# Development
20 essential IT terms for a business owner to know
Red Rocket teamJul 19, 20246 min read
In This Article
Artificial Intelligence SaaS IaaS API Cloud Cyberattack Gap Analysis Agile Waterfall Firewall Verification Back-end Front-end Figma Framework CRM Software Bug Backup Constructors Acceptance Phase Final ThoughtsEvery company, regardless of its size or field of expertise, needs digital technologies. Creating a website, a mobile app with relevant UI/UX design and more are becoming necessary steps to stay competitive. Moreover, many IT solutions help small companies reach more of their target audience.
IT professionals are constantly using words that only people within the industry can understand. Do business owners need to be proficient in IT terminology? To better interact with coders, programmers, and designers, business owners should know essential IT terms. In this article, we have compiled twenty tech terms every business owner should know.
1. Artificial Intelligence
The first point on our list of IT terminology for business owners is artificial intelligence. Why? This is due to the huge level of popularity of this technology in the last few years. Actually, artificial intelligence (AI) is a robotic system that can perform mathematical calculations, write essays, create images and much more. The functionality of such technologies resembles the tasks that humans are capable of performing.
Today, AI software is actively used in various niches, including the financial sector, programming, eCommerce, banking, and even medicine. As vivid examples of artificial intelligence, we can highlight the famous ChatGPT, Siri, and Alexa.
2. SaaS
SaaS stands for software as a service. Based on the term, it is not hard to guess that it is some kind of software. Actually, it can be different, have various purposes, functions and be offered by different providers.
The main feature of SaaS is the principle of its access to customers. Users don't buy SaaS and download the program to their devices. Instead, customers sign up for a temporary subscription and access the software they need through a web browser. This approach is beneficial for both the customer and the software as a service provider. Thanks to this, SaaS solutions are cheaper than custom development of the necessary business program.
3. IaaS
IaaS has the same operating principle as SaaS. However, IaaS means infrastructure as a service. This solution helps users to temporarily rent important infrastructure, including clouds, servers or dedicated data storage. Such solutions reduce costs for customers as they do not have to pay a large amount of money for cloud infrastructure.
4. API
This term is defined as Application Programming Interface. APIs are critical in business processes today. APIs can be viewed as middlemen that help various software applications interact with each other. For instance, there can be an API that enables the data from your accounting software to be transferred to your customer relationship management (CRM) software. This saves the employees’ time because these procedures would otherwise require manual input of the data. It also minimizes human error, which is often observed when entering the same data again and again. In general, APIs increase effectiveness, which is the result of high performance and speed.
5. Cloud
Cloud means software, platforms, infrastructures, and storage that are hosted on the internet. In using these services, instead of owning and managing your own servers and hardware, you use the internet to access services. Some of the benefits include:
- No significant capital investments are required as the services are hosted remotely through the Internet.
- The services can easily expand to meet needs and demands in the future.
- Cloud-based services can be accessed from anywhere using any device.
In simple words, clouds allow you to store important information and data on a remote platform.
6. Cyberattack
Cyberattacks refer to any unauthorized attempts to gain access to individual or organizational computer systems or networks with the intent of corrupting or altering data. Some of the techniques used are sending emails with malicious attachments, sending malicious attachments through emails, and unauthorized access to the company networks. Cyber threats remain a looming danger for all businesses as hackers continue to evolve in their capabilities. That is why, it is important that employees of organizations undergo cybersecurity training continuously.
7. Gap Analysis
A gap analysis seeks to understand the difference between the current position of a business and the future position that the business wishes to attain. It assesses business processes, strengths, capabilities, assets and technology that would allow a business to enhance its performance. For instance, an assessment could indicate that a company lacks adequate customer service technology or that the existing technology is a problem to representatives.
8. Agile
Agile is a dynamic methodology of working that is commonly used in project management, software development, and other fields of enterprise. Agile development as opposed to the linear fashion of the traditional waterfall model of development, divides work into small phases where there is testing and feedback. Agile consists of constant planning, fine-grained team structures, daily meetings, and it is not afraid of change. For a business owner, it means that they are able to put into practice agile principles to ensure that technology is implemented in a way that is realistic to the goals of the company.
