Impact of Information Technology in Business by cbi18245

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									Impact of ICT Innovations
      on Business
(Collaborating with ICT Innovations for
          Business Survival)
        Dr. Wayne Summers
      Columbus State University,
          Columbus, GA, US
   It took 35 years from the date the
    telephone was invented for it to
    reach 25% of the world population.
   It took 26 years for the television to
    achieve the same feat,
   16 years for the personal computer,
   only seven years for the Internet
   Internet users worldwide have
    quadrupled between 2000 and 2005
   In the world, there are now more
    mobile than fixed line phones
   Approximately 70% of the
    developing world’s population now
    lives within the footprint of a mobile
    phone service
―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‖

―Information and communications
  technologies (ICT) have had uneven
  deployment both between nations
  and within nations. These differences
  in the use of ICT and the Internet
  are part of the ‗digital divide‘ ‖

Peslak, A. A review of national information and communication technologies (ICT) and a
    proposed National Electronic Initiative Framework (NEIF), First Monday, volume 11,
    number 5 (May 2006),
Impact of ICT Innovations on Business
    Introduction
    History / Development of
     Information & communications
     Technology (ICT)
    Impact Of ICT Innovations On
    Future of ICT
    Conclusions
   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
   That seems to me a vital point. It is incontestable that the
    spread of computing power has reduced radically the costs
    for companies of collecting, analysing, retrieving and re-
    using information. The growth of voice and data
    communications means companies are increasingly able to
    share and spread this information at great speed, over
    large distances.
   So as computers become cheaper and more powerful, the
    business value of computers is limited less by
    computational capability and more by the ability of
    managers to invent new processes, procedures and
    organisational structures that leverage this capability.
   Just as electricity enabled development of the continuous
    production line processes, the decentralised availability of
    information through IT allows the reduction of hierarchical
    structures within firms and greater empowerment and
    capabilities for work teams and individual workers.
   ICTs can also transform a firm's relations with its
    customers, providing increased scope to tailor
    products to individual requirements.
   ICTs also allow more lean and timely inventory
   In other words, investment appears to have a
    greater beneficial impact if complemented by
    organisational changes, greater use of delegated
    decision-making and improvements in related
    workforce skills.]
        History / Development of
     Information & communications
            Technology (ICT)
   Almost everybody today believes that nothing in
    economic history has ever moved as fast as, or
    had a greater impact than, the Information
    Revolution. But the Industrial Revolution moved
    at least as fast in the same time span, and had
    probably an equal impact if not a greater one. -
    Peter Drucker
   · The new information technology—Internet and
    e-mail—have practically eliminated the physical
    costs of communications. - Peter Drucker
   I think there is a world market for maybe five
    computers. - IBM Chairman Thomas Watson,
      History / Development of
   Information & communications
          Technology (ICT)
Six stages of ICT in public sector
 Email System and Internet Network (internal
 Enabling Inter-Organizational and Public Access
  to Information (one way to public)
 Allowing Two-way Communications (posting
  email & fax addresses; tracking information –
  status reports)
 Allowing Exchange of Values (public able to make
  payments, etc.)
 Digital Democracy

 Portal for Citizens
     Impact Of ICT Innovations On
   ―In the last forty years, adoption and
    implementation in the public sector
    has been slower than the private
    sector in most of the Asia Pacific
    countries. The private sector has
    been encouraged to use ICT in many
    types of business functions such as
    information management, payroll,
    and accounting since the 1960s.‖
    [Ong 2001]
                   Future of ICT
   Moore's Law asserts that the price of the Information
    Revolution's basic element, the microchip, drops by 50
    percent every eighteen months.
   Peter Drucker argues that like the industrial revolution two
    centuries ago, the information revolution so far has only
    transformed processes that were here all along. In contrast,
    he argues that E-commerce, facilitated by ICT, has the
    potential to be to the information revolution what the
    railroad was to the Industrial Revolution - a totally new,
    totally unprecedented, totally unexpected development that
    transformed both the mental and economic geography of
    companies and communities.
   Security is, I would say, our top priority
    because for all the exciting things you will
    be able to do with computers.. organizing
    your lives, staying in touch with
    people, being creative.. if we don't solve
    these security problems, then people will
    hold back. Businesses will be afraid to put
    their critical information on it because it
    will be exposed.
    Bill Gates
   This new knowledge economy will rely heavily on
    knowledge workers. ...the most striking growth
    will be in ―knowledge technologists:‖ computer
    technicians, software designers, analysts in
    clinical labs, manufacturing technologists,
    paralegals. ...They are not, as a rule, much
    better paid than traditional skilled workers, but
    they see themselves as ―professionals.‖ Just as
    unskilled manual workers in manufacturing were
    the dominant social and political force in the 20th
    century, knowledge technologists are likely to
    become the dominant social—-and perhaps also
    political—-force over the next decades. -- "The
    next society" (November 2001)
   I want to know what good is a Web
    search engine that returns
    324,909,188 "matches" to my
    keyword. That's like saying, "Good
    news, we've located the product you
    want. It's on Earth."
ICT sector performance
                                                                Upper-     East
                                                                middle-    Asia &
                                                                income     Pacific
                                              Malaysia          group      Region
                                             2000        2004       2004      2004
Telephone main lines (per 1,000 people)      199         176         220       194
Mobile subscribers (per 1,000 people)        220         573         490       248
Population covered by mobile telephony (%)    95          96          84        73
Internet users (per 1,000 people)            214         392         133        75
Personal computers (per 1,000 people)         95         170          99        37
Households with television (%)                84          98          92        80

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