INFORMATION

TECHNOLOGY FOR
BUSINESS
UNIT-1 INFORMATION TECHNOLOGY
AND INFORMATION SYSTEM
 SYLLABUS

• Module No. 1: Information Technology and Information System

Introduction to IT, Introduction to IS, Difference be IS and IT, Need for Information System,
Information Systems in the Enterprise, Impact of Information Technology on Business (Business
Data Processing, Intra and Inter Organizational communication using network technology,
Business process and Knowledge process outsourcing), Managers and Activities in IS,
Importance of Information systems in decision making and strategy building, Information
systems and subsystems.
• Module No. 2: Subsystems of Information System
Transaction Processing Systems (TPS), Management Information System (MIS), Decision Support
Systems (DSS), Group Decision Support System (GDSS), Executive Information System (EIS),
Expert System (ES), Features, Process, advantages and Disadvantages, Role of these systems in
Decision making process.
• Module No. 3: Database Management System
Introduction to Data and Information, Database, Types of Database models, Introduction to
DBMS, Difference between file management systems and DBMS, Advantages and Disadvantages of
DBMS, Data warehousing, Data mining, Application of DBMS, Introduction to MS Access, Create
Database, Create Table, Adding Data, Forms in MS Access, Reports in MS Access.
• Module No. 4: Microsoft Excel in Business
Introduction to MS Excel, features of MS Excel, Cell reference, Format cells, Data Validation,
Protecting Sheets, Data Analysis in Excel: Sort, Filter, Conditional Formatting, Preparing Charts,
Pivot Table, What if Analysis(Goal Seek, Scenario manager), Financial
Functions: NPV, PMT, PV,FV, Rate, IRR, DB,SLN,SYD. Logical Functions: IF, AND, OR, Lookup
Functions: V Lookup, H Lookup, Mathematical Functions, and Text Functions.
• Module No. 5: Recent Trends in IT
Virtualization, Cloud computing, Grid Computing, Internet of Things, Green Marketing, Artificial
Intelligence, Machine Learning.
 INFORMATION TECHNOLOGY

• Information technology (IT) is the application of computers and

telecommunications equipment to store, retrieve, transmit and
manipulate data, often in the context of a business or other
enterprise.
• The term is commonly used as a synonym for computers and
computer networks, but it also encompasses other information
distribution technologies such as television and telephones. Several
industries are associated with information technology, including
computer hardware, software, electronics, semiconductors, internet,
telecommunications equipment, engineering, healthcare, e-commerce
and computer services.
 DATA

• Data are individual facts, statistics, or items of information, often

numeric. In a more technical sense, data are a set of values of
qualitative or quantitative variables about one or more persons or
objects, while a datum is a single value of a single variable.

INFORMATION

• Information, in a general sense, is processed, organized and

structured data. It provides context for data and enables decision
making. For example, a single customer’s sale at a restaurant is data –
this becomes information when the business is able to identify the
most popular or least popular dish.
 SYSTEM

• A system is a group of interacting or interrelated elements that act

according to a set of rules to form a unified whole. A system,
surrounded and influenced by its environment, is described by its
boundaries, structure and purpose and expressed in its functioning.
Systems are the subjects of study of systems theory

TECHNOLOGY

• the application of scientific knowledge for practical purposes,

especially in industry.
 INFORMATION TECHNOLOGY

• Information technology (IT) is the application of computers and

telecommunications equipment to store, retrieve, transmit and
manipulate data, often in the context of a business or other
enterprise.
• The term is commonly used as a synonym for computers and
computer networks, but it also encompasses other information
distribution technologies such as television and telephones. Several
industries are associated with information technology, including
computer hardware, software, electronics, semiconductors, internet,
telecommunications equipment, engineering, healthcare, e-commerce
and computer services.
 INFORMATION SYSTEM

An information system is defined as the software that helps organize

and analyze data. So, the purpose of an information system is to turn raw
data into useful information that can be used for decision making in an
organization.
An information system is the information and communication
technology (ICT) that an organization uses, and also the way in which
people interact with this technology in support of business processes.
 DIFFERENCED BETWEEN INFORMATION SYSTEM
AND INFORMATION TECHNOLOGY

• At first glance, the term “information system” is self-explanatory. It is a system,

software, or technological tool that aids us in the processing of new data and the
conversion of that data into useable and compatible information. It is a system
that includes all other technology- related tools, as well as a subject area with a
variety of job opportunities.
• Information Technology, on the other hand, is sometimes confused with
Information System, although it is not the same thing. Information Technology is a
subset of the previous term that serves as a means of transforming processed
data into useful information for others. It is basically a study involving the use,
application, storage, and implementation of daily information.
Parameters of
Comparison Information System Information Technology

It is the network of multiple information-

It is a wide network of all other network and information- oriented devices and communication channels
Meaning related tools, including us humanstoo. that help in the storage and utilization of data.

It has the following five types- Transaction Processing It does not comprise definite types. Rather it is
System Office Automation System – Word Processing, introduced by its examples. Some of these
Types Email, Voice Mail. Knowledge Work Systems Management examples are- hardware, software, and
Information System Decision Support Systems clouding,etc.

It aids businesses and organizations to utilize

Its major utilization is to turn unprocessed data into the available data in a more efficient manner so
Uses processed one and make it comprehensive forpeople to use. as to extract the best of its use.

Hardware, software, networks, and data.

Components Task, infrastructure, technology, and people.

Scope andPosition It is a sub-section of the Information System.

