by avoiding an unwieldy MES. The solution components consisted of an
OPC server, a Historian and a reporting software for control systems with the
ability to generate dashboards and alerts. The stakeholders were Production,
Quality Assurance and R&D functions who were delighted to have their reporting
requirements met and are also looking to leverage the technology for predictive
analytics.

The primary goal of the project was to bring visibility into operational process
parameters which impact product quality and fetch data out of a controlled
ecosystem and make it available beyond OT domains to the quality assurance and
R&D functions.

What challenges were faced in the course of implementation and later? How
were these challenges mitigated?

The main challenge was to map hundreds of process tags with desired process
parameters so as to generate meaningful reporting formats. Though this was a
daunting task, the team interacted with all stakeholders of production and
automation team and also the OEM automation team to gain insights on how
process tags work in combination to generate meaningful information. This was
done in phases by keeping regular checks on tag data and monitoring values to
create real-time reports.

Also to make data accessible with appropriate roles and authorizations was a
challenge in itself considering data sensitivity.

19
How have you benefited from integrating your IT-OT environment with this
project?

The immediate intent was to make available all production and process parameters
reports and dashboards outside the boundaries of operational technologies.The
team could avoid an unwieldy MES solution by devising a creative solution where
the users only interact with the reporting systems which in turn talks to Historian &
OPC across security layers with the plant systems.

Apart from the immediate goals, the project opens up the possibility of leveraging
plant operational data directly into IT systems like SAP and avoids manual re-
entries. Bridging OT and IT makes operational data more widely accessible and
can lead to strategic planning based on actual operational history – while still
maintaining the sanctity of Operational systems. The project supports the vision for
a common operational reporting platform across multiple manufacturing operations
to help create consistency around KPIs, enable performance comparisons and drive
adoption of common processes.

Information Technology & Its Uses in Business Management

With more innovation in technology, new businesses are created. With more
business, technology comes to the rescue by making things easier. The two exist in
something of a symbiotic relationship that ensures they will always coexist.

Business has been around since prehistoric times. It may have begun with nothing
more than barter trade, if the history books are to be believed, but it has since
morphed into something far more complex, and none of that would have been
possible without technology. The major industries of the world would collapse, if
the existence and use of information technology were to be snatched suddenly
from businesses. That's because most business transactions and operations cannot
be conducted in the 21st century without technology.

20
Technology Is Necessary in Business

Over the years, technology has caused an explosion in commerce and trade.
Because of technology, many traditional business models and concepts were
revolutionized. Technology gave us the opportunity to see things from a new
perspective, and to approach what we were already doing from a new perspective.
Technology also gave us greater efficiency for conducting business.

Some of the areas in which technology is crucial to business include point of sales
systems, the use of ICT in management, accounting systems, and other complex
aspects of every day business activities. Even something as simple as the
calculator, which was revolutionary in its time, came about because of technology.
It is tough to imagine going back to performing tasks manually. It would take us
back about 100 or so years.

Technology as a Source of Support and Security

Technology enables us to automate numerous processes, which thereby increases

our productivity. This is possible because it enables us to use fewer resources,
thereby enabling us to improve on quality at a low cost and to improve the speed
with which we can deliver to customers. In the process, it has become possible to
serve even more clients.

Technology also makes it easy to store more information while maintaining the
integrity of that information. We are better able to store sensitive and confidential
information in a way that makes it less vulnerable to a data breach. The
information can be retrieved instantly when needed, and it can be analyzed not
only to study past trends but also to forecast the future. In turn, this can help with
the decision-making process.

21
Technology as a Link to the World

Communication is a part of business. So, transportation and processes make

business a web of complicated processes that interplay with each other. With
technology, it has been possible to globalize business operations. Now, just about
anyone can do business practically anywhere, from any room in their house..

Technology has made it possible for businesses to have a wider reach in the world.
The best example of this is the internet and the World Wide Web. The internet is
now a crucial part of any businesses’ marketing campaign, as it enables the
business to attract customers world wide.

Technology, when well-integrated with business, has made life itself worth living.
It would be foolish to deny, however, that there are also threats to business brought
about by technology. These include malicious activities by activities and
organizations, such as hacking. Because of this, it is important for businesses to
exercise responsibility when using technology to conduct business. With the good
that technology brings, there is some bad that must also be dealt with. All the
same, it is something that's worth all of the baggage, and we must acknowledge
and responsibly utilize it to make our businesses better.

