MBA Semester I

Basics of Information Technology

Unit 6
BY
Dr. Rupali Taru (Assistant Professor)
Bharati Vidyapeeth (Deemed to be University) Department of Management Studies
(Off Campus)
Navi Mumbai, MH-IN
Course Objectives :
 To acquaint with various current trends and concepts of computer Technology.
Unit-6 Current trends
 Integrated enterprise system (ERP, CRM, and SCM), governance tool, ITIL.
Concept of SMAC (Social, Mobile, Analytics and Communication), use of Social
media face book, tweeter, LinkedIn etc. for general communication and
business communication, social media for marketing, email and video
conferencing tools for business communication, Analytical tools of data
interpretation.
 Latest terms in computer technology: Business Intelligence, Cloud
Computing, Content Management, Disruptive Technology, Green Technology,
Artificial Intelligence, Wearable devices, GUI (Graphical user Interface),
Audio-visual communication/ meeting platforms such as Microsoft Teams,
Zoom, Google Meet, social media communications for business
Integrated enterprise system
Enterprise system integration is the process of connecting existing systems to share
and communicate information. Integrating applications enables data to flow between
systems with ease, simplifying IT processes and increasing agility across your business.
Most large companies use at least several kinds of software and data systems that can
benefit from enterprise system integration, including:
 Customer relationship management (CRM)
 Supply chain management (SCM)
 Business intelligence and analytics
 Human resources data
 Internal and marketing communications
 Accounting software
 Enterprise resource planning (ERP)
Connected systems often take on new functionalities. For instance, a CRM system
might need to call the accounting system’s application programming interface (API) to
access customer account information.
Integrated enterprise system
Integrated enterprise system
ERP, CRM, and SCM
 Enterprise resource planning (ERP),
 Supply chain management (SCM),
 Customer relationship management (CRM) systems
are important tools that can be used to gain a competitive advantage. When used
together, these systems can provide a comprehensive view of a company’s
operations, from the initial customer contact through to delivery of the final
product. This unit will also discuss how ERP, SCM, and CRM systems can be used
to gain a competitive advantage.
While the primary goal of ERP is to improve and streamline internal business
processes, CRM attempts to enhance the relationship with customers and SCM
aims to facilitate the collaboration between the organization, its suppliers, the
manufacturers, the distributors and the partners.
Origin of the term
 The initials ERP originated as an extension of MRP (material requirements
planning; later manufacturing resource planning) and CIM (Computer Integrated
Manufacturing). It was introduced by research and analysis firm Gartner in 1990.
ERP systems now attempt to cover all basic functions of an enterprise, regardless
of the organization's business or charter. Non-manufacturing businesses, non-profit
organizations and governments now all use ERP systems.

 To be considered an ERP system, a software package must provide the function of

at least two systems. For example, a software package that provides both payroll
and accounting functions could technically be considered an ERP software package

 Examples of modules in an ERP which formerly would have been stand-alone

applications include:Manufacturing, Supply Chain, Financials, Customer
Relationship Management (CRM), Human Resources, Warehouse Management and
Decision Support System
The Goal of an ERP System
 The goal of ERP is to improve and streamline internal business processes,
which typically requires reengineering of current business processes.
Components of an ERP System
The components of an ERP system are the common components of a Management Information
System (MIS).

 ERP Software - Module based ERP software is the core of an ERP system. Each software
module automates business activities of a functional area within an organization. Common
ERP software modules include product planning, parts purchasing, inventory control, product
distribution, order tracking, finance, accounting and human resources aspects of an
organization.
 Business Processes - Business processes within an organization falls into three levels -
strategic planning, management control and operational control. ERP has been promoted as
solutions for supporting or streamlining business processes at all levels. Much of ERP success,
however, has been limited to the integration of various functional departments.
 ERP Users - The users of ERP systems are employees of the organization at all levels, from
workers, supervisors, mid-level managers to executives.
 Hardware and Operating Systems - Many large ERP systems are UNIX based. Windows NT and
Linux are other popular operating systems to run ERP software. Legacy ERP systems may use
other operating systems
The following are steps of a data migration strategy that can
help with the success of an ERP implementation:

 Identifying the data to be migrated

 Determining the timing of data migration
 Generating the data templates
 Freezing the tools for data migration
 Deciding on migration related setups
 Deciding on data archiving
ERP Is A Competitive Advantage
 The ERP process allows businesses to connect their financial and operational
systems to a central database, A ERP system allows you to manufacture goods
more efficiently than your competitors, resulting in greater profit margins
and a comparative advantage.
 An enterprise resource planning system is a piece of software that includes
applications that allow organizations to streamline processes. A business ERP
system can be used to automate and streamline processes in business
operations. It not only streamlines redundant tasks and reduces the likelihood
of errors, but it also eliminates manual processes. It is advantageous to
automate processes to increase accuracy and reduce time. It records the
activities of your business and allows you to extract data (specific to your
industry) from it. Gaining insights and making informed business decisions
from this can be a rewarding experience. You will be able to respond more
quickly to market changes and pitfalls when you run a streamlined and
collaborative company.
Advantages of ERP
 Integration among different functional areas to ensure proper
Communication, Productivity, & Efficiency
 design engineering (how to best make the product)
 order tracking, from acceptance through fulfillment
 the revenue cycle, from invoice through cash receipt
 managing inter-dependencies of complex processes Bill of materials
 tracking the 3-way match between Purchase orders (what was
ordered), Inventory receipts (what arrived), and Costing (what the vendor
invoiced)
 the Accounting for all of these tasks: tracking the Revenue, Cost and Profit on
a granular level.
Disadvantages
 Customization of the ERP software is limited.
 Re-engineering of business processes to fit the "industry standard" prescribed by the ERP
system may lead to a loss of competitive advantage.
 ERP systems can be very expensive leading to a new category of "ERP light" solutions
 ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and
business process of some companies—this is cited as one of the main causes of their failure.
 Many of the integrated links need high accuracy in other applications to work effectively. A
company can achieve minimum standards, then over time "dirty data" will reduce the
reliability of some applications.
 Once a system is established, switching costs are very high for any one of the partners
(reducing flexibility and strategic control at the corporate level).
 The blurring of company boundaries can cause problems in accountability, lines of
responsibility, and employee morale.
 Resistance in sharing sensitive internal information between departments can reduce the
effectiveness of the software.
CRM
 whereas CRM allows businesses to manage their customers’ interactions with
them. Data is kept in both of these systems and is critical to the economy.
 CRM software deals specifically with customer data. This data might include
things like preferences, purchase history, and any other data points that can
improve the relationship between you and your customers. One example of
the benefits of analyzing the data collected by a CRM application is
recommendations. If you sell clothes and you know a particular customer
purchases an above-average number of v-neck sweaters, you can use that
information to recommend new products. Thus you are strengthening the
relationship between that customer and your brand.
SCM
 SCM, on the other hand, is a supply chain management platform.
Organizations can use the platform to manage their material and product
flow. SCM platforms are used by businesses to streamline their processes and
monitor inventory levels. Companies can avoid costly mistakes while
optimizing production processes by managing their product shipments and
materials.
 This system involves tracking and data collection at every stage of your supply
chain, from the initial design of a product to the final sale. The information
gathered from an application like this can be used to streamline your supply
chain significantly. In the process, this makes your business run more
smoothly and saves on costs at the same time.
 With proper management of your supply chain in place, you achieve full
transparency at every step of your supply chain. This visibility significantly
reduces unforeseen logistical complications and communication errors that
can cause delays and missed shipments.
What Is The Relationship Between ERP, CRM
and SCM?
 The SCM area focuses on supplier relationship management. Customer relationship
management is the goal of CRM. An enterprise resource planning system (ETP) is a business-
and operations-management system. All of an organization’s data is gathered during the first
transaction, updated in real-time, and stored centrally after the transaction is completed.
 Businesses must select between ERP, SCM, and CRM in order to meet their specific needs. The
all-in-one ERP system is used to manage business operations. SCM is the process of monitoring
the status of materials and products as they move through the supply chain. Customer
relationship management (CRM) is an essential component of a business’s overall strategy
because it manages its customers’ interactions. Businesses can create an ERP that meets
their specific requirements using custom functionality. ERP Modules can include CRM and
SCM, in addition to accounting, marketing and sales, inventory management, and other
modules. The most important factors for successful SCM implementation are lead flow and
management.
 Businesses use CRM systems to manage their relationships with customers. Using Salesforce
and your ERP, you can streamline marketing and sales processes. Salesforce’s job scheduling
capabilities can help ensure that products are delivered on time and that resources are used
efficiently.
There are many benefits of integrating SCM, CRM and ERP in
an organization. The main benefits are:
 Increased Efficiency: When all departments are using the same software, it is
easier for them to communicate and share information. This can lead to
increased efficiency and productivity.
 Cost Savings: When an organization uses multiple software applications, it can
be expensive to maintain and upgrade them all. By integrating SCM, CRM and
ERP, an organization can reduce these costs.
 Improved Customer Service: When an organization has a single view of the
customer, it can provide better customer service. This is because all
departments can access the same customer information and provide a more
coordinated response.
 Better Decision Making: When an organization has integrated data from all
departments, it can make better decisions. This is because all relevant
information is available in one place.
 Improved Collaboration: When all departments are using the same software,
it is easier for them to collaborate. This can lead to improved communication
and coordination between departments.
Governance tool, ITIL.
Organizational governance is a system by which an organization is directed and
controlled. Governance defines the common goals and directions, policies, and
rules that the Organization uses to deliver and maintain its services.