It is a complete network in itself.
 Information System always existed even before the era of IT is being seen around after the internet and
Origin technology in the form of written data and information. computers came intopractice.
 NEED FOR INFORMATION SYSTEMS

To gain the maximum benefits from your company's information system, you have to
exploit all its capacities. Information systems gain their importance by processing the
data from company inputs to generate information that is useful for managing your
operations. To increase the information system's effectiveness, you can either add more
data to make the information more accurate or use the information in new ways.
• Business Communication Systems
Part of management is gathering and distributing information, and information systems
can make this process more efficient by allowing managers to communicate rapidly.
Email is quick and effective, but managers can use information systems even more
efficiently by storing documents in folders that they share with the employees who
need the information. This type of communication lets employees collaborate in a
systematic way.
• Each employee can communicate additional information by making changes that the system
tracks. The manager collects the inputs and sends the newly revised document to his target
audience.

2) Business Operations Management

• How you manage your company's operations depends on the information you have.
Information systems can offer more complete and more recent information, allowing you to
operate your company more efficiently.You can use information systems to gain a cost
advantage over competitors or to differentiate yourself by offering better customer service.
Sales data give you insights about what customers are buying and let you stock or produce
items that are selling well. With guidance from the information system, you can streamline your
operations.
3) Company Decision-Making
The company information system can help you make better decisions by delivering all the
information you need and by modelling the results of your decisions. A decision involves choosing
a course of action from several alternatives and carrying out the corresponding tasks. When you
have accurate, up-to-date information, you can make the choice with confidence.
If more than one choice looks appealing, you can use the information system to run different
scenarios. For each possibility, the system can calculate key indicators such as sales, costs and
profits to help you determine which alternative gives the most beneficial result

4) Company Record-Keeping
Your company needs records of its activities for financial and regulatory purposes as well as for
finding the causes of problems and taking corrective action. The information system stores
documents and revision histories, communication records and operational data. The trick to
exploiting this recording capability is organizing the data and using the system to process and
present it as useful historical information.You can use such information to prepare cost estimates
and forecasts and to analyze how your actions affected the key company indicators.
 IMPACT OF INFORMATION TECHNOLOGY ON BUSINESS

Technology has a great impact on business operations. No matter the size of your company,
technology can provide many benefits that will help you generate more income. The main role of
technology in a business is to boost growth and improve operations. Without the
implementation of IT, it is almost certain that companies cannot manage to stay afloat in today’s
competitive and globalized market.
1. Business Communication
Technology improves communication within a company. Workers and technicians in the field,
for example, do not need to travel to the office to receive new tasks. Now they can simply
receive a call or message while they are working regarding their next task. They can even get new
tasks on their company’s application. The technology allows field workers to be connected with
each other and with the central office. Developments in communication and information
technology have helped companies to stay connected at all times, increasing their efficiency,
productivity and ability to be proactive to tackle sticky situations.
2. Optimization of Management
Technology is already changing the way we manage resources and, over time, it will change the
way we work. No matter what is your industry, or the size of your business or its main activities,
the technology offers opportunities to optimize management and production. Small businesses
can now compete with large organizations in operational efficiency, thanks to technological
equipment and digital tools. There are multiple IT management courses and resources that
entrepreneurs can access to enhance their skills as a manager with sound knowledge of the
implementation of technology. Research suggests that all effective managers know how to exploit
information technology to manage their business better.
3. Efficient Operations
Technology can optimize the operations of a company. It plays an important role in the
development of efficient processes. It can help you reduce or eliminate duplications, errors, and
delays in the workflow, as well as accelerate the automation of specific tasks. Inventory
technologies allow business owners to efficiently manage production, distribution and marketing
processes. With the right technology in place, entrepreneurs can save time and money and make
their businesses more productive and competitive.
4. Improved Security
Information technology helps us keep important data safe and less exposed to vulnerabilities. It is
vital for any business owner to implement security measures so that cybercriminals can be
diverted to easier targets. Especially in the US, where a number of targeted attacks has been
higher than any other country, entrepreneurs need to be extra safe. The effective use of IT
security applications is vital for all sizes of businesses.
Technologies such as encryption and tokenization have become key alternatives for the
prevention of data loss. It has also facilitated the development of devices to remotely control and
monitor commercial facilities.You can learn a lot about data security on the internet through
various IT management courses and resources that are readily available.

5. Globalization
Information technology has enabled businesses to succeed in having a greater reach in the global
market. Globalization has become an undeniable reality, thanks to the wonders of technology.
Anyone can now do business from anywhere in the world.
Technology has driven the development of electronic commerce, which has brought new
dimensions to the globalization of companies. The diffusion of information technology has made
production networks cheaper and easier and has been fundamental for economic globalization.
The high speed of global communications has also allowed trade and collaboration in real time
and has increased international trade.

6. Better Customer Segmentation

The vast availability of data has made it easier than ever before to understand customer
preferences and what they are looking for. The expansion of analytics services on search engines
and social networks means that it is possible to make even more concentrated segments of
customers and target them specifically. Information such as the location of a customer, what
platforms are they using to access your website, what are they doing when on your portal, the
length of their stay, and the page or point where they decide to leave is very easily available
without having to do any digging. If you decide to dig further, you can find information that is
worth gold and can increase your chances of conversion dramatically.
7. Cost Reduction-Increased Functionality
There was a time when implementing technology was expensive and was a luxury. But, that has
changed now and with the increasing affordability and usability of the latest tech has upped the
ante in the business world. Moreover, this has allowed the number of tech-savvy entrepreneurial
geniuses to increase exponentially. These people know how to capitalize on this opportunity and
exploit the crumbling barriers that we have in becoming successful today. For instance, an
inventory control system that was a year-long multi-million-dollar investment in the recent past is
now a few thousand dollars and a few days’ works. This helps businesses of all sizes to scale up
and reduce their cost of operations significantly.
 BUSINESS DATA PROCESSING

• Data processing occurs when data is collected and translated into usable
information. Usually performed by a data scientist or team of data scientists, it is
important for data processing to be done correctly as not to negatively affect the
end product, or data output.

