Third Posting

{ March 26, 2008 @ 4:27 pm } · { Uncategorized }

The Impact of Using ICT for Business

‘Information technology and business are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without the talking about the other’ (Bill Gates). Everyone knows that Internet is invented by Bill Gates. ICT have been using by many field, one of them was business. Here are the impacts of using ICT in business. Although so many research done to find the impact of using ICT in business, either good or not, but very different result have been found. Some researchers assert a positive impact, while others consider it significant, or even assume a negative impact. This is true. From the using of computer, we can see that it make better for the costs for companies of collecting, analyzing, retrieving and re-using information. This is also means companies are now able to share their information at great speed, large distances. When computers become cheaper and more powerful, the business value of computers is decreased by their and more by the ability of managers to invent new processes, procedures and organizational structures. Just as electricity enabled development of the continuous production line processes, the decentralized availability of information through IT allows the reduction of hierarchical structures within firms and greater empowerment and capabilities for work teams and individual workers.

An expert of economic told that:

“ICT plays a vital role in advancing economic growth and reducing poverty. A survey of firms carried out in 56 developing countries finds that firms that use ICT grow faster, invest more, and are more productive and profitable than those that do not”. With using ICT in business,

a customer can always communicate with their firm’s, providing increased scope to tailor products to individual requirements, allow more lean and inventory management. A research shows that in the last forty years later, adoption and implementation in the public sector decreased than the public sector in most of the Asia Pacific countries. It is because the private sector uses ICT in many type of business such as information management, payroll, and accounting since the 1960’s.

‘I think there is a world market for maybe five computers’. – IBM Chairman Thomas Watson, 1943. Many experts told that using ICT in business giving many good impact. With using ICT in business, they can allowing Exchange of Values that means public are able to make payments and etc. Peter Ducker also stated that E-commerce, facilities using ICT, has their own potential to make the evolution of information , that very new, unprecedented, unexpected development that can transformed both the mental and economic geography of many companies and communities. Bill Gates argues that, the security is the top f priority because of all the exciting and lot of things that you can do with ICT, managing lives, connecting people, and others. It is afraid that if business will make critical information on ICT because it will be exposed. ICT economy was knowledge technologist, that computer technicians, software designers, analyst in clinical labs, manufacturing technologist and others were much better paid by traditional skilled worker. Knowledge technologist is likely to become the dominant in social in future. Many other researches emphasized ability to align the strategically company management and ICT management activities. Barua et al.919950 working for about five years on collecting data, and found a positive impact of using ICT in business, such as market share and ROA.

Research also found that using ICT in business give good impact in planning of marketing strategy, sales management, product manufacturing, reward systems, financial management, legal service, technological research, and many more. On business performance, the positive impact that has been proven was in rate of sales, market share, program of cost reduction, personnel development, operational results, developments of new market, public or political relationship and many more also. There are a company that done a survey about the impact of using ICT in business. The surveyed companies were classified by size according to the current definition provided by the European Community and industry. In both cases, the distribution reflects the peculiarities of the economical context of Northern Italy: 50% of the companies are small-size enterprises, 36,2% are medium-size companies, while 13,8% have a relevant size. On the other hand, with respect to the business sector, the sample is concentrated into three main groups as shown in Table 3: manufacturing (62%), services (22,7%) and trade (12,7%).