CHAPTER 1

UNIT 1 - LIVING IN THE IT ERA

Advantages and Disadvantages of Using
Computers
A World of Computers - Computers are everywhere Advantages of Using Disadvantages of
Computers Using Computers
What is Computer? Speed Violation of Privacy
• A computer is an electronic device, operating under
Reliability Public Safety
the control of instructions stored in its own memory
Consistency Impact on Labor Force
Storage Health Risks
Communications Impact on Environment

Information Processing Cycle What is Information Technology?

Information technology is the technology used to
The Components of a Computer store, manipulate, distribute or create information.
• A computer contains many electric, electronic, and All these can be summed up easily – It’s having
mechanical components known as hardware knowledge, and knowledge comes from having
information.
• Allows you to enter data and Gaining knowledge through information is the role
Input Device of ‘’information technology’’ IT in today’s informed
instructions into a computer
world.
• Hardware component that
Life has become much less manual and a lot
Output Device conveys information to one or
hassle-free for people all around the globe that
more people
have active access to the innovations of
• Case that contains the information technology.
electronic components of the
System Unit
computer that are used to Understanding Information Technology?
process data Information technology literally refers to any
• Holds data, instructions, and development that mainly involves computerbased
Storage Device information systems comprising of software
information for future use
applications and the computer hardware.
• Enables a computer to send and
Information technology in the modern day and age
receive data, instructions, and
Communication has a lot to do with communication and
information to and from one or
s Device accessibility which is mostly why the use of
more computers or mobile
technology (computers) is associated with
devices
information.
Communication covers a huge part of what
information technology is for the people of the
modern age because when we think of accessibility
and an easy life, we automatically point towards
technological innovations such as the Internet and
the mobile phones along with a thousand other
inventions.
The Internet is a worldwide collection of networks
that connects millions of businesses, government
agencies, educational institutions, and individuals

• People use the Internet for a variety of reasons:

- Communicate
- Research and Access Information
- Shop
- Bank and Invest
- Online Trading
- Entertainment
- Share Information
- Download Videos of every lifestyle; the importance of information
- Web Application technology; touching lives.

