Lesson 7.1: Introduction to the Business of IT Flashcards
Information technology is a large part of the day-to-day operations of almost all functioning organizations.
Computers are used to store, recover, transmit, process, and secure all forms of data and information. Due to their reliance on technology and data, many companies are known as “digital enterprises.” The organizational function of IT is to support any technology used to assist in solving business and organizational problems. Specifically, IT functions cover five different domains:
communication
data collection and management
information security management
consumer relationship management
process improvement
Communication has always been an important part of any business. IT, however, has redefined the way we communicate with each other. IT enables organizations to communicate by phone, email, video conferencing, social media, and many other ways. Perhaps more significantly, the rise of social media has changed how companies communicate with their customers. Companies use social media for advertising and customer service, talking with customers in a way that makes them feel more connected with the brand.
IT systems allow an organization to collect, store, manage, and use vast amounts of information. IT tools take raw data and convert it into information for analysis.
The IT department also keeps the company’s data secure. Not only can data leaks lead to fines and regulatory action but they can also damage an organization’s reputation and business.
IT is being used to improve how organizations interact with their customers. Specifically, customer relationship management systems (CRMs) track and organize every interaction a company has with current and potential customers, providing data about customers’ needs, wants, and behaviors.
IT is responsible for designing and implementing tools to improve efficiency. Implementing technologies that automate processes can reduce repetitive human labor and human error.
IT governance
IT governance is the system of processes that ensures the effective and efficient use of IT to enable an organization to achieve its business goals and to add value to key stakeholders in an organization. This governance provides the company’s IT function with strategic management, realizations of benefits to the organization, risk optimization, and resource optimization. In addition, it supports the company’s compliance with regulations and supports initiatives for competitive advantages, the company’s growth and innovation, an increase of assets, and the reduction of risks.
IT Job Functions
Some organizations use the outsourcing model, keeping a core IT department to manage the operations and work with one or more third-party service providers. The third-party service providers do the needed technical work. IT employees manage the work of third parties, ensuring it is done according to specifications and requirements and acting as business analysts and project managers.
Several job functions are typical in an IT department, whether employed internally or externally contracted:
Network administrators set up, maintain, and monitor the hardware and software that support the networking components of the computer systems.
Systems administrators set up, maintain, and monitor devices that support business operations. These devices include anything from projectors and smartboards in a training room to the devices in the server room.
Web administrators control the outward-facing content on an organization’s website and intranets and ensure that the sites function and integrate with back-end systems, such as supporting databases.
Database administrators configure and troubleshoot an organization’s data repositories.
Cybersecurity analysts monitor the behaviors of the system components for anomalies and malicious attacks. They also put measures in place to deter, detect, and mitigate internal and external threats.
Technical support specialists provide end-user training and help users resolve issues accessing resources and systems.
Organizational Models for the IT Function
Outsourcing uses the resources and skills of a developed workforce from an external organization. Hiring an organization that specializes in particular services is beneficial, as companies cannot always justify employing specialists with narrow skill sets. Outsourcing can improve efficiency and productivity, while also helping an organization save money. Third-party organizations are experienced in areas in which the current staff would otherwise need additional lead time for training. Also, outsourcing allows internal staff to be more productive in core business functions as the contracted organization focuses on auxiliary tasks. When an organization does decide to outsource a task or project, the first step should always be to consult with the potential third-party provider, often referred to as a vendor, and request a demonstration (demo) of the proposed solution.
Multiple outsourcing modalities include offshoring, outsourcing outside country lines; project outsourcing, where project management is outsourced; and nearshoring, offshoring to countries in a closer time zone or with an economic structure close to that of the home country.
Insourcing assigns a project to employees within the organization. Insourcing generally requires the development of new operations and processes, making it an expensive option.
An organization’s control over operations and decisions differs depending on whether the organization is outsourcing or insourcing.
Consider the advantages and disadvantages of the three outsourcing models described above. Have you ever worked for an organization that outsourced any of its IT functions? If so, think about how effective that model was.
