Information Systems

Information- is a collection of facts organized so that they have additionsl value

beyond the value of the facts themselves.eg-toal sales for the month than
knowing the sales of each sales representative.

System- A system is a set of elements or components that interact to accomplish

goals. A computer system refers to the hardware and software components that
run a computer or computers

An information system(IS)- is typically considered to be a set of interrelated

elements or components that collect(input), manipulate(processes), and
disseminate (output) data and information and provide a feedback mechanism to
meet an objective.

Input – is the activity of gathering and capturing raw data.

Processing- means converting or transforming data into useful outputs.It can

involve making calculations,cpmparing data and taking alternative actions and
storing data for future use.

Output- Output involves producing useful information,usually in the form of

documents and reports.ei-pay cheques for employees,reports for managers etc.

Feedback- Feedback is information from the system that is used to make

changes to input or processing activities.eg-errors or problems might make it
necessary to correct input data or change a process.

Types of Indormation system-

1.) Formal Information system- It is based on the organization represented by

the organization chart.The chart is map of positions and their authority
relationships.

2.) Informal Information –It is an employee based system designed to meet

personnel needs and to help,solve work related problems.

Manual and computerised information system-

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 It may be manual or computerised.eg-some investment analysts manually
draw charts and trends lines to assist them in making investment decision.

Computer based Information System (CBIS)

It isasingle set of hardware,software,databases,telecommunications,people,and

procedures that are configured to collect,manipulate,store and process data into
information.eg-company’s payroll or inventory control system etc.

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1. Operations support systems process data generated by business operations
Major categories are:
i) Transaction processing systems
ii) Process control systems
iii) Office automation systems
2. Management Support Systems provide information and support needed for effective
decision making by managers
Major categories are
i) Management Information System
ii) Decision Support Systems
iii) Executive Information System

i) Transaction processing systems

It is an organized collection of people,procedures,software,databases and devices

used to to record completed business transactions.

Payroll transactions processing system-

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ii) Process control systems - itmonitor and control industrial processes Process control
is a statistics and engineering discipline that deals with architectures, mechanisms and
algorithms for controlling the output of a specific process.eg-maintaing heat in the plant.

iii) Office automation systems automate office procedures and enhance office
communications and productivity.

2. Management support systems provide information and support needed for effective
decision making by managers
Major categories are:

i) Management information systems

MIS is an organized collection of

people,procedures,software,databases,and devices that provide routine
information to managers and decision makers.MIS focuses on operational
efficiency.Functional areas supported by MISs and linked thorugh a
commen database.

ii) Decision Support System - A decision support system (DSS) is a computer

program application that analyzes business data and presents it so that users can
make business decisions more easily.It may include-
• Comparative sales figures between one week and the next
• Projected revenue figures based on new product sales assumptions
• Graphical representation.
iii) Executive information systems(EIS)-

An EIS is a sysyem that provides information to the executives on the overall

performance of the firm.The information can be accessed easily and can also
provide varying levels of details.it usuall consists of a PC networked to a central
computer .

provide critical information tailored to the information needs of executives

ACCOUNTING INFORMATION SYSTEM

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Accounting- is a system of identifying,recording and summarisning transactions to
reflect the financial position of the business.Incme and Loss is determined through P&L
A/c.Balance sheet represents the Assets and Liabilities of the business.Accounting
process involves recording of Journal entries,Preparation of ledger accounts,Trial balance
and Financial Statements.

Information Systems
An information system(IS) is typically considered to be a set of interrelated elements or
components that collect(input), manipulate(processes), and disseminate (output) data and
information and provide a feedback mechanism to meet an objective.

Computerised Accounting System

Compterised Accounting system refers to a system wherin the accounts of the

enterprise are maintained on a computer.

1 . Software is a system of instructions that drive the computer to perform various

functions.
2. Properly trained personnel are critical to the successful operations of the system.

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1. Hardware is the electronic equipment that makes up a computer system.

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– Designing an Accounting System

-Design of the accounting system begins with the chart of accounts.

-The chart of accounts lists all accounts and their account number in the ledger.

