MASBATE COLLEGES

Rosero St., Masbate City

Business Management Tools:

Information Technology

Information Automation

Business managers face several challenges while carrying out the company's

operations. Among them is creating information sharing systems. How does shipping get

the order from customer service? How does operations management share forecasting

models to fulfillment?

One fundamental component in today's business environment is information

technology (IT). This important feature of business management can include both

computerized data systems and communication functions. Order entry, information

storage and retrieval, interdepartmental connectivity, and customer relationship features

are the key requirements of this business function. Sharing data across separate

disciplines is fundamental to success; so is automating time-consuming or repetitive

activities. Managers must control and streamline the flow of information throughout an

organization.

Today's businesses are multidimensional. Customer orders affect fulfillment,

accounting, personnel, inventory, sales, and other operational functions. Supplier

shipments require input from receiving functions, and management provides forecasts and

planning models for other departments to follow. So how do today's businesses manage

collecting and sharing information throughout the company? By creating

and integrating a flow of information through technological means. The chief

information officer (CIO) is usually responsible for the management of IT functions in

larger companies, whereas small businesses typically hire independent firms to manage

their computerized systems.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

IT Fundamentals

A company's IT functions are built on a framework of connected devices,

each running software applications that store data and transmit information.
The devices can be connected through wire transmission or over wireless
broadcast networks. With more mobile communications in use today, wireless
transmission can improve employee connectivity. Within the framework is
a network of connected terminals where data is input and programs display the
shared information.

A network can be connected in one of two ways: peer-to-peer, which links

two or more computers together directly to each other, or client/server, where
computer terminals share information through a mainframe terminal that stores
the data in a central location. A database stores information for retrieval, sorting,
and report generation. Each department manager can monitor current and
historical data and report activity to upper management. The database distributes
information through actions called queries. A query is a request for information
from the database. A central database provides a unified source for information,
while modular software programs perform retrieval and sharing functions with
unique queries. The key to effective operations is the integration of these
programs, so that software from different vendors can be added easily and each
company function can access the same information in real time. There are three
primary types of networks that businesses use:

 Local Area Network (LAN): Multiple terminals within a

close distance, such as one building, are connected through
a server. One entity owns, manages, and controls the data.
Information sharing is limited to LAN.

Want to learn more? Take an online course in Business

Management.

 Wide Area Network (WAN): This term refers to unlimited

terminals connected over a wide distance, for example, the

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Internet. The WAN connects multiple LANs. Data is owned,

managed, and controlled by multiple entities.
 Wireless Local Area Network (WLAN): Devices are
connected through a wireless modem that distributes data
to a LAN. The data is typically owned, managed, and
controlled by one entity; however, because of its wireless
design, information can be retrieved by parties outside the
LAN.

By using technology to share data, work processes can become more streamlined,

and planning can take place through automated reporting mechanisms at almost any

time. Devices, hardware, and software are developed constantly to improve business

integration and performance. As companies become more multidimensional, functions like

enterprise resource planning, customer relationship management, sales force automation

and marketing management, vendor management systems, inventory control, and human

resource management become more reliant on IT.

Enterprise Resource Planning

IT managers are responsible for their company's ability to plan and execute
its mission. Through technologies, data can be sorted, categorized, and grouped in
ways to reflect historical and projected output. Today, larger, multi departmental
organizations rely on IT in order to develop enterprise resource planning (ERP).
This multifaceted approach to information distribution began in the early 1960s
as material requirements planning (MRP) by manufacturers seeking to
coordinate planning, production, and delivery data. Computer software developers
created databases and software modules, or single-function programs that
mapped out flows of input used for purposes ranging from forecasting models to
scheduling material orders to shipment of final products.

ERP coordinates the functions involving both frontline and back-end operations. It

can assist the enterprise with professional development, performance management, and

training activities. As managers pore over data from various parts of the enterprise, they

can analyze strong or weak performance areas, valuation models for assets, advantages

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

and disadvantages of suppliers and vendors, and other key data that help direct the

operations and deliver a quality customer experience.

