30-Ict Applications in Business
30-Ict Applications in Business
S1 MBA IB,
Roll No. 30,
School of Management Studies,
CUSAT, Kochi- 22.
E-mail: [email protected]
INTRODUCTION
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information technology and the extent to which the organization is consciously
implementing an ‘IT strategy’ across all activities and aspects of the business. If a
networked PC system is introduced without a proper implementation strategy on top of
existing and traditional work practices, it may simply encourage employees to ‘dump’ lots
of meaningless files on the shared data storage facilities to which the network gives them
access. The end result is a huge data ‘dustbin’ full of largely useless information. To avoid
such inefficient t results, companies need to change their institutional culture as well as
their technology when they introduce computer systems.
The implementation of new computer systems within an organization
can often affect department responsibilities and ‘who does what job’. Staff levels, job
descriptions and job grades may all be subject to change. Additional demands will be
placed on the managers and employees who are expected to cope with the change. There
may naturally be some resistance to change on the part of workers and managers when
new IT systems were first introduced, reflecting their fears of loss of status and job
security, or their worries about whether they have the ability to learn how to use the new
system. A suitable system of training and support, based for examples on workshop
activities, should therefore always accompany the introduction of new IT systems which
are likely to affect organization structure or work practices n a significant scale. It is also
important to maintain communication and consultation with all those affected. A common
failure during the implementation of a new IT system is a breakdown of communication
between those affected.
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telephone contact elusive corporate executives. E-mail also side – steps busy facsimile
machines and increases the ease of communicating across time zones. But until quite
recently, international e-mail suffered disadvantage of a plethora of a non standardized
systems that could not easily communicate with each other. However the recent
development of the internet system, now allows users of different e-mail systems to start
talking to each other. Internet has been described as a ‘networks of networks’, resembling
a computer network cooperative. And developments in ‘video conferencing’ via personal
computers and the telecommunication system, means that companies can arrange
‘electronic meetings’ between executives and business partners in different countries. The
growing use of video conferencing will reduce dramatically the amount of time and money
spent by business executives travelling between subsidiary plants and offices located in
different countries and continents.
In recent years, image – invoking terms such as the ‘paperless office’
and the information ‘superhighway’ have been coined to describe some of the ways in
which the use of IT may transform business activity over the next few years. The term
‘paperless office’ is self explanatory, relating to the ways in which electronic
communication and data storage reduce the need for print outs, both internally within a
business and externally when a business communicates with its customers and suppliers.
Development in telecommunication technology, particularly in fiber optic cables which are
capable in carrying a myriad of electronic messages without contamination or
deterioration, create the possibility of an information ‘superhighway’ along which business
information can be transmitted. This will be significantly useful for businesses. In the
retailing, media and entertainment fields, speeding the development of electronic ‘home
shopping’ (and banking) and the interactive communication between a business and its
customers. In the near future, households will be able to use their computer terminals to
buy goods from ‘electronic catalogues’, pay bills and order customized feature films or
computer games which will be delivered electronically via the information ‘superhighway’
into their living rooms.
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processing does for text. Designs produced by CAD in the company’s drawing office are
sent electronically to the factory’s machines in the workshops. With the development of
computer-based quality control systems, computers could signal when production was
deviating outside acceptable tolerance limits, but manual control was still needed in the
1970s to stop the process and rectify the fault. By contrast, the 1980s became the decade
of connectivity whereby networking enabled many of these computer-controlled
manufacturing tasks to be linked together electronically in a way that had not been
possible before, largely because of the previous lack of agreed standards. Finally, the
1990s has emerged as ‘the age of communication’ resulting in the connectivity between
separate organizations.
‘Virtual reality’ is an extension of the technology used in CAD; VR
creates the illusion of being inside a three-dimensional structure such as a building or a
car. VR is becoming a significant business tool in fields such as product design and
marketing.
‘Just-in-time’, also known as ‘continuous flow production’ or ‘kanban’, is
one of a group of techniques pioneered by the Japanese which have become associated
with Japan’s reputation for manufacturing quality. JIT requires that parts and components
are only delivered to the production line or to the next stage in the manufacturing process
when they are needed. There is no build up of stock or work in progress and no progress
chasers. The essence of JIT is communication. It is easy to think JIT as a stock control
system and helps to stop mass production and storage without sale.
Another feature of IT in the internal organization of production within a
business is a trend to the ‘global shop floor’. Many organizations known as multinational
businesses- operate factories and subsidiaries which are geographically dispersed on a
worldwide basis as well as within their country of origin. Such companies increasingly use
CIM to link production processes carried out in their different plants in the different
countries in which they operate.
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Data- warehousing is a recent development affecting a business
relations with its customers. Retailers issue loyalty cards to their customers. Loyalty cards
are attractive to the customers because they enable the shoppers to obtain discounts,
repayments, discounts etc. They are attractive to retailers because they allow store groups
to collect detailed information about shopper hobbit. This is useful for marketing research,
new product launch, to find out potential customers and target markets.
At inter-firm level, the Internet and e-commerce have great potential for
reducing transaction
costs and increasing the speed and reliability of transactions. They can
also reduce inefficiencies resulting from lack of co-ordination between firms in the value
chain. Internet-based B2B interaction and real-time communication can reduce information
asymmetries between buyers and suppliers and build closer relationships among trading
partners. In fact, adopters of e-commerce tend reduce transaction costs, increase
transaction speed and reliability, and extract maximum value from transactions in their
value chains.
The travel and tourism industry has been heavily affected by ICT
applications. The Internet, in particular, has been useful in many regards to the travel and
tourism sector. It is used to provide multimedia information about destination to
prospective travelers. It also affects auxiliary industries, such as the transport sector,
which plays a major role in the tourism industry. With the aid of ICT applications,
prospective travelers can view a destination, book accommodation, book the flight and
other forms of transport and pay for all these without leaving their homes. The use of ICTs
has permeated the travel and tourism industry. ICTs in this industry consist of various
components that include computerized reservation systems, teleconferencing, video, video
brochures, management information systems, airline electronic information systems,
electronic funds transfer, digital telephone networks, smart cards, mobile communication,
e-mail, and Internet. These various communication technologies are being used in all
sectors travel and tourism industry and related sectors.
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Various steps have been undertaken by the government in developing
countries to bring forward new business enterprises and to expand the existing ones. Take
for example the Singapore government, they have undertaken steps like, EnterpriseOne-
one network for enterprises is a multi agency initiative managed by SPRING Singapore.
This helps local enterprises to find the answers about questions relating to how to start,
sustain and grow their businesses. The team conducted surveys, focus groups and one-
on-one usability tests gathering more than 500 responses. This is after understanding the
organizational needs of the local enterprises.
Local and international businesses can now access and utilize a full
suite of aggregated and integratedG2B information and services through an intuitive
interface. For easy navigation, Business Town e-services are presented in terms of a
business life cycle commencing from business planning, market research, intellectual
property management, right through to exit strategies.
It provides conveniences for all business users as a one-stop license
application centre. It also allows single integrated form for multiple licenses, to multiple
agencies. Immediate, automated status updates are available via email. As a result, a lot
of business processes between businesses and the government are streamlined, saving a
lot of time and money along the way.
Government electronic business (GeBIZ)is another way of government
encouragement of business using ICT . Government Electronic Business (GeBIZ) at
www.gebiz.gov is an integrated, one-stop online business centre where GeBIZ Trading
Partners (GTPs) can conduct transact electronically with the entire public sector. With
GeBIZ, GTP can find all the business opportunities offered by all government agencies on
a single portal.
Government agencies are now using electronic tenders and quotations
published on GeBIZ as the default means of procuring. Firms who wish to participate in
these business opportunities will have to be GTPs to submit their electronic bids through
GeBIZ.
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designed to handle agricultural issues such as water utilisation and management, pest
control, harvest management and so forth.
In research and development- ICT helps in sharing of knowledge, doubt
clearance, updating knowledge, coordinating works which are geographically distributed
etc.
ICT finds application also in health, environment, etc.
REFERENCES