– Menu-Driven Accounting System

-Computer systems are organized by function or task.

-Computer systems usually have a choice of processing options on a “menu.”

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 Information
is different from data.
• Information is data that have been organized and processed to provide meaning to
a user.
• Usually, more information and better information translates into better decisions.

• Characteristics that make information useful:

– Relevance-it reduces uncertainty
– Reliability-free from errors or bias
– Completeness- doesn’t leave out anything that is important
– Timeliness – get it in time to make the decision
– Understandability-presented in a manner that one can understand
– Verifiability-diff. people would tend to produce same result.

• Information is provided to both:

– External users
– Internal users

• External users primarily use information that is either:

– Mandatory Information —required by a governmental entity, such as
Annual Accounts.
– Essential Informaain- required to conduct business with external parties,
such as purchase orders.
• Internal users
– Internal users primarily use discretionary information.
– The primary focus in producing this information is ensuring that benefits
exceed costs, i.e., the information has positive value.

Accounting Information System(AIS)

An accounting information System(AIS) is a system of records maintained by a

business for its accounting system and includes collecting,processing,summarizing and
reporting in money terms.The purpose of AIS is to accumulate data and provide
information to decision makers(investors,creditors and managers) for the purpose of
decision making.
Thus the AIS processes the collected data,transforms it into information and
makes the information available to the user.

Accounting information systems are composed of six main components:[2]

1. People: users who operate on the systems

2. Procedures and instructions: processes involved in collecting, managing and
storing the data
3. Data: data that is related to the organization and its business processes
4. Software: application that processes the data
5. Information technology infrastructure: the actual physical devices and systems
that allows the AIS to operate and perform its functions

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6. Internal controls and security measures: what is implemented to safeguard the
data
• It can:
– Use advanced technology; or
– Be a simple paper-and-pencil system; or
– Be something in between.
• Technology is simply a tool to create, maintain, or improve a system
• The functions of an AIS are to:
– Collect and store data about events, resources.
– Transform that data into information that management can use to make
decisions about events, resources, and agents.
– Provide adequate controls to ensure that the entity’s resources (including
data) are:
• Available when needed
• Accurate and reliable

Initially, accounting information systems were predominantly developed “in-house.

Today, accounting information systems are more commonly sold as pre built
software packages from vendors such as Microsoft, Sage Group, SAP and Oracle
where it is configured and customized to match the organization’s
Advantages and implications of AIS.

As the need for connectivity and consolidation between other business systems
increased, accounting information systems were merged with larger, more centralized
systems known as enterprise resource planning (ERP).

Advantages of AIS

1 A big advantage of computer-based accounting information systems is that they

automate and streamline reporting.
2. The accounting information system pulls data from the centralized database,
processes and transforms it and ultimately generates a summary of that data as
information that can now be easily consumed and analyzed by business analysts
managers or other decision makers
3 Consolidation is one of the greatest hallmarks of reporting as people do not have to
look through an enormous number of transactions.

Why study AIS

• Accounting is an information-providing activity, so accountants need to

understand:
– How the system that provides that information is designed, implemented,
and used.
– How financial information is reported.
– How information is used to make decisions.
– How the availability, reliability, and accuracy of the data is ensured

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 – Tax accountants must understand the client’s AIS adequately to be confident
that it is providing complete and accurate information for tax planning and
compliance work.
– In management consulting, the design, selection, and implementation of
accounting systems is a rapid growth area.

• Businesses engage in a variety of processes, including:

– Acquiring capital
– Buying buildings and equipment Each Activity requires
– Hiring and training employees different types of decision
– Purchasing inventory
– Doing advertising and marketing
– Selling goods or services Each decision requires
– Collecting payment from customers different types of info.
– Paying employees
– Paying taxes
– Paying vendors

• An effective AIS needs to be able to integrate information of different types and

from different sources.
• Types of information needed for decisions:
• Some is financial
• Some is nonfinancial
• Some comes from internal sources
• Some comes from external sources

Interaction between external and internal Parties-

• The AIS interacts with external parties, such as customers, vendors, creditors, and
governmental agencies.

