1 Introduction to Business for IT Flashcards
What is a Business?
A business is an organization that provides goods or services to meet customer needs, typically for profit. Businesses are the backbone of economies, generating employment, fostering innovation, and addressing societal needs.
What are the core purposes of business?
- Value Creation: Delivering value to stakeholders
- Economic Growth: Generating jobs and fostering market competition
What are the 5 key goals of business?
- Profitability: Ensuring revenue exceeds costs
- Sustainability: Balancing economic growth with environmental responsibilities
- Customer Satisfaction: Building trust and loyalty
- Market Leadership: Gaining competitive edge
- Innovation: Adapting to new trends
Who are the key stakeholders in business?
- Owners/Shareholders: Expect returns on investments
- Employees: Rely on business for income and career growth
- Customers: Seek high-quality products and services
- Suppliers: Provide raw materials or services
- Community: Benefits from job creation and ethical practices
What are the main types of business models?
- Product-Based: Generates revenue through selling physical items (e.g., Apple)
- Service-Based: Offers expertise or solutions (e.g., IT consulting firms)
- Subscription-Based: Earns through recurring payments (e.g., Netflix)
- Freemium: Basic services free, premium features at cost (e.g., Spotify)
- Marketplace Model: Connects buyers and sellers (e.g., Amazon)
What is the role of IT in modern business?
- Automation: Streamlining repetitive tasks
- Data Management: Collecting and analyzing data
- Enhanced Communication: Facilitating collaboration
- Market Expansion: Enabling global reach through e-commerce
How does IT impact marketing?
- Key Technologies:
- SEO (Search Engine Optimization)
- Email Marketing Platforms
- Social Media Marketing Tools
- Benefits:
- Targeted Campaigns
- Real-Time Interaction
- Improved Customer Loyalty
How does IT impact operations and supply chain?
Core Applications:
- Workflow Automation
- Inventory Management
- Supply Chain Optimization
- Remote Collaboration
Key Technologies:
- ERP Systems
- RFID Tracking
- Demand Forecasting
What are the main types of business ownership?
- Sole Proprietorship: Single owner, simple setup, high personal risk
- Partnership: Shared ownership between multiple individuals
- Corporation: Separate legal entity owned by shareholders
- LLC: Combines benefits of corporations and partnerships
- Cooperatives: Owned and operated for member benefit
What are the four main industry sectors?
- Primary Sector: Natural resource extraction (agriculture, mining)
- Secondary Sector: Manufacturing and production
- Tertiary Sector: Services (retail, healthcare, hospitality)
- Quaternary Sector: Knowledge-driven (IT, R&D, education)
What characterizes the service sector?
Characteristics:
- Intangible offerings
- Customer-centric
- Labor-intensive
Types:
- Healthcare
- Education
- Hospitality
- Finance
What are the key aspects of the manufacturing sector?
Characteristics:
- Physical products
- Production-oriented
- Capital-intensive
Types:
- Automotive
- Electronics
- Textiles
- Food and Beverage
What defines the technology sector?
Characteristics:
- Innovation-driven
- High growth potential
- Heavy R&D investment
Types:
- Software development
- Hardware manufacturing
- IT services
How do small and large businesses differ?
Small Businesses:
- Limited workforce (< 50 employees)
- Local/regional operation
- Simpler structure
Large Businesses:
- Thousands of employees
- Complex hierarchies
- Multiple regions/countries
What characterizes startups and innovation?
Core Characteristics:
- High growth potential
- Technology-focused
- Agile and experimental
Role of IT:
- Enables rapid scaling
- Supports data-driven decisions
- Facilitates innovation
How does globalization impact business?
Characteristics:
- Global reach through
technology
- Outsourcing capabilities
- Cultural diversity
considerations
Benefits:
- Access to global markets
- Lower production costs
- International collaboration
Challenges:
- Currency/trade issues
- Regulatory differences
- Cultural barriers
What are the key IT-enabled business models?
- E-commerce: Online selling of products/services
- Subscription Models: Recurring revenue (Netflix)
- Freemium Models: Basic free, premium paid
- Sharing Economy: Resource sharing platforms (Uber)
How does mobile technology impact business?
Applications:
- Mobile E-commerce
- Mobile Payments
- Mobile Marketing
Benefits:
- 24/7 accessibility
- Improved customer engagement
- Real-time data collection
What role does IT play in financial management?
Key Tools:
- Accounting software
- Cloud-based platforms
- Automated invoicing
Benefits:
- Real-time insights
- Cost reduction
- Enhanced accuracy
How does IT support CRM?
Tools:
- CRM software
- Chatbots/AI
- Social media monitoring
Features:
- Centralized customer data
- Sales pipeline tracking
- Customer segmentation
What are the types of data analytics in business?
- Descriptive Analytics: Understanding past trends
- Predictive Analytics: Forecasting future trends
- Prescriptive Analytics: Recommending actions
How does IT support product development?
Technologies:
- Computer-Aided Design (CAD)
- 3D Printing
- Crowdsourcing platforms
Benefits:
- Faster time-to-market
- Reduced costs
- Continuous improvement
What is the role of cloud computing in business?
Benefits:
- Scalability
- Cost-efficiency
- Accessibility
Examples:
- Microsoft Azure
- Google Cloud
- AWS
How is AI used in business?
Applications:
- Predictive analytics
- Chatbots
- Process automation
Benefits:
- Enhanced customer experience
- Automated operations
- Improved decision-making
