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Information Technology and the Impact It Has on Today's Workforce
The growth of the Internet, the globalization of trade, and the rise of information economies have
changed the role of information technology in business and management. Information
technology can be defined as " the hardware, software, telecommunication database management
and other technologies used to store, process and distribute information" (Daft, 2003, p. 682).
Information technology includes using information systems, network and Internet technology to
conduct business electronically, in order to achieve new levels of efficiency, competitiveness,
and profitability. Information technology is supplying the foundation for new business models,
new business process and new ways of distributing knowledge. Companies are relying on
Information technology to conduct more of their work electronically, effortlessly linking
factories, offices and sales forces around the globe. Information technology and electronic
commerce has changed the way people and organizations work in today's society.
Information Systems
Information systems, a major part of Information Technology have become essential for helping
organizations deal with changes in global economies and the business enterprise. Information
systems can be defined as " interrelated components working together to collect, process, store,
and disseminate information to support decision making, coordination, control, analysis and
visualization in an organization"(Laudon & Laudon, 2004, p.8). Information systems provide
firms with communication and analytic tools for conducting trade and managing business on a
global scale. Information systems make it possible for business to adopt flatter, more
decentralized structure and more flexible arrangements for employees and management.
There are six major types of information systems in modern organizations. The organization has
executive support systems (ESS) at the strategic level, management information systems (MIS)
and decision support systems (DSS) at the management level, knowledge work systems (KWS)
and office systems at the knowledge, and transaction processing systems (TPS) at the operational
level. Operational-level systems are transaction-processing systems, such as payroll or order
processing, that track the flow of the daily routine transaction that are necessary to conduct
business. Knowledge based systems support clerical, managerial, and professional workers. They
consist of office systems for increasing data workers' productivity. Management-level systems
provide the management control level with reports and access to the organizations current
performance and historical records. Decision-support systems support management decisions
when these decisions are unique, rapidly changing, and not specified easily in advance. They
have more advanced analytical models and data analysis capabilities than MIS and often draw on
information from external as well as internal sources. Executive support systems support the
strategic level by providing a generalized computing and communications environment to assist
senior management decision-making. Systems at each level are specialized to serve each of the
functional areas. These different types of system in the organization exchange data with each
other. (http://www.ii.metu.edu.tr/~ion501/demo/index1.html)
Information systems are designed to assist workers or managers in the functions of sales and
marketing, manufacturing and production, finance and accounting, and human resources, at all
level of the organization. Sales and marketing systems help the company identify customers for

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it's product's or services, develop products and services to meet customer's needs, promote the
products and services, sell the products and services, and provide ongoing customer support.
Manufacturing and production systems deal with the planning, development, and production of
products and services, and controlling the flow of production. Finance and accounting systems
keep track of the company's financial assets and fund flows. Human resources systems maintain
employees records; track employees skills, job performance, and training; and support planning
for employee compensation and career development. This shows that at each level of the
organization there are information systems supporting the major functions of the business.
(http://www.towson.edu/~pillutla/mngt337/systemtypes.html)
Information systems and the organizations in which they are used interact with and influence
each other. The introduction of a new information system will affect organizational structure,
goals, work design, values, competition between interest groups, decision-making and day-to-
day behavior. At the same time information systems must be designed to serve the needs of
important organizational groups and will be shaped by the organization's structure, tasks, goals,
culture, politics, and management. Information technology can reduce transaction and agency
costs, and such changes have been accentuated in organizations using the Internet. Information
systems are a vital part of today's workforce.
Internet and Electronic Commerce
The Internet and electronic businesses have become a major part of the Information Technology
Strategy. The Internet provides the primary technology infrastructure for electronic commerce,
and electronic businesses. The Internet and other networks have made it possible for businesses
to replace manual and paper based processes with the electronic flows of information. Electronic
business uses Internet and other digital technology for organizational communications and
coordination, collaboration with business partners, and the management of the firm as well for
electronic transaction (http://www.neurauter.at/Diplomarbeit/html/node1.html). Internet
technology also provides a much lower cost and easier to use alternative for coordination
activities than proprietary networks.
Electronic commerce is the "process of buying and selling goods electronically with
computerized business transaction using the Internet or other digital network technology"
(Laudon and Laudon, (2004), p. 118). It includes marketing, customer support, delivery and
payment. The three major types of electronic commerce are business-to-business (B2B),
business-to-consumer (B2C) and consumer-to-consumer (C2C). In electronic commerce,
businesses can exchange electronic purchase and sale transactions with each other and with
individual customers. Many different models for electronic e-commerce on the Internet have
emerged, including virtual storefronts, information brokers, transaction broker, online
marketplaces, content providers, online service providers, virtual communities and portals.
(http://www.neurauter.at/Diplomarbeit/html/node1.html)
The Internet provides a universally available set of technologies for electronic commerce that
can be used to create new channels for marketing, sales and customer support, and to eliminate
intermediaries in buy and sell transactions. Interactive capabilities on the web can be used to
build closer relationships with customers in marketing and customer support. Companies can

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Information Technology and the Impact It Has on Today's Workforce The growth of the Internet, the globalization of trade, and the rise of information economies have changed the role of information technology in business and management. Information technology can be defined as " the hardware, software, telecommunication database management and other technologies used to store, process and distribute information" (Daft, 2003, p. 682). Information technology includes using information systems, network and Internet technology to conduct business electronically, in order to achieve new levels of efficiency, competitiveness, and profitability. Information technology is supplying the foundation for new business models, new business process and new ways of distributing knowledge. Companies are relying on Information technology to conduct more of their work electronically, effortlessly linking factories, offices and sales forces around the globe. Information technology and electronic commerce has changed the way people and organizations work in today's society. Information Systems Information systems, a major part of Information Technology have become essential for helping organization ...
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