THE IMPACT OF USING ICT FOR BUSINESS
In this week, I have made a research about information and communication technology (ICT) for business. What is exactly ICT? ICT is the information technologies which have been growing at an astonishing speed. The latest figures show that Internet usage in North America alone is 68.6% of its population with a growth of 110.4% taken from 2000 Internet World stat, 2006. This assignment need me reviewed in various forms including journal papers and thesis which have been peer-reviewed in online database, as well as other resources such as website. Using information and communications technology (ICT) firms are typically subject to the same market forces as other firms, there are some forces, such as network effects, that may be particularly important in determining their financing patterns. ICT also play a critical role in all growth strategies, from helping to achieve results to coping with the expanded scale of the organization. It improves productivity by enabling communication, collaboration, and knowledge sharing that allows employees to innovate. The use of ICT and technology has affected every aspect of business, transforming not only the way that business is conducted but also creating new business sectors and jobs. For example, the creation of companies like Google and e-Bay which did not exist 10 years ago, was only made possible by advances in technology and the changes that this has created in the way that people behave (currently Google is valued at £44billion – Source BBC 5TH June 05). The effects such as marketing, finance, out of office working, and networks.
The first effect is marketing, it is the use of websites has allowed companies to develop new and cheaper ways of reaching new markets, offering customers the opportunity of buying goods and services whenever they want and often at reduced cost, whilst also enhancing the level of customer service. This means, it has been coupled with the expansion and use of e-mails which again has been used by business to market their goods and services directly to potential customers, as well as communicating with existing customers and suppliers. It also increasingly the marketing campaigns of businesses include the use of technologies such as Contact Management Systems that allows them to co-ordinate, monitor and report on various aspects of their marketing campaigns in new ways making these campaigns more targeted and effective. Furthermore, The Department Trade and Industry which helped fund the research, says that it shows how e-commerce brings positive benefits across a range of sectors when used for procurement, and in distribution sectors for e-selling. The conclusion for the research also shows significant productivity gains when employees use computers and have access to the Internet. It means computer gives many benefits for the marketing and the industries.
Another effect is finance, which are practically all companies now use software programs Sage or Excel to manage their accounts. This means, they has allowed them to look at financial information when required, monitor and respond to their customers purchasing patterns by offering discounts and overall improve the management of their finances. The result of this has been for many companies a reduction in their accountancy fees. According to science direct information claim that equity finance as important for smaller ICT firms as the anecdotal evidence for larger firms suggest? What are the critical factors in setting the leverage ratio of a small technology-intensive business? Are they different for an ICT firm? Why are these questions important? According to (Baker et, 2003) state that for one particular reason: ‘equity-dependence' exposes firms to non-fundamental movements in stock prices, suggesting that the ability of such firms to invest is sensitive to fluctuations in stock market sentiments. Should the market sentiments reflect a type of inefficiency (and should managers act in the interest of their stockholders), the investment behavior of equity-dependent firms would be less efficient than that of other firms. Furthermore, the received corporate finance literature suggests that the nature of a firm's assets is a primary determinant of the firm's leverage ratio (and thus its equity-dependence). According to Net Impact 2004 stated that technical decision-makers what business goals they had been asked to achieve with their technology investments. And which outcomes they believed technology would be most able to affect.
Besides that, impact of using ICT for business is out of office working. For many businesses the need for staff to be away from the office attending meetings and many more or to be based in another geographical location has grown alongside employee demands for more flexible working patterns. However, to be more effective communication and ability to access information, it remains critical to the productivity of these staff members. Therefore through the use of technology many companies now use a range of technologies to enable this. These include mobile phones, e-mail, broadband, laptops, and others. Thus, ensuring that companies are able to be flexible and adaptive depending on their business needs. In addition, using ICT can takes place much more quickly and efficiently time, energy and many more. It also can altered the price at any time simply be entering the new price against its bar code on the computer database. There is much less chance of human error when performing calculations and handling money. Moreover, less paperwork needs to be stored and information can be retrieved more easily. Cash does not have to change hands, reducing the opportunity for theft. In addition, ICT equipment is very expensive to purchase and maintain. If it breaks down there could be major problems continuing normal business.
Last but not least, another impact on business is a network. It showed virtually all businesses now have or have access to a computer. The existence of two or more computers in an office almost always leads to the creation of a network. The main advantage of doing so is that resources can be shared for instance printers, internet access, files or information can be managed and shared amongst workstations and the security of information can be better managed through a network. Increasingly networks are not just confined to the office but are being adopted and this make them allow home or remote working that supports changing business needs. While the ICT sector is subject to the same market forces as every other industry there are some forces, such as network effects, that may be particularly important in determining the financing patterns of ICT firms. We conjecture and provide supporting evidence that these forces increase the equity-dependence of the ICT firms. This transformation has really taken place over the last 20 years and continues to transform the way business is done. No business today can ignore the use of technology as its effective use helps businesses to remain competitive and profitable, thereby creating or safeguarding jobs. ICT is needed in every sector, especially in business for their network into the global area.
In conclusion, from the research there is a relationship between ICT usages in business. And it has provided some valuable information on the ICT adoption in business. As mentioned earlier, it can developing new business in new business sectors made possible by advances in technology; ensuring that businesses by effectively using technology are competitive both locally and globally; ensuring that businesses have the necessary information and support to develop into new markets; enabling businesses to become more flexible and responsive to the demands of their customers and their staff; developing a workforce with the necessary skills that are demanded in the present and future labour market. Hopefully, ICT in business can grow more effectively and gives more benefits for us in that particular way.
References:
In this week, I have made a research about information and communication technology (ICT) for business. What is exactly ICT? ICT is the information technologies which have been growing at an astonishing speed. The latest figures show that Internet usage in North America alone is 68.6% of its population with a growth of 110.4% taken from 2000 Internet World stat, 2006. This assignment need me reviewed in various forms including journal papers and thesis which have been peer-reviewed in online database, as well as other resources such as website. Using information and communications technology (ICT) firms are typically subject to the same market forces as other firms, there are some forces, such as network effects, that may be particularly important in determining their financing patterns. ICT also play a critical role in all growth strategies, from helping to achieve results to coping with the expanded scale of the organization. It improves productivity by enabling communication, collaboration, and knowledge sharing that allows employees to innovate. The use of ICT and technology has affected every aspect of business, transforming not only the way that business is conducted but also creating new business sectors and jobs. For example, the creation of companies like Google and e-Bay which did not exist 10 years ago, was only made possible by advances in technology and the changes that this has created in the way that people behave (currently Google is valued at £44billion – Source BBC 5TH June 05). The effects such as marketing, finance, out of office working, and networks.
The first effect is marketing, it is the use of websites has allowed companies to develop new and cheaper ways of reaching new markets, offering customers the opportunity of buying goods and services whenever they want and often at reduced cost, whilst also enhancing the level of customer service. This means, it has been coupled with the expansion and use of e-mails which again has been used by business to market their goods and services directly to potential customers, as well as communicating with existing customers and suppliers. It also increasingly the marketing campaigns of businesses include the use of technologies such as Contact Management Systems that allows them to co-ordinate, monitor and report on various aspects of their marketing campaigns in new ways making these campaigns more targeted and effective. Furthermore, The Department Trade and Industry which helped fund the research, says that it shows how e-commerce brings positive benefits across a range of sectors when used for procurement, and in distribution sectors for e-selling. The conclusion for the research also shows significant productivity gains when employees use computers and have access to the Internet. It means computer gives many benefits for the marketing and the industries.
Another effect is finance, which are practically all companies now use software programs Sage or Excel to manage their accounts. This means, they has allowed them to look at financial information when required, monitor and respond to their customers purchasing patterns by offering discounts and overall improve the management of their finances. The result of this has been for many companies a reduction in their accountancy fees. According to science direct information claim that equity finance as important for smaller ICT firms as the anecdotal evidence for larger firms suggest? What are the critical factors in setting the leverage ratio of a small technology-intensive business? Are they different for an ICT firm? Why are these questions important? According to (Baker et, 2003) state that for one particular reason: ‘equity-dependence' exposes firms to non-fundamental movements in stock prices, suggesting that the ability of such firms to invest is sensitive to fluctuations in stock market sentiments. Should the market sentiments reflect a type of inefficiency (and should managers act in the interest of their stockholders), the investment behavior of equity-dependent firms would be less efficient than that of other firms. Furthermore, the received corporate finance literature suggests that the nature of a firm's assets is a primary determinant of the firm's leverage ratio (and thus its equity-dependence). According to Net Impact 2004 stated that technical decision-makers what business goals they had been asked to achieve with their technology investments. And which outcomes they believed technology would be most able to affect.
Besides that, impact of using ICT for business is out of office working. For many businesses the need for staff to be away from the office attending meetings and many more or to be based in another geographical location has grown alongside employee demands for more flexible working patterns. However, to be more effective communication and ability to access information, it remains critical to the productivity of these staff members. Therefore through the use of technology many companies now use a range of technologies to enable this. These include mobile phones, e-mail, broadband, laptops, and others. Thus, ensuring that companies are able to be flexible and adaptive depending on their business needs. In addition, using ICT can takes place much more quickly and efficiently time, energy and many more. It also can altered the price at any time simply be entering the new price against its bar code on the computer database. There is much less chance of human error when performing calculations and handling money. Moreover, less paperwork needs to be stored and information can be retrieved more easily. Cash does not have to change hands, reducing the opportunity for theft. In addition, ICT equipment is very expensive to purchase and maintain. If it breaks down there could be major problems continuing normal business.
Last but not least, another impact on business is a network. It showed virtually all businesses now have or have access to a computer. The existence of two or more computers in an office almost always leads to the creation of a network. The main advantage of doing so is that resources can be shared for instance printers, internet access, files or information can be managed and shared amongst workstations and the security of information can be better managed through a network. Increasingly networks are not just confined to the office but are being adopted and this make them allow home or remote working that supports changing business needs. While the ICT sector is subject to the same market forces as every other industry there are some forces, such as network effects, that may be particularly important in determining the financing patterns of ICT firms. We conjecture and provide supporting evidence that these forces increase the equity-dependence of the ICT firms. This transformation has really taken place over the last 20 years and continues to transform the way business is done. No business today can ignore the use of technology as its effective use helps businesses to remain competitive and profitable, thereby creating or safeguarding jobs. ICT is needed in every sector, especially in business for their network into the global area.
In conclusion, from the research there is a relationship between ICT usages in business. And it has provided some valuable information on the ICT adoption in business. As mentioned earlier, it can developing new business in new business sectors made possible by advances in technology; ensuring that businesses by effectively using technology are competitive both locally and globally; ensuring that businesses have the necessary information and support to develop into new markets; enabling businesses to become more flexible and responsive to the demands of their customers and their staff; developing a workforce with the necessary skills that are demanded in the present and future labour market. Hopefully, ICT in business can grow more effectively and gives more benefits for us in that particular way.
References:
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