Within a company, different functional areas coexist that allow its proper functioning: management, finance, administration, production/operations, quality, marketing, human resources, project management, processes, and logistics, among others. To achieve organizational goals, it is vital that all of them are aligned with their purpose and business strategy.

Next, we are going to delve into the IT area: what it is, what its main functions are, its greatest challenges, etc.

 

Index

  1. What is the IT area?
  2. History and evolution of the area
  3. Main functions of the IT area
  4. Main problems in the IT area
  5. Main challenges in the IT area
  6. What is the IT area made up of?
  7. Importance of the IT area
  8. IT area management indicators
  9. Main tools of the IT area
  10. Conclusion

What is the IT area?

IT is the acronym for “Information Technology”, which in Latin America may also be known as ICT (Information and Communication Technology).

The IT areas of companies are responsible for implementing, supporting, and maintaining information systems. This area exists to manage computers, networks, and information security but also to integrate IT with business results and decision-making. Its value lies in the automation of processes, the provision of information for decision-making, connecting companies with their customers, and the provision of productivity tools to increase efficiency.

In recent decades, technological progress has not only transformed commercial activities, but also the work culture of every company and the interaction of its work teams. The IT support that each organization needs will depend on its size, the use of technologies, and the particular needs of each case. That is why the IT area can be an internal area of the company or a team can be hired to monitor and work outside of it.

History and evolution of the area

Information systems are as old as civilization itself since they arise from the constant need to organize and manage resources. Its origin can be traced back to 4000 BC when the Egyptian civilization began with population censuses (a census collects information, processes it, and uses it in decision-making, which is why it is considered an information system)

Since then, computer systems have been gradually improving, although this process accelerated dramatically from the middle of the last century to today.

 

1950s-1960s

The technology of the time was still very simple, which is why so was information systems. These systems are known as TPS or transaction processing systems and their main function was to help workers perform different types of operations: keeping accounts, processing transactions or keeping records. A simple example of this: is ATMs.

 

1960s-1970s

MSI (management information systems) emerged, which have the novelty of transforming stored data into useful information so that companies can make relevant decisions. These systems can also generate detailed reports of transactions: orders, cost trends, or sales analysis, among others.

 

1970s–1980s

The emergence of personal computers (PCs) produced an important advance by facilitating the expansion of computer systems throughout the organization.

Another important chapter is the emergence of decision support systems or DSS. These are interactive systems that take data from various sources, both internal (inventory, sales) and external (market trends, market price) and transform them through complex algorithms into information that is useful in making company decisions.

 

1980s–1990s.

At this time, departmental computing emerged, which allowed each area of the company to be in charge of acquiring the necessary hardware and software for the development of its operations. But this had some drawbacks: incompatibilities between software from different areas, which led to connectivity problems.

 

1990s–2000s

The birth of the Internet as we know it radically changed the capabilities of information systems in the field of business, by making it possible to exchange information in real-time with other distant points in the world.

Other important systems that emerged in this decade were the ES (expert systems) capable of imitating the way people made decisions using knowledge management systems (KMS).

 

2000s–Present

In recent years, information systems have been improving due to advances in technology (greater storage capacity, better network infrastructure, cloud computing, etc.). All these systems have become essential since they provide competitive advantages to companies compared to those that do not adapt to the new changes.

Main functions of the IT area

Summarizing what has been explained so far, this area:

1. It provides technical support

Technical support includes all tasks that involve helping staff to solve problems of a technical or technological nature.

  •        Train employees in the use of new software,
  •         Answer technical questions,
  •        Set up user accounts and reset passwords.
  •        Analyze recurring incidents,
  •         Investigate root causes,  
  •         Provide medium and long-term solutions.

2. It implements and manages the IT infrastructure

The implementation and management of the technological infrastructure of the company are two of the main functions of the area.

  • Hardware: what does the company need to run its operations? (computers, data centers, mobile devices, and routers)
  • Cloud: cloud computing services allow you to take advantage of third-party computing services.
  • Software: digital tools to streamline daily operations.
  • Change of IT infrastructure: any modification must take place in a programmed and supervised way.
  • Company website: initial configuration, maintenance, and security of the site.