• Data processing starts with data in its raw form and converts it into a more readable
format (graphs, documents, etc.), giving it the form and context necessary to be
interpreted by computers and utilized by employees throughout an organization.

• Six stages of data processing

1. Data collection
Collecting data is the first step in data processing. Data is pulled from available sources, including
data lakes and data warehouses. It is important that the data sources available are trustworthy
and well-built so the data collected (and later used as information) is of the highest possible
quality.
2. Data preparation
Once the data is collected, it then enters the data preparation stage. Data preparation, often
referred to as “pre-processing” is the stage at which raw data is cleaned up and organized for the
following stage of data processing. During preparation, raw data is diligently checked for any
errors. The purpose of this step is to eliminate bad data (redundant, incomplete, or incorrect
data) and begin to create high-quality data for the best business intelligence.
3. Data input
The clean data is then entered into its destination (perhaps a CRM like Salesforce or a data
warehouse like Redshift), and translated into a language that it can understand. Data input is the
first stage in which raw data begins to take the form of usable information.
4. Processing
During this stage, the data inputted to the computer in the previous stage is actually
processed for interpretation. Processing is done using machine learning algorithms, though the
process itself may vary slightly depending on the source of data being processed (data lakes,
social networks, connected devices etc.) and its intended use (examining advertising patterns,
medical diagnosis from connected devices, determining customer needs, etc.).
5. Data output/interpretation
The output/interpretation stage is the stage at which data is finally usable to non-data
scientists. It is translated, readable, and often in the form of graphs, videos, images, plain text, etc.).
Members of the company or institution can now begin to self-serve the data for their own data
analytics projects.
6. Data storage
The final stage of data processing is storage. After all of the data is processed, it is then
stored for future use. While some information may be put to use immediately, much of it will
serve a purpose later on. Plus, properly stored data is a necessity for compliance with data
protection legislation like GDPR. When data is properly stored, it can be quickly and easily
accessed by members of the organization when needed.
 INTRA AND INTER ORGANIZATIONAL COMMUNICATION
USING NETWORK

• Inter organization means between two organizations. Therefore, inter organizational procedures
occur when two or more organizations join together and share information or collaborate.
• Intra organizational means within an organization.
1. Company Newsletters
With the rise of social media, your employees are used to going to the same sources for daily information.
Why not include yourself with an effective internal company newsletter?
Some advantages of email newsletters for corporate communications:
• Employees are already expected to check their work emails, so you have a captive audience for your
internal newsletter
• Company newsletters help syndicate every other channel of internal communications, including
videos, podcasts, and company PR
• Regularly scheduled newsletters offer insight into the company’s performance as a whole.
 • Mobile proliferation of email means that employees are more likely to be checking their email, with
55% of emails being opened on a mobile device and 40% of workers admitting to checking their
work email at least 5 times a day outside of the work day
• Company newsletters allow employees to hear company news prior to external audiences
• Internal-only tools keep your email contacts on your own IT servers, without the security risks of
going through a third party
• Newsletters are the best way to communicate change to employees
2. Employee Feedback Apps
With the right questions, managers can best understand how their employees are invested in their work
and the company. Through an employee feedback app, managers can share surveys, polls, use a suggestion
box, and more to best understand motivation levels and overall satisfaction from its employees.
• How to use employee feedback apps as an internal communication tool:
When it comes to employee feedback apps, there are a few options in the market. With an option to
customize the app to your company’s look and feel, and the culture, we drill down on a few key highlights:
 • Foster employee engagement
• Invest in company culture
• Get actionable insights in real-time

3. Emoji Reactions
• Increase employee engagement by collecting feedback from your employees. They’ll know best what’s
working for them in the work environment provided by their employer, and what sort of changes would
make their day-to-day easier.
• If you’re reaching out to remote workers that are dispersed all over the globe, it’s even more imperative
to ask for feedback. They typically find themselves working longer hours, which some attribute to their
inability to “turn off” work when the standard work day is over.
• Asking for employee opinions is an easy way to make them feel included in discussions and changes at
the organization.
4. Videos
• Video Killed the Radio Star back in 1980, and almost 40 years later, video is more dominant than ever.
With Millennials (born between 1980 -1995) representing some 50% of the workforce, and
Generation Z (1995-2015) beginning to join the workforce, video for your internal communications is a
force to be reckoned with.
• A growing segment of your workforce has never held a job when YouTube wasn’t a household name.
Plus, with a vast majority of workers carrying a Smartphone, access to high quality video production is
no longer a luxury.
• Considering that 48% of workers consider video to be the most engaging form of communication, you
would be remiss not to incorporate video into your internal communications.
5. Video Conferencing
• When it comes to choosing from one of the best internal communication tools, the answer may be to
look for an old fashioned video conferencing software. With satellite offices, remote workers, and the
odd external freelancer or consultant, it’s important to get it right the first time when it comes to
conference calling.
• How to use video conferencing as an internal communication tool:
• Collaborate with remote teams
• Use face-to-face conferencing for better conversations
• Take advantage of screen sharing to easily share data or processes
• Provide remote assistance with a computer screen takeover

