Chapter 1: Information Technology in a TYPES OF BUSINESS

Business Environment 1) Sole proprietorships - owned and operated by a

single person
BUSINESS AND INFORMATION TECHNOLOGY 2) Partnerships - a business relationship between two
Many people believe that business nowadays could or more people who together conduct business
not survive without the integration and use of 3) Corporations - a business in which a group of
information technology (IT). Business organizations rely people acts as a single entity
on computers to perform their daily operations and 4) Limited liability companies (LLCs) - A limited
transactions. liability company combines the pass-through
Example: Banks have developed and designed new taxation benefits of a partnership with the limited
mobile banking app store place traditional banking. liability benefits of a corporation
5) Limited Partnership - defined as having limited
BUSINESS ORGANIZATION AS A SYSTEM partners and a general partner, which has unlimited
•Any type of business organization, whether liability
multinational or local and large, medium, or small, can 6) Cooperative (Co-op) - a legal business structure that
be viewed as a system because it consists of various is owned and governed by, and functions for, the
parts that work collaboratively to attain a certain goal. benefit of those who use its services. Cooperatives
•The main goal of many organizations is to provide are owned by those who work for it, are served by
added value to their clients and customers. it, or both.
7) Non Profit - a group organized for purposes other
BUSINESS CONCEPTS than generating profit and in which no part of the
The word "business" is traditionally defined as the organization's income is distributed to its members,
exchange of products. directors, or officers
Business is an enterprise or activity with the intention
to make profits. BUSINESS SIZE
The term business refers to an organization or 1) Micro – Fewer than 5 employee (including the owner)
enterprising entity engaged in commercial, industrial, 2) Small Businesses- 5 to 19 employees
or professional activities. 3) Mid-Sized Enterprises- 20 to 199 employees
Business also refers to the efforts and activities 4) Large Businesses- 200 or more employees
undertaken by individuals to produce and sell goods
and services for profit. DATA VS. INFORMATION
Data are facts that are collected, recorded, stored,
TYPES OF BUSINESS and processed by a system. Insufficient for decision
( Four categories) making.
1) MANUFACTURING - the manufacturer or producer DATA REPRESENTED BY
produces one or more products and then sells them Alphanumeric Data Numbers,letters,and
to the end consumer to earn profits other characters
2) MERCHANDISING - a type of business in which the Image Data Graphic images and
seller/business sells tangible products to the pictures
Audio data Sound, noise, or tones
customers/consumers
Video Data Moving images or
3) SERVICES - a type of business where the seller
pictures
offers intangible goods to other businesses or
consumers
4) HYBRID - are those businesses where an
organization practices two or more business types
at the same time.
 DATA VS. INFORMATION BUSINESS IN THE INFORMATION ERA
 Information is data that have been organized and • Most businesses established in the Information
processed to provide meaning and improve Era mostly depend on the use of advanced
decision-making. technologies.
 Turning data into information is a process, or a set • It is a fact that people currently live in the
of logically related tasks performed to achieve a Information Era, commonly known as the Digital
defined outcome. Age.
 The process of defining relationships among data to • Information Era is described as enormous and
create useful information requires knowledge, incredible, where huge amounts of information can
which is the awareness and understanding of a set be shared around the world in just one click of a
of information and the ways in which that finger.
information can be made useful to support a
specific task or reach a decision. BUSINESS ENVIRONMENT IN THE INFORMATION
AGE
INFORMATION AND ITS DISCIPLINE The Information Age enables businesses to
 IT is the study, design development, application, compete in a marketplace that is complex, global,
implementation, support or management of and customer focused.