How Does Information Technology Affect Business?

The Industrial Revolution changed things in the business world, making a lot of
processes more efficient and increasing productivity a hundred-fold. However, the
business world remained somewhat stagnant for a century after. With the
technological revolution, and the use of technology in business, however, things
changed even more disruptively than during the Industrial Revolution and it would

22
be safe to say that things will never be the same again. The rate at which
technology is evolving and adapting is exponential to the point where all
businesses are being swept by the wave, whether they are ready for it or not. It
might not seem like we’ve made that much progress, but even just 5 years ago,
social media did not have any consumerism, mobile phones weren’t used for
business, cloud-based solutions did not exist, the App Generation was not born yet,
and omni-channel marketing was taking its baby steps.

Technology has just about changed every aspect of business in a big way and this
has never happened this fast before in history. To be more specific, here are a few
ways in which information technology has affected business:

The Advent of Mobile Solutions

Mobility is seen by many as the next great frontier for businesses. Google’s
algorithms reflect this, as they make mobile websites a priority. Your business, and
every aspect of it can be handled, using nothing more than a tablet or smartphone.
From content marketing to customer relations, to sales, the back-end stuff like
invoicing and shipping , all of that power is in your hands.

But mobile solutions aren’t just about businesses; they are also about consumers.
The millennial generation uses their phones to do everything from buying and
selling to sharing their experiences with their friends and finding local businesses.

The Phenomenon of Cloud Computing

Cloud computing has made it possible for businesses to outsource many of their
functions to third parties using the internet. It makes it possible for variable data
packages to be handled but also makes it possible for businesses to expand rapidly

23
and embrace mobility without having to worry about such things as crashes,
downtime, and lost data. This has enabled small and medium-sized businesses to
gain access to resources that would have cost them a fortune only a few years ago.
In effect, the playing field has been leveled.

Increased Customer Segmentation

Since more and more data is flowing, it is now much easier to analyze and gain
deep insight into the things that customers are looking for. Analytics services are
expanding by the day and are allowing businesses to segment their prospects into
more and more specific groups, making it much easier to target them and get more
value for their advertising money. Something as simple as having a Google
account can let a business know where a user is from, the kind of browser they’re
using, how they stumbled upon a website, What they do on that website, how long
they are likely to stay and at what point they decide to leave. There are even more
advanced analytics services that allow businesses to become even more refined
with this segmentation in order to improve their conversions drastically.

24
Increased Connectivity

Technology has made it easier for people to stay in touch. Whether you’re looking
to communicate with your employees and colleagues via video chat or sending
email blasts to leads, mobile technology and the constant innovation that takes
place within the space has made it possible for communication to take on a new
level of hyper-realism.

Decreasing Costs and Increasing Utility

There are two main things that have come together to make what is called a
“buyer’s market” possible. These are the fact that both hardware and software that
are needed in creating the necessary software solutions have become more
affordable and the fact that more and more entrepreneurs who are also tech-savvy
are appearing by the day to make use of these technologies. There was a time when
it would take a large company about a year to build a back-end inventory system.
Now it takes a few college graduates a matter of weeks to build the same thing.
Since the solutions are offered affordably and very easy to use, businesses do not
have to invest too much money into them and that has made business easier.

A Changing Consumer Base

Millennials have come of age and they are now the force driving the modern
economy. Pretty soon, over half the American workforce will consist of millennials
and pretty soon they will also be coming into their peak affluence, where they will
have a lot of money to spend and very few financial obligations, give them a lot of
disposable income. They are greater in number than the baby boomers and are a lot
more liberal with their wallets. They are also all about instant gratification. They
have also been raised with the internet. They are connected, tech-savvy, and ready

25
to spend. Businesses have to adapt to this new customer base if they are going to
thrive.

Greater Consideration for the Social Impact of Business

You can’t just assume your business operates in a vacuum anymore. Social
networking has made the world a smaller place where users can connect regardless
of who they are, where they’re from, and how wealthy they are. Only a few years
ago you could have gotten by if your customer service was just okay. Now you
have to put in the extra effort if you don’t want unfavorable ratings on review sites
and people going on rants on social media about your service. Businesses,
therefore, need to be careful about their online reputation and need to work on their
digital footprint.

