l01 computer applications in management

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Computer Applications inManagement

Introduction


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Role of Computers Computers are now affecting every sphere

of human activity and are bringing aboutmany changes in

Industry, Government,

Education,

Medicine,

Scientific / Business Research, Law,

Social Sciences and even in arts like musicand painting, etc.


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Role of Computers

The areas of applications of computers are

confined only by limitations on human

creativity and imagination. It is essential, therefore, for every

educated person to know about

computers, their strengths, weaknesses,

and their internal structure.


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Personal Benefits of Learning aboutComputers

Improved EmploymentProspects:computer related skills have becomeessential in many careers. Knowledge of

computers will make you marketable toprospective employers.

Skills that span different aspects of life:

You will find your computer skills valuableregardless of the setting at home, work,college, or play.


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Personal Benefits of Learning aboutComputers

Greater Self Sufficiency: Computers aretools, and you can use them in severalsituations to become actually more self

sufficient. A Foundation Knowledge for a Life Time

Learning: By mastering the fundamental

concepts, you will develop a strong basethat will support your learning for years tocome.


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Information Technology

Normally, we do not study computers in isolation.

In the age ofconvergence of technologies, it is more

appropriate to consider a wider perspective of computers,

viz., the Information Technology.

IT is a term that encompasses all forms of technology

used to create, store, exchange, and use information in its

various forms Business data, Voice conversations, Still

images, Motion Pictures, Multimedia presentations, and

other forms, including those not yet conceived.


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Information Technology

It is Information Technology that

is driving what has often beencalled The InformationRevolution.


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Business Pressures being faced byModern Organizations

Modern business organizations today are facingextreme competitive pulls and need to developsystems to cope with such pressures:

Globalization of Industry

Enlarged scope of Business

Enlarged geographical spread.

Increasing competition

Increase in expectation of customers in terms of

Better quality, Lower costs, Newer products, Morevariety, Quicker deliveries.


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Business Pressures being faced byModern Organizations

Growing environmental demands:

Faster response to customer inquiries

Reduction in turnaround time

Faster design

Faster communication

Total Quality Management

Up-to-date information with all concerned.


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IT Support for Organizational

Responses to Business Pressures


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Why Should You Learn about

Information Technology (IT)? IT is essential for work in organizations.

IT will reduce the number of middlemanagers.

IT will change the managers job frommonotonous to more creative.

IT impacts employees at work.

IT impacts employees health and safety. IT is used by all departments.


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Why Should You Learn about

Information Technology (IT)? As an IT literate manager, you mayprovide your organization with

Strategic advantage by facilitating problem

solving. Increasing productivity and quality.

Increasing speed.

Improving customer service.

Enhancing communication and collaboration.

Enabling business process restructuring.

Acting as a Change Agent for continuousimprovement.


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What is in IT for Me?As students of Management, it is

important for you to know howcomputers or Information Technology

is being applied in various

management areas.


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ACCOUNTING

Data and Information are integral to theaccounting function.

Information Systems (IS) capture, organize,analyze and disseminate data and informationthroughout modern organizations.

Virtually no companies in the modern businessworld handle their accounting without supportfrom computers.

Accounting IS commonly integrates with other ISso that transactional information from a Sales orMarketing IS becomes input for the Accounting IS.


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FINANCE

The modern financial world turns on speed,volume, and accuracy ofinformation flow, all

facilitated by advanced information systems and

telecommunications.

IS can monitorworld financial markets, supportfinancial decision making, e.g., for portfolio

Management, provide quantitative analyses, e.g.

for cash flow projections, and support a host of

other financial functions.


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MARKETING

The Internet and the World Wide Web (WWW) haveopened an entirely new channel for marketing from

business to business and business to consumer.

They have also dramatically increased the amount of

information available to customers, allowing rapid and

thorough product and price comparisons.

The Internet also provides for much closer contact

between the consumer and the supplier.

The e-commerce venue continues to grow in size and

sophistication so that every one contemplating a careerin marketing must be thoroughly trained in its unique

technologies and techniques.


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PRODUCTION / OPERATIONS

MANAGEMENT

Every process in a product or services value chain can

be enhanced by the use of computer-based IS.

In Manufacturing, these processes occur everywhere

from supplier, production and logistics, through themanufacturing process, through outbound logistics, and

after the sale of the product.

The value chains in service industries are also a series

of processes that benefit from IS support.

IS have transformed the competitive landscape by the

use of IT from CAD and CIM, through Internet-based

Order systems.


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Human Resources Management

HRM is changing radically with the use of IS. Record Keeping has greatly improved in terms of speed,

convenience and accuracy.

Dissemination ofHR information throughout thecompany via private company intranets helps employeesto handle much of their personal business (e.g.configuring their benefits) themselves, without directintervention of the HR personnel.

The Internet makes a tremendous amount of informationavailable to the job seeker, increasing the fluidity of thelabor market.

IS skills are becoming imperative in many careers HRprofessionals must have an understanding of thesesystems and skills to best support hiring, training, and

retention.


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Trends & Importance of IT

IT has become a major facilitator of business activities inthe world today.

It is also a catalyst of fundamental changes in the

structure, operations, and management of organizations. The capabilities of IT support the following business

objectives: Improving Productivity

Reducing Costs

Improving Decision Making

Enhancing Customer Relationships and improved communicationwithin the organization, and

Developing new strategic applications


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Impact of Convergence

Telecommunications networks are carrying signals fordata, text, video, graphics, and voice

Many services are becoming accessible from homeBanking, Ordering, work at home, News, mail, On-line

Education, Medical consultation, Voting. Cultural impactwill be visible Telecommuting, Cashless

Society, Very little town/city differences

E-commerce is emerging a very significant global

economic element in the 21st

Century Networked computing is emerging as the standard

computing environment in business, home, and Govt.


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Components of ComputerSystem

A computer system includes thefollowing:

1. Hardware any physical component whichwe can touch/see.

2. Software data contained in the hardware,

similar to songs in audio cassette .3. Live ware (user) the computer operator

l01 computer applications in management

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