The Meaning and Uses of Information Technology in Practical Business Situations

In a broad sense, information is simply processed, structured and organised information. It gives context to data and allows successful decision making. For instance, a single consumer’s sale in a particular restaurant is statistical data-it becomes information the business can use when determining the best or least preferred course of action. Decision making using information is often referred to as “business intelligence.”

One example of information technology is an online payment system that processes credit card payments and securely holds customer information. This information is then accessed by authorized personnel who make purchases (e.g., sales people). Information systems analysts then make decisions about customer acquisition, sales, inventory, marketing, research and service based on this information. Businesses that have information technology need to determine their needs, develop a framework, and then develop and implement methods for data processing within the framework.

An example of an information technology system is the probability that a set of particles will remain in one state, whether or not they are in a definite position. Probability is an informational equivalent of photons hitting an optical disc. The information provided by the photons is then transformed into probabilities that can be converted into actual information. This is a very crude example of information and its importance in the world of pragmatics and business; however it clearly shows how important it is to extract, process and store information in order to make decisions.