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• The AIS also interacts with internal parties such as employees and management.

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• The interaction is typically two way, in that the AIS sends information to and
receives information from these parties.

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 Business Cycle

The business transaction cycle is a process that:

• Begins with capturing data about a transaction.
• Ends with an information output, such as financial statements.
• Many business processes are paired in give-get exchanges.
• Basic exchanges can be grouped into five major transaction cycles:
• Revenue cycle- Give goods ------ Get cash

• Expenditure cycle- Give cash----------Get goods

• Production cycle- Give raw mat. And labour------- Get finished goods

• Human resources/payroll cycle- Give cash-------------Get labour

• Financing cycle- Give cash-------------Get cash

• Every transaction cycle:

– Relates to other cycles.
– Interfaces with the general ledger and reporting system, which generates
information for management and external parties.

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• Many accounting software packages implement the different transaction cycles as
separate modules.
– Not every module is needed in every organization, e.g., retail companies
don’t have a production cycle.
– Some companies may need extra modules.
– The implementation of each transaction cycle can differ significantly
across companies.
• However the cycles are implemented, it is critical that the AIS be able to:
– Accommodate the information needs of managers.
– Integrate financial and nonfinancial data.

Data Processing Cycle

• An important function of the AIS is to efficiently and effectively process the data
about a company’s transactions.
– In manual systems, data is entered into paper journals and ledgers.
– In computer-based systems, the series of operations performed on data is
referred to as the data processing cycle.
• The data processing cycle consists of four steps:
– Data input
– Data storage
– Data processing
– Information output

1. Data Input-

• The first step in data processing is to capture the data.

2. Data Storage-
Data needs to be organized for easy and efficient access. Let’s start with
some vocabulary terms with respect to data storage.

-(A) Ledger-

It is a book or register which contains,in a summarized and classified form,a

permanent record of all transctions. We typically use the word ledger to describe the
set of t-accounts

( B)Coding techniques

• Coding is a method of systematically assigning numbers or letters to data items to

help classify and organize them. There are many types of codes including:
(a) Sequence codes-With sequence codes, items (such as checks or invoices)
are numbered consecutively to ensure no gaps in the sequence. The numbering
helps ensure that:
– All items are accounted for.
– There are no duplicated numbers, which would suggest errors or fraud

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 (b)Block codes -When block codes are used, blocks of numbers within a
numerical sequence are reserved for a particular category.

Eg. 001-003
004-007

© Group codes-
When group codes are used, two or more subgroups of digits are used to code
an item.
EXAMPLE: The code in the upper, right-hand corner of many checks is a group code
organized as follows:
– Digits 1–2 Bank number
– Digit 3 District
– Digits 4–7 Branch office
– Digits 8–9 State

Group coding schemes are often used in assigning general ledger account numbers.

( C)Chart of Accounts

• The chart of accounts is a list of all general ledger accounts an organization uses.
• Group coding is often used for these numbers, e.g.:
• The first section identifies the major account categories, such as asset,
liability, revenue, etc.
• The second section identifies the primary sub-account, such as current asset
or long-term investment.
• The third section identifies the specific account, such as accounts receivable
or inventory.
• The fourth section identifies the subsidiary account, e.g., the specific
customer code for an account receivable.
• The structure of this chart is an important AIS issue, as it must contain sufficient
detail to meet the organization’s needs.

(D) Journals
• In manual systems and some accounting packages, the first place that
transactions are entered is the journal.
(E) Audit trail
• An audit trail exists when there is sufficient documentation to allow the
tracing of a transaction from beginning to end or from the end back to the
beginning

3. Data Processing

Once data about a business activity has been collected and entered into a system,
it must be processed

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 – Updating data to record the occurrence of an event, the resources affected
by the event, and the agents who participated, e.g., recording a sale to a
customer.
– Changing data, e.g., a customer address.
– Adding data, e.g., a new customer.
– Deleting data, e.g., removing an old customer that has not purchased
anything in 5 years.

