Activity.... Write a list of all the ICT that you use? Make a list of the things that you use business for? Do you think this is too much different from business?

The purpose of ict in business activity ICT is now used frequently used by all businesses as a method of communication. Letters, reports and memorandum (memos) can all be created using word-processing programmes. The use of email has increased dramatically as a method of communication. With a simple ‘click’ of a button you can send and find information from all round the world. The main advantage is the speed and cost of communicating this way.

The purpose of ict in business activity Businesses need to keep a check of their stock levels using a spreadsheet or database, enabling calculations can be done to show stock sold or left in the warehouse. This helps so cash is not held in stock, or so they don’t have too little to meet customers needs. In large supermarkets the tills (EPOS) are linked to the stock control system so items are automatically re-ordered at minimum stock levels.

The purpose of ict in business activity Databases can record information, for example in Human Resources for all the employees or of customers and their purchases. Hairdressers may record the details of treatments customers have had or a poor reaction to some chemicals. Information can be stored securely with passwords and restricted access.

Different Types of Use in Business There are different types of ICT used in business activity. The following slides contain the main ones. These are general ones but please not that different businesses will use different ICT for different things including bespoke software and specialist functions.

P.C.S and Laptops This is a computer that is used mainly by 1 person at a time. A PC is a desk top computer fixed in 1 place. A Laptop is like a PC but portable. You may have one or both of these at home!

A Network This can be as simple as 2 computers linked together! Computers are linked together so they can share information and files. The computers at school are networked together so you can access your files from anywhere in school. Networks can be in the same building or from one building to another, sometimes different countries

Software This is the programs that a business will use to help it in its day to day activities. Some businesses use the ‘normal’ software, but some have bespoke (their own) software for specialist purposes. Examples are.....

Spreadsheets This is software that is used to carry out calculations. They are very common in businesses and used for a lot of different things, such as recording sales, engineering data and accounting. Used by a lot of businesses, especially accountants. Spreadsheets, invoices, budget statements

Word Processing Software used to display written material and information. Examples are flyers, reports and letters. Word processing makes it easy to recall information at a later date. You can print as many copies as you need, attach files to emails. Invoices, letters, contracts etc

Databases A Database is an organised collection of date. It can be a list of customers details, parts, suppliers or used for stock control and reordering. Stock control, customer lists, suppliers, employees etc

PowerPoint This is presentation software and it allows you to present information to staff or to customers, even students in a class room! Businesses use it to present information, graphs and charts and promoting the business

Desk Top Publishing DTP Software that businesses use to create promotional material and it makes things more professional than a word document. Creates flyer and other promotional material.

Internet You all know the internet.... It is used for all sorts of things – especially now! Online shopping, ordering things, storage, communicating and sharing, advertising and loads of other functions like email, online chats, blogs and al sorts of other functions...

E-commerce This stands for electronic commerce...basically selling things and doing business over the internet. Online shopping, buying and selling things online.

Email – electronic mail Used to communicate to both customers and employees. It can be used to pass on information or promote the business, communicate with employees and you can attach files and other information.

The purpose of ICT in business Activity ICT is now frequently used by all businesses as a method of COMMUNICATION. With a simple ‘click’ information and messages can be sent all over the world. Letters, reports and memos can all be created using word processing programmes. The main advantage is the speed at which the message or information can be sent and the cost sending it – it is cheep! (When you tweet – ha ha)

How is it used? Businesses need to keep check on their stock levels, a spreadsheet can be used for this. It can calculate how many items have been sold, how many are left in stock and let you know when to re-order. This helps the business so they don’t have too much stock, costing money or too little so they are unable to meet the customers needs. In large superstores the tills are connected to a computer program (stock management) so that stock can be automatically re-ordered.

How is it used? Databases can record information. The data collected can be used by Human Recourses to keep a record of employee details. It could also be used to collect customer information, for example a hairdresser may keep records of the treatments a customer has had. It allows them to look back and see if the client is allergic to any products or the colours that they have had done, mixed.

Use of ICT in Economic Activity The main use of ICT for Economic activity is e- commerce for online sales. There are 3 kinds:- Business to business – buying and selling good to each other Business to individuals – where you buy stuff eg you buy a song from i-Tunes Individual to individual – where people buy and sell to each other eg ebay Some customers have been concerned about the security of e-ecommerce and entering and storing credit card details. PayPal, WorldPay are more secure now

Kagan Task Quiz, Quiz, Trade Think of two questions about the use of ICT in Business, Write the question and the answer down, Go ask each other Make sure the person you ask understands and can explain the answer.

Activity – 10 minutes

Potential Benefits and Drawbacks Businesses need to evaluate their ICT provision. This includes the hardware and the software. Decisions to upgrade the technology used to upgrade the business needs careful consideration. Any decision may have benefits or drawbacks. Success and the business will run smoothly, On the other hand the n=business may have PCs and printers that don’t work, intermittent email and frustrated staff!

The Labour saving benefits? Generally it is thought that using ICT will make it more efficient, saving time and labour. Unfortunately this is not always the case! Many hairdressing salons have used a manual diary where appointments can be changes and cancelled easily with a pencil and rubber. Initially in any business a new system will cause ‘teething’ problems and while staff get used to it and the new software and procedures

The Labour saving benefits? Having decide to update the ICT facility there may be some benefits gained in terms of general labour saving efficiency. For example a till may also link to the stock control system will save time having to do manual stock takes – counting everything. It also makes sure there is enough stock available to meet customers needs. Modern garages embrace the new technology in order to diagnose faults in cars. This technology will need to be updated which may also cause a problem.

Cost Saving Benefits Updating the ICT is not a decision just based on the cost of the equipment. The business needs to look at the support available to install and maintain new equipment and software. The more complex the system the higher the cost. The cost saving benefits are that money could be saved if the new system is faster, saving time and more efficient, meaning the same work can be completed faster – increasing overall efficiency.

The paperless office As computers slowly begin to dominate our working lives it was always presumed that they would create the paperless office! However, look around most offices and there is still as much paper as emails and important information is still printed out. It would appear that most people still like to see paper copies of important information. Sometimes paper is still faster! It may still be faster to write a list of jobs to do on paper than on a computer

The growth of e-commerce A business will also have to consider the costs in such developments as e-commerce. They will need to design and maintain a website, pay a web host and deal with the orders. This could impact the way that the business currently works and if initial orders are not large it could increase the costs of the business.

You need to be able to ..

It is now – well 2014 at 22 million

Activity

The drawbacks of ICT. Training – staff need to be trained to use the ICT, this can be expensive and time consuming. Cost - the cost of the hardware can be high, as well as the cost of networking and the support for the new system. Security – the security of the computer system is often a concern to the business as well as the customers.

Summary

Exam Style questions Now answer the exam style questions. Use the notes or PowerPoint to help you Write in full sentences, giving appropriate examples where needed.