The End of Downtime

This is actually a negative effect of technology. With increased connectivity,

individuals have less and less time to themselves now. Vacation seems to have all
but become a thing of the past, with most people working even when they’re on
vacation. Since we can always access our emails, texts, and social media through
our phones and laptops, it is harder and harder to just disconnect and wind down.

Why Is Information Technology Important to an Organization?

It might be a little difficult to fathom the importance of information technology to

an organization if you’re not an IT professional. However, there are numerous
ways in which information technology is crucial to an organization.

26
Business

The business world changed forever when computers were introduced onto the
scene. Businesses can utilize information technology through the use of computers
and different software to run their operations in a smoother fashion. They use it in
different departments, including finance, manufacturing, human resources, and
security.

Education

Education is one of the frontiers of technology and is growing with technology

every day. It’s important that education be able to keep up with the progress
happening in technology by reaching students in a way that adequately helps them
to prepare for the future. The students in our classrooms today are meant to be the
thought leaders, business people, teachers, and investors of tomorrow, so
technology should be used to prepare them. This includes the use of gadgets in
teaching, such as computers, mobile phones, and tablets, as well as the use of the
internet as a medium of learning.

Finance

With an increasing number of transactions happening online, it is important that

financial and security institutions work together to make the internet a safe place.
As more transactions are done on the internet, there will be a need for more
networks and greater security, making it possible for banks to keep purchases and
sales secure.

27
Health

With improvements in information technology, it is becoming easier to reform the

health sector. Medical offices are now able to share medical information with each
other, and they can get your health data from your previous doctors. This makes it
possible for timely care to be delivered, as well as for costs to be reduced.

Security

With an increasing number of transactions being done online, there is an ever-

increasing need for safety. Information technology is what makes it possible to
keep your data and information safe and only accessible by you. Through the use
of encryption and passwords, your digital data is safely hidden away and can only
be accessed by those who have your permission.

How Can I use Technology to Work More Efficiently?

As a business owner, you’re probably wondering how you can use technology to
its maximum potential for your business.

First, use technology to integrate communication within your organization. Let

your employees be on the same page with each other, using such things as
collaboration platforms and social media to keep everyone updated about what is
going on in the business and where it is headed. That way, they will be in sync
with the goals of the business, and their productivity will be significantly
improved.

You can also use technology to improve the service you deliver to your customers,
by enabling them to give you feedback on your products and services, as well as
suggestions on what you can improve.

28
With improving security standards, you could also do away with passwords
altogether and try biometric security systems, which do not require you to
remember a dozen passwords at once.

WHY IS TECHNOLOGY IMPORTANT IN BUSINESS?

Technology has important effects on business operations. No matter the size
of your enterprise, technology has both tangible and intangible benefits that will
help you make money and produce the results your customers demand.
Technological infrastructure affects the culture, efficiency and relationships of a
business. It also affects the security of confidential information and trade
advantages.

COMMUNICATION WITH CUSTOMERS

First and foremost, technology affects a firm’s ability to communicate with
customers. In today’s busy business environment, it is necessary for employees to
interact with clients quickly and clearly. Websites allow customers to find answers
to their questions after hours. Fast shipment options allow businesses to move
products over a large geographic area. When customers use technology to interact
with a business, the business benefits because better communication creates a
stronger public image.

EFFICIENCY OF OPERATIONS
Technology also helps a business understand its cash flow needs and preserve
precious resources such as time and physical space. Warehouse inventory
technologies let business owners understand how best to manage the storage costs
of holding a product. With proper technology in place, executives can save time
and money by holding meetings over the Internet instead of at corporate
headquarters.

29
BUSINESS CULTURE AND CLASS RELATIONS
Technology creates a team dynamic within a business because employees at
different locations have better interactions. If factory managers can communicate
with shipment coordinators at a different location, tensions and distrust are less
likely to evolve. Cliques and social tensions can become a nightmare for a
business; technology often helps workers put their different backgrounds aside.

SECURITY
Most businesses of the modern era are subject to security threats and
vandalism. Technology can be used to protect financial data, confidential executive
decisions and other proprietary information that leads to competitive advantages.
Simply put, technology helps businesses keep their ideas away from their
competition. By having computers with passwords, a business can ensure none of
its forthcoming projects will be copied by the competition.

RESEARCH CAPACITY
A business that has the technological capacity to research new opportunities
will stay a step ahead of its competition. For a business to survive, it must grow
and acquire new opportunities. The Internet allows a business to virtually travel
into new markets without the cost of an executive jet or the risks of creating a
factory abroad.

