CORRELATION BETWEEN MODERN MANAGEMENT PRACTICES AND IT

TRENDS

1

MEANING OF MANAGEMENT & INFORMATION TECHNOLOGY

Management: Management is the coordination of all

resources through the process of planning, organizing, directing and controlling in order to attain stated objectives

Information Technology: IT deals with the use of electronic computers

and computer software to convert, store, protect, process, transmit, and securely retrieve information

2

HOW IT INFLUENCES MODERN BUSINESSES

Hard to imagine running a business without Information Technology!

Businesses have gone global, beyond the national boundaries

Off shoring / outsourcing reduces the cost and allows management to focus on core competencies

IT facilitates better control over off-site locations Productivity has soared with the advent of IT Helps faster and smarter decision making Helps secure critical business information 3

IT HAS CHANGED THE FACE OF BUSINESS

Operating expenses have gone down, amount spent on technology has increased

Helped in understanding customer better

Increase in customer, investor as well as

supplier base

Need for IT skills in lower levels of

organization

IT has taken a toll on employee count4

NEW TRENDS IN IT

Cloud Computing

Software as a Service (SaaS)

Virtualization

Social Networking

Use of Digital Devices

Information Economy

5

IMPACT OF IT ON FINANCIAL MANAGEMENT

Shift from physical books to Tally, and Tally to ERP

Centralized global accounting and financial management

Smart business decision making possible with the help of Data Analytics

Outsourcing of back-office functions, viz. Accounts Payables and Receivables, Procurement, Payroll etc.

Better financial control by comparing budgets vs. actuals

Anytime anywhere availability of information6

ROLE OF IT IN CORPORATE FINANCE FUNCTIONS

Different functions of Corporate Finance:

– Financial and Business Planning

– Procure to Pay

– Accounting to Close

– Order to Cash

– Payroll

– Tax Planning and compliance

– Audit: Internal , Statutory, Security

– Treasury7

HOW IT HAS TRANSFORMED THE FINANCIAL WORLD

Internet Banking has shortened the bank queues

Choice of investing in shares of Reliance or AT&T

Historical data available on fingertips

Investors make more informed decisions

Globalization of financial services

IT has led to financial innovation, viz. derivatives,

etc

Reduction in time taken for financial transactions 8

IMPACT OF IT ON HUMAN RESOURCE MANAGEMENT

Use of IT from Recruit to Retire Prospective candidates being reached

through internet instead of newspaper

Performance management made easy History of an employee at the fingertips of

the manager Informed decisions could be taken regarding

appraisals, hikes, etc

9

IMPACT OF IT ON SALES & MARKETING

Whole world has become a prospective

market IT comes into picture right from pitching

clients to after sale services Internet emerged as the best medium for

advertisement

E Commerce facilitates the final transaction Online after sales service through “Webex”

sessions Cloud computing making its mark in sales &

marketing too. Eg: www.salesforce.com

10

MANAGING IT SYSTEMS IN MODERN BUSINESS

Management of IT Systems itself has changed

due to the use of IT in Businesses

Critical to keep IT infra up & running 24 X 7

Vital to control IT budget & resources

Outsourcing IT maintenance solves the purpose

BMC’s belief: “Business Runs on IT, IT runs on

BMC Software”

Other major players: IBM, HP, CA 11

IT HAS MADE MANAGER’S LIFE SIMPLE

Mobile revolution has impacted daily life Data available at any point of time, as and

when required

Stay connected with internet 24*7

Decision making made easier

Option to work from remote locations Audio & Video Conferencing made virtual

meetings possible

12

DOES IT MATTER?

“ When a resource becomes essential to competition but inconsequential to strategy, the risks it (its absence) creates become more important than the advantages it (its presence) provides. ”

13

- Nicholas G. Carr Harvard Business Review

THREATS OF INCREASING IT DEPENDENCE

Data theft is the biggest risk Easier to hack into a computer system than into a

human brain System crash : a normal phenomenon. So backup

becomes inevitable Privacy can be an issue in case of Cloud Computing

& Virtualization Cyber Laws in India are still ineffective Over-exposure to technology may harm employees’

health

14

IT CAN’T SUBSTITUTE HUMAN ELEMENT

Human intelligence is required for holistic analysis

Some business decisions have to be taken based on intuition

Computers don’t have emotions, managers

have it

Businesses can run without IT, not without

men

15

16