Computer-Based Information System (CBIS),
particularly software application and computer BUSINESSES THAT ARE POPULAR IN THE DIGITAL
hardware (Laudon and Laudon, 2009). AGE
1) Call Centers- A call center agent refers to a person
 IT is the application of technology to solve business who handles incoming or outgoing customer calls
or organizational problems on a broad scale. for a certain business. He/ She might handle
technical support issues, customer complaints, and
 IT compromises a wide range of hardware and account inquiries.
software solutions that support organizations and
evaluate data that help them accomplish their 2) Banking (Online Banking and Mobile Banking) -
targets. Online banking is one of the many business
banking services that banks offer. It is popularly
 IT also describes technology based workflow known as Internet banking.
processes that enhance the proficiency of an
organization to provide services that produce THE CHANGING ROLE OF IT IN BUSINESS
profits. • IT is about telecommunication networks; all kinds
of hardware such as computers, routers, memory,
 IT is defined as the study and application of cables, servers, and printers; and all types of
computers, network, and telecommunications that software including both systems and applications
store, manipulate, retrieve, manage, and send such as operating systems, productivity tools, office
information. application tools, data management tools, and
social and mobile applications.
 IT includes a combination of software and hardware
resources that are used together to perform various • IT has replaced the traditional or conventional
functions that people need in their everyday life. methods of business activities with modern and
innovative technological tools.
 THE CHANGING ROLE OF IT IN BUSINESS TRENDS IN INFORMATION TECHNOLOGY
DEVELOPMENT
1) Productivity- Technological tools and applications 1) The Adaptability of the Internet of Things (loT)-
such as computer - aided design (CAD), office loT is a system of interconnected computing
application tools (word processors, spreadsheets, devices, mechanical and digital machines,
and presentation software), programming software, objects, animals, or people.
database technology, and the like, improve business
productivity. 2) Development of Web Applications- These are
2) Monitoring- IT tools are used for monitoring web applications that are composed of web
purposes in various areas of business organizations. pages or websites similar to traditional and
The main reason for this is to ensure that all most mobile application, program that is stored
resources are being utilized efficiently. on a remote server and delivered over the
3) Business performance management- Developed as Internet through a browser interface.
monitoring method that most businesses use to
achieve their goals. 3) The Brainpower of Artificial intelligence - (Al) is
the simulation of human intelligence processes
ROLE OF INFORMATION TECHNOLOGY IN OTHER by machines, particularly computer systems.
FIELDS
 Education
1) Glogster EDU. Chapter 2: Introduction to
2) Mentimeter. Information System
3) Electronic Learning Organizer.
• Information system (IS) is used by people and
4) Constant Therapy.
business organizations for the improvement of
 Learning Management System - These systems are
processes and operations to make things
powerful online applications containing designed
simpler and easier.
and developed courses for students
• It is a combined set of modules for gathering,
 Health - IT also plays a significant role in the field of
processing, and storing of data and for
medicine.
delivering of information and digital products.

DATA VS. INFORMATION

INFROMATION TECHNOLOGY CAREER OPPORTUNITIES
Data from the Latin word, Information is popularly
1) Help Desk Technical Jobs -Technician must be datum, refer to raw, described as refined,
knowledgeable about computer system and have unorganized, and unprocessed structured, and
good customer service skills. facts. organized data. A
2) Technical Support Analyst Jobs- Technical support process is required to
analyst are considered professionals who assist staff transform data into
within an organization and support non- IT information.
Data can be in the form of a Information is data that
computer users.
number, alphabets, date, have been organized and
3) Business Intelligence Analyst Jobs- Business measurement, and even processed to provide
intelligence analyst are computer science graduate statement. meaning and improve
who use computer software programs to go decision-making.
through big data and trace specific information to
formulate reports and create presentations by Data are facts that are collected,
considering the company’s level of efficiency and its recorded, stored, and processed
by a system. Insufficient for
departments advancements over a selected
decision making.
timeline.
 SYSTEM INFORMATION SYSTEM
• A system can be defined as a collection of parts that 1) Input is the activity of gathering and capturing raw
interact, interconnect, and work together to accomplish data.
certain objectives. 2) Processing means converting or transforming data
• A system is a set of elements or components that into useful outputs.
interact to accomplish goals. 3) Output involves producing useful information,
• A subsystem is a part of a whole system that has its usually in the form of documents and reports.
own area of immediate focus. 4) Feedback is information from the system that is
used to make changes to input or processing
TYPES OF SYSTEM activities.
