Information Technology, like language, affects us on many levels and has fast become integral to all of our lives. In this course we aim to strike a balance in studying both the social and commercial forces of Information Technology, and networking, in particular.
Let's take a moment here to introduce the commercial forces.
I am quite certain that each and everyone of you has witnessed first hand, even if it wasn't readily obvious, the impact that computers and computer networks have had on business.
In fact, by now the role of computers in business has risen to the point where computer networks, even more than personnel, are synonymous with the corporate entity. Is this not true?
What do I mean? Dell Computers? Isn’t a group of people making and selling personal computers as much as it is a collection of loosely affiliated computer systems that, upon receiving an order or customer service request (all online!), come together in a linear process to do a job. Cisco Systems? isn’t so much a manufacturer of switches as it is a trusted brand name and expert marketer who happens to use the Internet and a sophisticated ?network of networks? to weave together suppliers, manufacturers, and distributors to form a coordinated, fully branded, fully customized virtual entity that we know as Cisco. When orders slowed in 1999, Cisco’s response involved rationalizing their supply-base? Leaving capital-intensive subcontractors to squeeze already razor thin margins just to participate in the new, leaner, and ever-responsive sales network. Indeed Cisco’s information systems are their competitive advantage.
Computers and computer networks act as the central nervous system of today’s enterprise. Today's regular business people aren’t just relying on them...they're directly administering, monitoring, and configuring them. While IT staff with specialized skills may focus on application development, integration, and support, today’s business professional requires information technology knowledge to navigate and operate IT systems, to design, customize, and test systems for competitive advantage, and to seek out and identify new solutions that can transform their business.
The Role of Computers in Business
When first developed, computers were not used in business. It was not until the late 1950s and early 1960s that computers began to be used to organize, store, process, and present vast amounts of business information. In 1954 the first business application of a computers system was made for the processing of payroll. Today payroll is just one of many routine computer operations. There has been a rapid increase of computer usage into almost every aspect of business: factory production, inventory control, warehousing and distribution, record-keeping, and even assistance in problem-solving and decision-making.
Computers handle large amounts of data rapidly and can efficiently categorize, process, and report information for a variety of business operation. Computers, in fact, have a virtually unlimited capacity for processing business data, However, since computers cannot think, their role in business is limited to those areas in which they can process information more effectively and efficiently than human beings. Figure 2 lists a number of tasks and compares the effectiveness of computers and human beings for each task. At the administrative level, managers decide how computers and humans can be used most effectively to perform a particular business task.
Tesco Functional Areas
All businesses need to be well organised to achieve their aims and
objectives. Certain tasks, or functions, must be done regularly and
these are usually grouped into specific types of activities. In a
large organisation like Tesco PLC, people work together in functional
areas. Each functional area has a specific purpose. Below are the main
functional areas:
Finance
The main activities of the finance department are:
* To record all the business transactions
This means that they record in their schedule all the expenses that
have been paid and all incomings. They also make sure that each
department does not spend more than it has been allocated.
* Measure the financial performance of Tesco
This means the finance department look at how well or badly Tesco is
doing financially.
* To control the finances and cash flow so Tesco stays reliable.
This means that they make sure that there is enough money in the
business to pay off debts, bills and the employees. They also make
sure that there is enough money to survive for the company.
* To take timely financial decisions by comparing the predicted
performance with actual performance.
This means that if the company wants to invest more in Tesco, then it
would be up to the finance department to make the decision on whether
there are enough funds to do. They would do this by looking and
comparing the financial situation in previous years with the financial
situation of the present year. By this they can see the expense will
leave them with enough money at the end. They also prepare all the
accounts each year so that the company comply with their legal
responsibilities to the Inland Revenue and complete VAT returns which
they send to HM Customs and Excise.
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