6. Intranet
• Sometimes called “corporate social network,” Intranet can be a powerful tool for fostering internal
communication across large organizations. Intranet makes it easy for employees to see new content,
and share relevant articles, guides, and ideas across teams and departments.
How to use Intranet as an internal communication tool:
• When it comes to company intranets, the options are practically limitless. There’s a high degree of
customization available, but we’ve helped narrow down some of the key highlights
• Introduce new ideas via a blog or activity feed
• Discuss new information and foster companywide interaction
• Create a corporate culture across any distance
 • Debate and improve companywide initiatives
• Foster employee engagement
7. Apps
How to use an app as an internal communication tool:
• Publish news, articles, and other company updates
• Host resources including employee directories and resources
• Replace or supplement your intranet
• Send push notifications

8. Forums and Chat

Sometimes, internal communications isn’t about passing news down the chain, sometimes it’s about
fostering ways for employees to collaborate, and forums help do exactly that. Rather than be the point
person for everything and everything, an effective communicator also facilitates other channels for people
to speak to the right person.
• An open and unrestricted exchange of ideas is just the ticket for teams that need to collaborate
across departments and cities. Forums can exist within an intranet, or become separate spaces solely
for collaboration.
• Sometimes, internal communications isn’t about passing news down the chain. Instead, it can be about
fostering ways for employees to collaborate.
• Forums help do exactly that. Instead of being the point person for everything, an effective
communicator also facilitates other channels for employees to reach the right person.
• Forums can exist within an intranet, or become separate spaces solely for collaboration.

How to use forums as an internal communication tool:

• Allow anyone at the company to share updates or ask questions
• Empower employees to collaborate and help one another across departments and locations
• Break down physical and perceived barriers between employees
• Encourage employee participation
9. Surveys
• Metrics are a subject on every communicator’s mind, and you can be sure surveys are one of the surest
ways to get metrics on internal communications and employee engagement. Surveys can mean many
different things to many people.
• Is the only survey you send your quarterly eNPS survey? What about a monthly pulse check?
• Perhaps a survey is something less formal, such as an event planning poll or an emoji reaction to
a company update. Regardless of the type or frequency, surveys are an essential tool for every internal
communicator looking to gather employee feedback.
• A Price Waterhouse Cooper study shows that increased employee engagement leads to better
performance and decreased turnover, and can also allow management to pre-emptively intervene
before engagement diminishes to disinterest. Surveys are also a great way to improve communication
between management and employees.
• How to use surveys as an internal communication tool:
• Use eNPS surveys to gauge employee retention efforts
• Pose open-ended questions to gain insight and feedback around the strengths and struggles of a team
• Discover how much or how little recognition workers receive, as well as how much they need to
stay engaged
10. Podcasts
• Regardless of where your employees work, whether it’s at a desk, in a factory, or on the road, one thing
remains certain: human attention is a scarce resource. Screens are everywhere, so you need to help
your employees keep their eyes on the prize.
• Enter the podcast. The younger, cooler sibling of the radio shows of yore.
• Podcasts offer a fresh way of delivering content in a more intimate way. By using real voices, you can
cement your internal brand as one that humanizes its people.
Using internal communications podcasts:
• Serve company-related content that’s easy to consume on the go (e.g. during commutes, business
travel, at the gym)
• Allow C-Suite executives and senior leadership the opportunity to speak to the workforce directly,
generating transparency and trust
• Deliver complex information in a more compelling way
11. Digital Signage
• One of the best ways to generate a buzz with your internal communications is to put them on display
for the whole team to see! Consider digital signage which essentially takes over wall-mounted television
screens to display your internal communications messaging.
• Digital signage can be extremely productive in high traffic areas such as a cafeteria or near an elevator.
Where digital signage shines is its ability to segment messages by location.
• If you have workers in a factory or lab, you may want to share different messages than what you share
with desk staff. Or perhaps you have a message for a certain section of the office or a certain
department.
• With digital signage, you can ensure that your internal communications message is in front of the
right eyes.

How to use digital signage as an internal communication tool:

• “Always on” messages are sure to get both passive and active attention
• Showing performance dashboards can help employees stay aligned with the company goals and vision
12. Social Media
• No, we’re not suggesting that you blast your internal communications all over Facebook or LinkedIn
(although if you can, more power to you). Nor are we suggesting you have to build your own social
network from scratch like Shopify’s unicorn.
• The fact of the matter is that 73% of adults aged 18-65 are using social media regularly, making social
platforms one of the go-to sources for finding information or updates.
• Though some employees may not want to use their personal profiles for work, intranet-based social
platforms are easy to set up and offer a host of benefits.

How to use social networks as an internal communication tool:

• Easily share updates across departments and locations

• Create a more interconnected staff base where members from all departments can ask questions or
answer questions
• Foster collaboration and develop interdepartmental relationships
 13. Recognition and Reward Platforms
• The number one reason people leave their jobs is that they don’t feel appreciated.
• When there is an absence of recognition, employees lose motivation in their work and look for
newer more motivating roles.