1) Natural systems - These systems are made by
nature. (Examples: Typhoons, floods etc.)  Master Data - Permanent data stored in IS for a long
time.
2) Man-made systems- These systems are designed, These data may include;
developed, and implemented by human beings. a. Customer master data
(Example: Transportation system, education and b. Employee master data
health system, computer system). c. Subject master data

COMPUTER SYSTEM Two types of update in Master Data

• A computer system is an integrated form of different  Information Processing – data processing functions
components that work together to give a desirable that are commonly related to internal operations
result. and economic and financial activities.
• A computer system is a basic, complete and functional  Data Maintenance – system’s functional activities
hardware and software setup with everything needed such as adding, saving, deleting, updating,
to implement computing performance. retrieving, and editing data from the master data.
• A computer system takes inputs and processes them
to create inputs. FIVE MAJOR COMPONENTS OF INFORMATION
SYSTEM
INFORMATION SYSTEM 1) Hardware – physical layer of the information
system (Example: Servers, workstation,
• Information System (IS) is a man made system that networks, scanners, mobile devices).
collects, stores, retrieves, process, manages, 2) Software – programs that control the hardware
disseminates, and analyzes information needed to 3) Data – raw material/facts that an information
facilitate a business organization’s operational functions system transforms into useful information.
and support its management in making decision. 4) Procedure – describe the tasks and business
• Information system is a set of interrelated elements functions that users, managers, and IT staff
or components that collect (input), manipulate members perform to achieve a specific results.
(process), store, and disseminate (output) data and 5) People – have interest in an information system
information and provide a corrective reaction (feedback are known as stakeholders (Management
mechanism) to meet an objective. group, users/end user)
• IS provides a feedback mechanism to monitor and
control its operation to make sure it continues to meet
its goal and objectives.
 THREE LOGICAL COMPONENTS OF BUSINESS COMPONENTS OF CBIS
PROCESS WITHIN THE SCOPE OF AN IS. • Hardware – consists of computer equipment used to
1) Information process- refers to a portion of an IS perform input, processing, storage, and output
closely related to a specified business process. activities.
2) Operation Process- refers to man made IS that • Software – refers to the set of computer program that
consists of people, policies, procedures, and control the overall operation of the computer system.
equipment whose main objective is to accomplish a Types of Software
certain goal of a particular business organization. • System Software – control the overall
3) Management Process- refers to man made IS that operation of a computer
consists of people, policies, procedures, and • Application Software – refers to an end user
equipment whose main objective is to plan, program also known as productivity software.
manage, and control the overall operations of a • Software licenses- Software can be divided, from a
business organizations. commercial point of view, using two features: the cost
INFORMATION TECHNOLOGY INFORMATION SYSTEM and the permission to be modified.
Information Technology refers Information System • Database – a collection of related files and records
to any technological or collect, stores, retrieves, that are stores in a special location for easy access
computer based tool primarily processes, manages, • Networks – the connection of two or more computers
used for supporting the needs disseminates, and
established for the purpose of sharing various data.
of business organizations. analyzes information
• Procedures – the rules, policies, and methods that
needed to facilitate
organizations operational administer the operation of a computer system
functions and support • People – the most crucial component of IS
management in making
decisions. OTHER COMPONENTS OF CBIS
• Telecommunication – refers to the electronic
CAPABILITIES OF AN IS transmission of information within a specific distance.
• Processing transactions quickly and precisely.
• Internet – largest type of network that allows user to
• Managing large capability storage and fast and easy access
share information worldwide.
storage.
• Efficiently communicating through a network. • World Wide Web (WWW) – accessible through the
• Easing information overload for users. internet, and it consists of multimedia collections that
• Supporting decision making. are stored in a particular database of CBIS.
• Serving as a competitive weapon against competitors.
• Uniting an organization through the coordination of its big TYPE OF INFORMATION SYSTEM
and small groups. 1) Transaction Processing System
• Strengthening organizational memory and learning and - Known as real time processing system
exploring new things.