4 Information Output

• The final step in the information process is information output.

• This output can be in the form of:
– Documents-eg-employees paycheque or purchase order.These can be
printed or stored.
– Reports-Reports are used by employees to control operational activities
and by managers to make decisions and design strategies
• Output can serve a variety of purposes:
– Financial statements can be provided to both external and internal parties.
– Some outputs are specifically for internal use:
• For planning purposes-Budgets,Sales forecasts.
• For management of day-to-day operations-eg delivery schedule
• For control purposes- Comparing standard with actual output
• For evaluation purposes- Survey of customer
satisfaction,employees error rate.

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 INFORMATION TECHNOLOGY

Everyone is using Information Technology Knowingly or unknowingly. It is growing

rapidly.It covers many different and distinct fields likeMovies, wireless phones or
internet. IT is used Everywhere in any field.User can use IT, for creating multimedia ,in
Business or for creating different magazine orWebsites. It not only helps to the
organization or to the societies but it is find helpful to the Individual persons. In past
days, every thing is Manual Processingfor mailing system, preparing reports were carried
without electronic machine

Definition of IT

1 Its uses hardware and softwares along with other hardwares like telephone line,
modems etc. These components helps to connect two computers together. In short IT
provides all facilities like collecting , storing , encoding ,processing , analyzing ,
transmitting , receiving and printing text audio or video information.

2. Information Technology is a system that process for required output.

3. IT can be described as a set of elements connect together for Retreiving ,processing

and outputting data in the appropriate Format for the purpose of common objective.

4. IT is a hardware and software that perform data processing task such as data
capturing,data transmission,data storage,data retrieval,data manupulation or daya display.

Purpose of Information Technology

 Effieiency- doing things right.Efficient worker can update hundreds documents

per hour.An efficient IT can update thousands of employee’s records per second
 Effectiveness- doing right things.means doing the tasks that need to be done
toachieve important business results.IT base system can help manager to be more
effective.

CAPABILITIES OF INFORMATION TECHNOLOGY

IT enables the users to –

 Transform unstructured processes into routinized transactions
 Transform information with rapidity and ease across large distances,making
processes independent of geography
 Replace or reduce human labour in a process.
 Bring vast amount of detailed informaion into a process
 Allowing multiple tasks to be worked on simultaneously

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 BASIC FUNCTIONS

The basic functions performed by the Information Technology include-

1. Data Capture – It captures the data and convert it in a form which can be
transmitted or stored.eg.- keyboard,mouse,video camera etc.
2. Data Transmission- IT is used to transmit data in electronic form from one place
to another place or from one computer to another computer.eg. telephone
lines,modem,cable television,LAN etc.
3. Store- It moves the information to storage media for later rettieval.floppy
disk,hard disk,cd-rom,etc. are used for this purpose.
4. Retrival – It is the process of finding needed information.Paper,floppy disk,hard
disks, cd-rom,etc are popular devices used for retrival
5. Data Manipulation – IT can create new information from existing information
through summarizing ,sorting,re-arranging,reformatting or various types of
calculations.done with the help of various softwares.
6. Display- It involves presenting the information to the user of information in the
form of text,graphics,audio and video.different types of printers are used for this
purpose.Screan and speakers are also used for presentation.

But now information technology helps everyone to communicate with each other.The
use an the impact of IT in different fields are different but all Share the one common
thing. That is COMPUTER Which Helps user in many ways. It gives facility to
find , use and share information and ideas. IT applies modern technologies.Like
1. Recorder
2 CD-ROM
3. Telephone
4. Video
That means IT makes to gather, manipulate, use and share information. That means
technology is used to create store ,Exchange and utilize information in its various forms
including Data , conversations, different images.

It is used to improve personal or business performance, better public services and

lifestyle. It is just like an engine drive an Information system.

What is Information system?

Information Technology is a concept. It is not a hardware part or a device.

It is a technology that helps to process information. The Information system which is

used to help to build Information technology is called information system.

Information system is a collection of hardware and software . It help to perform different

function. eg: Reservation, Admission of School and College , Education, science and
technology etc. Personal computer is small scale system.

