Information Technology Blog

Archive for July 17th, 2010

A June 23, 2005 news release from the Office of Advocacy, U. S. Small Business Administration, states that home computer owners are slightly more likely to be business owners than non-computer owners. This report reveals that technology and computing has become an inseparable ingredient in the business world today.

The Computer Trend – A Brief History

The last two decades have marked an enormous increase in the number of home computers. With it, computer owners have invariably taken to entrepreneurship in many varied fields. Thanks to the growth of technology, computers and the Internet, new methods have been developed for processing everyday business activities easily. Without the advent of technology, routine tasks would otherwise have taken and enormous amount of time and specialization. Undoubtedly, the computer represents the top technology development in the last century as it relates to businesses today, both large and small. Advances in the field of technology have created a vast number of business opportunities.

Some Statistics

In 2003, the U. S. Small Business Administration produced a report/survey that established conclusively that more than 75% of small businesses owned computers and had heavily invested in new technology. Let us try to understand what the computers mean to businesses and how they contribute to increase their productivity.

USE OF COMPUTERS IN BUSINESSES

The fundamental reasons for the popularity of computers with small businesses are their efficiency, speed, low procurement cost and more than anything else, capability to handle multiple tasks with little chance for error.

Office Routines: Almost invariably, businesses loaded with the burden of increasing workloads and the pressures of being lean and mean, fall back upon technology for most of their administrative tasks. This work includes, among others, bookkeeping, inventory managing and email. The advent of the Internet has also substantially contributed in bringing down the costs of communication and marketing. In a nutshell, technology has reduced the overall cost of business operations.

New Business Opportunities: The explosion of Internet and e-commerce has opened up a plethora of opportunities for all types of businesses. New management methodologies, such as Six Sigma are easier to implement due to statistical software. Also, companies are able to train their own employees using in-house Six Sigma software programs, and as a result, save money on labor costs.

It is now possible to have many business functions operate on autopilot. This has opened up new opportunities for software development companies and business consultants. Another business trend that has opened up as a result of advancing technology is outsourcing. It is now possible for a company in America to have its data entry and customer service centers in overseas countries such as the UK. In this way, companies can service their customers 24/7.

Indispensable Components of Small Businesses

It is difficult to think of a situation where businesses can do without technology and computers today. It is extremely difficult to say whether businesses depend on computers or computers created business opportunities.

Software Specific To Small Businesses

Certain powerful, yet simple software has come to the rescue of small businesses in reducing their tasks and opening up new channels. Simple applications like spreadsheets and word processing helps them maintain accounts, finances and keep track of correspondence. These applications allow the users to customize reports and other functions to suit their particular business.

Drawbacks

Both men and women in business have adapted successfully to new technology. But the SBA report cites the general decline in skill levels of people, which may eventually result in an overall reduction of income levels. It seems that people get used to technology doing all the work and tend to neglect their skill development. It is up to individual companies to make sure that their employees are still able to do crucial tasks without the assistance of computers, if necessary.

Supporting a Nonprofits technology is extremely important to an organizations success and survival. However if you are like most small nonprofits, technology support is a secondary activity until something breaks then everybody wants full time solutions.

If that gives you stage fright, now imaging you are hired as the office assistant or the Executive Director of your Nonprofit organization. You still have the same issues working with your office equipment but I bet you are thinking that somehow, all of your organizations technology resources have become your responsibility! When the resources of a nonprofit organization are scarce and money and true funding do not really exist, an accidental techie situation is a reality. The accidental techie comes about because planning to handle technology was the last thing thought about when you or the organization started. when you and the organization have the same name and the same business function, then that probably means the organization is you. When this occurs to you, you need to step back and get an idea of what you need to do in order to survive. Do not try and solve all your lingering internet, office, voice and CRM technology needs all at the same time. Dive in where it makes sense for you. In other cases you need to get someone to help you. As a business system analyst from the corporate world, I recommend that you get out of this no win situation by following this step-by-step outline to creating an effective system.

You first need to get a comprehensive review of your operating environment. Your opening move is to develop a picture of your current business operation. This includes your entire internet, out of office and in office technology needs. Second, look around and review your support staff, if you have a staff that is. Next establish how you presently make use of and purchase your technology and related computer equipment. Then start thinking about how your organization is protecting itself from disasters and data loss. Finally do some reflection and define how are you managing your technology support role? Have you decide if what you do is effective or is it beyond providing real help anymore.