30
The Disadvantages of Using Technology in Business

Those in business have come to rely on technology to keep them up-to-date,

overcome the competition and inspire innovation. Technology is seamlessly
integrated into everyday lives, as it is used to manage inventory, track
contacts, make products and provide speedy internal and external
communication venues. However, technology can also be a source for lost
profits.

Expenses

Having cutting-edge technology is an ongoing expense. There are initial

purchasing costs, as well as ongoing maintenance, updates and training
expenses. Should a system failure occur, loss of revenue can result due to loss
of services rendered or product production halted. Technology also needs to
be updated periodically, requiring continued investment.

Security

With cases frequently in the news, it is no surprise that there is a risk of cyber
crime when utilizing technology. According to a U.S. Department of Justice
31
news release, people as young as 21 are running technology-based crime
rings, stealing consumer information and costing customers and companies
millions of dollars. A 2007 Computer Security Institute survey reported there
was $21.1 million lost due to financial fraud, $8.4 million to viruses, $6.9
million by system penetration by an outsider and $5.7 million due to
confidential data theft. In addition to those problems were insider abusers
costing organizations money due to mobile hardware theft and abuse of email
or Internet privileges.

Disconnectedness

With technology playing such a large role in the workplace, people have
become disconnected from final products and each other. Job tasks are often
delineated; therefore, fewer people are a part of the final creation. This can
lead to dissatisfaction or workplace boredom. In addition to this, as more
employees utilize technology in everyday communication, messages are
being misunderstood, often making workers appear rude. People reading
email, texts or instant messages, for instance, cannot accurately measure tone
or utilize body language as points of reference. However, venues such as
video conferencing eliminated some communication obstacles.

Distractions

Aside from issues ceasing work production such as system failures,

interruptions can include email and instant messages. According to CNET
News, on average, it takes eight minutes for a person to return to a creative
state. Some business people, such as Dan Russell, senior manager with

32
IBM’s Almaden Research Center, has embraced daily disconnection. He
checks email only twice daily and occasionally schedules out-of-office time
to get creative. There are other forms of technology vying for employee time
including online games, music and videos.

Information technology drives innovation and innovation is the path to

business success. Innovation in business has the same impact that steam
had on the industrial revolution.

In fact, it’s hard to imagine any business that has not benefited from the
digital revolution. Even something as hands on as agriculture uses
computers. Farmers use computers for production records, financial
planning, research on technical issues, and procurement.

Nowadays the formula for business success is simple: drive innovation

with information technology. So, the first thing startups in any industry
try to figure out is how to make smart IT recruiting choices. Without a
backbone of information technology, a business is not going to go far.

The Love Affair with Innovation

We like to imagine that the human race has always been innovative. But
innovation was a slow and steady affair for most of the 20th century. It
was the work of individual genius or think tanks. For the most part,
brilliant people innovated and the public slowly adopted the idea. The
mainstream love affair with innovation began with the invention of the
computer. It attained momentum with the birth of the Internet.
33
In the 1980s, innovation was not necessary for business success. A
business could do well just deploying a proven business model.
Efficiency was not a prime directive.

Following tradition was a sensible way to stay in business. A store

owner, for example, was content with using a cash register similar to the
one invented by James Ritty in 1879 to prevent his employees from
pilfering his saloon profits in Dayton, Ohio.

All this changed on 6 August 1991, a little-remembered date, when the World
Wide Web went live to the world. There was hardly a mention of it in any
newspaper on the planet. Most people around globe had no idea that the Internet
existed. Although Tim Berners-Lee’s invention changed the world as we know it,
it was only toward the end of the decade that the Internet became popular.

The Rise of Innovation

The rise of innovation can be traced to the human race getting smarter. According
to the Flynn Effect, general IQ has begun to rise since the 1930s. The average IQ
has risen from 80 points to 100 points.

While innovations in travel and multimedia improved collective intelligence, these

were mainly passive forms of learning. Today, computer applications and the
global brain have switched on active learning and improved how fast people learn
new things.

Innovation in Business

Information technology fosters innovation in business. Innovation results in

smarter apps, improved data storage, faster processing, and wider information

34
distribution. Innovation makes businesses run more efficiently. And innovation
increases value, enhances quality, and boosts productivity.

Innovation through information technology has created the following radical

changes in business:

· Online shopping is more efficient than shopping in a store.