How to use an employee recognition platform as an internal communication tool:

• Increase employee productivity

• Retain your top performers
• Build an enviable workplace culture
• Boost employee motivation
 14. Graphics Creation Software
• Even if you’re already using a beautiful responsive HTML newsletter template,
• You have to remember that your employees are receiving dozens, maybe even hundreds, of
emails each day. No matter how well written your copy is, an eye- catching visual or info
graphic can help anchor your messaging.

How to use graphics as an internal communication tool:

• Employees are more likely to remember content delivered with images
• Improve storytelling within newsletters
• 90% of information sent to the brain is visual
 BUSINESS PROCESS
OUTSOURCING (BPO)
 WHAT IS BPO?

• Business process outsourcing (BPO) is a business practice in which an organization contracts

with an external service provider to perform an essential business task.
• Typically, an organization first identifies a process that is necessary for its operations yet is not
part of its core value proposition in the market; this step requires a good understanding of the
processes within the organization and strong business process management.
• BPO has its roots in the manufacturing industry. Manufacturers hired third-party vendors to
handle parts of their supply chains after determining that the vendors could bring more skills,
speed and cost efficiencies to that process than a n in- house team could deliver. Over time,
organizations in other industries adopted the practice.
 WHAT IS BPO USED FOR?

• Organizations engage in business process outsourcing for two main areas of work:
back-office functions and front-office functions.
• Back-office functions, sometimes called internal business functions, include accounting,
information technology (IT) services, human resources (HR), quality assurance and
payment processing.
• Front-office functions include customer relation services, marketing and sales.
• BPO contracts can involve outsourcing an entire functional area, such as the HR
department, to a single vendor. Organizations also often outsource specific processes
within a functional area. For example, an organization may outsource its payroll
process but perform all other HR processes itself.
 COMMONLY OUTSOURCED PROCESSES
INCLUDE THE FOLLOWING :

• Accounting • Manufacturing
• Administration • Marketing
• Customer services and call centers • Research
• HR • Sales
• IT management and services • Shipping and logistics
 HOW DOES BPO WORK?

• Enterprise executives opt to outsource a business process for a variety of reasons.

• Those reasons vary based on the type of organization, the age and size of the
organization, market forces and economic conditions.
• Start-up companies, for example, often need to outsource back-office and front-
office functions because they do not have the resources to build the staff and
supporting functions to preform them in-house.
• On the other hand, an established company may opt to outsource a task that it had
been performing all along after an analysis determined that a third-party service
provider could do the job better and at a lower cost.
• Management experts advise enterprise executives to identify functions that can be
outsourced and then determine if shifting that task to an outsourcing provider makes
sense.
• If so, the organization then must go through the process of not only identifying the best vendor
for the work, but also shifting the work itself from in-house to the external provider.
• This requires a significant amount of change management, as the move to an outsourced
provider generally affects staff, established processes and existing workflows.
• The shift to an outsourced provider also impacts the organization's finances -- not only in
terms of shifting costs from the internal function to the outsourced providers, but often also in
terms of corporate taxes and reporting requirements.
• The organization might also have to invest in new technology to enable the smooth flow of
work from the organization itself to the outsource provider, with the extent and cost of that
technology product dependent on the scope of the function being outsourced and the maturity
of the technology infrastructure in place at both enterprises.
 WHAT ARE THE BENEFITS OF BPO?

In its "2020 Global Outsourcing Survey," Deloitte found that companies use BPO to
meet the following objectives:
• Cost savings, cited by 70% of enterprise leaders surveyed;
• Flexibility, cited by 40%;
• Speed to market, 20%;
• Access to tools and processes, 15%; and
• Agility, 15%.
Benefits of BPO typically cited by proponents include the following:

• Financial benefits. BPO providers can often perform a business process at lower costs or
save the company money in other ways, such as in tax savings.
• Improved flexibility. BPO contracts can offer the ability to modify how an outsourced
business process is done, enabling companies to react more nimbly to changing market
dynamics.
• Increased competitive advantage. BPO enables an organization to focus more of its
resources on operations that distinguish it in the marketplace.
• Higher quality and better performance. Because business processes are their core
business, BPO providers are well positioned to complete the work with greater accuracy,
efficiency and speed.
• Access to innovations in the business process. BPO providers are more likely to know
about advances happening in the process areas they specialize in. That means they're more
likely to invest in new technologies, such as automation, that can improve the speed, cost
and/or quality of the work.
• Expanded coverage. Organizations that need 24/7 call center operations can often quickly
gain that capability by contracting with a BPO provider with around-the-clock capabilities and
multiple geographic locations, enabling a follow-the-sun business model.

What are the risks of BPO?

Organizations also take on potential risks when outsourcing business processes.

BPO risks include the following:

• Security breaches. The technology connection between the hiring company and the BPO
provider creates another point of entry for bad actors; moreover, organizations often need to
share sensitive and/or regulated data with their service providers -- another potential security
risk.
• Unanticipated/higher costs. Organizations can underestimate the price they'll be charged
for the outsourced work, either because they miscalculated the amount of the work being
performed or the full costs spelled out in their BPO contracts.
• Relationship challenges. Organizations can face communication problems with their
outsourced providers, or they might find that there are cultural barriers -- problems that can
dilute the benefits of BPO.
• Overdependence on the external provider. An organization that outsources a function or
service is tethered to the partner that performs the work. The organization then must manage
that relationship to ensure that key objectives are rigorously met at the agreed- upon cost. If
not, the organization may find it difficult to bring the operation back in-house or even move the
contract to another outsourced provider.
• Increased potential for disruption. An organization also must monitor for issues that could
interrupt or permanently end the relationship with an outsourced provider. They include
financial or workplace problems at the outsourced provider, geopolitical instability, natural
disasters or changes in economic circumstances. Organizations thus need to consider such
risks and devise strategies on how to cope, which, in turn, adds complexity to their business
continuity and disaster recovery
• Deloitte found in its "2020 Global Outsourcing Survey" that enterprise leaders are focusing
more on the potential risks of BPO and on the importance of risk management. Deloitte noted
that "third-party ecosystems are more complex than ever, which has implications for regulatory
compliance, security, risk, and data protection requirements" and noted that "the role of
supplier management is more critical than ever; however, this function is still underpowered in
many organizations."
• Security and regulatory concerns
It is important to examine any security and regulatory concerns, requirements and restrictions in
BPO contracts. For example, companies that are subject to regulations requiring local storage of
certain types of data could be prevented from using an offshore provider in some circumstances.

