The Role of Information Technology in Business

IT (Information technology) provides commercialplay in a business environment, it is considered
and industrial systems for businesses. Thesehere as a major information technology for
systems enable businesses to function effectivelybusinesses.
and efficiently.Management operates at different levels and so it
The use of information technology systems in ais possible to apply management information
business environment can be classified into foursystems at these varied levels.
broad categories, namely, function,Basic examples of management information
communication, management and enterprise.systems are human resources management
Function IT Systemssystems, financial management information
These applications allow individuals to functionsystems and marketing management information
effectively in the workplace. Examples of thesesystems.
systems are word processors, spreadsheets,Enterprise IT Systems
statistical analysis software and computer aidedEnterprise IT systems are technologies designed
design (CAD). Employees can work and performto integrate and manage entire business
their task individually or collectively using theseprocesses for large organisations. Typically,
software technologies.enterprise application software is hosted on large
Network IT Systemsservers over a computer network. Transmission
Network IT allow effective communication withinof information can either be internal or external.
and outside an organisation. Examples range fromExamples of enterprise information systems may
simple e-mail (electronic mail) to blogs, wiki, IMbe accounting software, health care specific
(instant messaging) and electronic conferencing.software or electronic data Interchange (EDI).
These technologies promote interaction andAnother example of software within this category
collaboration among working groups and alsois CRM (Customer relationship management
facilitate quick information flow at all levels.software).
Management IT systemsInformation technology plays various roles in
MITS is a planned application that is designed tobusiness, and provides a huge range of capabilities
process data and transform it into usefulthat enhance management performance. It is
information for management decision making.therefore important to understand the four major
In general, MIS are subsets of Enterprise ITcategories of IT systems and their functions in a
systems. However, because of the vital role MISbusiness environment.