AE314 Module 1 - Information Technology PDF

MODULE 1: Information Technology and the benefits of using Productivity Tools in Business applications and platforms. UNIT 1: Introduction to Information Technology Information Technology (IT) refers to the use of computers, networking, storage, and other physical devices, infrastructure, and proce...

MODULE 1: Information Technology and the benefits of using Productivity Tools in Business applications and platforms. UNIT 1: Introduction to Information Technology Information Technology (IT) refers to the use of computers, networking, storage, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data. IT is a critical aspect of most modern enterprises and is used in various applications including business operations, communication, entertainment, and data management. Digital Literacy An individual’s ability to find, evaluate, and compose clear information through writing and other media on various digital platforms. Also known as Computer Literacy. An individual must keep up with the changes in technology and become computer literate. Why do we need to study information technology? We use these technologies in our everyday lives, and we need to further understand how these hardware and software are working. Computer skills are needed regardless of setting and field, whether at home, work, school or play. By understanding computers, you become self-sufficient whether you use it for research, communications or management. Key Aspects of Information Technology: Hardware: Physical components of technology, such as servers, computers, networking equipment, and data centers. Key Aspects of Information Technology: Software: Applications and operating systems that run on hardware, enabling users to perform specific tasks, such as word processing, database management, and other computing functions. Key Aspects of Information Technology: Networking: The interconnection of various devices to facilitate communication and data exchange. This includes LAN (Local Area Networks), WAN (Wide Area Networks), and the internet. Key Aspects of Information Technology: Data Management: Involves the processes and technologies used to store, retrieve, and secure data. This is crucial for data analytics, databases, and storage systems. Key Aspects of Information Technology: Cybersecurity: Protecting data and systems from digital attacks, unauthorized access, and other threats is a key part of IT.  Applications of IT: Business: IT supports various business processes, such as customer relationship management (CRM), supply chain management, and enterprise resource planning (ERP). Education: IT is used in e-learning platforms, digital classrooms, and administrative systems. Healthcare: IT supports electronic health records (EHR), telemedicine, and medical research. UNIT 2: Terminologies in Business Information Technology Information Technology (IT) in the context of Business and Accountancy refers to the application of computers, networking, software, and other digital technologies to manage, process, store, and transmit information essential for business operations and financial management. IT enables businesses and accounting professionals to efficiently manage financial data, automate processes, enhance decision-making, and ensure regulatory compliance. UNIT 2: Terminologies in Business Information Technology Business Information Technology (BIT) refers to the use of information technology (IT) to support, streamline, and enhance business operations, decision- making, and overall management. BIT encompasses the integration of IT systems, software, and infrastructure to improve business processes, drive innovation, and create competitive advantages. It is the intersection of business and technology, focusing on how technology can be leveraged to achieve business goals, improve efficiency, and ensure effective communication and collaboration across the organization. IT in Business: Business Operations: IT supports daily business operations by automating tasks, managing customer relationships, streamlining supply chains, and facilitating communication. It is integral to functions such as sales, marketing, inventory management, and human resources. Decision-Making: IT provides tools for data analysis, business intelligence, and reporting, which are essential for informed decision-making. Technologies like data analytics and cloud computing allow businesses to access real-time information and insights, driving strategic planning and competitive advantage. Digital Transformation: IT drives digital transformation by integrating new technologies, such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT), into business models, enabling innovation and operational efficiency. IT in Business: Integration of Business and IT: BIT involves aligning IT resources with business objectives to ensure that technology solutions directly support the organization’s goals. This includes using IT to optimize operations, improve customer experiences, and enhance product or service offerings. Automation and Efficiency: BIT focuses on automating repetitive and time-consuming business processes using IT systems, such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and accounting software. This leads to increased efficiency, reduced costs, and minimized errors. Applications of BIT: Financial Management: Using IT to manage accounting, budgeting, forecasting, and financial reporting. Supply Chain Management: Optimizing the supply chain through IT systems that manage inventory, logistics, and procurement. Human Resources: Leveraging IT for recruitment, employee management, payroll, and performance tracking. Marketing and Sales: Implementing digital marketing strategies, managing customer data, and automating sales processes with IT tools. IT in Accountancy: Financial Data Management: IT systems are used to collect, process, and store large volumes of financial data. This includes accounting software, enterprise resource planning (ERP) systems, and databases that ensure accurate and efficient financial reporting. 1. Collection of Financial Data 2. Processing of Financial Data 3. Storage of Financial Data 4. Financial Reporting Overall Impact: Accuracy, Efficiency, Security, Scalability IT in Accountancy: Automation of Accounting Processes: IT automates repetitive and time-consuming accounting tasks such as data entry, reconciliation, and payroll processing. This reduces the risk of errors and allows accountants to focus on more strategic activities. 