3. It defines technology investment strategies

Technology upgrades become increasingly critical to business growth as equipment can become obsolete or start to fail, and licenses may expire. For this reason, the IT area must be in charge of evaluating the technical needs of the company and acquiring new products to satisfy them. Periodically reviewing the different investment options and their costs for progressive improvement is the task of the IT area.

4. It keeps computer security

One of the most important tasks of the IT area is to preserve the computer security of the company, given that cyber attacks have become more common and sophisticated at the same time. To do this, they must use software solutions created specifically for that function but also create comprehensive security plans.

In general terms, computer security includes the following aspects:

  • How to detect and prevent intrusions and network attacks on your website or other critical systems.
  • How to ensure the security of critical information and comply with all industry privacy rules and regulations implemented by governments.
  • Planning and execution of security agreements, risk mitigation, and disaster recovery.

5. It executes specific IT projects

These types of initiatives are generally carried out with the specific objective of achieving commercial benefits. That is why they usually require technical experts to execute them in the most efficient way possible to obtain the expected results. Launching a website, acquiring equipment, or creating reports to expand the technological capabilities of the company may be some of the tasks in this area. 

The functions of the area range from fixing a PC that does not work, connecting all the computers of a company to the same server and downloading programs for their operation, making sure to buy and renew antivirus systems, providing them with good internet, managing the company's website, make a budget of technology expenses monthly or annually, etc. But it also implements programs to improve production technologies, delivery, sales, etc.; analyzes all the data that is thrown from the operation of a company to look for improved methods. A proactive IT area finds solutions daily for small or large company problems to which technologies or communications can contribute.

Main problems in the IT area

There is no area of a company that is exempt from problems, and the case of the IT area is no exception. Although many times these difficulties depend on the size and type of company, in general, we can name a few:

1. New security threats

As technologies advance, so do security threats. The targets are varied and any company can be targeted. Therefore, the IT area must be prepared, and in permanent training on an issue that can generate millions of dollars in losses for companies, and the responsibility falls entirely on the area.

2. Shortage of skilled workers

There are not enough IT professionals who are permanently updated and are also business-oriented. Sometimes, companies have some IT needs, and if the solution is found in someone external, this can generate mistrust and resentment in the area, so training of those who already make up the department can sometimes be seen as a better alternative.

3. Internal reluctance

Many times, the IT area must be the villain inside companies, mainly for the sake of taking care of security. Preventing the use of social applications or the recreational use of the internet from the company's servers is not usually well seen among workers and the reluctance could be stronger in hierarchical areas. The objective of these prohibitions (at least from the IT area) is far from being to increase productivity, but rather to take care of data leakage and prevent the intrusion of cyberattacks.

Main challenges in the IT area

“We are fine, but… how could we be better?” This question always leads to growth and every answer becomes a challenge. Grow, innovate, improve.

Digital transformation

The search for digitization entails changes and new problems for the people who run a company. Coupling new technologies with legacy systems or changing the established business culture in order to adapt to new challenges is one of the biggest business challenges.

Innovation is the constant search to incorporate, through technology, new aspects to continuously optimize and improve its processes. Since digital transformation is not a static process and companies must be constantly updating and improving, betting on technological innovations, there are many challenges to overcome:

  • Use of Artificial Intelligence: little by little, robots, autonomous learning, and artificial intelligence (AI) are taking a predominant place, not only in companies but even in people's daily lives. The CIO must implement those elements to reduce costs and expand benefits.
  • Information processing: a challenge in the area will be to take advantage of all the information available in Big Data for the benefit of the company. With it, adequate tools can be implemented to extract practical knowledge and apply it to their reality.
  • Participate in the strategic plan: considering that the CIO is ultimately responsible for the technological and communication aspects of the company, it is necessary that this person participates in the decision-making of the objectives proposed by the company. It will be most appropriate to detail the investments in IT that are required to achieve the strategic objectives set by the management.
  • Focus on the customer: The trend towards a more participatory role of the customer makes it urgent to change the focus to improve their experience and achieve greater satisfaction. To be successful in today's market, the CIO must regularly monitor customer service messages and calls and participate in user forums to receive direct feedback.

What is the IT area made up of?