-An IS for all types of business transactions.
• Determining the process of separating products and
- It captures, stores, classifies, maintains, updates, and
services.
retrieves transaction data for records keeping and
• Automating business process.
• Individual productivity inputting data to other types of CBIS.
• Batch Processing
Computer-Based Information System (CBIS) is a single • Online/Real time Processing
set of hardware, software, databases, 2) Management Information System
telecommunications, people, and procedures that are -Consist of hardware and software application that
configured to collect, manipulate, store, and process support all the organization’s business transactions.
data into information. - Collects raw data from different computer systems,
analyzes and process them and report them to assist
and serve in decision making.
3) Decision Support System 2. System Analysis
-A computer based application that helps companies • Understand the proposed system
identify and give solutions by making decisions on how • Build logical model of the new system
to solve problems including issues on raw data,
documents, employee and company profiling and 3. System Design
management and business models. • Determines how the new system should be developed
- Responsible for delivering information to managers to meet the business needs defined during systems
who makes assessments about specific scenarios that analysis.
are not well-managed.
4. System Development
4) Executive Information System • The new system is developed. The new components
- A specialized DSS that assists senior executive in and programs must be obtained and installed. Users of
making decisions. the system must be trained in its use.
- It provides easy access to valuable information
necessary to achieve organizational goals 5. System Testing
Four components • All aspects of performance must be tested. If
1) Hardware necessary, adjustments must be made at this stage.
2) Software
3) Telecommunication Stages IS are tested
4) User Interface a) Unit Test - Programmers provide inputs directly to each
module of the new system and inspect its output to
make sure it operates correctly.
Developing Information System
b) Subsystem Test -Tested module are combined into
• System Development consists of the procedures in
subsystem. It catches errors in communication among
building and upholding information system (IS)
modules.
• Systems development is the activity of creating or c) System Test - When all subsystems appear to operate
modifying information systems. correctly, programmers test the system as a whole
• System Development Life Cycle (SDLC) is one of the d) User test - Testing by the people who will use the
methodologies used in software development. system.

System Development Life Cycle 6. System Implementation- The system is ready for
• SDLC emphasizes that the system can be developed in deployment or implementation.
a series of phases.
• Systems Development Life Cycle (SDLC) is a 7. System Maintenance -Project teams carefully assess
conceptual model used in project management that the system to help reduce the cost of operation and
describes the stages involved in an information system maintenance through several methods like feedback
development project, from an initial feasibility study collection, error detection and elimination, and optimal
through maintenance of the completed application. performance standards.

PHASES OF SDLC Information System Security

1. System Planning • Information Security- Protecting information and
• Begins with a formal request which is known as System information systems from malicious software and
request unauthorized access, use, disclosure, modification,
• Perform a preliminary investigation disruption, or destruction.
- Key part of preliminary investigation is a feasibility study • Information Security Management -The process of
 Technical
identifying the security controls to keep and defend
 Economic
information assets.
 Operational
 Chapter 3: Emerging Technologies for  STATUS BAR – it appears at the bottom of the
Business Processes window and provides information as the current
page and the number of words in your documents.
The check mark next to an item means it is selected.
1) OFFICE APPLICATION TOOLS
• The most commonly used application tools in a  TEXT AREA – a large area below the ruler. You can
business organization. type your document in the text area.
• Application software that assist users in regular office  TITLE BAR – it displays the title of your document
jobs like creating, updating and maintaining documents, on which you are currently working.
handling large amounts of data, creating presentations,  TITLE BAR – it displays the title of your document
scheduling, etc. on which you are currently working.
 WORD COUNT – displays the number of words in
 Microsoft Office- A powerful office applications that your document
support various business process. • ZOOM CONTROL – click, hold, and drag the slider to
use the zoom control. The number to the right of
 Microsoft Word - A word processing program that is the slider bar reflects the zoom percentage.
designed for both Windows and Mac operating system.
