ICT in Business

Definition and concept of business

technology

Business technology refers to applications of science, data, engineering, and

information for business purposes, such as the achievement of economic and
organizational goals. The main element of technology is the idea of change, and
how it can affect business and society.
Role of technology in business:

ICT is considered to be all uses of digital technology that exist to help

individuals, businesses and organizations use information. So ICT is concerned
with the storage, retrieval, manipulation, transmission or receipt of digital data.
Importantly, it is also concerned with the way these different uses can work with
each other.
Ways in which technology has
influenced banking and commerce:

(i) Through the introduction of Automatic Teller Machines (ATMs) and Automated
Banking Machines (ABMs) which facilitate the deposit and withdrawal of funds, as
well as other services without having to go into a bank to access teller services.
The location of ATM machines in hotels, petrol stations, malls and supermarkets
adds to the convenience of customers who can transact business without having
to wait in line at a bank.
Ways in which technology has
influenced banking and commerce:

(ii) The practice of on-line banking which enables customers to access their
accounts from home and other locations using personal computers. This facility
enables customers to check their balances from the comfort of their homes and
permits easy and convenient payment of utility and other bills. Customers with
more than one account can also use this facility to transfer funds from one
account to another.
Ways in which technology has
influenced banking and commerce:

(iii) Through electronic commerce (ecommerce) Using the internet, individuals

and businesses are now able to make business transactions via the World-wide
web, without having to visit a physical brick and mortar store. E-commerce has
given rise to many on-line stores which permit customers to browse for products
and pay for them electronically.
Types of technology:
(a) Traditional
 (i) Productivity tools, for example:
- Word;
- Excel;
- database software: Access;
(ii) Presentation software:
- PowerPoint –(designed to create electronic presentations)
- Prezi (virtual presentation software) and,
(iii) graphics software:
- Adobe - known as Adobe Systems, the company is known for its multimedia and creativity
software products. Popular products include Photoshop, Acrobat Reader, and Adobe Creative Cloud.
-Photoshop-( photo editing and manipulation software )
Types of technology

1. Specialist application
 QuickBooks is an accounting software package developed and marketed by
Intuit. QuickBooks products are geared mainly toward small and medium-
sized businesses and offer on-premises accounting applications as well as
cloud-based versions that accept business payments, manage and pay bills,
and payroll functions.

 CAD - Used by engineers, architects, and construction managers, CAD has

replaced manual drafting. It helps users creating designs in either 2D or 3D so
that they can visualize the construction. CAD enables the development,
modification, and optimization of the design process
Types of technology -MIS

2. A management information system (MIS) is a computer system consisting of

hardware and software that serves as the backbone of an organization's
operations. An MIS gathers data from multiple online systems, analyzes the
information, and reports data to aid in management decision-making.
Advantages of using MIS –save time during the completion of work
Mis provide the data for identifying non performing areas in the business
It enables better decision making, better business productivity and better
communication
Disadvantages – its very sensitive so it requires constant monitoring
It is expensive to set up, tasks that were carried out by employees are now
carried out by machines (result in unemployment)
Digital communication technologies

DCT's are digital tools that allow two or more people to communicate with one
another. These can be written, verbal, visual or audible communication. Some
examples of these are: Having a text conversation with someone via mobile
phone.
 (i) internet; and,
 (ii) mobile.
 Distinguish between E-commerce and E-business

In both cases, the e stands for "electronic networks" and describes the
application of electronic network technology - including Internet and electronic
data
E-Commerce

E-commerce covers outward-facing processes that touch customers, suppliers and

external partners, including sales, marketing, order taking, delivery, customer
service, purchasing of raw materials and supplies for production and
procurement of indirect operating-expense items, such as office supplies. It
involves new business models and the potential to gain new revenue or lose some
existing revenue to new competitors interchange (EDI) – to improve and change
business processes.
E-Business

E-business includes e-commerce but also covers internal processes such as

production, inventory management, product development, risk management,
finance, knowledge management and human resources. E-business strategy is
more complex, more focused on internal processes, and aimed at cost savings
and improvements in efficiency, productivity and cost savings.
ways in which Technology can improve business

(i) speed and time;

(ii) easier storage;
(iii) improved sharing of information; and,
(iv) Automation .(The use or introduction of automatic equipment in a manufacturing or other
process or facility)
Benefits of technology to business

 (i) reach more potential customers, develop a business relationship with

potential customers;
 (ii) streamline operations, reduce costs, improve efficiency, maximise profit,
minimize waste, devote talent to core business instead of overhead
Benefits of technology to business

(iii) provide better service to customers;

(iv) support better relationships with key partners; and,
(v) allow customers to better guide the business.
Unethical use of ICT:

(a) security; (hackers, identity theft, increasingly difficult to secure

information)
(b) privacy; (cookies –use to gather information about people, social network)
(c) intellectual property infringement;
(d) impact on humans; (cyber crimes, cyberbullying, malicious gossip, decline in
social interaction)
(e) Distraction –frequent checks for messages , updates etc. can distract from
your work)
1) A business manager based in Jamaica wants to hold a face to face meeting with
someone in London. The best option would be by
A) telecommuting b) video conference c) first class flight d) teleconference
2) A disadvantage of a cookies is that they enables others to
A) send your special offers b) invite you to join social networks c) learning
something about you d) all of the above
3) List three examples of technology used by a business
4) Outline TWO ways in which technology may be used to enable businesses to grow
5) Explain the purpose of Management Information systems
6) State two benefits and two challenges associated with the use of MIS