Unit I Chapter 4 : IT Development Trends

UNIT – I

Chapter – 4             IT Development Trends

Major areas of  IT applications in Management

Functional areas are teams of employees who have similar skills and expertise. Management is the ‘brain’ of your business operations. Functional management is focused on the execution of a specific organizational task within functional areas, through organizing and leading an organization’s talent.

Functional managers have a high level of technical knowledge and skills relative to the area they manage and focus their efforts on achieving best practices. There are five main functional areas of management:

·        Human resource management:

Human resource development or personnel management or manpower management is concerned with obtaining and maintaining of a satisfactory and satisfied work. It is a specialized branch of management concerned with ‘man management’.

The recruitment, placement, induction, orientation, training, promotion, motivation, performance appraisal, wage and salary, retirement, transfer, merit-rating, industrial relations, working conditions, trade unions, safety and welfare schemes of employees are included in personnel management. The object of personnel management is to create and promote team spirit among workers and managers.

·        Production management:

Production management refers to planning, organization, direction, coordination and control of the production function in such a way that desired goods and services could be produced at the right time, in right quantity, and at the right cost. Some authors treat material, purchase and inventory management as part of production management. Production management involves the following functions:

• Product planning and development,
• Plant location, layout and maintenance,
• Production systems and machines,
• Management of purchase and storage of materials,
• Ensuring effective production control.

·         Office management:

Office management can be defined as, “the organization of an office in order to achieve a certain purpose and to make the best use of the personnel by using the most appropriate machines and equipment, the best possible methods of work and by providing the most suitable environment.’’

The main topics of office management are; office accommodation, layout and environment, communication, handling correspondence and mail, typing and duplicating, record management and filing, indexing, forms and stationary and machines etc.

·         Financial management:

Financial management can be looked upon as the study of relationship between the raising of funds and the deployment of funds. The subject matter of financial management is: capital budgeting cost of capital, portfolio management, dividend policy, short and long term sources of finance. Financial management involves mainly three decisions pertaining to:

1. Investment policies:

It dictates the process associated with capital budgeting and expenditures. All proposals to spend money are ranked and investment decisions are taken whether to sanction money for these proposed ventures or not.

2.       Methods of financing:

A proper mix of short and long term financing is ensured in order to provide necessary funds for proposed ventures at a minimum risk to the enterprise.

3.       Dividend decisions:

This decision affects the amount paid to shareholders and distribution of additional shares of stock.

·         Marketing management:

Marketing as a social and managerial process by which individuals and group obtain what they need and want through creating and exchanging products and values with others. The course content of marketing management generally includes; marketing concept, consumer behavior, marketing mix, market segmentation, product and price decisions, promotion and physical distribution, marketing research and information, international marketing etc.

Ø Concept of Digital Economy:-

Digital economy is defined as an economy that focuses on digital technologies, i.e. it is based on digital and computing technologies. It essentially covers all business, economic, social, cultural etc. activities that are supported by the web and other digital communication technologies.

Digital economy refers to an economy that is based on digital computing technologies, although we increasingly perceive this as conducting business through markets based on the internet and the World Wide Web. The digital economy is also sometimes called the Internet Economy, New Economy, or Web Economy.

Digital economy is one collective term for all economic transactions that occur on the internet. It is also known as the Web Economy or the Internet Economy. With the advent of technology and the process of globalization, the digital and traditional economies are merging into one.

Digital economy is defined as an economy that focuses on digital technologies, i.e. it is based on digital and computing technologies. It essentially covers all business, economic, social, cultural etc. activities that are supported by the web and other digital communication technologies.

There are three main components of this economy, namely,

v  e-business

v  e-business infrastructure

v  e-commerce

Ø Concept of Digital Organization:-

The digital enterprise is an organization that uses technology as a competitive advantage in its internal and external operations. As information technology (IT) has reshaped the infrastructure and operations of enterprises, digital enterprise has taken on different meanings. For example, the term was sometimes used to refer to business activities or new business models that incorporated digital technology, such as the purchase of goods from online sites such as Amazon.com. As more business processes, products and business models are transformed by digitized information, the term will continue to evolve.

A digital firm is a company in which almost all significant business relationships with customers, suppliers, and employees are digitally enabled or mediated. ... A company is formally defined as a digital firm when it uses the internet to drive every aspect of its business processes.