Computer Applications in

Business

IT Vs IS
INFORMATION
TECHNOLOGY

Inventory
System

Hardware
Software
Databases
Networks
Other related
components

Payroll
System

are used to build

INFORMATIO
N SYSTEMS
Marketing
System

Customer
Service
System

Corporate Computing
IT has played a very significant role in taking

businesses to new heights. IT technologies are

used in almost all sectors such as accounts
,payroll management, inventory
management ,control, database management,
financial analysis, software development,
security control and many other essential
fields. The corporate computing is increased
productivity and quality..

IT Use in Business

Research
The Internet offers a tremendous amount of

information that a business can use to

maintain an edge. Businesses can use the
Internet to research its competitors' products
and prices by studying their websites. They
can also get a glimpse into how customers
view their own products by reading customer
reviews on sites such as Amazon. When
launching a new product a company can
perform market research using online
questionnaires and surveys.

OFFICE AUTOMATION
Office automation is the application of

computer and related technologies like

communication and networking to integrate
the general office tasks so that the efficiency
of office work is improved.

There are many essential requirements of

today's office environment, which are listed
below:
To reduce cost of administrative overhead;
To increase the efficiency of office tasks;
To provide better service to the customers;
To provide accurate information to the

management;
To provide best and fastest way of
communication

Office Functions Needed

to
be
Automated
Many
types
of functions are performed in an office.
The basic functions, which are needed to be
automated in any office are :
1. Document Generation: In all offices, many
documents are needed to be prepared, typed and
printed. Typewriters, computers and printers are
widely used in automating this routine task of
offices.
2. Document Processing: Documents are also
needed to be processed in order to extract useful
information required for MIS and other official
purposes. Many office automation tools like word
processing, desktop publishing etc. are used to
perform this task.

3. Document Distribution: All offices require an

electronic distribution system for transferring
documents and data within and outside the
organization. The main office automation
tools for distribution of documents are
Photocopiers, Teletax and Fax machines.
4. Archival Storage: The office documents are
also needed to be stored for a long period, so
that they can be retrieved when required. This
task is achieved by the use of different storage
devices like tapes, disks etc.

Office Automation
Systems
For achieving the basic functions of an office, different

types of office automation systems are used. These

systems can be broadly classified into following three
types.
1. Document Management Systems: These systems
include computerised tools for generation, storage,
processing and distribution of documents.
2. Communication Systems: These systems are used
for sending messages, documents and data within and
outside the organization.
3. Teleconferencing Systems: An electronic means of
communication for conducting seminars and training
programmes in an organization is achieved through
various
teleconferencing systems.

Computer as a
Management
TOOL
DSS
EIS
OLAP
Data Warehouse
Data Mining

Decision Support System

The software developed to help a manager
(DSS)
integrate and analyze unstructured data from
many sources are called decision support
system.
A DSS can beany system that supports
decision-making.

EIS
EIS provide up to date information to support

decision making by managers.

It provide top down analysis instead of raw
data
It present data graphically as well as
numerically.

OLAP
OLAP allows users to view graphics and

tabular presentations of their organizations

data,
Exp. Trend analysis on sales and financial
information.

BENEFITS OF COMPUTERS in
HRM
The technology exists today to actually make an office paperless.

Human resources functions such as recruitment, hiring,

performance appraisals, compensation, and benefits administration
and training can all be done without paper.
There are several benefits:
Increased storage efficiency.
More cost-effective
Saves time
Improves the accuracy of data
Maintains the security of data

15

INTERNATIONAL
MARKETING
Nowadays, there are huge changes in the way
marketing strategies are apply; the way sales
forces promote and sell the products; the way
in which we communicate to our clients,
suppliers and our
own staff; the way we reach the target market
share; and the way we distribute goods.

INTERNATIONAL
MARKETING
Internet
Video conferencing
COMMUNICATION
Voice mail
TOOLS
Teleconferencing

INTERNATIONAL
MARKETING
Internet:-Internet is a valuable tool to reach
COMMUNICATION
TOOLS
global marketplace for an international
marketing goal. If a
company has website it is a success key to
achieve the international market
1.Email
2.Mailing list
3.Newsgroup

Video conferencing
This system allows groups in different

geographical location be able to see each

other as well as hear. The satellite links
technology is used for transmission the data

Voice mail
Voice Mail is a voice messaging automated

system which is available 24-hour globally.