But it is the most important part or the hardware used in Information technology.

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What is computer Hardware?

In computer the components which we can see and touch is called hardware.The C.P.U
and peripherals. For eg: keybaord, Monitor,Printers, Mouse, Headphone, Speakers and
Central Processing Unit etc. are called computer hardware.

What is Software?
In computer the data or information can be stored is because of software.Software helps
to user to interact with Machine. This is because of computer Software. It allows users to
enter data and after processing to display output.For eg. MS-office, Games, Windows
application software,DOS, Unix etc. are different types of softwares.

Whatever computer performs, that totally depend on software. Software means a Set of
instructions that tells to the computer. What to do. Software controls the operations of the
computer.

Without software computer is just a dump machine.

Software are of two types:-

2. System software
3. Application software.

Hardware and Software are inter-depented on each other.

System software and Application software

 System software - controls computer programming. It makes computer to start Or

perform useful work or allow loading different software. Examples are Dos (Disk
operating system),Windows,Unix etc.

Application Software- is any program that process data. These are the software used for
specific task. Application system software excute with the help of operating system.It
Performs specific task like letter formatting,database manipulating or graphics
presentations etc.E.g. Ms-Office, Tally etc.Software used data and proccesses it to give
result.

Data
Data is the information Provided from the user. It is the output generated by the
computer. Data can be Printed and distributed from computer.Different Data types are
characters, numbers, other symbols. Data may be in the any form. It may be letters
,photos, videos or sound also.Data is a raw material and final product also.

Data is typed by the user through the Keyboard. Sometimes user requires to Transmit
videos,sound files or animated files also. This data is complex to analyze and
process.This Data is called as Complex data. To compute this data high Power processor
is used. Now a days with the help of internet facility voice and images transferring is also
possible.

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Application of IT

1. In Bussiness (website Advertisement etc.)

2. In industry(Robot machine, Inventory control)
3. In Home (shoppng and banking, reservations, Entertainments etc)
4. Education and training (school and Colleges)
5. Engineering (CAD and CAE main IT Applications)
6. Science and Medicine(Scientist, Physicians, Astronauts for satellites
developments)

Limitations

1. Literacy :- Trained and well educated persons are required to handle and use IT.
Illiterate person can not use Technology.
2. Backup:- Every tome back up is necessary. If Computer data is lost then everything is
to be done again.
3. Affect human relationship : Every thing is avialable at home makes human being
lazzy.
4. Unemployement:- Big organisation are changing their technologies and turning th the
new. Due to that les manpower is Required. This cause increase in unemployement.
5. Increase cost :- The use of new technologies, skilled persons are Required for the
users to give training. They have to be paid more salary. New technologies causes to
increase the product cost.

Computer in hiding

The system that work behind the scene need attention. Sometime such system are on
large scale or sometime small scale.The computer system that works behind the scene or
in hiding.

First consider Large system.

Network of Computers means many computers are used or many computer are working
for any task.
Examples:-
1. Online reservation
(railway or airline) contact agent on internet and book the tickets in a second with all
information about train or aeroplane. Which give exact information to the users.
2. Weather Forecasting Or ATM card Behind this multiple computers and employees
are used as a hidden for giving proper Information .

Hidden small computer system

It is a single electronic device or a single computer used for specific task.It is a compact
information technology. The best examples are Mobile phone, watches, Puch card to
record time-in and time-out of employees in a organisation.

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Computer hardware and User interface

Computer hardware can be bifurcated in two ways.Internal and External Hardware.

Internal Hardware consist of parts inside the C.P.U
1. Motherboard
2.Main Processor(interprets instruction and process
Data.)
3. RAM(Random Access Memory)

4.Buses (group of electronic wires)

5. Power supply (supply electrical power or energy)
6. Sound Card:- to transfer signals from the system to the speakers. Users can listen
sound from computer.

External Hardware helps to build a

complete computer. It is Input and output
Devices.
1.Keyboard 2. Mouse 3. Monitor 4. Printer 5. Speaker

User Interfaces

A user interface is a system by which people (users) interact with the machine.

