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Impact of Computers on Business

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IMPACT OF COMPUTERS ON BUSINESS

T

he world is going through an information explosion. This generation of information technology has necessitated the development of devices, which could store this information and process it to obtain knowledge and update it. The human brain is incapable of storing large amount of information and retrieving it instantly. This resulted in the development of computers. Moreover, the complexities of computational work are time consuming. Computer has freed the man from the bonded slavery of arithmetic.

Information can be represented in a computer in four different forms as follows.

DATA is the first method presents the information in its barest and most elementary form, as a string of characters (letters and numbers). An item of data is not of much use. It only makes sense when it is combined with other information.

TEXT is the second method presents the information written as phrases and sentences. This is called text. Although much more longer than a bare item of data, it is much more meaningful.

IMAGE is third method presents the information in pictorial form. This includes the charts, graphs, pictures and freehand drawings. This is called image. Information in this form is more comprehensive than an item of data and more meaningful.

VOICE is the fourth method presents the information in spoken phrases and sentences. This is called voice. Like text, it is much more meaningful than an item of data.

We can define information technology as the use of modern technology to aid in storage, processing, analysis and communication of information.

The growth in electronics over the past quarter century has been phenomenal. What we have seen is not an evolution in technology but a revolution. Our society, our businesses, our homes and our leisure activities are being transformed. Modern electronics is based upon the microprocessor, one form of microchip, which consists of miniature logic circuits etched onto the surface of a silicon chip. Microprocessors are now incorporated not just into computers, but also into a wide range of other products, from camera to washing machine and cars. But what has an information device to do with a camera and cars? The answer is that the microprocessor is used as a control mechanism in many of these products. Microprocessors are now so cheap and so small that they can be incorporated into any device that can benefit from the power of the computer. This has had an obvious impact on our lives as it has bought in its wake enormous improvements in efficiency and productivity as well as affecting our patterns of work and our leisure.

Following are the applications of the information technology on the business and its related sectors.

APPLICATIONS IN BUSINESS

The use of computers in business has been increased tremendously during the last two decades. Computers are used to handle large number of transactions and to control stacks of raw materials as well as finished products, customer's bill, analyzing sales of various products in different localities during the year, studying customer's trend, calculating employee's pay, commission and taxes and perform hundreds of other administrative

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