ICT in Business & Commerce AS Module Heathcote Ch. 2

Changing Shape of Business  ICT is now vital to the success of most organisations  The range of goods and services delivered via the medium of ICT continues to expand  Typical trends in the “information age” More small businesses Large organisations becoming less hierarchical – ‘flatter’ Information workers have become more important Workers now need knowledge and skills in: Problem-solving Communications Using initiative Using new technology

Information technologies  Most careers now involve employees using some aspect of information technology Office administration Production Control Design applications Global communications  Many ‘new’ products are now commonplace ATMs Mobile telephones CD and DVD players (and writers) Computer games

Shopping on the Internet  Thousands of companies now do business on the Internet, including: Tesco For £5 you can have your shopping delivered to your door Amazon Cheap books and CDs EasyJet Book cheap flights online cutting out the travel agent  The Benefits to Business Lower overheads (don’t need to buy land to display goods) Customer care can be ‘outsourced’ - many help lines are now based in Asia where labour is cheaper. Other help lines are fully automated.

Shopping on the Internet 2  The benefits to business (ctd.) Can easily collect customer data for marketing purposes The customer benefits: Ease of use (no more shopping trips!) Businesses pass on cost savings in lower prices Wider choice of goods/services (especially in the rural community) Can search massive databases to find EXACTLY what you want  The drawbacks Cost of setting up e-commerce sites Not everybody access to the Internet Creation of a social underclass Lost working hours (i.e. workers use company Internet access and time for personal use - finding cheap holidays, checking football results, visiting porn sites etc.)

Shopping on the Internet 3  The drawbacks (ctd.) Waiting for goods to arrive (if they arrive!) Security concerns: Credit card fraud Bogus companies Who do you complain to if you experience poor service? Can’t touch, taste or feel goods before you buy them SPAM Some people actually enjoy shopping!

Using IT to set up a small business 1  PC with peripherals (scanner, printer etc.) To run the software  Fax machine To communicate with customers and suppliers. Fax modem standard with most new PCs  The Internet To advertise and sell products online  For internal and external communication  On-line banking To keep track of finances (cash flow etc.)  Telephone and answering machine See Fax. Vital to any small business

Using IT to set up a small business 2  Spreadsheet Help set up business plan by calculating expected income and expenses. Perform “what if” queries to test the effect of raising or lowering prices.  Graphics Create high quality commercial documents i.e. design logo, headed stationary, business cards etc.  Word Processing Design invoice stationary, send mailshots etc.  DTP Design high quality advertising, promotional material etc.  Database To keep a mailing list of customers

ICT in banking  The banking sector relies heavily on ICT: Telephone banking Internet banking ATMs Credit/Debit cards MICR Direct debit Smartcards