1. Data Entry Automation 2. Reconciliation Automation 3. Payroll Processing Automation 4. Invoicing and Billing Automation 5. Tax Compliance Automation 6. Financial Reporting Automation 7. Audit and Compliance Automation Overall Impact: Error Reduction, Time Efficiency, Cost Savings, Improved Accuracy. IT in Accountancy: Compliance and Auditing: IT tools help accountants and auditors ensure compliance with financial regulations and standards. These tools assist in monitoring transactions, generating audit trails, and providing accurate financial records for auditing purposes. 1. Monitoring Transactions 2. Generating Audit Trails 3. Ensuring Accurate Financial Records 4. Supporting Regulatory Compliance 5. Facilitating Audits Overall Impact: Enhanced Compliance, Efficiency in Auditing, Improved Accuracy and Transparency, Reduced Risk. IT in Accountancy: Data Security: IT ensures the security of sensitive financial information through the use of cybersecurity measures, encryption, and access controls. This is crucial for protecting financial data from unauthorized access, fraud, and cyber threats. 1. Cybersecurity Measures 2. Encryption 3. Access Controls 4. Data Loss Prevention (DLP) 5. Fraud Detection and Prevention 6. Secure Data Storage and Backup 7. Compliance with Security Standards and Regulations Overall Impact: Protection Against Cyber Threats, Risk Mitigation, Regulatory Compliance, Data Integrity and Availability. IT in Accountancy: Real-Time Reporting: IT enables real-time financial reporting and analysis, which is critical for timely decision-making and maintaining transparency with stakeholders. Accounting software and financial dashboards provide up-to-date insights into a company’s financial health. 1. Real-Time Data Integration 2. Financial Dashboards 3. Instant Financial Reporting 4. Decision-Making Support 5. Continuous Monitoring and Alerts 6. Regulatory Compliance and Reporting 7. Cloud-Based Reporting Solutions Overall Impact: Enhanced Decision-Making, Increased Transparency, Operational Efficiency, Risk Management. Key Terminologies in Business Information Technology Enterprise Resource Planning (ERP): ERP refers to integrated software systems used by organizations to manage business processes in real-time, often mediated by software and technology. Examples: SAP, Oracle ERP, Microsoft Dynamics. Customer Relationship Management (CRM): CRM systems help businesses manage interactions with current and potential customers, using data analysis to improve customer relationships and drive sales growth. Examples: Salesforce, HubSpot, Zoho CRM. Key Terminologies in Business Information Technology Business Intelligence (BI): BI involves technologies and strategies for analyzing data and presenting actionable information to help executives, managers, and other corporate end users make informed business decisions. Examples: Power BI, Tableau, QlikView. Supply Chain Management (SCM): SCM systems manage the flow of goods, information, and finances as a product or service moves from supplier to customer. It includes production, shipment, and distribution processes. Examples: Oracle SCM Cloud, SAP SCM, JDA Software. Key Terminologies in Business Information Technology Data Analytics: Definition: Data Analytics refers to the process of examining data sets to draw conclusions about the information they contain. It includes techniques ranging from statistical analysis to machine learning. Examples: Google Analytics, SAS Analytics, IBM Watson. Cloud Computing: Cloud computing involves delivering various services—such as servers, storage, databases, networking, software, over the internet (“the cloud”). It allows for flexible resources and economies of scale. Examples: Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform. Key Terminologies in Business Information Technology Cybersecurity: Cybersecurity refers to the practices, technologies, and processes designed to protect networks, devices, programs, and data from attack, damage, or unauthorized access. Examples: Firewalls, antivirus software, intrusion detection systems. Digital Transformation: Digital transformation is the process by which businesses adopt digital technologies to create new or modify existing business processes, culture, and customer experiences to meet changing business and market requirements. Examples: Use of AI, IoT, blockchain, and cloud computing to transform operations. Key Terminologies in Business Information Technology Artificial Intelligence (AI) in Business: AI in business refers to the use of machine learning, natural language processing, and other AI technologies to automate tasks, gain insights from data, and enhance decision-making processes. Examples: Chatbots for customer service, predictive analytics, AI- driven marketing. Blockchain: Blockchain is a decentralized digital ledger technology that securely records transactions across multiple computers, ensuring that the data is immutable and transparent. Applications: Cryptocurrency transactions, supply chain transparency, smart contracts. Key Terminologies in Business Information Technology Big Data: Big Data refers to the large volumes of data that businesses collect and analyze to reveal patterns, trends, and associations, particularly relating to human behavior and interactions. Tools: Hadoop, Apache Spark, NoSQL databases. Internet of Things (IoT): IoT refers to the network of physical devices (such as vehicles, home appliances, and other items) embedded with sensors, software, and connectivity, enabling them to connect and exchange data. Applications: Smart factories, connected devices in healthcare, smart cities. Key Terminologies in Business Information Technology Agile Methodology: Agile is a project management and software development methodology that emphasizes iterative progress, collaboration, and flexibility. It is used to improve the development process by enabling teams to deliver work in small, consumable increments. DevOps: DevOps is a set of practices that combines software development (Dev) and IT operations (Ops) aimed at shortening the systems development life cycle and providing continuous delivery with high software quality. Tools: Jenkins, Docker, Kubernetes. Key Terminologies in Business Information Technology Machine Learning (ML): ML is a subset of AI that involves the use of algorithms and statistical models to allow computers to perform specific tasks without explicit instructions, improving their performance over time based on experience. Applications: Predictive analytics, recommendation engines, fraud detection.