1. Unit 4 – Impact of the use of IT on Business Systems

2. Session 5 - Impact

3. Impact Starter Starter Activity Working with a partner:
Can you identify 3 drawbacks a business could receive from ‘upgrading’ its IT Systems?
Explain how you think will these drawbacks could affect the business?

4. Unit 4 Learning Aims After completing this unit you should:
Understand the effect of developments in information technology on organisations
Understand how organisations respond to information technology developments
Be able to propose improvements to business systems using IT

5. 1.5 Impact (1) Areas of Impact include:
Cost – Short Term Costs Vs. Long Term Gains
Impact on Procedures – whenever new IT programs or systems are introduced into a business the way it operates has to change (and this needs to be done smoothly).
Impact on Staff – they may require specialist ICT skills to cope with any changes to IT programs or systems.

6. 1.5 Impact (2)
Redundancies – IT may replace the need or use of current employees who will then require redundancy payments as their contracts are terminated.
Core Employees and Contractors – a business will have to decide which employees and services it must keep total control of and those that may be provided by outside firms.
Enabling Home Working – this can cut costs by encouraging employees to work from home.

7. 1.5 Impact (3)
Impact of Regular Restructuring – costs of keeping up-to-date, changing location, changing staff numbers.
Integration of Legacy Systems – how will a business use “old” and “new” software, programs, systems side-by-side.
Security – how will a business protect itself and customers from hacking, viruses, spyware, etc.