Next we move on to another piece of building yourself, a get out of technology jail card. You are then required to put together executive board support for your technology initiative. This happens because when you started, the group probably had one PC and dialup. Then as the organization mission became clearer and more defined, technology needs grow by osmosis. They just multiply all by them selves. It is like an organic growth process. One day you go to work and there are needs for 10 people not one person. When the organization you work for equates to a one for one situation, then you should evaluate what your time is worth. When you do this, you have a basis for making sound decisions. Are you spending time doing things that hamper your true mission? If you have a nonprofit board then as the default techie who is really the accidental techie, you have to confront the problem of educating and influencing your organizational policies and measures. You are doing this because you are lacking the foresight or real authority to do so but you have a powerful mission and you can show the value. Your board probably does not understand the need for technology support or the board believes you can do it just like the last person in your role. You need to find a way to make them understand what is at risk if you stay in the role.

Once you complete this process you will know your overall needs. At this point you will have progressed to where you will need funding and it could be a small request to fix an immediate problem. If your nonprofit is growing or your group is a larger organization then you may need to develop a formal request to your non profit board.

The growing awareness of the need to use computers in domestic, commerce and industries has brought about a new turn in the way audit is conducted. Computerization or Information Technology has taken over most of the business activities and has spread over and beyond unimaginable tendencies.

Technology has brought about serious changes that may warrant traditional Auditors (i. e. Auditors who do not possess enough IT skill to perform audit tasks) asking themselves whether their role in today’s world of computer-run organizations can be guaranteed. And if so, what must they do to remain relevant, maintain and expand the scope and quality of their services, and contribute to the new form of wealth in the contemporary knowledge economy.

We now live in a society where change is imperative. Even when we do not wish to change, it is forced on us. To be competitive in this dynamic environment, today’s Auditors are expected to keep pace with the technological issues and opportunities surrounding the development.

Technology has affected the ways and methods Auditors carry out their jobs. Knowing what areas have been affected and which particular technologies have affected the areas is very important so that Auditors can continue to plan their carrier development.

Computerization of Accounting Jobs, Electronic Commerce, Electronic Data Interchange, Internet and On-line Services, to mention a few, have serious implications for traditional Auditors and their works because they have affected how and when information is created, processed, stored, communicated, acquired, refined and interpreted.

To add positively to the value chain creation in our modern organizations and societies, Auditors need to retool themselves to keep up with the rapidly advancing technologies and the resulting changes in the needs of their clients and employers. As a critical success factor, technology is changing the organization chart and value change relationships. Nevertheless, no matter how much automation takes place in commerce and industry, a lot of human intervention will continue to be involved in solving information problems at the level of information reengineering.

This is where Auditors have a great opportunity, as information architects and systems integrators, to expand their services. This means that the role of technology will change the nature, timing and location of Auditors roles in the value creation process. For instance, Auditors will now do less of manual vouching of accounting documents (which computers will now take over) and become information systems consultants, analyzers and interpreters of data.

They have to become information architects and information professionals to be able to assist their clients and employers into the mainstream of the information age, in which efficient information system, enabled by appropriate technologies are waved into the overall corporate strategy.

A major concern among opinion leaders in audit profession today is that the staggeringly fast changing information technologies may overwhelm the control capabilities of Auditors, unless they constantly upskill themselves at a speed consistent with the changes taking place.

To be effective, Auditors need to understand the security sensitivity of Computer-based Environment and be able to combat computer – related fraud. Acquiring information technology skills requires the discipline of learning. They must engage in the learning process necessary to revamp their skills.

They need to become information engineers and architects, using their superior knowledge of the business process to help management make efficient and effective Information Technology (IT) decisions. Offering sound counseling to management is an area that Auditors have a role to play.

As we realize the value of information as asset, they need to help management appreciate the need to protect both information and the technologies that are used to manage and move information. Having talked about this, it is now obvious that a major challenge in a knowledge society is making information productive. Information that is not secured cannot be productive for the owner.

Those who are responsible to ensuring integrity, confidentiality and availability of information cannot afford to be obsolete in the technology that is either used to process the data or convey the information. It is therefore clear that Auditors who do not possess the right skill to work in a computerized environment can not claim to have an answer to information security requirement of such establishment. Auditors in general must continue to enroll in IT Security Schools and Associations to leverage the gap being created by emerging technologies.

This is very important because they must fulfill the expectations of their employers and clients, who count on the truth and fairness of financial statements that they audit. They must also ensure that modern techniques and tools appropriate to the new environment in which they work are learned and used in verifying the validity of the financial information on which they express opinion.