Role of Computers in Business

Role of Computers in Business

The main aim of businesses is the look for ways to raise the profit and also for market reach. The development of technology will further boost the businesses to achieve various goals. Technology can be further utilized for their profits and market reach. People can promote their products by using the latest technologies with the help of computer. The growth of money transactions from the ancient barter system to paper currencies to plastic money (debit, credit cards) played a major role in the history of business. This transformation has improved the ease of both the buyer and the seller. Electronic commerce or e-commerce has been the consequence of search of more proficient ways of doing business. Mostly it is buying and selling by means of electronic communications. Today, electronic commerce dominated as one among the major business field in the world. Examples of gigantic companies doing online businesses are Amazon, Ebay, Flipkart and so on.


Take a look at the application of computers that helps the business organizations. It allows an organization to manage the information and communication resources with all its branches, including staffs, clients, bankers, government offices, advertisement agencies and the public. When a firm does business electronically, they can do the business from anyplace, 24 hours a day, 7 days a week. Thus from small shops to international companies and corporations of any industrial sector are doing their business with fully integrated IT organizational structure.


The two fundamental business computing systems are office automation and Management Information Systems.


1. Office Automation:


Office automation is defined as using computer and communications technology to help people better use and manage information. People who use office automation are often called knowledge workers - senior executives, managers, supervisors, analysts, engineers and other white-collar office workers. In most offices, information (often in paper form) is the end product and is essential for conducting the company's business. Office automation systems keep track of the information originating in various operations throughout the company, such as order processing, accounting, inventory and manufacturing. Office automation provides knowledge workers with information - producing systems to collect, analyse, plan, and control information about the many facets of the business, using text, voice, graphics and video display technology.


There are five primary technologies used in organizing information in office automation.


Text, may be written information  

Data, may be described in numbers or further non-text forms

Graphics, may be images, sketch, charts or photos

Audio, may be telephone conversations, voice mail or other voice recognition methods

Video, may be slideshow images, video recordings or teleconferencing


In the past these kind of information were created using diverse technologies. Data, such as sales reports, were provided by the central computer. Charts and graphs were either hand drawn or created using 35mm slide photography and videotapes were used for training. Audio was restricted to the phone or tape recording. It was not possible to combine these various forms of information.


It was the computer that made their combination possible. What the computer produces is called an electronic document, which is a self-contained work. It may be a simple memo printed on paper or transmitted via electronic mail. Or it may be a more complex document, with graphics or even video annotated with comments. Such application software is also called as 'Groupware’. It allows networked PCs and work stations share information and electronic documents.


Office automation systems are comprised of many distinct sub systems: text management systems, business analysis systems, document management systems and network and communications systems.


2. Business Analysis Systems:


It allows managers to understand the business environment and take effective decisions. Spreadsheets are often used for analyzing cost and benefits and for creating budgets.


Another software called the Decision Support System (DSS) helps managers to extract information from the various management information system data bases, analyze it and then formulate a decision strategy for business planning. An 'expert system' is a program that can provide expert advice to the user. An 'executive support system' is an information system that consolidates and summarizes ongoing transactions within the organization.


3. Document Management System:


It helps in filing, tracking and managing documents.


4. Network and Communication Management System:


It includes telephone, electronic mail, voice messaging systems, teleconferencing and fax machines. They can communicate in real time via telephone or computer controlled PBX telephone systems to record a digital message and leave it in the recipient's mail box.


5. Text management systems


It is a computer system designed to work with the written or typewritten word. It includes typewriters, word processing systems, PCs with word processing, desktop publishing and text editing systems. These are used for tasks like writing memos, notes, letters and other short documents, printing envelopes and labels, preparing pre-printed forms such as invoices, composing complex documents such as proposals and reports, retrieving and editing documents such as contracts, creating display documents like newsletters etc.


6. Management Information System


MIS (Management Information System) is a computerized database of financial information which is organized and programmed and are used today in all businesses. Some of the benefits of integrating computer systems with organizational structure are:


Grow business functions to world class

Access to the complete world’s finest of class, expertise, knowledge and resources

Overcome the time and distance limits

Make use of technology for enhanced management information

Increased profits

Sreejith Hrishikesan

Sreejith Hrishikesan is a ME post graduate and has been worked as an Assistant Professor in Electronics Department in KMP College of Engineering, Ernakulam. For Assignments and Projects, Whatsapp on 8289838099.

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