Customer Relations Management

One of the advantages of successful IT integrations is creating customer

satisfaction. The primary focus of the CRM discipline is to create a two-way channel
for communicating with prospects and customers, both internal and external.

 Internal customers are those who receive data, goods, or

services from within the organization. Goods typically flow
from a purchasing agent to other departments, but data
and services can flow from any department to other areas,
such as customer service to accounting, and back.
 External customers are those who interact with the
company. They can be customers buying the company's
output, vendors who supply the company or partners who
share in the company's fortunes.

The primary goal of CRM integration with back-end functions is to share customer

information so that demand can be consistently met and departments can understand

needs and forecast goals. By connecting the CRM function with other departments,

miscommunication about orders and requests is minimized. By implementing a CRM

program, the company can then look at managing sales and marketing efforts to affect

customer behavior.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Sales Force and Marketing Management

Sales force automation (SFA) is a system that records and reports sales
activities. Many times, it is combined with marketing information
systems (MIS) to guide the enterprise's customer relationship efforts. The SFA
records and reports opportunities in various sales cycle stages. A contact
management system (CMS) is used to record contacts made, the outcome of the
contact, and the follow-up strategy for specific prospects and customers. Sales
agents can track leads, target opportunities, and forecast sales volume through
SFA. In some instances, customers can modify requests from a remote location
and place an order immediately. For example, a car buyer can choose colors,
features, and engine size through on online car dealer. The SFA program prevents
duplicate contacts with a customer for the same purpose from different
departments.

The MIS records marketing campaign results, available marketing channels,

schedules, and more. By integrating with SFA, marketing managers can plan activities

with the sales force; this coordination will enable the company to manage sales or

customer service resources following a campaign. The MIS collects the variables involved

in the marketing plan, such as pricing, placement, frequency, and channel. Managers can

also analyze research like survey responses and report findings to upper management.

Vendor Management Systems

When a business needs additional temporary help to meet demands,

the vendor management system (VMS) provides a platform to manage the
process of contacting, ordering, and payment of a contingent workforce. Human
resource personnel use the system to plan recruitment strategies, provide a
screening mechanism, customize staff requirements and monitor temporary
staffing effectiveness. The system is typically a Web-based application that allows
a user to enter candidate criteria, job requirements, pay scale, duration, and other
variables.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Inventory Control Systems

Warehouse operations typically use an inventory control system, made up

of both hardware and software, to monitor the quantity, status, and location of
inventory. Shipping, receiving, and storing processes are managed by data input at
various stages of product handling. The system usually uses bar codes, such as a
stock keeping unit (SKU) or radio frequency identification (RFID) tag to indicate
location. The system reduces overstock, under-stock, or out-of-stock situations, as
management can instantly analyze counts and storage conditions.

Accounting Information Systems

By recording financial data into an accounting information system (AIS),

managers can instantly analyze expenses, purchases, payroll, revenues,
investments, and other information critical to the enterprise. General ledger and
journal entries are immediately "marked to the account" and can be reported in
real time to senior management. Software modules make the ledger a hub that
connects areas like accounts payable, accounts receivable, and fixed assets. Data
is input in these accounts, and then flows automatically to the general ledger.
Reports can be created for each account or the entire ledger.

Accounting platforms integrate inventory counts, time records, purchasing details,

billing documents, return merchandise authorizations (RMAs), and other transactions

with the ledger entry systems so that the impact of each transaction can be determined

immediately. This allows a company to make financial decisions more quickly than before

AIS was developed.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Human Resource Management

The administrative functions of the human resources department can be

streamlined through a human resource management (HRM) program. This
system can track employee records and store employee data, such as employment
history, skills, accomplishments, and salary. The company's human "capital" can
be reviewed, forecast, and measured through the HRM system. The process follows
five key areas:

1. Payroll: The payroll module automates processes by gathering employee

attendance and pay scale, making deductions for taxes and other subtractions,
and producing checks for distribution. Data comes from timekeeping mechanisms
and HR department input. The system also automates direct deposit and benefit
payments.