Graphical user interface

Pen Based interface
Touch screen interface
Charcter user interface

1.Charcter user interface(CUI) – It was the first interface develop ed for computer.
User can only type any Instructions.e.g DOS COMMANDS.

2.Graphical user interface(GUI) – It was introduced in 1980.Now a days GUI is used

as a main interface.It allows multifunction that user can open many windows at a time.
Get images on Screen and take same print on paper.

3.Pen Based interface(PUI)- This is a new hand held system uses touch sensitive
interfaces. A Stylus is Used to write on the screen or to point Any command or text. For
this different Operating system are used i.e. Window CE or palm OS E.g. Palm Digital
Assistance.

4.Touch screen interface (TUI) – It is an advance Technology. A touch screen is an

input device that allows users to operate a PC by simply touching he is play screen.
Touch input is suitable for a wide variety of computing applications. A touch screen can
be used with most PC systems as easily as other input devices such as rack balls or touch
pads. Browse the links below to learn more about touch input technology and how it can
work for you

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 TRENDS OF INORMATION TECHNOLOGY

1.Internet – In early 1990’s it was first used.the internet is the world’s largest computer
network.It is a collection of interconnected networks ,all freely exchanging
information.Internet transmits data from one computer to another.It is a network of
networks that consists of millions of private, public, academic, business, and government
networks, of local to global scope, that are linked by a broad array of electronic and
optical networking technologies.

- Telnet- It enables to logon to other computers to access files.Also called

remote log on

- Internet cell phones- can be connected to internet to allow people to

search for informaion,buy products, and chat with business associates and
friends

- Chat rooms- facility that enables two or more people to engage in

interactive conversation over the internet.

- Internet phones and Videoconferencing

- Shopping on web

- Music,Radio,Video and TV on the internet.

- Internet sites in three Dimessions –eg- 3D internet auto showroom

allows people to get different views of a car.

-
2World wide web- The World Wide Web, abbreviated as WWW and commonly
known as the Web, is a system of interlinked hypertext documents accessed via the
Internet. With a web browser, one can view web pages that may contain text, images,
videos, and other multimedia.

3.Intranet- An intranet is a private computer network that uses Internet Protocol

technologies to securely share any part of an organization's information or network
operating system within that organization. The term is used in contrast to internet, a
network between organizations, and instead refers to a network within an
organization. Sometimes the term refers only to the organization's internal website.

4.Fire wall- A firewall is a part of a computer system or network that is designed to

block unauthorized access while permitting authorized communications. It is a device or
set of devices that is configured to permit or deny network transmissions based upon a set
of rules and other criteria

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5. Office Automation system- It makes the work of office more productive. Office
automation refers to the varied computer machinery and software used to digitally
create, collect, store, manipulate, and relay office information needed for
accomplishing basic tasks and goals. Raw data storage, electronic transfer, and the
management of electronic business information comprise the basic activities of an office
automation system.[1] Office automation helps in optimizing or automating existing office
procedures Eg- when exporter does online vedio chat with importer,he uses office
automation tools for chatting such as yhoo messenger,g mail etc.

6.Electronic Communication system- An electronic communication network (ECN)

is the term used in financial circles for a type of computer system that facilitates trading
of financial products outside of stock exchanges. The primary products that are traded on
ECNs are stocks and currencies

7. E-commerce- Electronic commerce, commonly known as e-commerce or

eCommerce, consists of the buying and selling of products or services over electronic
systems such as the Internet and other computer networks

8.Electronic Data Interchange- Electronic data interchange (EDI) is the structured

transmission of data between organizations by electronic means. It is used to transfer
electronic documents or business data from one computer system to another computer

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system, i.e. from one trading partner to another trading partner without human
intervention.

9. Graphical Information system - A geographic information system (GIS) integrates

hardware, software, and data for capturing, managing, analyzing, and displaying all forms of

geographically referenced information.

GIS allows us to view, understand, question, interpret, and visualize data in many ways that

reveal relationships, patterns, and trends in the form of maps, globes, reports, and charts.