(Parts of Microsoft Word 2013)  Microsoft Excel- It is a spreadsheet program that
• ACCESS ACCOUNT – from here, you can access your includes features such as calculation, macro
Microsoft Account information, view your profile programming, and graphic tools. Most of the functions
and switch account. found in Microsoft Word are also available in Microsoft
• DOCUMENT VIEWS – there are three ways to view a Excel.
document. Simply click the desired view: (Parts of Microsoft Excel 2013)
 READ MODE – displays your document in full • Quick Access Toolbar – lets you access to common
screen mode. commands no matter which tab is selected. By default, it
 PRINT LAYOUT – selected by default. It shows includes Save, Undo and Redo commands. You can add
the document as it would appear if it were other commands depending on your preference.
printed. • The Ribbon – contains all the commands you will need
 WEBPAGE LAYOUT – shows how your to perform common task in Excel. It has multiple tabs,
document would look as a webpage. each with several groups of commands.
• Microsoft Account – from here, you can access your
• PAGE NUMBER INDICATOR - helps you keep track Microsoft account information, view your profile, and
of the number of pages your document contains. switch accounts.
• QUICK ACCESS TOOLBAR – lets you access common • Command Group – each group contains a series of
commands no matter which tab is selected. By different commands. Simply click any command to apply
default, it includes the SAVE, UNDO, and REDO it. Some groups also have an arrow in the bottom right
commands. You can add other commands corner, which you can click to see even more commands.
depending on your preference. • Name Box – displays the location or name of a selected
• RIBBON – contains all the commands you will need cell.
to perform common tasks in WORD. It has multiple • Formula bar – you can enter or edit data, or a formula,
tabs, each with several groups of commands. or a function that will appear in a specific cell.
• RULER – is located at the top and to the left of your • Cell – each rectangle in a workbook is called a cell. A
document. cell is the intersection of row and column.
• SCROLL BAR - a horizontal and vertical bar with • Row – is a group of cells that runs from the left of the
arrows used to scroll the document using the page to the right. In Excel, rows are identified by
mouse. numbers.
 • Worksheets – Excel files are called workbooks. Each  Microsoft Publisher - This computer program is
workbook holds one or more worksheets (also known as specifically designed for entry – level desktop
“spreadsheets”). One worksheet will appear by default publishing. It focuses on page layout rather than text
when you open an Excel workbook. It’s easy to rename, composition. It widely used for designing banners,
add, and delete worksheets. invitations, advertisements, award certificates,
• Worksheet View Options – there are three ways to brochures, business cards, business forms, calendars,
view a worksheet. Simply click to select the desired catalogs, emails, envelopes, flyers. Letterheads,
view: newsletter and resume.
 Normal view is selected by default, and shows
you an unlimited number of cells and columns.  Microsoft Access-This software is used to create a
 Page Layout view divides your spreadsheet into database whose main purpose is to organize, store,
pages. maintain, and manage data and information for
 Page Break view lets you see an overview of your reporting and analysis. It helps store, analyze, and
worksheet, which is especially helpful when manage large amounts of information effectively.
adding page breaks. Many business organizations use Access because it
is free of charge and can effectively manage
• Zoom control – click and drag the slider to use the information within the organization.
zoom control. The number to the right of the slier reflects
the zoom percentage.
• Vertical and Horizontal scroll bars – your spreadsheet (The following are the benefits of Microsoft Access
may frequently have more data than you see on the and other databases.)
screen at once. Click, hold and drag the vertical or • Reduce redundancy and inconsistencies.
horizontal scroll bar depending on what part of the page • Increase productivity
you want to see. • Secure databases
• Column – is a group of cells that runs from the top of • Make better decisions.
the page to the bottom. In Excel, column is identified by
letters. OFFICE MOBILES
Mobile technologies are popular in today’s generation. A
 Microsoft PowerPoint- It is a presentation program few years ago, Microsoft office can only be accessed using
available in both Windows and MAC OS. This program personal computers. With the advent of technologies, it
is widely used by employees, staff, and top can now be accessed using mobile phones through a
management in business organizations for business software called an application. Various operating systems
presentations. control the overall operation of the mobile app such as
Android and iOS.