2. Work time: Through data on work-related efforts, management analyzes

efficiencies, cost benefits, and long- and short-term capital needs.

3. Benefits administration: The system maintains information about insurance,

time off, profit-sharing, compensation, and retirement benefits. Employee records
are immediately updated to reflect current status.

4. Human Resources Information System (HRIS): The entire employee file is

maintained from application for employment to retirement. The system records
demographics, training received, contact information, insurance beneficiary
designations, and other personal information. HR can use this data to plan
placement, compensation, and professional development activities.

5. Recruiting: Most programs compile data important in recruitment efforts.

Advertisement activities, interview process development, background review
procedures, and other hiring responsibilities are managed using the HRM system.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

E-commerce
Conducting business over the Internet provides businesses another option to generate

revenue. Web sites can be built to include online databases, interactive

menus and shopping cart mechanisms. Customers can learn about, order, and pay for

your offering with just a few "clicks." The site then processes the order through a server,

sends a shipping order to a fulfillment location, and returns an order confirmation to the

buyer, either through a printable invoice screen or via e-mail to the buyer's Net address. IT

managers can link the company's LAN or WAN to the Web site so the site's activity is

immediately reported to the network.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Five IT Functions in an Organization

With computers and computer networks, people have been able to achieve in the span of a few

decades what would otherwise have taken us many centuries to achieve. People have democratized the

internet, vastly improved communication, increased our ability to design and invent by multiples, and made

life easier overall. Now people carry little computing devices their pockets that give assistance in just about

every aspect of life, whether it is to wake them up in the morning, or to remind them of important events, or

to help us think and learn new information.

It can be argued that the little computing devices people carry around have somewhat become part

of us. They have become like additional organs in our bodies, like arms or legs. Perhaps we can think of

them as some kind of enhancement on our brain, allowing us to achieve things we previously never

imagined possible.

In the same way, IT has become an additional organ in the body of any business, allowing the

business to achieve much greater things than it otherwise could without the help of IT.

The IT department is an important department, complementing and supplementing the others in

numerous ways. And yet, if you aren’t very well versed with technology, it can all seem a little vague when

you try to think of just how the IT department helps the rest of the organization. For sure, you know that this

department is absolutely important. What you’re not sure about is just what makes it so important.

There are many functions of ICT. However, five functions stand out as particularly crucial.

The Function of Communication

Communication has always been an important aspect of business, even long before information

technology came along. However, with the rise of computers and the internet, communication has been

redefined. As a result, communication is one of the most important IT roles in the organization. It has now

become possible to contact anyone no matter what part of the world they are in. When it comes to business,

this capability is quite useful.

The IT department allows the organization to achieve communication at very high speeds through

multiple channels:

Email: You can easily send your employees an email when you need to communicate something without

having to see them in person. Email is also a great channel for sending official communication to clients and

leaves a clean ‘virtual’ paper trail which allows you to keep a steady record of correspondence.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Video Conferencing: Video conferencing is a great way to communicate with a faraway team and being

able to see them at the same time. It’s easier to have remote meetings and even collaborate on a project

together. With video conferencing, you might as well be in the same room.

Collaboration Software: Collaboration software allows teams to work together on projects in a manner that

is both efficient and fast. With the right collaboration software, you can cut project times by up to half and do

away with needless meetings since everything can be done in a virtual meeting room.

Social Media: Social media not only allows your employees to keep up to date with the latest industry

information but also presents a fun way to wind down and socialize.

The Function of Data Management

This is another one of the IT department functions that make it indispensable. With the increasing complexity

of the world of business comes an increasing amount of data that businesses have to deal with. This data

also comes in multiple dimensions. A business will see traffic in many different kinds of data, including text

data, audio data, and video data, among others.

