Role of information technology in a business setting can be classified into four major categories; these are function, communication, management and enterprise.



Function IT Systems

Function IT systems enable individuals to carry out their tasks effectively in their place of work. Functional systems include spreadsheets, word processors, statistical analysis software and computer aided design (CAD). Employees can work and carry out their task independently or collectively using these software technologies.



Network IT Systems

Network IT systems enable effective communication within or outside an establishment. Examples of these systems are straightforward e-mail (electronic mail) systems, blogs, wiki, IM (instant messaging) and electronic conferencing. These technologies help interaction and collaboration between working groups and also make possible rapid information flow at all levels within an organisation.



Management IT systems

MITS can be defined as a planned application that is designed to process data and transform it into useful information for management decision making. MIS may be regarded as a division of Enterprise IT systems. Nevertheless, because of the crucial role MIS plays in a business environment, it is considered as a key information technology system for businesses.



Management operates at different levels, so it is possible to apply management information systems at any level. Simple examples of MIT systems are human resources management systems, marketing management information systems and financial management information systems.



Enterprise IT Systems

Enterprise IT systems are applications designed to integrate and handle entire business processes for big organisations. In general, enterprise application software is hosted on large servers over a computer network. Transmission of information is possible internally or externally.



Some enterprise information systems are accounting software, health care specific software or electronic data Interchange (EDI).  A further example of software in this group is CRM (Customer Relationship Management Software).



Information technology plays different roles in business, and provides a wide range of capabilities that boost management performance. It is thus crucial to understand the four main categories of IT systems and their functions in a business setting.



See also

What is information Technology?

Benefits of Health Information Technology

Advantages of Information Technology in Education

Advantages of Information Technology in Business

Advantages of Information Technology

Advantages of ICT