Organizational charts in the IT area are as varied as the number of companies there are. Broadly speaking, and trying to avoid technicalities and specifications, we can recognize basic positions in the IT area:

CIO (Chief Information Officer)

The director of information systems is considered part of the management team of companies. Therefore, this person must take into account requests from other executives and report on the activities. Chief information officers, therefore, have administrative and technical capabilities. Their task is to match the information system with the company plan, prepare and manage the budget, and coordinate the technical team. The CIO must have a specific vision for each technical requirement of each department but also a global vision of the business strategy.

Developer (Programmer, Analyst-programmer, Developer)

Design, produce or maintain software components or subsets according to specifications that will be integrated into applications: modules, screens, routines, subsystems, and programs in general.

DevOps Engineer

DevOps stands for Development Operations, it is a software development method that focuses on collaboration, bridging the gap between system engineers and software developers.

DevOps engineers are, then, between development and implementation. They are in charge of incorporating processes, tools, and methodologies to meet the needs throughout the software development life cycle.

Q.A. (Quality Assurance)

This person is in charge of ensuring the quality of software development. These automation tests have managed to avoid a large number of errors, thus, saving a lot of money throughout the process.

The position of the Q.A. (the person in charge of the area, tester, or QA engineer) is vital in any software development team since QA specialists will be the ones who ensure the proper functioning of the product being developed. It is not just about controlling the quality in its final section but throughout the production process.

Importance of the IT area

The IT area is of great importance in today's companies, in which many of the tools that make decision-making a more effective process converge: computing, telecommunications, data processing, tools, and methodologies. This means that there is an increasing dependence on IT areas, which are essential in the organization chart of any company and which handle large budget items.

By streamlining and optimizing processes, saving costs, and providing an information platform that helps in decision-making, Information and Communication Technologies (ICT) have a direct impact on the company's competitiveness. Through the implementation of its tools, great progress is obtained and, most importantly, competitive improvements. This occurs because they help automate operational processes. Due to computerization, speed in companies is a determining factor in their productivity.

Information technology then manages to make things faster and easier, simpler, saves valuable time for companies, and is a tool that increases competitiveness, the number one objective of all of them.

IT area management indicators

Having clear indicators implies that a company takes its growth and development very seriously, that it has set objectives and that it works daily to meet them. This implies that each area of the company defines a series of KPIs (Key Performance Indicators) that measure their performance, to know how far or close they are to meeting their objectives. The data produced by the KPIs are the basis of the decisions made by the executives, after their analysis.

There are KPIs that are used globally and others that the area can create based on its specific needs. Some of the most used are:

  • Mean offline time or MDT (mean down time): This KPI analyzes the average time that the IT equipment or infrastructure cannot be used due to minor problems, failures, etc. This value is obtained by dividing the total time that the system is unavailable by the number of occurrences in that period.
  • Average attention time: This metric is extremely important since it indicates the average time that professionals take to respond to requests. The better the performance of the IT area will be the faster the service is and the resolution of the different situations is optimized.
  • Uptime index: It represents the time that the user was able to use the computer application, therefore, the longer the time, the better the performance of the IT structure. It is vital that the technical infrastructure of the company is always available so that productivity remains the same. This is one of the most important indicators in the area.

Main tools of the IT area

Information and communication technologies have a transforming effect on the development and evolution of businesses. In recent years, the following have been added as business tools:

  • Cloud computing: The possibility of storing information in the Cloud allows companies not to worry about space limits, since they are present on the Internet and protected against the dangers of physical contingencies. It will enable the company to improve the systematization and subsequent analysis of the information.

  • Big data: Accessing this tool allows companies to have large amounts of relevant information for their activity, which, when selected and evaluated, can help in the decision-making process.

  • Artificial intelligence: Companies do not delay its implementation because it can improve the management and speed of multiple processes. Some of its applications are voice recognition, machine learning platforms, or robotic process automation

  • Social networks: The levels of interaction on these digital platforms are so significant that they serve to find audiences, and meet the customer, among others.

  • Mobile massification: It allows companies to reach a much wider audience in a convincing way, thus expanding their borders, and designing new mobile products and services (example: apps)

Conclusion

Most companies already have the conviction that information technologies are tools that provide efficiency, optimization, and improvement in corporate and operational processes, thus helping the growth of industries, leaving behind their idea about IT as mere support.

The IT area, then, is no longer the "computer service manager", but rather the area that comprehensively manages the technologies, and the information and communication they provide. An area as important as it is promising, and whose budget must be large and well managed so that it provides great benefits to the company.

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