Consequently, organizations seeking to outsource need to involve IT, security, legal and financial
executives in the transaction, in addition to the business unit leader of the function being
outsourced and the procurement office. Moreover, these executives need to be involved in
periodic reviews of the outsourced function to determine whether regulatory and financial
changes, as well as changing organizational strategies, render the need for changes in the
outsourcing arrangements.
 SCOPE OF WORK

• As an organization moves a function to a new outsourced provider, it must identify

the scope of the work shifting from in-house staff to the external partner. Executives
should identify the workflows and processes impacted by this shift and adjust, if
necessary, those workflows and processes to accommodate the outsourcing of the
work.
• Executives should also identify the key objectives for outsourcing a function --
whether cost savings, increased quality, quicker turnaround or some other objective -
- and then use that criteria to determine which provider is best suited to handle the
work. Those objectives should also serve as the basis for contractual obligations that
can be used to help assess the performance of the outsourced provider and success
of the function once it is actually outsourced.
What are the different types of BPO?
• BPO is often divided into different types based on the service provider's location:

• Offshore outsourcing, or just offshoring, occurs when an organization contracts for

services provided with a company in a foreign country.
• Onshore outsourcing, or domestic outsourcing, happens when an organization contracts
for services provided by a company that operates in the same country as the hiring
organization.
 KNOWLEDGE PROCESS OUTSOURCING
(KPO)

• Knowledge process outsourcing (KPO) describes the outsourcing of core

information-related business activities which are competitively important or form an
integral part of a company's value chain. KPO requires advanced analytical and
technical skills as well as a high degree of specialist expertise.
•
• Some famous companies providing such KPO services in India are Wipro, TCS,
WNS Global, Aditya Birla Minacs etc. And still, this sector continues to grow at
a very fast pace. But in recent years India is facing huge competition from countries
like China, the Philippines, and the Czech Republic etc.
What is Knowledge Process Outsourcing?
• Knowledge Process Outsourcing (KPO) is when difficult, high-level tasks get outsourced by a
company to a vendor. So the activities which the company will be outsourcing are core
activities.
• They require skills, technical knowledge, and expertise. So a company outsources these tasks to
another company (vendor) or a subsidiary company located in the same country or sometimes
offshores for cost purposes.
• As we know, BPO services are also the outsourcing of activities, but non-core activities. So a
KPO will be a subset of a BPO. However, KPO involves more core activities with specialized
and technical work.
• The company outsources to KPO’s for their skilled labor and subject expertise, not to lower
their work burden. It is also an opportunity to lower costs because, in developing countries like
India, skilled and educated labor is a lot cheaper.
• So a KPO is like an umbrella, it covers a variety of activities. So there are many types of KPO’s
like market research, legal discovery, financial research, pharma and biotech, data analytics,
creative design, technical content writing etc.
• As it happens India is one of the leading providers of many of these KPO services, especially in
the technical and scientific fields. It is currently a $14 billion industry in India.
•
• Some famous companies providing such KPO services in India are Wipro, TCS, WNS Global,
Aditya Birla Minacs etc. And still, this sector continues to grow at a very fast pace. But in recent
years India is facing huge competition from countries like China, the Philippines, and the Czech
Republic etc.
• Network Marketing
• Franchising
• Business Process Outsourcing
• Aggregator
• Digital Economy
• E-Commerce
• M-Commerce
 • Sutherland Global Services
• WNS
• Boston Analytics
• SG Analytic
LIST OF KPO • Eclerx
COMPANIES IN INDIA • Syntel
• CRISIL
• iGate
• McKc (Mckinsey Knowledge Centre)
• Deloitte
• EY
• PwC
• KPMG
Advantages of KPO

• Cost-effectiveness: One of the biggest advantages of a KPO is obviously the cost advantage.
The company does not have to set up any infrastructure or bear any operational or running
costs. And it gets effective, expertizes services at a fraction of the cost.
• Access to the best talent: KPO’s provide the company with the best, most knowledgeable
and skilled professionals available in the global talent pool. And if the KPO is in a developing
country like India or Philippines then the cost of such talent is also relatively low.
• Focus: Outsourcing some of the processes, allows the company to focus on its core functions.
The KPO handles the peripheral functions, and the company can better focus on its core
functions and improve their efficiency and results.
• Better Utilization of Resources: If the company outsources the process that is not at the
core of their business strategy, it can use the resources it saves in better places. Say a company
outsources its supply chain management. Then the resources it saves on this can be utilized to
streamline the manufacturing process, R&D activities, better marketing etc.
 MANAGERS AND ACTIVITIES IN IS