In order to control this data, a business will need an IT department to run something called a database. The
database will allow the business to do three things:

Store Data: By putting the data in a storable format, a database allows you to store vast amounts of data in

a small space. Long gone are the days when data had to be stored on paper and other bulky mediums. In

an age where information is power, it helps to be able to hold a lot of it conveniently.

Manage Data: Data isn’t very useful in its original form, known as raw data. It needs to be sorted into a

meaningful form that can be meaningfully deciphered and used to make decisions in the business. The IT

department provides the tools with which this data can be managed, including analyzing it and drawing

conclusions from it.

Access Data: No matter what kind of data your business needs to store, that data is valuable and needs to

be controlled so that only the right people can have access to it. The IT department provides the security

measures that will safeguard that data and prevent unauthorized access to it.

The Function of Marketing

Marketing has been a core aspect of business for as long as businesses have been around. With the rise of

computers and the internet, marketing campaigns are becoming increasingly digital. The IT department can

help with the marketing functions of a business in numerous ways:

Content Creation: You can create advertising and sales copy on a computer using word processing

software. You can also create beautiful graphical ads using powerful computers with graphics capabilities.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Online Advertising: Social media is becoming increasingly important to advertising and, since it lives on

the internet, what better department to help you with your efforts than the IT department? By launching

social media marketing campaigns, the IT department can improve sales and increase revenue. It can also

launch marketing campaigns for the business on other platforms, such as Google AdWords.

Ecommerce: With more and more businesses going online, the use of computers has become invaluable to

how you conduct your business and sell your products and services. The IT department would be

instrumental in the processing of orders made on your online store.

Marketing Research: With the rise of search engines, it is now possible to conduct research online about

consumer trends and the most profitable opportunities. The IT department can also be instrumental in this.

The Function of Process Improvement

It can prove to be quite important in the improvement of processes and efficiency in order to save the

company money. A small business could save on printing and copying costs by relying purely on paperless

communication. Collaboration software and video conferencing would save on logistics expenses which

would have been incurred every time different teams needed to meet and work together. It would also save

on time as not much time would be wasted on transit.

The Human Resources department can become more efficient because of the IT department since training

sessions can be done online and communication with employees can be done without the need for paper.

The result is massive savings on both time and cost.

The Function of Enterprise Resource Planning

Enterprise resource planning is all about linking the different functions of an organization, such as

accounting, human resources, manufacturing, and sales, using software systems. These systems can help

in operations as well as strategic decision making. For a small business, the reduced complexity means

these systems can be installed one module at a time and can be scaled, as the need arises.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Uses for Computers in Business

Just about every business you can think of uses computers in one way or another to carry out its functions.

From generating reports to communicating with clients, computers do a lot for the efficiency with which a

business is run. The computer has brought the business a long way from the age of pen and paper, and

folders stored in dusty storage compartments. The uses of a computer are simply endless.

Not only do businesses use computers to carry out different functions, they also use many different types of

computers to carry out those functions. These functions include laptops, PCs, servers, and even

smartphones. Because of computers, concepts such as flexible working schedules and remote work forces

have become possible – enabling employees to work from wherever they want and at whatever times they

wish.

Computers Are Used for Communication

When it comes to establishing contact with clients, computers are a vital tool; they are also vital

when it comes to maintaining that contact. This is a very important computer application in business,

enabling a business to communicate with its clients via email, IM, Skype, collaboration software, and via

various other communication solutions that a business might wish to use.

When a business can keep in touch with its clients, it becomes easier for the clients to make

inquiries of the business or to ask for more information about the services and products the business offers.
It also becomes easier for the business to offer customer support to its clients in a timely, efficient manner.

The business will also be able to keep the clients updated about any new developments concerning the

business.

Communication goes beyond a business' clients. A business also needs to communicate with its

employees, and computers play an important role. Rather than have time-wasting one-on-one meetings with

employees, managers can simply email their employees or they can message them on any other acceptable

communication platform. This saves time, and it also improves the internal communication of the business.