This system will answer the phone calls and
also allows callers to leave a message when
phone is not answered.

Teleconferencing
This system is similar to telephone calls but

teleconferencing can expand meeting to more

than two people.

Business Planning
Business planning can take up a lot of a

manager's time, but computer programs make

it easier. From using email programs like
Outlook or Google Mail to set appointments,
tasks and deadlines to using financial tools to
develop budgets and project proposals, using
computers to plan the day-to-day activities of
a business is essential.

Record Keeping
Managers keep track of a lot of information

that is vital to the company's success. From

customer records to financial records to
employee records, the data a company has to
store are apparently endless. Using computers
to store and manage documents, files and
records reduces the amount of physical
storage a company needs and also allows
managers to have easy access to their files
using simple document search methods.

Communication
One of the most common uses for computers in

business is communication. Communication is

essential not only between employees but with
customers as well. Many customer service
departments use computers to log service
issues and make a record of their resolutions.
Using email and instant messaging programs
allows employees to gather information from
one another that they need to complete their
jobs.

Document Preparation
For creating spreadsheets, presentations,

memos and other corporate documents,

computers are essential in business.
Managers need to have a basic understanding
of common workplace productivity software
such as Microsoft Office

Data warehousing
Data ware is a process of consolidating data

in centralized location.
Data that is 6,12 or 24 months old may not be
needed
and so can be stored else where. Recently ,it
has been recognized that this data, combined
with current data. To make this data more
useful, it is now being stored in a separate
database called a Data warehouse.

Business
Medical
Banking sectors
Educations
Service Sectors
Defense
Engineering and Robotics
Entertainment

Computers in
Business

Following are only a few major fields in business where computing is used
largely.

Inventory Control and Management

Inventory control and management help a company in

organizing inventory and optimizing the flow of goods in the
organization. Computers are used for recording all aspects of the
goods and services, distribution of stock, and storage details. In
small retail and production firms, simple computer software are
generally used. Whereas in large corporations, Enterprise
Resource Planning (ERPs) are employed.

Accounts and Payroll Management

Accounting and payroll management is also believed to be an

important part of the overall system in a company. Be it any kind
of industry; computers are largely used for the purpose of
managing accounts of administration, sales, purchases, invoices,
and also payroll management, which includes recording financial
details of employees. These are just some components of the
accounts and payroll management system where computing is
used.

Database Management

Database management is associated with Storing, managing, and

retrieval of data whenever required. For smooth running of
businesses, it is very important that they have all procedures and
details stored. This storage of data is done with the help of large
databases and servers which have to be maintained on a regular
basis. These information databases and servers are controlled by
computers by appropriate authorities in a company .

Software Development

It can be said that for every computing need, a software has to

be used. Software can only be made using computers for the
purpose of helping businesses to combine processes and carry
out their work properly. Nowadays, ERPs are largely used in
business to merge all their processes together and execute the
output as expected. There are many other software and
application packages that a business may need to use according
to the nature of work.
This is some general information on the use of computers in
businesses. There are many other fields such as security control,
communication, research, budgeting and forecasting, web
management, where computers are essential. The impact of
information technology on business has certainly changed the
way businesses operate and have coordinated different

Computer in transaction
Processing
OLTP:-

One of the key function of the computer is

to record or manage the transactions . to do
so , a procedure called online transaction
processing (OLTP)

Transaction Processing
It is a type of computer processing in which

the computer responds immediately user

request.
Each request consider to be a transaction.
For EXP.
ATM Machine.

Computers in Bank
Computers are used in banks for a variety of

reasons. They help bank personnel operate

more efficiently and effectively. Computers
are used to track certain transactions and
they help process other customer information
as well. Without computers, it would be very
hard for a bank to offer good customer service
day in and day out. Computers help a bank
save time and money, and can be used as an
aid to generate profits.

Computers in Bank

Customer Information
Banks use computers to track customer information such as
name, address, phone number, date of birth, Social Security
number and place of employment. This information is used to
stay in touch with customers and notify them of any changes in
bank policy. A customer address is needed to send out
statements on a monthly basis. A customer's account number is
also stored in the computer, which gives bank employees the
ability to access customer information efficiently.

Products
The number of products and services a customer has is also
stored in computers. Bank personnel will periodically call
customers at home to offer them a product or service. It helps
to know which products a customer already has before any new
products are offered. Without the use of computers, it would be
difficult to keep track of this information.