9. Waterfall
Waterfall is a process model that is characterized by its explicit, sequential structure and its lack of phase changes. It goes through an organized structure that includes the planning, analysis, design, construction, testing, and deployment. It must be understood that each stage of the process must be completed in full before the next phase can start.
This approach to web product development was actually particularly popular before modern Agile came along. This is the stark opposite of what is experienced when using various agile methodologies.
10. Firewall
A firewall is a security system that can be hardware or software-based to watch the network traffic according to specific rules that are set. Its function is to act as a buffer between your internal LAN or personal computer and exterior networks to exclude dangerous codes, invasions, and unauthorized access. Firewalls add a crucial layer of protection against security threats and safeguard all the infrastructural and business data.
11. Verification
Many of us go through the verification process every day without even thinking about it. For example, when you create a new account on a social network, you are usually required to complete verification to start using the service. By doing so, the site or app is trying to confirm that your identity is real, which gives them some security assurances. Verification can be requested from a user in various forms, including a password, providing a passport or other documents, a fingerprint or a facial scan.
12. Back-end
Back-end is a concept that describes processes and technology that take place beyond the user interface. It is a part of the system that contains the DBMS (database management system), server, API (application programming interface) and other segments that perform key operations. For example, when a customer wants to buy something through your online store, the backend calculates the payment, checks the inventory, and records the sale.
13. Front-end
The front-end refers to the component that is directly used by the users in the context of an application or a website. It relates to the graphic design of the application along with the organization, look and feel, and usability.
14. Figma
In any IT vocabulary for small businesses, you will definitely find the term Figma. In fact, it is the name of a program that most businesses use. Designers use Figma to work on projects. Here's what you can do in Figma:
- Create interface elements.
- Develop interactive prototypes for websites and applications.
- Make illustrations and vector images.
No modern web designer can imagine their daily work without a tool like Figma.
15. Framework
The next point in our list of tech terms every business owner should know is framework. In general, it is a set of libraries, rules, tools that is used to create software. It is a structure that defines how all these elements should interact with each other, what methods to use and much more.
What is a framework designed for? Its main purpose is to simplify the development of software products, as it provides ready-made solutions for popular tasks. Among the common frameworks are PHP, Python and also JavaScript.
16. CRM Software
CRM is an acronym that literally stands for customer relationship management. This software helps businesses build a strong bond with their customers and understand their desires better. Here's what else business owners need a CRM system for:
- Improving interactions with customers.
- Monitoring and scheduling of work.Optimizing the company's marketing and sales process.
Moreover, some CRM systems may contain advanced functionality. For example, accounting software is often implemented in them to create reports, monitor finances and control the work of the company's employees. Statistics show that by implementing CRM in business operations, productivity increases by 30-50%.
17. Bug
Usually, web developers use this term to describe a situation when something doesn't work correctly or an unexpected result appears. In fact, a bug means an error in writing code. This is what causes some elements not to work or not to work properly.
18. Backup
A backup is what is known as redundant copying. Creating a backup of a project/site/data so that in case of unforeseen circumstances/failure you can restore the whole system to its previous state. It is good practice to update backups regularly and store them in several places at once (not only on your work computer).
19. Constructors
You might have thought about constructors like Lego, but that's not the case. Constructors in the field of IT technologies mean special applications that allow you to create a website by yourself. Moreover, some of them are built in such a way that you can create your own web product without having any knowledge of coding. They have an intuitive interface so that even beginners can cope with the goal.
Website builders are different, differing in functionality, working principle and access. Some of the most popular builders in 2024 are WIX, WordPress, SendPulse, and Jimdo.
20. Acceptance Phase
This is a kind of testing that is usually performed at the stage when developers deliver a finished product to the customer. The purpose of this phase is to determine the readiness of the software, its correctness and absence of various bugs. There are only two results of such acceptance testing: sending the project for revision or accepting the software by the customer.
It is not hard to guess that this is the final stage of a website, application or other product development project. At the same time, only the main functions are tested during such testing. Acceptance testing can be performed by the customer himself or by persons who provide the client's interests.
Final Thoughts
Once you have mastered basic IT knowledge for business, it's time to start the digital transformation of your company. However, if you don't want to understand this specialized terminology, you can turn to the professionals. We at Red Rocket Software are always ready to provide you with the best IT solutions to improve the efficiency, security, and growth of your company. Our goal is to help you become better by utilizing the latest technologies.