 Microsoft Note- It is a free – form information gathering
program that allows a user to collaborate with other
OneNote users. The functions of this program include 2) COMPUTING TECHNOLOGIES
creating noted in both typewritten and handwritten • Computing is defined as the process of utilizing computer
forms, clipping and adding audio commentaries. technology to complete a certain task (
• Computer technologies involves computer hardware,
 Microsoft Outlook- This computer program included in software, data and procedures that would perform a
a Microsoft Office suite package. It allows users to certain tasks or functions.
share information in the form of folders, forms and so • Computer technology is associated with activities of
on. designing, constructing, and programming computers.
1) Teleconferencing Service Model of Cloud Computing
• It is used by companies to conduct meetings with • Software as a Service (SaaS)- It refers to the ability to
multiple people from different geographical locations. use applications running on the cloud infrastructure
Benefits of Teleconferencing made available by a service provider.
 Reduce cost of travel and accommodation expenses Types of SaaS
 Save time • Business utility SaaS
 Conserve energy • Social Networking SaaS
 Avoid travel risks
• Platform as a Service (PaaS)- It refers to the ability to
2) Computerized Teleconferencing deploy applications to the cloud infrastructure. This
• Known as computer teleconferencing. deployment could be customer-related and involve
• The system can be used by people from various acquired applications that are designed through
geographical areas. programming language or software tools that are
• Each participant may access the computer terminal supported by the provider.
that is connected to a specific conference network. Types of PaaS
Advantage of computerized teleconferencing: • Social Application Platform
 A user can save on time and resources as he/she can • Business Application Platform
participate in multiple conferences at a time without • Computing Platform
travelling away for face to face meetings. • Web Application Platform
 A user could read, write, or respond to messages at
his/her convenience • Infrastructure as a Service (IaaS)- This refers to the
 If a problem occurs, a user can get comments and ability to provide processing, networks, storage, and
suggestions from bigger groups of people and other primary resources related to computing.
consolidate their inputs for decision making.
Classifications of the Cloud Deployment Model
3) Video Conferencing
• Conferencing that requires people participate from 1) Private Cloud- This type of deployment model
various locations and time zones transmitting audio and refers to the cloud infrastructure that is used and
video data to achieve their purpose and objectives is operated by only one organization.
called videoconferencing.
2) Community Cloud- This type of deployment model
3) CLOUD COMPUTING refers to the cloud infrastructure that is shared by
• The cloud refers to the Internet. many business organizations and supports certain
• In business perspective, cloud computing allows a communities that share the same sentiments and
business organization's data and information to be concerns.
stored and accessed virtually.
3) Public Cloud- This type of deployment model refers
Cloud Computing and the Internet to the cloud infrastructure that is made available to
• With the help of the Internet, cloud computing was a large industry group or to the general public.
introduced. In contrast to standalone computers, cloud
computing allows users to store and access data, 4) Hybrid Cloud- This type of deployment model refers
programs (applications), databases, emails, and file to the cloud infrastructure that is combined with
services in the cloud. two or more clouds (private, community, or public)
• Cloud computing refers to the use of technology that that are bound by standardized or proprietary
uses the Internet and remote servers to maintain data technology.
and applications.
 4) MOBILE COMPUTING Stages of Green Computing
• Mobile computing is a term used to describe various • Design
devices that allow people to access, retrieve, delete, • Manufacture
and view data or information wherever they are in the • Use
world. • Disposal
• Mobile devices such as smart phones, tablets, or
wearable computers like the Apple watch can be Green Computing Approaches that Can Benefit
connected to various types of networks including Businesses
LAN, wireless local area network, or the internet. • Virtualization
Benefits of Mobile Computing in Business • Use of Multifunction Devices
• Increase in productivity • Use of Cloud Applications
• Improvement in flexibility • Disposal and Replacement of Old Devices or
• Better cost control Equipment
• Better communication • Introduction to Telecommuting

MOBILE COMPUTING SERVICES 6) GRID COMPUTING

• Mobile computing has also designed a mechanism for • It offers a high degree of resource sharing and proper
its security. collaboration on a scale that would exceed even the
• Increased mobile computing security means power of the World Wide Web (WWW) and the
businesses can provide employees with mobile devices currently available distributed computing.
or technology and be confident that business network, • It is important that business developers, designers,
data, information, and even devices are equally and administrators fully understand the concepts of grid
protected. computing and how to make it work successfully.