Computers Are Used for Marketing

Computers allow a business to perform a variety of tasks. For starters, with the help of the internet,

computers help put a business on the map. With a computer, a business’s team of IT developers can create

a professional website complete with enticing graphics and content with different forms of media, such as

text, images, and videos. They can do search engine optimization – SEO – for the website so that it appears

prominently in Google’s search results, which then attracts traffic, which, ultimately, will enable the business

to sell those products to website visitors.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

With a computer, a business can create and execute entire marketing campaigns that span across every

social media platform on the internet. The business can create ads to run on websites and social media

platforms, using special software, and it can also buy marketing services from other businesses – all

connected to the internet. The computer is likely the greatest marketing device ever built!

Computers Are Used for Accounting

Accounting is a function in which accuracy is of the utmost importance. When you perform accounting

functions – and you have nothing nothing except pen and paper - and you're relying solely on brain power,

you expose yourself to errors. Accounting software helps prevent that from happening.

Accounting software enables a business to quickly and accurately obtain large- and small-scale pictures of

the company's financial situation. All the employees need to do is to input his financial information into the

software and – with a few clicks – the employees understand everything about the financial health of the

business' operations.

Computers are also critical for tasks such as invoicing clients; maintaining data about debtors and creditors;
calculating payroll, calculating and filing tax forms, as well as for a lot of other functions.

With the computer, accountants can now focus on the higher level picture of a business’s finances, leaving

the lower level stuff to the machines.

Computers Are Used for Storage

Businesses have come a long way from the era of filing cabinets thanks to computers. Although a

filing cabinet will occupy a very large space but will store only a small amount of information, a computer will

occupy only a fraction of that space but it will store thousands of times the amount of information. With

computers and servers, businesses are able to store and sort millions of files, to enable the business to

access at any time.

Computers also enable a business to store its data in different ways. The business could store the

data in a central location, and it could have other computers on the network access the data whenever the

business needs to; when the business has the permission to; or, when the business could store the data

locally on individual computers.

Not only is digital storage much larger than physical storage in terms of capacity, but it is also much

more efficient because of the level of sorting that takes place, which is one of the greatest benefits of the

computer. Digital storage is also more secure, as it is more difficult to lose or steal files from a well-protected

database.

ELENOR B. BAJAR
Instructor
 MASBATE COLLEGES
Rosero St., Masbate City

Computers Are Used to Produce Documents

Most businesses will need to produce numerous documents, either in the form of written documents

or spreadsheets. Computers provide word processors and spreadsheet software to help with this.

With these two types of software, a business can generate virtually everything, from memos to letters to

tutorials to reports to ads for the company’s services and products or company events.

With spreadsheet applications, a business has the power to manipulate alphanumeric data and

organize it into tables, charts, graphs, and reports. Another kind of software that businesses make use of is

presentation software. With presentation software, a business can make slides for presentations, either

internal ones or external ones meant for clients. Businesses can also make letters, memos, and reports,

using word processing software, either for disbursement to the client or for internal use.

In general, a computer has plenty of productivity software that a business can use to make its

functions easier; this is software that enables a business to be much faster and more efficient that it was

only 20 or 30 years ago.

Computers Are Used for Educational Purposes

Computers can be used to educate employees. A business can use a computer to educate the

employees on such things as the company policy, software use, as well as standard procedures and safety.

Rather than hire teachers to teach its employees, a business can let employees learn what the employee

needs, by learning at their own pace via webinars and live Q&A sessions. With the internet, a business'

employees will have access to a world of information, and the business will not need to create all of its own

educational content.

Computers also enable employees to learn in a way that they enjoy. Employees can learn via different

media, such as videos, text, and even games, enabling them to better understand the subject matter.

Computers Are Used for Research

Computers allow a business to do a variety of things, including research about the competition, as

well as what its customers want. With modern data-mining techniques, a business can acquire insightful

information about its customers and competition from all kinds of places, including forums, search engines,

industry-specific websites and even from social networks.

ELENOR B. BAJAR
Instructor