There are many ways through which information GENERALIZED ADVANTAGES AND
technology has become such as integral part of our DISADVANTAGES OF INFORMATION
daily lives; we have incorporated it into our lives as a TECHNOLOGY
part of routines.
For instance, we plan our busy schedules on our Along with specific contributions to certain fields,
personal laptops or on our cellular phones. This shows information technology also has a few general
how much we depend on information technology that advantages for society.
we have even started planning our lives and goals by
the help of it. Advantages
• With improvements in information technology,
Indeed, it has made life extremely organized and globalization has increased.
structured but at the same time we have failed to • The world is brought closer, and the world’s
acknowledge the threats and dangers that it brings economy is quickly becoming a single
along with it. interdependent system.
We cannot ignore the fact that there are over thousands • Information can be shared quickly and easily from
and thousands of cyber intrusions each day which has all over the globe.
ended up affecting the lives of people in an unfavorable • Barriers of linguistic and geographic boundaries
manner. can be torn down as people share ideas and
information with each other.
For example, online banking systems have allowed
• Communication has become an easier, cheaper,
hackers to steal money and many awful incidents have
and faster system with the help of information
taken place because of this technological advancement
technology.
and facility provided to the people.
Using the internet, people can speak to each other
IMPORTANCE OF INFORMATION TECHNOLOGY all over the world using video conferencing.
Evidence shows that our ancestor was using different Skype is one helpful application that allows users
kinds of apparatus to convey information to its recipient. to communicate to other Skype users for free.
Some make fire to produced smoke signals, others
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uses pens and paper to transport data to different • Social media is also another area of
places. communication available because of information
technology.
Information technology before was at some sort limited
in every sector of banking industry, engineering - A social networking Web site encourages
business and computer society. members to share their interests, ideas, stories,
photos, music, and videos with other registered
It’s been a long time since we are confronted by the users. Also called an online social network
importance of information technology; the only
difference was how advance it is in terms of usability. • Businesses have become more cost effective for
both themselves and their consumers using
• But how important is the advancement of information information technology.
technology into our lives?
• What is the part that this technology can show in Information technology has also created new jobs.
present society? Programmers, systems analyzers, hardware and
• Will it be beneficial to all? software developers, and web designers all owe
their jobs to information technology.
As a general view, information technology today permits
us to gather, handle and interconnect a gigantic volume Without such advances, these jobs would not exist.
of information. And its sustainable development Disadvantages
improves its competence, capability swiftness and • Unfortunately, along with the creation of new and
precisions of any components it provides. interesting jobs, information technology has also
Information technology has achieved a lot in this led to a rise in unemployment.
present era and will continue to evolve. • By streamlining the business process, job
redundancies, downsizing, and outsourcing has
It’s more than a combination of computers and
occurred. Many low and middle level jobs have
communication technology. It is indeed truthful to say
been turned to other countries, leaving more
that the information technology has successfully
people unemployed.
infiltrated human existences, occupying the biggest part
• Many people also credit information technology with a • Currently Big data, Google Analytics and
lack of job security. As new technology is released and Microsoft CRM Dynamics are also great tools to
jobs require more and more training, it’s important for extract useful information which can impact on
employees to stay in a learning mode in order to keep decision making.
their job. These online tools not only provide real time
responses from the potential audience but also
ROLE OF INFORMATION TECHNOLOGY IN DAILY ensure the accuracy of data by minimizing the risk
LIFE of human errors.
IT is a set of tools that can help provide the right people
with the right information at the right time. Though IT is Marketing and Business Growth
not a solution to everything, for IT to work, people Must • The heart of the business success lies in its
learn how to use it. marketing which enables the management to
identify its target audience first and then observe
THE ROLE OF INFORMATION TECHNOLOGY IN their trends and needs.
BUSINESS SUCCESS
Innovation is the great way to success in this digital The overall marketing covers public relation,
age. The path of innovation in business means doing advertising, promotion and sales which
something different, smarter or better that will make a subsequently impact on business growth.
positive difference in terms of value, quality or
productivity by using emerging or proved technologies • Digital Marketing is a modern phenomenon
of the world. which let you promote your products or services all
over the world.
Currently online shopping, digital marketing, social • It is a broad term which includes many concepts
networking, digital communication and cloud computing like search engine optimization (SEO), pay per
etc. are the best examples of change which came click (PPC), blogging, discussion forum, email shot,
through the wave of information technology. SMS, MMS, social media marketing and
Now accurate business planning, effective marketing, Smartphone app advertisement etc.
global sales, systematic management, real time
monitoring, instant customer support and long term Customer Support and Satisfaction
business growth cannot be achieved at the optimum • Higher level of customer satisfaction is the key to
level without IT. success which cannot be achieved without a real
time customer support process.
The importance of IT in Business • Business success depends on knowing its
The success of every business depends on certain customer’s needs, trends, behaviors and
factors. Some of which are: satisfaction level.
• accurate analysis • Effective communication is the best tool to
• choosing the right technology understand the customer demands, problems and
• future vision. their solutions.
• Information technology is the only technology which
provides you the opportunity to analyse specific data
and plan your business journey accordingly.
• It also provides you many tools which can solve
complex problems and plan the scalability (future
growth) of your business.
In the modern age, it is proved that digital marketing is a IT provides many channels to communicate with
great tool which let you promote your products or the customer such as:
services to the global market while sitting in the comfort • email
of your remote office or home. • webinar
• social media
Decision Making • member portals
• Speed and accuracy are at the heart of making right • online newsletters
decision for your business. • text or multimedia messaging through the smart
• Every successful organization has to go through a phone
comprehensive market research process which enables Enterprise organizations normally use customer
management to make the right decision. relationship management systems (CRM) to hold
• Market research (online surveys, forums, blogs, and valuable data for understanding customer
group discussions using World Wide Web and in-person behaviors and future needs.
interviews)
  These documents become instantly available
Resource Management and Globalizations to everyone in the company, regardless of
• Resource management plays a crucial role in their geographical location. 
business success.  Companies are able to store and maintain a
• When it comes to medium or large organization, it is tremendous amount of historical data
very hard for the top management to manage all the economically, and employees benefit from
resources manually. immediate access to the documents they
• These resources may include tangible, financial or need.
human resources etc.
• A decade ago, most of the resource management • Management Information Systems
solutions were desktop based. Storing data is only a benefit if that data can be
• Through the use of internet and cloud technology used effectively. Progressive companies use that
which enables software engineers to introduce cloud data as part of their strategic planning process as
based ERP (Enterprise Resource Planning) solutions. • well as the tactical execution of that strategy.
Now, the managers can manage or monitor their
organizational resources virtually anywhere in the world • Management Information Systems (MIS) enable
by using their personal computer, laptops, tablets or companies to: 
Smartphone.  to track sales data, expenses and productivity
levels
Role in the Modern Organization
 to track profitability over time 
• Communications
 to maximize return on investment and identify
• Inventory Management
areas of improvement 
• Data Management
 to assist managers track sales on a daily
• Management information Systems
basis, allowing them to immediately react to
• Customer Relationship Management
lower-than-expected numbers by boosting
• Communication
employee productivity or reducing the cost of
For many companies, email is the principal means of an item.
communication between employees, suppliers and
customers.  • Customer Relationship Management 
 live chat systems   Companies are using IT to improve the way
 online meeting tools  they design and manage customer
 video-conferencing systems  relationships. 
 Voice over internet protocol (VOIP)   Customer Relationship Management (CRM)
 telephones and smart-phones systems capture every interaction a company
has with a customer, so that a more enriching
• Inventory Management experience is possible.
Inventory management systems track the quantity of
each item a company maintains, triggering an order of
additional stock when the quantities fall below a
predetermined amount.
The POS system ensures that each time an item is
sold, one of that item is removed from the inventory
count, creating a closed information loop between all
departments.