· Digital marketing is more efficient than high cost newspaper, television, and
radio advertising.

· Social networking is more efficient than going to clubs.

· VoiP communication is more efficient than legacy telephony.

· Cloud computing is more efficient than a private computer network.

Businesses that have embraced the innovation paradigm tend to have the following
characteristics:

· They have more accurate business planning

· They have more effective marketing

· They have higher global sales

· They have more systematic management

· They use real time monitoring

· They offer instant customer support

In fact, it’s hard to thing of long term business growth without the push of
information technology.

35
5 Reasons for Accelerated Business Growth

The technological revolution has improved businesses this century in the following
five primary ways:

1. Information technology has given business the tools to solve complex problems.

Improved hardware (more memory, faster processors, sharper visual displays, etc)
combined with smarter applications (Mindmapping software like X Mind,
collaborative software like Kanban boards, organizers like Google calendar, etc)
have made it easier to research data, analyze it, and plan scalability. Many tools
available to solve complex problems.

2. Information technology allows businesses to make better decisions.

Good decisions in business are based on solid market research. This can be done
through engaging teams through video conferences, reviewing public sentiment on
social media and industry forums, and using online surveys to get customer
feedback. There are also tools like Microsoft CRM Dynamics and Google
Analytics.

3. Information technology has improved marketing.

Internet marketing using online advertising methods (SEO, PPC, Facebook Ads)
are far more accurate ways than traditional marketing of finding target audiences,
discovering their needs, and building a marketing campaign to persuade them to
buy. It’s difficult to see how many people read a newspaper ad. It’s easy to figure
out how many people clicked on an online banner.

4. Information technology has improved customer support.

36
Customers can receive support from multiple channels telephone, emails, social
media platforms, webinars, and so on. Additionally, customer relationship
management systems help businesses understand customer behavior.

5. Information technology has improved resource management.

Cloud computing allows a company’s employees to use any device anywhere in

the world to access their enterprise level software.

37
IT Streamlines Communication

Efficient communication is critical to company success. In an increasingly

connected and dispersed business landscape, recruiting, retaining, and
leveraging employees requires ongoing communication and collaboration.
A key advantage of information technology lies in its ability to streamline
communication both internally and externally. For example, online meeting
and video conferencing platforms such as Skype, GoToMeeting, and
WebEx provide businesses the opportunity to collaborate virtually in real-
time, significantly reducing costs associated with bringing clients on-site or
communicating with staff who work remotely. In addition, IT allows
organizations to connect almost effortlessly with international suppliers and
consumers.

IT Facilitates Strategic Thinking

One of the fundamental advantages of IT is its ability to enhance a
company's competitive advantage in the marketplace, by facilitating
strategic thinking and knowledge transfer. Accessing and leveraging social
networks and subscription databases, for instance, has enabled companies
the ability to assemble, interpret and transfer information like never before.
This has given businesses unparalleled access to customers and
consumers, enabling organizations to deliver new and enhanced products.
Therefore, when used as a strategic investment rather than as a means to
an end, IT provides organizations with the tools they need to properly
evaluate the market and to implement strategies needed for a competitive
edge.

38
Conclusion

The evolution of information technology reached a turning point with the

development of the Internet. Once a government project, the Internet was created
for military purposes. Through the course of its development, researchers began
finding other uses for the network, and use of the technology spread worldwide.
Access to the Internet today by individuals, businesses, and institutions alike has
created a global market for Internet service and has spurned an increase in
productivity in the technological communication field.

Our research compares Internet development, access, and use in the United States
and Russia. Our surveys proves our prediction that access to the

Internet in Russia is limited compared to the access exercised by American users.

A condition resulting from world relations during the early development of the
Internet, access in Russia is increasing with 5.4 million people currently able to
access the service. However, in the midst of the global rush to embrace the
Internet, some concerns have been raised regarding personal, business, and
government access, and the nature of information being transmitted across the
information superhighway.

39
References
 Udemy: The Importance of Information Technology and Its
Disadvantages
 TechSpirited: Why is Information Technology Important?
 Stanford Business: How Does Information Technology
Affect Productivity? Plant-Level Comparisons of Product
Innovation, Process Improvement, and Worker Skills
 Modus: Eight Ways Technology Is Changing Business
 SBDC: Why Is Technology Important in Business?
 SBDC: The Role of Technology in Business

40