Governance is needed to ensure:

• The organization’s practices work in line with the strategic goals and
direction established by sponsor groups or governing bodies
• The governing body maintains oversight of the Service Value System
• Both the governing body and all levels of management maintain alignment
through a clear set of shared principles and objectives
• Governance and management continually improve to meet stakeholders’
expectations
• Value is achieved
What Governance does:

 Governance sets the strategy and goals to meet business needs

 Governance ensures all levels of management and staff are aware of the
strategy and goals
 Governance oversees performance against goals
 Governance reviews problem areas / situations and agrees solutions / changes
in direction
What Is IT Governance?
 T governance is one or multiple processes that enable the IT staff to better
manage risk and operate at its most efficient to the benefit of the
organization as a whole. IT governance is a process that fits firmly under the
umbrella of corporate governance, which is its own collection of processes
that are designed to keep the entire corporation effective and efficient.
 IT governance is a flexible methodology that can be slightly modified to suit
the industry it is being used for. If you ask the business world, IT governance
is all about managing performance for efficiency. But if you were to ask
academia? You might get a definition that reads more about creating an
accountability framework to create desired output from the IT department.
IT governance has taken pieces of its
methodology from:
 “The Principles of Scientific Management” — a method of corporate
organization focused on scientific output during the industrial era.
 “Total Quality Management” — a method focused on creating a work
environment where employees strive to constantly improve.
 “Quality Management System” — a method that acts as a collection of
organizational processes focused on increasing customer satisfaction.
Key Terms in IT Governance
 IT Management: Not to be confused with IT governance, IT management is about how IT resources are leveraged
from planning, organizing and directing perspective. This is different from IT governance in that IT governance is all
about uncovering what an organization can really achieve when it uses its IT resources effectively.

 IT Compliance: Compliance in the IT world can mean creating an adequate defense process that manages both the
management of the compliance process as well as the integrity of the compliance system. Therefore, IT compliance
revolves around taking control of protecting personal or private information, including how it’s kept, stored or
shared.

 IT Controls: These are specific tasks performed by IT staff to ensure that business objectives are kept top of mind.

 Governance, Risk and Compliance (GRC): Invented by the Open Compliance and Ethics Group (OCEG), this term
refers to a certain grouping of capabilities that combine governance, risk management and performance to achieve
reliable business objectives and address uncertainty.

 Good Governance: This is a method of measuring how public organizations’ efficacy for the maximum public good,
mostly from a political perspective. The concept of good governance is also a key component of managing risk and
ensuring compliance from an IT perspective.