A GIS helps you answer questions and solve problems by looking at your data in a way that is

quickly understood and easily shared.

GIS technology can be integrated into any enterprise information system framework

10. Decision Support System-

11. Business Process Outsource(BPO - Business process outsourcing (BPO) is a subset

of outsourcing that involves the contracting of the operations and responsibilities of
specific business functions (or processes) to a third-party service provider. Originally,
this was associated with manufacturing firms, such as Coca Cola that outsourced large
segments of its supply chain

12.Knowledge process outsourcing (KPO) is a form of outsourcing, in which

knowledge-related and information-related work is carried out by workers in a different
company or by a subsidiary of the same organization, which may be in the same country
or in an offshore location to save cost. Unlike the outsourcing of manufacturing, this
typically involves high-value work carried out by highly skilled staff. KPO firms

13. Smart Phones - A smartphone is a mobile phone that offers more advanced
computing ability and connectivity than a contemporary basic phone. It is like a handheld
computers integrated within a mobile. A smartphone can be considered as a Personal
Pocket Computer (PPC) with mobile phone functions

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14. Tablet PC -A tablet PC is a wireless, portable personal computer with a touch screen
interface. The tablet form factor is typically smaller than a notebook computer (laptop)
but larger than a smart phone.

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15. iPhone - iPhone is a smartphone made by Apple that combines an iPod, a tablet PC,
a digital camera and a cellular phone. The device includes Internet browsing and
networking capabilities

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16 .iPAD - The iPad is a tablet computer designed and developed by Apple. It is
particularly marketed as a platform for audio and visual media such as books, periodicals,
movies, music, and games, as well as web content.We cant make a call or send messages
from iPAD. The iPad was also not equipped with a video camera, so we cannot record
videos or even take pictures with it. The iPhone 4 has 2 cameras, one on the rear for
pictures and video and one in front for video calling.

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31
 CHALLENGE OF INFORMATION TECHNOLOGY

1. Promoting education of developing IT culture.

2. Promoting scientific and technological research in IT.
3. Development of the IT industry
4. Unemployment - While information technology may have streamlined the
business process it has also crated job redundancies, downsizing and
outsourcing. This means that a lot of lower and middle level jobs have been
done away with causing more people to become unemployed

5. .Privacy(Theft of personal information) - Though information technology

may have made communication quicker, easier and more convenient, it has
also bought along privacy issues. From cell phone signal interceptions to
email hacking, people are now worried about their once private information
becoming public knowledge

6. .Lack of job security - Industry experts believe that the internet has made
job security a big issue as since technology keeps on changing with each
day. This means that one has to be in a constant learning mode, if he or she
wishes for their job to be secure

7. Dominant culture - While information technology may have made the

world a global village, it has also contributed to one culture dominating
another weaker one. For example it is now argued that US influences how
most young teenagers all over the world now act, dress and behave.
Languages too have become overshadowed, with English becoming the
primary mode of communication for business and everything else.

8. High Competition-Many IT giants and solution developers are in the

market as well small scale IT service providers. Hence it is required for IT
industries to live in market .

9. The innovation needs to be done in the area of information technology. The

improvement however, also needs to be qualitative rather than just being
quantitative

10. The skill level of the information technology professionals is one area that
needs improvement and presents a considerable amount of challenge
before the Indian information technology industry.

11. Change in Technology at a better frequency can be a biggest challenge.

So, a company must change its policies, rules, users and sometimes even
infrastructure to some extent with the change in its technologies

12. a great percentage of people are there in society who are not aware about the
exact use of Information technology.

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13. Security-Another big challenge that Information Technology has to face is
about the security of data. No doubt a computer hard disk can store a
massive amount of data. But, this data has to be protected for future.
14. Generally we have 3 ways to protect valuable data from the system:
- Protect your system from hackers
- Apply a good back up plan
-Ensure timely recovery.
15. Rising cybercrime
16. .Currency challenges-The value of different currencies can vary
significantly over time,making international trade more difficult and
complex.

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