Risk of Mobile Computing • Grid computing is the practice of leveraging multiple
• Connectivity Issues computers, often geographically distributed but
• Security Issues and Concerns connected by networks, to work together to accomplish
joint tasks. It is typically run on a “data grid,” a set of
5) GREEN COMPUTING computers that directly interact with each other to
• Green computing is popularly known as Green IT. coordinate jobs.
• It is considered the environmentally responsible
method used by business organizations to reduce, Benefits of Grid Computing
reuse, recycle, as well as dispose of technological • It allows detached departments to be part of a virtual
resources. organization that allows the sharing of data and
• It is the study of designing, engineering, resources.
manufacturing, using, and disposing of competing • It improves business productivity and collaboration
devices in a way that reduces environmental impact within virtual organizations.
(Techopedia, 2017). • It supports the creation of robust, flexible, and
( Green IT practices include:) resilient operational business infrastructures.
• Environmentally sustainable production practices • It provides immediate access to enormous computing
• Energy-efficient computing devices or computers and data resources.
• Improving disposal procedures • It leverages existing capital expenditures (CAPER} and
• Improving recycling procedures operational expenditures (OPEX), which would help
ensure the optimal utilization and costs of computing
• US Environmental Protection Agency (EPA)- resources and capabilities.
Introduced the Energy StarProgram. This program aims • It keeps businesses from incurring expensive
to reduce the cost spent by business organizations. operating costs or excess costs.
 Grid Computing in Major Business Areas 8) ARTIFICIAL INTELLIGENCE
Organizations have identified the major business areas Al is the ability of a certain machine to use
where grid computing could be implemented, such as: algorithms to interpret, learn, and use data to make
• Higher education decisions. It also refers to a machine's capability to
• Financial services analyze enormous amounts of information at a
• Life sciences time.
• Government services (The following are some applications of Al that are
• Engineering services reshaping the world of business):
• Collaborative games • Robotics
• Speech Recognition
7) INTERNET OF THINGS (loT) • Cybersecurity protection against threats.
• loT is a network of physical devices that are connecter
embedded, or equipped with sensors, electronics and 9) MACHINE LEARNING
other transfer mechanisms that enable them to connect • One of the main applications of Al is machine
through wired or wireless networks. learning.
• The loT brings huge changes in methods, procedures • In computer science, it is the field that focuses on
operations of business. It improves the way businesses program development that allows computers to
gather, store, exchange, and retrieve data and learn automatically without human assistance and
information. intervention.
• In contrast to traditional programming, which
Real – World Example of the IoT of the Future requires a manually created program that uses input
(Common IoT Application) data run on a computer to produce an output,
• Smart home devices machine learning is a fully automated process.
• Wearable Technology
• Iot healthcare devices 10) BUSINESS INTELLIGENCE
• Connected Cars • According to The Data Warehouse Institute (2002),
• Smart transportation business intelligence (BI) refers to the processes,
technologies, and tools required to convert data into
(IoT in Business) information, information into knowledge, and
• Equipment maintenance prognostics knowledge into plans that derive profitable business
• Shelf and warehouse actions.
• Warehouse automation and • BI is the union of business, IT and business
• Smart Store management.
• Data analytics
BI Applications in an Organization or Enterprise
The smart store components: • Analytics.
• Real-time shopping — A smart store allows • Enterprise reporting.
customers to view product details and purchase • Measurement.
goods at their convenience using their mobile • Collaboration platform.
phones. • Knowledge management.
• Customer feedback — With a smart store, it is
easier to collect feedback from customers about
their shopping experience right after their purchase
through their mobile devices.