• The role of a manager in information systems (IS) is critical for ensuring that an
organization's technology infrastructure aligns with its business objectives and
contributes to overall success. Here are some key aspects of a manager's role in
information systems:

1. Strategic Planning:
• Alignment with Business Goals: Managers need to ensure that the
organization's information systems align with its overall business strategy and goals.
They play a key role in developing and implementing strategic plans for information
technology (IT) that support the organization's objectives.
2. Resource Management:
• Budgeting and Resource Allocation: IS managers are responsible for managing the
budget for information technology, allocating resources efficiently, and ensuring that
investments in technology provide value to the organization.
3. System Development and Implementation:
• Project Management: Managers oversee the development and implementation of
information systems projects. This includes coordinating teams, setting timelines, and ensuring
that projects are delivered on schedule and within budget.
• Risk Management: Identifying and managing potential risks associated with system
development and implementation is crucial. This involves assessing risks, developing mitigation
strategies, and ensuring the security of the information systems.
4. Infrastructure Management:
• Hardware and Software Maintenance: IS managers are responsible for the maintenance
and proper functioning of the organization's hardware and software infrastructure. This
includes managing upgrades, patches, and troubleshooting issues.
5. Security and Compliance:
• Data Security: Ensuring the security of the organization's data is a critical responsibility.
This involves implementing security measures, staying informed about cybersecurity threats,
and implementing best practices to protect information assets.
• Compliance: IS managers must ensure that the organization complies with relevant laws
and regulations regarding data privacy, security, and other IT-related matters.
6. User Support and Training:
• Help Desk Management: Managers are responsible for providing support to end-users,
including managing help desk services to address technical issues promptly.
• Training Programs: Implementing training programs to ensure that employees are
proficient in using information systems effectively.
7. Technology Assessment:
• Evaluating New Technologies: IS managers need to stay informed about emerging
technologies and assess their potential benefits for the organization. This includes conducting
feasibility studies and making recommendations for adopting new technologies.
8. Communication and Collaboration:
• Stakeholder Communication: Effective communication with various stakeholders,
including executives, employees, and IT staff, is crucial. IS managers must convey technical
information in a way that is understandable to non-technical stakeholders.
• Collaboration: Collaborating with other departments to understand their technology
needs and ensuring that information systems support the overall collaboration and
communication within the organization.
9. Continuous Improvement:
• Performance Monitoring: Regularly monitoring the performance of information systems
and identifying areas for improvement is essential for maintaining optimal functionality.
• Feedback and Adaptation: Collecting feedback from users and stakeholders and using it
to make continuous improvements to information systems and related processes.
• In summary, the role of a manager in information systems is multifaceted, involving strategic
planning, resource management, system development and implementation, security, user
support, and continuous improvement. This role is essential for ensuring that information
systems contribute effectively to an organization's success and competitive advantage.
 ACTIVITIES IN IS

• Information Systems (IS) encompass a wide range of activities that revolve around
the management and use of information for various purposes within an organization.
These activities can be broadly categorized into several key areas:
1. Data Collection and Input:
• Gathering relevant data from internal and external sources.
• Inputting data into information systems through various methods such as manual
data entry, automated data feeds, or data imports.
2. Data Processing:
• Organizing and structuring raw data into a usable format.
• Performing calculations, aggregations, and other processing tasks to derive
meaningful information.
3. Data Storage:
• Storing data in databases or other storage systems for easy retrieval and analysis.
• Implementing data security measures to protect sensitive information.
4. Data Retrieval and Querying:
• Retrieving specific data from databases based on user queries.
• Providing tools for users to interact with the data, generate reports, and extract relevant
information.
5. Data Analysis and Reporting:
• Using tools and techniques to analyze data for patterns, trends, and insights.
• Generating reports and visualizations to present information in a comprehensible format for
decision-makers.
6. Decision Support:
• Implementing Decision Support Systems (DSS) that assist decision-makers by providing
relevant information, analysis, and tools for decision-making.
7. Business Intelligence (BI):
• Utilizing BI tools to gather, analyze, and present business data to support decision-making
processes.
8. Knowledge Management:
• Developing systems to capture, organize, and share organizational knowledge.
• Implementing strategies for knowledge creation, dissemination, and retention.
9. Communication Systems:
• Establishing communication systems, including email, messaging platforms, and collaborative
tools, to facilitate efficient information exchange within the organization.
10. Enterprise Resource Planning (ERP):
• Implementing integrated systems that consolidate various business processes, such as finance,
human resources, and supply chain management, into a unified platform.
11. Customer Relationship Management (CRM):
• Managing customer-related data and interactions to enhance customer satisfaction and
relationships.
12. Security and Compliance:
• Implementing measures to ensure the security and integrity of information.
• Complying with legal and regulatory requirements related to data and information
management.
13. System Development and Maintenance:
• Designing, developing, and maintaining information systems, including software applications
and hardware infrastructure.
• Managing the lifecycle of information systems, including updates, patches, and system
enhancements.
14. User Training and Support:
• Providing training programs to help users effectively utilize information systems.
• Offering ongoing support to address user issues, troubleshoot problems, and ensure system
usability.
15. Project Management:
• Managing projects related to the development, implementation, or upgrade of information
systems.
• Coordinating activities, resources, and timelines to ensure successful project outcomes.

