Meaning, Components and Importance of Information Technology

IT is a collection of approaches, tools, and procedures used to gather, process, and present information. These include programming, data transmission, data conversion, data storage, and data retrieval. IT aids in the creation, manipulation, transmission, communication, and storage of different types of information. IT is the umbrella term for all technologies used to create, store, and share information (such as business data, video, audio, still photographs, motion pictures, etc.) across highly-efficient communications lines.

Components of Information Technology

• Hardware: Hardware refers to the information system's physical layer. Input-output devices, processors, operating systems, computer networks, communication tools, media players, etc. are all examples of hardware.
• Software: Different applications and processes make up software. The software could include utilities and application software as well as system software. System software, which contains the operating system, device drivers, and utilities, aids in computer control. It provided users with access to a workplace intranet, a local or wide area network, and the internet. Applications software are specialized programs that support their user and allow businesses to operate effectively and efficiently. Their productivity is increased by this software's use of word processors, spreadsheets, and database management systems (DBMS).
• Data: Data is the unprocessed information that must be organized or processed to provide meaningful information. Data are transformed into valuable information by an information system, which aids in decision-making.
• Database: A database is a collection of data that has been properly structured.
• Network: Networking is a term used to describe a system that connects several users and system components to share information and resources. The networking infrastructure that helps to manage the data sources and users should be connected with the information system. Hubs, communication channels, and network devices make up the network.
• Users: An information system's main goal is to give administrators and users both inside and outside the organization useful information. Operators of devices, network administrators, staff members, clients, suppliers, system specialists, etc. are examples of users. Whether users are happy with a system's output and operations determines whether it will succeed or fail. System analysts, programmers, IT managers, and other specialized individuals are needed for successful information.

Importance of information technology

• In business: IT facilitates the interchange of information as well as the creation of new information. As a result, companies may collaborate with customers anywhere in the world. The use of IT in business sectors makes concepts like e-commerce and e-business conceivable.
• In medicine: In medicine, serious and life-threatening illnesses are diagnosed using MRI scans and other equipment. Additionally, surgeries with computer assistance are being carried out.
• In science and engineering: IT aids in the gathering and exchange of demographic information, weather reports, behavioral sciences, and many other fields in science and engineering where automation and efficiency are required.
• Security: IT has helped create a number of security solutions for both households and businesses. Additionally, IT aids complicated security systems used by government institutions and military bases.
• Entertainment sector: For the entertainment industry, information technology is crucial. Movies today use a variety of special effects, graphic enhancements, and cutting-edge multimedia tools.
• E-governance: Information and communication technologies (ICT) are used in e-governance to change traditional government by making it more accessible, transparent, efficient, and responsible. By making the government more easily accessible online and allowing citizens to communicate more easily with government representatives, it forges a link between citizens and government officials and increases access to government information and services.

Two different parts of information technology

• Computer Technology: Computer technology is a collection of programmable, multifunctional machines that accept data (raw facts and figures) and process it to produce useful information that can be utilized in decision-making. The user's data is summarized by computer technology. It is applied to speed up issue solving and boost output.
• Communication Technology: Telecom technology is another name for communication technology. It consists of electromagnetic systems that transmit information throughout the entire world (Either long or short distances). To access available resources, services, and information from one computing device to another, the various computing devices are linked through a network. The internet is the biggest network of its kind. A network is a communication system that connects two or more computers.

Reference:

Keyes, J. Financial Services Information Systems (Best Practices), Auerbach Publications; 2 Sub edition