Computer Applications in

Management

Introduction

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 Role of Computers
• Computers are now affecting every sphere
of human activity and are bringing about
many changes in
– Industry,
– Government,
– Education,
– Medicine,
– Scientific / Business Research,
– Law,
– Social Sciences and even in arts like music
and 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 about
Computers
• Improved Employment Prospects:
computer related skills have become
essential in many careers. Knowledge of
computers will make you marketable to
prospective employers.
• Skills that span different aspects of life:
You will find your computer skills valuable
regardless of the setting – at home, work,
college, or play.

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 … Personal Benefits of Learning about
Computers
• Greater Self Sufficiency: Computers are
tools, and you can use them in several
situations to become actually more self
sufficient.
• A Foundation Knowledge for a Life Time
Learning: By mastering the fundamental
concepts, you will develop a strong base
that will support your learning for years to
come.

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 Information Technology
• Normally, we do not study computers in isolation.
• In the age of convergence 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

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 Business Pressures being faced by
Modern Organizations
• Modern business organizations today are facing
extreme competitive pulls and need to develop
systems 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, More
variety, Quicker deliveries.
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 … Business Pressures being faced by
Modern 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 middle
managers.
• IT will change the manager’s job from
monotonous 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 may
provide 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 continuous
improvement. 12
 What is in IT for Me?
As students of Management, it is
important for you to know how
computers or Information Technology
is being applied in various
management areas.

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 ACCOUNTING
• Data and Information are integral to the
accounting function.
• Information Systems (IS) capture, organize,
analyze and disseminate data and information
throughout modern organizations.
• Virtually no companies in the modern business
world handle their accounting without support
from computers.
• Accounting IS commonly integrates with other IS
so that transactional information from a Sales or
Marketing IS becomes input for the Accounting IS.
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 FINANCE
• The modern financial world turns on speed,
volume, and accuracy of information flow, all
facilitated by advanced information systems and
telecommunications.
• IS can monitor world financial markets, support
financial 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) have
opened 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 career
in marketing must be thoroughly trained in its unique
technologies and techniques.

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 PRODUCTION / OPERATIONS
MANAGEMENT
• Every process in a product or service’s value chain can
be enhanced by the use of computer-based IS.
• In Manufacturing, these processes occur everywhere
from supplier, production and logistics, through the
manufacturing 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 of HR information throughout the
company via private company intranets helps employees
to handle much of their personal business (e.g.
configuring their benefits) themselves, without direct
intervention of the HR personnel.
• The Internet makes a tremendous amount of information
available to the job seeker, increasing the fluidity of the
labor market.
• IS skills are becoming imperative in many careers – HR
professionals must have an understanding of these
systems and skills to best support hiring, training, and
retention. 18
 Trends & Importance of IT
• IT has become a major facilitator of business activities in
the 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 communication
within the organization, and
– Developing new strategic applications
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 Impact of Convergence
• Telecommunications networks are carrying signals for
data, text, video, graphics, and voice
• Many services are becoming accessible from home –
Banking, Ordering, work at home, News, mail, On-line
Education, Medical consultation, Voting.
• Cultural impact will 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 Computer
System

A computer system includes the

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