 Certified in the Governance of Enterprise Information Technology (CGEIT): This is a certification that is vendor-
neutral, designed for IT staff in large businesses and organizations that are responsible for IT governance.

 Information Systems Audit and Control Association (ISACA): ISACA is an independent, nonprofit that is “engaged in
the development, adoption and use of globally accepted, industry-leading knowledge and practices for information
systems.”
What is an IT Governance Framework?
An IT governance framework is a roadmap that defines the methods used by an organization to
implement, manage and report on IT governance within said organization.
 COBIT: This is by far the most popular framework out there. It gives staff a reference of 37 IT
processes, with each process defined with process inputs and outputs, objectives, methods to
measure performance and more.
 AS8015-2005: A technical standard developed in Australia and published in 2005, this
framework is a 12-page framework that includes six principles for effective IT governance.
 ISO/IEC 38500:2015: This framework aims to assist those at the top of the organization to
better grasp their legal and ethical obligations when it comes to their company’s use of IT.
 ITIL: Stands for Information Technology Infrastructure Library, this framework includes five
management best practices from strategy to design that aims to ensure that IT supports core
business operations.
 COSO: From the Committee of Sponsoring Organizations of the Treadway Commission, this
framework focuses on more general and less IT-focused processes, with an emphasis on
enterprise risk management and fraud deterrence.
 CMMI: Also known as the Capability Maturity Model Integration framework, this process uses a
scale of 1 to 5 to better understand how the organization is performing and maturing over
time.
 FAIR: Also known as the Factor Analysis of Information Risk, this framework has an emphasis
on cyber security and risk assessment, with the ultimate goal of making better-informed
decisions.
What are the Benefits of IT Governance?
 Getting buy-in from stakeholders, partners and customers is never easy, but
showing that you have taken the extra step to implement an IT governance
plan gives them added assurance that you mean business.
 Controlling your risks doesn’t come automatically. It has to be studied in a
working environment where a standard, replicable process has been
implemented. IT governance helps track risks in a controlled experimental
environment.
 Ensure your company is meeting rules and regulations around compliance, so
you can reduce risk and eliminate liability.
 Better align your IT department with the company’s overall business
objectives, so they can prioritize their projects better.
 Better measure performance for your IT department and optimize their
processes, so they don’t have to waste time on clunky processes that had
previously been in place.
IT Governance Implementation and
Planning

 Understand what role IT governance is going to play in your organization,

whether it be led by the CIOs or at the department level.
 Start with one of the templates we defined above. There are many that give
you actual steps to take to implement successfully, like the COBIT, which
gives inputs, objectives, methods to measure performance and more. (37, to
be exact!)
 IT staff — once it’s implemented, don’t shy away from participation. It might
seem like adding extra steps to your day, but the more you can keep your
department aligned with the overall business goals, the less you have to
validate your value to the company.
The ITIL framework
 The ITIL framework contains proven methodologies for how organizations can
optimize their ITSM for growth and change. ITIL is about adopting and
adapting, not the blanket application of one fixed set of activities.
Business Benefits of ITIL include:

 Helps IT organizations become centered on addressing business issues rather

than just IT issues.
 Reduces IT operations costs.
 Improves IT productivity and employee satisfaction.
 Establishes cost-effective practices.
 Builds a stable environment that allows for growth, scale, and change.
 Assists with managing risk, disruption, and failure.
 Strengthen customer relationships by delivering efficient services that meet
their needs.
ITIL service lifecycle
 Service Strategy
 Service Design
 Service Transition
 Service Operations
 Continual Service Improvements
What is ITIL 4?
 ITIL 4 is the latest version of the information technology infrastructure
library, released in 2019—this version is, so far, the most agile, customizable,
and flexible. ITIL 4 offers a systematic approach to ITSM with more stable IT
environments, reduced expenses, better awareness of risk, and enhanced
customer support. The methodologies focus more on automated processes,
the integration and expansion of service management beyond IT, and the
improvement of collaboration and communication across the entire
organization.