• Data Management 
 Today, most companies store digital versions of
documents on servers and storage devices. 
UNIT II

• Online libraries that assist teachers and students

THE ROLE OF INFORMATION TECHNOLOGY IN with comprehensive reading materials
EDUCATION • Teachers and lecturers are also able to post their
Advancement of information technology in education work online for their students
has improved research. • Students also get updated information
• Easy access to different learning resources - It concerns with the resources, devices, and
• Help to improve teaching skills and learning abilities methods required for optimizing the acquisition,
of the students storage, retrieval, and use of information in health
and biomedicine.
Students and teachers can also easily download
eBooks from the internet which can be read from Health informatics tools include computers, clinical
anywhere through your phone or tablet. guidelines, formal medical terminologies, and
For children with disabilities, information technology information and communication systems.
in education has brought gadgets to help them with Applied to the areas of:
learning. For instance, the hearing impaired use • nursing
electronic devices called hearing aids. They can also • clinical care
use visual learning where sign language is used on • dentistry
electronic media to enhance communication. • pharmacy
• public health
IMPORTANCE OF INFORMATION TECHNOLOGY • occupational therapy, and (bio) medical research
IN EDUCATION
The world of education is changing as the modern USE OF IT IN MEDICAL EDUCATION
world continues to grow. With so much progress Information Technology can assist medical education
happening, it’s important that education be able to in various ways such as in college networks and
reach students in new ways so that their students are internet.
prepared for the future. • Computer assisted learning (CAL)
The students of today are the leaders, inventors, • Virtual reality (VR)
teachers, and businessmen (and women) of • Human patient simulators
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tomorrow. Another development is of “Advanced Life Support”

Without the proper skills, these students will not have (ACLS) simulators and Haptics “the science of touch”
the preparation needed to survive. simulators are used in medical education to develop
various clinical skills such as:
With so much focus placed on education, it can • ECG interpretation, appropriate intervention such as
sometimes be difficult to hold a job and still get the ABC, drugs, injections, defibrillation without working
training needed to get a better job. on a real patient.
Information technology plays a key role in students
being able to keep their jobs and go to school. - Highly sophisticated simulators “virtual reality”
- Electronic Medical Records (EMR)
THE ROLE OF INFORMATION TECHNOLOGY IN
MEDICAL SCIENCE
Health information technology (HIT) is the
application of information processing involving both IMPORTANCE OF INFORMATION TECHNOLOGY
computer hardware and software that deals with the IN HEALTHCARE
storage, retrieval, sharing, and use of health care • Most medical offices can now send and receive
information, data, and knowledge for communication • digital medical information from doctors you’ve had
and decision making. in the past.
• Changes like this allow costs to be lowered and
HIT, technology represents computers and increase the amount of time doctors can spend on
communications attributes that can be networked to patients compared to paperwork.
build systems for moving health information. • Security improvements with information technology
have made it so that your medical information is
Worldwide use of computer technology in medicine secure no matter where it’s sent. You can even have
began in the early 1950s with the rise of the prescriptions sent digitally to local pharmacies at
computers. most medical.
In 1949, Gustav Wagner established the first
professional organization for health informatics in COMPUTERIZED AXIAL TOMOGRAPHY (CAT) OR
Germany. MAGNETIC RESONANCE IMAGING (MRI)
- the doctor can use a computer to create detailed
Health informatics also called Health Information images of your organs along with creating; images
Systems that show changes in your body chemistry and blood
- It is a discipline at the intersection of information flow.
science, computer science, and health care.
- helpful to find illnesses that aren’t found with blood
tests or other medical tests. BETTER FORECASTING
Computerized Axial Tomography (CAT) Producing a forecast that is a more accurate
Magnetic Resonance Imaging (MRI) prediction of what the company’s financial results are
likely to be.
THE ROLE OF INFORMATION TECHNOLOGY IN
FINANCE IMPORTANCE OF INFORMATION TECHNOLOGY
• Enterprise Resource Planning IN FINANCE
• Faster flow of information • From trading financial instruments to keeping
• Customized Reporting records of personal budgets to reporting the earnings
• Collaboration of a business, computer technology is used by
• Better Forecasting financial companies daily.
• Information technology allows the rapid calculation
ENTERPRISE RESOURCE PLANNING of financial statistics, as well as electronic transfers of
Even very small companies use accounting software money.
packages
- generates financial reports such as income TRADING
statements and cash flow statements. • Financial trading is enhanced with information
- allows a small business owner to save accounting technology.
time and have management reports available on a • Some computer systems even trade for the users. A
timelier basis. system is programmed to enter buy and sell orders
when the price of a stock or bond reaches a certain
FASTER FLOW OF INFORMATION level, and automatically closes the order when the
• IT systems allow a company to link up every target price or the stop-loss is reached.
department within the organization. • Computer based trading is useful when a trader has
• Information generated by the manufacturing, a system that allows profitable trading and does not
marketing and finance divisions can be shared and is want to enter each order individually.
maade avail in real-time. • Information technology provides instant information
• The time finance staff used to devote to “digging” for for stock traders to make decisions, and allows them
the numbers they needed can now be devoted to to enter orders that are immediately executed
analyzing and interpreting the information -- finance’s REPORTING
primary role in the organization. Financial reports are also improved with information
technology.
CUSTOMIZED REPORTING Extensible Business Reporting Language (XBRL) - a
The IT systems used by the finance department have language used to standardize the financial
a report generating functionality that speeds up the information in public companies’ annual reports.
process of producing management reports. Traders can quickly sort through records in this
Automation of these reporting systems means that format. They can easily find the statistical data they
routinely generated reports, such as those produced need to determine which companies to invest in.
at the end of each month, can be created quickly.
FUNCTION
COLLABORATION • Financial data can be easily transferred with
The finance team acts as in-house consultants to information technology.
other departments within the organization. • Instead of using checks and checking accounts,
The company now has a centralized database that all information technology can clear a transaction
team members can access -- subject to certain instantly.
security rules. • A debit or credit card purchase is rapidly compared
with the user’s account balance, allowing a bank to
In the case of a company with multiple offices or decide whether to allow a transaction.
international divisions, this ability to access the same • Information technology allows transactions during
information from around the globe saves time and weekends and holidays, when there is no staff
improves efficiency. working at the bank
If finance requires manufacturing cost data to create
a report for an upcoming board meeting, operations CONVENIENCE
personnel can quickly transmit the data in the format • Banks provide data on checking and savings
the finance department requires and understands. deposits and withdrawals in standardized formats.
• A customer can download account transactions and 5. Agriculture for everyone – Farmers have indepth
store them in records on a home computer. knowledge when it comes to their trade.
• Personal finance software includes additional
features, such as charts and reports that show home THE ROLE OF TECHNOLOGY IN BANKING
users what they are spending money on and where INDUSTRY
their funds are coming from. • The banking sector has embraced the use of
technology to serve its client’s faster and also to do
BUDGETING AND BOOKKEEPING more with less.
Computer systems calculate and display the interest • Emerging technologies have changed the banking
and principal of a loan, and estimate the returns on industry from paper and branch based banks to
investment when the company borrows money to digitized and networked banking services.
expand its operations. • Unlike before, broadband internet is cheap and it
Companies can securely transfer data online, and the makes the transfer of data easy and first. Technology
computer system records all transfers, which has changed the accounting and management
simplifies bookkeeping. system of all banks.
• And it is now changing the way how banks are
THE ROLE OF INFORMATION TECHNOLOGY IN delivering services to their customers.
AGRICULTURE • However this technology comes at a cost,
Agriculture is a major sector which is vital for the implementing all this technology has been expensive
survival of modern man. Plants are the producers in but the rewards are limitless.
the food chain, and without them, the life cycle would
just not be possible.
The produce from agriculture drives trade from one
country to another, brings income for farmers, makes Roles of technology in the banking industry
productive use of otherwise idle land, and brings food E-banking: This enables the bank to deliver its
on the table. services easily to its high end customers.
By adapting and making use of IT to help improve
agricultural progress, everyone benefits from the Another technology used by banks to exchange data
union of these sectors. between the bank and clients is called Electronic
Data Interchange (EDI) this software can be used to
THE EFFECTS OF IT ON AGRICULTURE transmit business transaction in a computer readable
IT has made its way into the agricultural sector, and form. So the client on the other end will be in position
with positive results. To name a few, here are some to read the information clearly.
of its effects:
1. Improved decision making – By having the NRI Banking Services: This technology has been
necessary information, farmers—big and small can embraced in countries like India, USA, UAE, just to
make better and more informed decision concerning mention but a few.
their agricultural activities. Since many people go abroad to work, they have a
need of supporting their families. So technology has
2. Better planning – IT has paved the way to come up
2.

made it simple for them to send money to their loved

with farming software which can keep better track of ones easily.
crops, predict yields, when to best plant and what to
plant, to intercrop or focus on just one product, or RURAL Banking: Unlike in the past when banking
determine the current need of the crops—just about was centralized in urban areas, now day’s technology
everything needed to improve production and has made it simple to set up banking facilities in rural
income. areas.
By adjusting to the modern farming methodologies,
farmers can have better control of their crops. Plastic money: Credit cards or smart cards like
‘’VISA ELECTRON’’ have made the banking industry
3. Community involvement – There are several more flexible than before.
programs which are made possible by IT With a credit card, a customer can borrow a specific
applications, and community involvement in amount of money from the bank to purchase any
agriculture can be increased as well. thing and the bank bills them later.
4. Agricultural breakthroughs – IT makes the spread
of information concerning the latest agricultural
breakthroughs more possible.
Self-inquiry facility: Instead of customers lining up • A global positioning system (GPS) is a navigation
or going to the help desk, banks have provided system that consists of one or more earth-based
simple selfinquiry systems on all branches. receivers that accept and analyze signals sent by
A customer can use their ATM card to know their satellites in order to determine the GPS receiver’s
account balance, or to get their bank statement. geographic location
• GPS receivers are:
Remote banking: Banks have installed ATM
machines in various areas; this means a customer
does not have to go to the main branch to make
transactions.
This facility has also enabled anytime banking,
because customers can use ATM machines to THE ROLE OF TECHNOLOGY IN MEDIA
deposit money on their accounts. INDUSTRY
Online newspaper editions are also possible through
Remote banking has helped people in rural areas this rapid technology. However, information (or data,
improve on their culture of saving money or ideas, or knowledge) has long played, in one way
or another, a significant role in human culture and
• Centralized Information results to quick services: society, and has shaped, over a long period of time,
This enables banks to transfer information from one the way in which we behave and think.
branch to another at ease. The telegraph, telephone, postal delivery, radio,
• For example, if a customer registered their account television, and modern printing presses, have been in
with a rural branch, they can still get details of their part a response to the need to process more
account while at the main bran in an urban area. information.
Signature retrieval facilities: Technology has
played a big role in reducing fraud in banks which Finally, new groups and audiences are in the process
protects its clients. of interconnection, e.g. electronic mail groups and
dial-up bulletin boards, direct telemarketing, and
For example, banks use a technology which verifies subscription cable television.
signatures before a customers withdraws large sums
of money on a specific account and this reduces on The principal media--television or video or the
the errors or risks which might arise due to forgery computer, and the telephone, are connected in many
new networks that are integrating sound, speech,
THE ROLE OF TECHNOLOGY IN communication text, data, and images and permitting the connection
• Computer communications describes a process in of persons in lieu of the connection of places.
which two or more computers or devices transfer If a customer calls a call center with an issue, the
data, instructions, and information customer support representative will be able to see
what the customer has purchased, view shipping
information, call up the training manual for that item
and effectively respond to the issue. The entire
interaction is stored in the CRM system, ready to be
recalled if the customer calls again.
Uses of Computer Communications
- Blogs - Newsgroups
- Chat rooms - RSS
- E-mail - Video conferencing
- Fax - VoIP
- FTP - Web
- Instant messaging - Web 2.0
- Internet - Web folders
- Wikis

Uses of Computer Communications

• Wireless Internet access points allow people to
connect wirelessly to the Internet from home, work,
school, and in many public locations
• A cybercafé is a coffeehouse, restaurant, or other
location that provides personal computers with
Internet access to its customers