These activities collectively contribute to the effective functioning of information systems within
an organization, supporting business processes, decision-making, and overall strategic objectives.
 IMPORTANCE OF INFORMATION
SYSTEMS IN DECISION MAKING AND
STRATEGY BUILDING
Information systems play a crucial role in decision-making and strategy building within
organizations. Here are several reasons why they are important:
1. Data Availability and Accessibility:
• Information systems ensure that relevant data is readily available and accessible to
decision-makers. This allows for informed and timely decision-making.
2. Data Accuracy and Reliability:
• Information systems help in maintaining accurate and reliable data. Decision-
makers rely on trustworthy information for making strategic choices.
3. Real-time Information:
• With the help of information systems, organizations can access real-time data. This
is particularly important in fast-paced business environments where quick
decisions are necessary.
4. Efficient Data Analysis:
• Information systems facilitate the analysis of large sets of data, helping decision-makers
identify patterns, trends, and insights that may not be apparent through manual analysis.
5. Strategic Planning:
• Information systems support the development of strategic plans by providing the necessary
data and analysis. This ensures that strategies are based on a comprehensive understanding of
the business environment.
6. Competitive Advantage:
• Organizations can gain a competitive advantage by using information systems to gather and
analyze market data, customer preferences, and competitor activities. This information helps
in developing strategies that outperform competitors.
7. Cost Reduction and Efficiency:
• Information systems streamline business processes and reduce operational costs by
automating routine tasks. This efficiency allows organizations to allocate resources more
effectively and focus on strategic initiatives.
8. Improved Communication:
• Information systems facilitate communication within an organization. This is crucial for
ensuring that decision-makers have access to the information they need and can
communicate effectively with each other.
9. Risk Management:
• Information systems help in identifying and assessing risks. Decision-makers can use this
information to develop strategies for mitigating risks and ensuring the organization's
resilience in the face of challenges.
10. Adaptability to Change:
• In a dynamic business environment, adaptability is key. Information systems provide the tools
and insights needed for organizations to adapt to changes in the market, technology, or
regulatory landscape.
11. Decision Support Systems:
• Information systems often include decision support tools that assist managers in evaluating
different scenarios, assessing potential outcomes, and making more informed decisions.
12. Monitoring and Evaluation:
• Information systems allow organizations to monitor the implementation of strategies and
evaluate their effectiveness. This feedback loop is essential for continuous improvement and
adjustment of strategies over time.
• In summary, information systems are integral to the decision-making and strategy-building
processes of organizations. They provide the necessary infrastructure, tools, and insights that
empower leaders to make informed decisions and formulate effective strategies in today's
complex and competitive business environment.
IMPORTANCE OF INFORMATION SYSTEMS IN DECISION MAKING AND
STRATEGY BUILDING
▶ Making decision is central to managing organizations. Organizations today can no longer use
a 'cook book' approach to decision making. In order to succeed in a business today, companies
need information system that support the diverse information and decision-making needs for
their operations. The rapid development of the internet and other information technologies has
further strengthened the role of information systems for decision making support.

▶ Information systems can help you make valid decisions by providing accurate and up-to-date
information and performing analytic functions. You have to make sure the information system you
choose can work with the information formats available in your company and has the features
you need. Suitable information systems can structure the basic data available from your
company operations and records into reports to present you with guidance for your decisions.
Decisions occur at three levels in organizations. These levels are:

1. Strategic decisions are long-term in their impact. They affect and shape the direction of the
whole business. They are generally made by senior managers. The managers of the bakery
need to take a strategic decision about whether to remain in the café business. Long-term
forecasts of business turnover set against likely market conditions will help to determine if it
should close the café business.
2. Tactical decisions (managerial) help to implement the strategy. They are usually made by
middle management. For the café, a tactical decision would be whether to open earlier in the
morning or on Saturday to attract new customers. Managers would want research data on
likely customer numbers to help them decide if opening hours should be extended.
3. Operational decisions relate to the day-to-day running of the business. They are mainly
routine and may be taken by middle or junior managers. For example, a simple operational
decision for the café would be whether to order more coffee for next week. Stock and sales
data will show when it needs to order more supplies.
The Role of Information Systems in Decision-Making:

Information from Company Operations

• When you base your decisions on data available from information systems, they reflect
information that comes from the operations of your company. Information systems take data
generated by the working level and organize it into useful formats. Information systems typically
contain sales figures, expenses, investments and workforce data. If you need to know how much
profit your company has made each year for the past five years to make a decision, information
systems can provide accurate reports giving you that information.
Capability to Run Scenarios
• The capability to run scenarios is a key decision-making tool. Some information systems have
this feature built in, while others can provide the information required for running scenarios on
other applications, such as spreadsheets. Your decision is influenced by what happens if you
decide a certain way. What-if scenarios show you how different variables change when you
make a decision.
• Projections to Assist in Decision Making
• Any decisions you make result in changes in the projected company results and may require
modifications to your business strategy and overall goals. Information systems either have trend
analysis built in or can provide information that lets you carry out such an analysis. Typical
business strategies include projections for all fundamental operating results.
• A trend analysis allows you to show what these results would be in the current situation and
how they will change once you have implemented the decisions you have taken. The new values
form the basis of your strategic approach going forward.
• Implementation and Evaluation
• While you make your decisions with specific goals in mind and have the documentation from
information systems and trend analysis to support your expectations, you have to track
company results to make sure they develop as planned. Information systems give you the data
you need to determine whether your decisions have had the desired effect, or whether you
have to take corrective action to reach your goals. If specific results are not on track, you can
use information systems to evaluate the situation and decide to take additional measures if
necessary.
THANK YOU