 Organizations are assisted in creating a stable IT environment and service

operations that improves customer support, limits threats, and reduces costs.
What are the biggest updates in ITIL 4?
 There have been important updates between ITIL 3 and ITIL 4.
 Integration
 The latest version of ITIL integrates with ITSM methods and standards like Lean, DevOps, and
Agile.
 Customers
 Customers are treated as a crucial part of the value of the organization.
 The service value system (SVS)
 The idea that different parts of an organization work in tandem to create tangible value. In
the SVS equation, demand and opportunity are considered the most important inputs, while
the most important output is IT-powered products and services that deliver value. Guiding
principles, SVC, continual improvement, practices, and governance lie in between these two
points.
 Flexibility
 SVS acknowledges different elements that make up the SVS system can be combined in
different ways depending on the individual situation or changing business needs.
 Communication
 ITIL 4 encourages thorough communication to eliminate silos and separated thinking. SVS
provides as much value as possible when ITIL practitioners apply it across an entire
organization.
Concept of SMAC (Social, Mobile,
Analytics and Cloud),
 SMAC (social, mobile, analytics and cloud) is the concept that
the convergence of four technologies is currently driving business
innovation. SMAC is the basis for an ecosystem that enables a business to
transition from e-business to digital business.
Core Values for Using Social Media
 Identity
 Authority
 Relevance
 Professionalism
 Openness
 Compliance
 Privacy
Challenges in Using Social Media

 Why to use social media:

 Which Platforms to use:
 Who will engage:
 How to engage:
Email and video conferencing tools for
business communication,
 10 best video conferencing tools for 2022
 Zoom
 Google Hangouts Meet
 Microsoft Teams
 GoToMeeting
 Join.me
 BlueJeans
 Cisco Webex Meetings
 Zoho Meeting
 Slack
 Owl Labs Meeting Owl
Integrated with Google Meet. Keep your team connected with
premium video conferencing. Email Messaging, meetings, docs, and tasks, now
thoughtfully connected.
Social media for marketing,
 Social media marketing (SMM) is the use of social media platforms to
promote a product, service, or brand. SMM includes developing a strategy,
creating posts, monitoring mentions, responding to comments, and more.
 One of the biggest benefits of using social media in marketing is that, if used
effectively social media for marketing allows successful inclusion of
customers in marketing campaigns which makes them feel like a part of a
business and increase their brand loyalty and helps businesses in establishing
a loyal customer base.
Use of Social for general communication
and business communication,

• Facebook
• Twitter
• LinkedIn
• Instagram
• YouTube
• Pinterest
• Reddit
• Snapchat
• Tumblr
• TikTok
Analytical tools of data interpretation.
 Data analysis tools such as R Programming, Tableau Public, Python, SPSS,
SAS, Apache Spark, Excel, RapidMiner, KNIME, QlikView, Splunk, etc. are
used to collect, interpret and present data for a wide range of applications
and industries so that these data can be used for the prediction and
sustainable growth of the business.
 Data analysis tools help you collect large data sets from various sources and
combine them into databases. Data analytics tools can be a specialty software
solution meant for data scientists.
 When interpreting data, an analyst must try to discern the differences
between correlation, causation and coincidences, as well as many other bias –
but he also has to consider all the factors involved that may have led to a
result. There are various data interpretation methods one can use.
Latest terms in computer technology:
 Artificial Intelligence,  Cloud Computing,
 Blockchain  Content Management,
 Augmented Reality (AR) and  Disruptive Technology,
Virtual Reality (VR)
 Green Technology,
 Deep Learning (DL)
 Angular Programming  Wearable devices,

 DevOps  GUI (Graphical user Interface),

 Internet of Things (IoT)  Audio-visual communication/

meeting platforms
 Cybersecurity
 such as Microsoft Teams,
 Big Data
Zoom, Google Meet, social
 RPA (Robotic Process media communications for
Automation) business
Learning Outcomes :
 Will be familiar with new terms and trends of computer technology
Reference Books
Online Resources:
MOOCs: