NOTES
MODULE – 5
Information and Communications Technology (ICT), is often used as an extended synonym for information
technology (IT). But is a more specific term that stresses the role of unified communications and the integration of
telecommunications (telephone lines and wireless signals), computers as well as necessary enterprise software,
hardware, storage, and audio-visual systems, which enable users to access, store, transmit, and manipulate
information.
The term ICT is also used to refer to the convergence of audio-visual and telephone networks with computer
networks through a single cabling or link system. There are large economic incentives to merge the telephone
network with the computer network system using a single unified system of cabling, signal distribution, and
management.
ICT is an umbrella term that includes any communication device, encompassing radio, television, cell phones,
computer and network hardware, satellite systems, and so on, as well as the various services and appliances with
them such as video conferencing and distance learning.
ICTs are also used to refer to the convergence of media technology such as audiovisual and telephone networks with
computer networks through a unified system of cabling (including signal distribution and management) or link
system. However, there is no universally accepted definition of ICTs considering that the concepts, methods,
and tools
Components of ICT
There are the following components of information and communication technology.
1. Hardware
This is the physical technology that works with information. Hardware can be as small as a Smartphone that fits in a
pocket or as large as a supercomputer that fills a building. Hardware also includes the peripheral devices that work
with computers, such as keyboards, external disk drives, and routers. With the rise of the IoT, in which anything from
home appliances to cars to clothes will receive and transmit data, sensors that interact with computers permeate the
human environment.
2. Software
The hardware needs to know what to do, and that is the role of software. The software can be divided into two types:
system software and application software.
• The primary piece of system software is the operating system, such as Windows or iOS, which manages
the hardware's operation.
• Application software is designed for specific tasks, such as handling a spreadsheet, creating a document,
or designing a Web
3. Telecommunications
This component connects the hardware to form a network. Connections can be through wires, such as Ethernet cables
or fiber optics, or wireless, such as Wi-Fi. A network can be designed to tie together computers in a specific area,
such as an office or a school, through a local area network (LAN). If computers are more dispersed, the network is
called a wide area network (WAN). The internet itself can be considered a network of networks.
4. Cloud computing
The term is generally used to describe data centres available to many users over the internet. Large clouds,
predominant today, often have functions distributed over multiple locations from central servers. If the connection to
the user is relatively close, it may be designated an edge server. Clouds may be limited to a single organization
(enterprise clouds), be available to many organizations (public cloud), or be a combination of both (hybrid cloud).
The largest public cloud is Amazon AWS.
5. Database and data warehouse
A database is a place where data is collected and from which it can be retrieved by querying it using one or more
specific criteria. A data warehouse contains all of the data in whatever form that an organization needs. Databases
and data warehouses have assumed even greater importance in information systems with the emergence of "big data,"
a term for the truly massive amounts of data that can be collected and analysed.
6. Human resources
The final, and possibly most important, component of information systems is the human element: the people that are
needed to run the system and the procedures they follow so that the knowledge in the huge databases and data
warehouses can turn into learning that can interpret what has happened in the past and guide future action.
Models of Access to ICT
1. Devices
The most straightforward model of access for ICT is devices. In this model, access is defined most simply as owning
a device such as a phone or a computer.
2. Conduits
A conduit requires a connection to a supply line, which could be a telephone line or Internet line for ICT. Accessing
the supply requires investment in the proper infrastructure from a commercial company or local government and
recurring payments from the user once the line is set up. For this reason, conduits usually divide people based on their
geographic locations.
3. Literacy
The Psychology of Literacy is a part of Access to ICT. It enables people to study and ensure ICT access.
ICT & MANAGEMENT INFORMATION
A management information system (MIS) is a large structure that supports management and assists it in making
informed and strategic decisions.
Information technology (IT) is one component of that infrastructure that is used for collecting and transmitting data.
IT is typically related to computers or computing technology.
IT supports and informs the methods of reaching MIS goals and objectives.
MIS and ICT are two closely related terms that are often used interchangeably. However, there is a key difference
between the two.
MIS stands for Management Information System. It is a system that collects, processes, and provides information to
managers in order to help them make decisions. MIS systems can be used to track sales, inventory, customer data,
and other important business information.
ICT stands for Information and Communication Technology. It is a broad term that encompasses all the technologies
that are used to create, store, exchange, and use information. ICT includes computers, software, telecommunications,
and the internet.
The relationship between MIS and ICT
ICT is the foundation of MIS. Without ICT, MIS systems would not be possible. ICT provides the hardware,
software, and networking infrastructure that MIS systems need to function.
MIS, on the other hand, is the application of ICT to business. MIS systems use ICT to collect, process, and provide
information to managers in order to help them make decisions.
Examples of MIS
Some examples of MIS include:
•A customer relationship management (CRM) system that tracks customer data and interactions
• An enterprise resource planning (ERP) system that integrates all of a company's business processes
•A supply chain management (SCM) system that tracks the flow of goods and services from suppliers to
customers
•A financial reporting system that provides managers with financial data
Some examples of ICT include:
• Computers
• Software
• Telecommunications
• The internet
• Cloud computing
• Artificial intelligence
• Big data
MIS and ICT are two important terms that are essential for understanding the role of technology in business. MIS
systems use ICT to collect, process, and provide information to managers in order to help them make decisions.
TRENDS IN TOURISM
Demand for international tourism maintained momentum in 2011. Over the past six decades, tourism has experienced
continued expansion and diversification, becoming one of the largest and fastest- growing economic sectors in the
world. Many new destinations have emerged, challenging the traditional ones. Data became a main source to get
input information to formulate competitive strategies. Here emerges the importance and role of ICT in tourism.
Tourism Trends in 2022 and Beyond
With travellers’ desire for new experiences, the rapid global technological advancements, climate change, and other
dynamics, the travel and tourism industry is constantly transforming.
All the same, there are still rising tourism trends that can help tour operators, Destination Marketing Organizations
(DMOs), and other industry suppliers to revamp their businesses and experience success as we get into the new
normal. From experiential and transformative travel to automation and Bleisure trips, there are new opportunities
companies should focus on.
1. Bleisure Travel
Bleisure travel is a growing tourism trend where people extend their business travel to leisure activities. Experts
predict it will continue to grow in the mobile workforce. Although business travel has started to make its comeback in
2021, bleisure is believed to be its future.
These business-leisure trips can either be pre-planned, whereby clients schedule their vacation within the same period
of a job-related trip. Companies may also offer their workers some tourist experiences during work trips.
On the other hand, this can come as an afterthought. Once the meetings, professional conferences, and other work
engagements are over, business travelers may decide to extend their stay and explore their destination.
There is also a growing trend among millennials known as the “digital nomad” phenomenon. This is whereby online
workers and freelancers adopt the lifestyle of traveling as they work.
2. Automation
Gone are the days when booking a trip required clients to make a phone call, speak directly to a service provider, or
walk into the supplier’s office for face-to-face negotiation.
Digitization has led to a rise in online bookings. Not only has this made advertising cheaper for travel companies, but
also customers are enjoying and increasingly prefer the convenience it offers.
Tour and activities companies have also progressively adopted technology and online booking.
3. Mobile Bookings
Another important aspect when it comes to digitization is mobile bookings.
Operators report that 2 in 5 online bookings are made on mobile devices. These smartphone shoppers are also more
valuable to your business because of the following reasons:
• They spend 50% more on tours and activities per trip.
• They average 2.9 tours per trip.
• They are twice as likely to leave online reviews.
4. Personalization
According to Think with Google, 57% of travelers believe that companies should personalize their buying experience
and base it on their behaviors, personal preferences, and past choices.
Personalization is also important when it comes to the actual tour or activity. By offering flexible experiences that can
be tailored to a traveler’s needs, you stand a chance of better satisfying your clients, and that can lead to repeat visits.
Your priority should, therefore, be on offering customer-oriented services.
5. Tech-Empowered Travel
We already talked about automation and mobile bookings as some of the future trends in the tourism sector. But
existing and emerging technologies will continue to influence travel in many other ways.
A recent Amadeus survey states that technology and innovation seem to be key in building traveler confidence and
they will increase willingness to travel in the next 12 months.
6. Sustainable Tourism
Countries are urged to accelerate climate action in tourism. So encouraging sustainable tourism practices and
environmental initiatives is of utmost importance for the resilience of the sector.
7. Active Ecotourism
Active Ecotourism is another trend that has emerged in response to the calls for more sustainable and thoughtful
tourism. It encourages combining the passion for travel with direct involvement in conservation and supporting the
local environment.
8. Transformative Travel
This is a new tourism trend that’s quickly gaining popularity. Transformative travel is about not just traveling for
leisure but also aiming to make a difference in both the lives of others and oneself.
Volunteering trips are an example of the experiences that have gained popularity from this trend. Travelers vacation
and also set aside time to volunteer at their travel destinations.
9. Experience Tourism
Experience tourism is on the rise. This trend is about having a once-in-a-lifetime experience or gaining an emotional
connection with cultures and nature.
As travelers get tired or bored of cookie-cutter vacations in touristy hot spots, they begin looking for an authentic
experience in their travel destination. They can easily go for a brand that will allow them to mingle with the
locals and experience the culture of the people.
10. Wellness Travel
These are travelers looking for an enriching experience with the primary purpose of achieving, promoting, or
maintaining the best health and sense of well-being and balance in life.
11. Longer Trips
With international travel returning to some degree, tourists are starting to dream about extended long-distance trips
again. While countries are advocating for less air travel, this trend will allow people to travel less but better.
12. Staycation
Staycation is another trend that gained popularity during the pandemic. It represents a holiday spent in one’s home
country or home rather than abroad. Often involves day trips for exploring local attractions and activities. This type
of vacation is ideal for people who are feeling the need of escaping out of their homes but want to avoid the ongoing
health related regulations.
IMPACT OF ICT ON EFFECTIVE FINANCIAL MANAGEMENT
Information technology had carved across all the aspects of modern day activities ranging from small to medium and
medium to large applications and operations. The trends of human centric systems which are more common and
popular at times are now slowly and gradually diminishing from our public and private corporate establishments. The
new , most versatile, popular, advent, efficient technique wherein the basic approach is computer centric modus
operandi have overridden almost all the modern day industrial practices from very basic step of requirement
elicitation to final product outcome. Information and Communication technology is this computer centric system. ICT
has increased efficiency, reliability, effectiveness, performance and other characteristics of modern day commercial
operations. ICT has increased and renovated financial structure both in quality and quantity. ICT has sophisticated the
way transactions are catered in any financial system with optimal levels of performance and efficiency. Now it is the
time to think beyond the curtains and ensure proper implantation and maintenance of information and communication
technology.
Financial Management Information Systems (FMIS) support the automation and integration of public financial
management processes including budget formulation, execution (e.g. commitment control, cash/debt management,
treasury operations), accounting, and reporting. FMIS solutions can significantly improve the efficiency and equity of
government operations, and offer a great potential for increasing participation, transparency and accountability.
Whenever FMIS and other PFM information systems (for example, e-procurement, payroll, debt management) are
linked with a central data warehouse (DW) to record and report all daily financial transactions, offering reliable
consolidated platforms can be referred to as integrated FMIS (or IFMIS). The World Bank is a leading provider of
financing and technical assistance for FMIS development.
The concept of digital transformation in the financial sector was only a concept, which has now become an integral
part of a successful business strategy.
Digital technology, cost-effective and fast operations opportunities. They also allow people to meet deadlines and
improve customer and employee experiences and standing in the marketplace. The use of digital technology in
compliance and financial management can help to minimize human error, manual error, and the risk associated with
the financial industry.
The financial services industry and the financial sector have seen significant changes due to digital transformation
and it is now a strategy to grow your business.
Some trends have been changed by digital technology in the financial services industry. Some are listed below:
Organizational Agility
Organizational agility is the ability to respond to disruptions in financial services caused by the economic crisis.
Businesses and firms are searching for innovative ways to support financial innovation. However, efficient means
must be used to achieve this goal.
Increased Collaboration
Many industries are now focusing on collaboration and communication in order to adopt a team-based operational
model. You must follow the rules and regulations of the financial sector.
Risk Assessment
Compliance management has been improved by digital transformation in financial services. Digital strategies are
beneficial for many firms that store large amounts of data. Digital strategies could mean financial services are being
replaced by digital ones.
Fintech
Fintech refers to the integration of digital applications and software into financial institutions’ systems.
Fintech has moved from traditional ATM machines to credit cards to blockchain technology, digital banking services,
and now it is all about fintech. Fintech is changing the world of finance and banking with ever-changing technology.
Financial services are being transformed by digital technologies like chatbots, expense tracking and online budgeting.
Between 2016 and 2018, at least 52% were involved in fintech digital solutions.
Digital Banking
Several incentives were offered to people who opened bank accounts in the past. However, digital transformation has
made it possible for consumers to have more than a mobile banking app and a credit card to pay their bills.
Online accounts are not the only use of digital technology. Digital banks are available for those who do not have
traditional branches. Both digital strategies and mobility have challenged the need for traditional banks in this digital
age.
Digital Disruptors
The financial industry is being disrupted by digital innovations. Fintech is home to many digital disruptors, including
smart payment technologies. Apple Pay is one example. There are other digital strategies in existence as well that are
moving the transactions to a digital platform.
Machine Learning and Artificial Intelligence
Digital transformation has enabled banks to identify fraud and theft using complex prediction patterns.
Blockchain Technology
Consumers can use cryptocurrencies like Bitcoin, Ethereum, or Dogecoin to make online payments and transactions
cheaper and more quickly. Blockchain technology’s Ledger system uses strict data control systems that allow for
auditable data as well as smart contracts.
The Role of ICT in Tourism
Effective and high-speed ICT infrastructure and software applications in the tourism and hospitality industry are
crucial for tourism development. ICTs allow customer-management relations and supply chain management to be
combined into a single source that facilitates a variety of operations - product selection, ordering, fulfilment, tracking,
payment and reporting to be performed with one easy-to-use tool. ICTs ultimately cut costs by enabling the provider
to be in direct contact with the consumer and also impact employment through the need for required maintenance of
ICT equipment. Management within tourism companies use ICTs to undertake a range of tasks that enhance the
efficiency of employees in the workplace, notably online reservations. The development of ICTs has also led to
changes in demand and supply. A higher demand for flexible, individualized options and quality of information has
personalized leisure and tourism behavior, a consequence of increased ICT use. Through new technology and social
and economic ratings (e.g., social media platforms like Facebook, Twitter, blogs) customers have the ability to share
information and research ratings on destination, quality of service in hotels and restaurants and environmental and
social conditions. Number of hotels (e.g., Marriot Hotels and Resorts, Ritz Carlton Hotels, Hyatt Hotels and Resorts)
have strengthened their brand image and communicate directly with their customers by posting links to a press
release or promoting new package through Twitter. E-Tourism - Demand and Technology-driven Revolution The
Internet revolutionizes flexibility in both consumer choice and service delivery processes. Customers have become
much more sophisticated and discerning. This is because they have experienced high levels of service and because
the standard of living has grown considerably. As a result, tourists have become more demanding, requesting high-
quality products and value for their money and, perhaps more importantly, value for time. This reflects people’s
shortage of time. Having been exposed to several tourism products and destinations, experienced, sophisticated;
demanding travelers rely heavily on electronic media to obtain information about destinations, as well as to be able to
communicate their needs and wishes to suppliers rapidly.
In Brief
➢ E-tourism is the leading B2C application - 40% of all B2C e-commerce
➢ 50% of tourists use the Internet to get information on destinations.
➢ "Internet will account for 25% of travel purchases within the next five years.
➢ " ICT” Predicted to be the next revolution in travel technology. … Waiting for the customer to come to
you is no longer enough.”
➢ Brand: 80 percent of on-line customers prefer buying from companies they already know.
E-Tourism Impacts on Marketing Mix
ICTs provide unique opportunities for innovative organizations to redesign tourism products to address individual
needs and to satisfy consumer wants. ICTs have also become part of the core product, especially for business
travelers who now expect certain facilities to be available during their trip. The internet and the World Wide Web
have revolutionized the promotion and communication functions of tourism. ICTs can reduce commission costs.
Expedia, eBookers, to emerge and gain a significant market share, propelling a reintermediation in the distribution
channel.
IMPACT OF ICT IN GLOBAL ACCESS, INDIVIDUAL CONSUMERS WITH INFORMATION AND
RESERVATIONS IN THE ACCOMMODATION SECTOR, ICT IN ACCOMMODATION PROVIDER
E-Airlines
Computerized Reservations Systems (CRS) in the place of manual reservations on display boards where passengers
were listed and travel agencies had to locate the best routes and fares for their customers in a manual and then
telephone for availability, reservation and confirmation before issuing a ticket manually.
E-Hospitality
ICTs have penetrated hospitality management at a fast pace, integrating the hotel operations, reshaping the marketing
function, improving total efficiency, providing tools for marketing research and partnership building, and enhancing
customer services, while also providing strategic opportunities.
E-Tour Operators
Tour operators need constantly to interact with all their partners, including accommodation and transportation
principals, ICTs are also critical for the distribution of tour operators’ packages. The introduction of the Internet,
Intranets and Extranets as strategic tools has as strategic tool has a number of benefits for tour operators. The co-
ordination and exchange of timely information is important because it allows tour operators to co-ordinate activities,
to resolve potential problems and to ensure that customer requirements are communicated to all principals delivering
the tourism product. Strategically, ICTs play a critical role for tour operators.
E-Travel agencies
ICTs have introduced major improvements in the internal organization of travel agencies. By integrating their back-
office (e.g., accounting, commission monitoring, and personnel) and front Office (customers’ history, itinerary
development, ticketing and communication with suppliers) functions, travel agencies have achieved significant
synergies, efficiencies and cost savings.
E-Destinations
Destination management System (DMS) have been used to integrate the entire tourism supply at the destination.
Their contribution to strategic management and marketing is demonstrated by their ability to integrate all
stakeholders at destinations and to reach global market.DMS offering innovative information and sometimes
facilitating reservations. Destination Integrated Computerized Information Reservation Management Systems
(DICIRMS) address entire range of needs and services required by both tourism enterprise and consumers for specific
destinations.
THE ROLE OF SOCIAL MEDIA IN TOURISM MARKETING
Social media has changed every single aspect of our lives, including the way we consume. These developments have
significantly affected businesses mainly through enabling new marketing strategies. Tourism, being one of the most
vibrant sectors of the global economy, is undoubtedly a part of all these. Merging social media and tourism marketing
will lead to excellent results in business.
Importance of the Social Media
Social media impact on tourism is seen in the ways people research before going on a trip. Now people are
encouraged to share their travel experiences. Thus, social media has transformed the way people make decisions.
People build their trust in a tourism agency based on the reviews of the others.
Social sharing for better customer relations
Customer service is another essential aspect of the tourism industry that has changed with social media. Now brands
and businesses can reach their customers directly through social media. When people are unsatisfied with a tourism
service, they can call the companies to account for that. Thus, solving the problems of the customers in the kindest
ways will lead to a better reputation for a company.
To Create Strategies
The tourism industry is highly competitive. Once tourism companies are aware of the possible benefits of social
media for their business, they use ways through which they can increase their brand awareness.
Engaging content is the king
Creating engaging content is the most crucial step to go if you aim to attract more customers. Since the tourism
industry is significantly connected with visual experience, visual material is the most engaging way to catch attention.
You should use catchy photos and impressive videos that are simple and fun. User-generated content is one of the
best ways to get people to engage with your business. Influencer marketing will help a lot to make your business
visible among the others.
Increase visibility
After you are familiar with the role of social media in tourism marketing, you notice that whatever you do, being
social is the key, it increase your visibility.
Best Social Media Channels for Tourism Marketing
As in any other industry, Big Three of the social media -Facebook, Twitter, and Instagram have been the leader in
the tourism industry as well. Even though these channels have their own audience, travel is among the most shared
topics on all of them.
Other than the Big Three, there are various platforms that you can use to get in contact with different groups of
travellers. For example, LinkedIn is significant for B2B. Business travellers share information on Linkedin groups
about many topics, including business trips. If you want to reach business travellers, you use LinkedIn to reach them
depending on the locations in which you provide service. Other Widely used Social media platforms like Gen Z,
Snapchat are another platform that is important for tourism marketing strategy if you are targeting young customers.