 Reports and Profits

With a computer, banks can analyze aging reports and
track the customers who have had checks returned
due to nonsufficient funds. This report can be used by
the sales associates to call these customers and offer
them a product called overdraft protection, which
prevents a customer from over drafting their account.
Computers help bank personnel generate income by
targeting certain customers for sales activity.

Transactions and Goals

Computers help tellers keep a record of all transactions
for the day. When customers make deposits and
withdrawals, cash checks, open checking accounts or
apply for mortgage loans, a computer will store and
track all of the information once a teller or bank
employee keys it into the system. After tabulating all of
the information, a branch manager can print the report
at the end of the day to see if the branch hits its goals
and objectives. Branches have goals for lending and
new accounts

 Credit Applications
A bank can use computers for new loan applications and
credit card applications; opening new accounts such as
checking, savings or certificate of deposit accounts.

Delinquency
Computers can be used to track customers who are
delinquent on their loan and credit card payments.
Computers can generate separate reports for customers
who are 30-, 60- and 90-days delinquent on their
accounts. When a 30-day delinquency report is
generated, a collection representative can contact the
customer for resolution, which helps keep delinquency
under control.

Miscellaneous
Computers can keep a record of all communications that
a bank employee may have with a bank customer
including collection activity. A bank can also use a
computer to see which safety deposit boxes are
available and they can keep a record of customers who
have safety deposit boxes.

Computers in Industry
Businesses today have a wide range of uses

for computers. This has been a necessity for

industry as a way of using their resources
more efficiently, as well as a way of reaching
a larger group of potential customers. As a
result, IT (Information Technology) jobs have
been flourishing for some time due to
industry's reliance on computers for their
daily operations.

Computers in Industry
Inventory Tracking
Using spreadsheets and/or databases, most businesses utilize
some sort of computer-maintained inventory tracking system.

Payroll
From printing or depositing paychecks, to applying raises and
bonuses, industries have become very reliant on computerized
payroll methods.

Cash Registers
Modern cash registers are often networked computer systems,
allowing companies to maintain much more up-to-date and
accurate transaction records, as well as real-time inventory
tracking.

Computers in Industry
Websites
Most industries have been migrating towards the
Internet over the past two decades, resulting in
the need for websites that require not only server
space, but maintenance and updates as well.

Customer Databases
Customer databases are used not just to track
order information for clients, but also to record
continuous interactions to better serve clients in
the future.

Business
BUSINESS MARKETING :-Computer is mainly

used for sales promotion, e.g. designing of

advertisements. Internet marketing (emarketing). Comparing the sales figure.
Studying the demand graph.
PRODUCTION :-It is used for making design of

product. CAD (computer aided design)

HUMAN RESOURCE :- Computer is used in

keeping the records of all the employees.

Recruitment and Selection.
FINANCE :- Helps in making the financial

statement. Comparing the financial statement

of two year. Preparing the BUDGETS.

MEDICAL
MEDICAL Research :-

Used in different pharmaceutical

companies.
Hospitals :- Mainly computer is used for
keeping the record of patients. Inventory
of medicines. Surgeries. Diagnosis :- CT
scan. Ultra-sound. Blood test.

BANKING SECTOR
BANKING SECTOR Maintaining the record and
storing the files instead of manual record.
Internet banking (e-banking). Transaction from
ATMs. Bank sell their insurance online. Bank
provides 247 online services

EDUCATION
EDUCATION Higher education :All the universities and colleges are furnished
with computer labs. Online education :- This can
done with the help of computer and internet.
Self-Learning.
School library.
Used to generate letters and documents
Online Exams.

SERVICE SECTOR
SERVICE SECTOR Railways :- Computerized

reservation and cancellation is done. Online

reservation, Schedule, Availability and fare,
Position of the train Transportation. Airways
and Hotels

DEFENCE
DEFENCE Air force :- All the fighter plane are

equipped with computer system for targeting

and navigation. With the help of computer
only PREDATOR an unmanned fighter can be
controlled. Army :- Gentle men uses
computerized ROBOT in the battle field.
Tanks are also installed with computer. Navy :Today all the submarines uses computer far
navigation and targeting

ENGINEERING AND
ROBOTICS
ENGINEERING AND ROBOTICS Software.
Design of buildings and maps. Designing VLSI
chip and many more. Robotics research

ENTERTAINMENT
ENTERTAINMENT Chatting /browsing.

Music/Videos Games etc