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Information
technology (IT)

Information technology (IT) is the use of any
computers, storage, networking and other physical devices, infrastructure and
processes to create, process, store, secure and exchange all forms of
electronic data. Typically, IT is used in the context of business operations,
as opposed to technology used for personal or entertainment purposes. The
commercial use of IT encompasses both computer technology and
telecommunications.

The Harvard Business Review coined
the term information technology to make a distinction between
purpose-built machines designed to perform a limited scope of functions, and
general-purpose computing machines that could be programmed for various tasks.
As the IT industry evolved from the mid-20th century, computing capability
increased, while device cost and energy consumption decreased, a cycle that
continues today when new technologies emerge.

What does information
technology encompass?

The term information technology has
grown to embrace an array of technologies and related disciplines. IT still
comprises basic computer-based information systems, including computing
hardware, operating
systems (OSes), application software and the data that is
processed to produce useful information. Over time, each of these IT components
and functions has become more complex, embracing ever-growing subsets of
technologies and methodologies.

For example, application development began as a relatively linear process
where systems analysts and programmers created code to achieve a business
purpose. It has evolved into a more cooperative and organic process that
embodies application creation processes, such as DevOps and agile
software development.

Even operating systems — the basic code that
makes servers and client computers work — have taken on new dimensions.
Technologies such as virtualization
and containerization have broken, or at least changed, the bond
between OSes and host hardware. As a result, IT no longer just happens locally;
cloud computing environments now complement and even replace on-premises
resources of the traditional data center.

All these developments have made IT more complex
and required greater specialization and new roles and responsibilities from the
IT workforce.

Why is information technology
important?

It’s been said that data is
what powers industries worldwide. That may be hyperbole, but few businesses —
large or small — can remain competitive without the ability
to collect data and turn it into useful
information. IT provides the means to develop, process, analyze, exchange,
store and secure information.

Data processing plays a
significant role in these core business practices, among others, including:

¾ product
development and design;

¾ marketing
and market research;

¾ sales
and invoicing;

¾ customer
development and retention;

¾ accounting
and taxes;

¾ human
resources and payroll; and

¾ regulatory
compliance.

Computing has penetrated
practically every part of business and much of our personal lives, as well. The
ubiquity of computing — also referred to as pervasive
computing — is another reason why IT is critical.
Computing devices have evolved well beyond personal computers (PCs) and
servers. Today, all businesses and most individuals have and use multiple
computing devices, including phones, tablets, laptops, game consoles and even
doorbells, thermostats, vacuums and many kitchen appliances.

Virtually all of
these devices, many of which are part of the internet of
things (IoT), tap into the internet, which
interconnects billions of devices worldwide. It’s a complex and, potentially,
perilous