Role of information and communication technology in business Now that we are aware of some of the ICT technologies, let us see how it has impacted businesses in recent times. The role of ICT in business is to provide tools and systems that enable efficient communication, data management, analysis, and decision-making processes, as well as to enhance productivity, customer engagement, and competitive advantage. ICT can support various aspects of businesses like the location of employees, collecting, storing, and analyzing information, e-commerce, and digital communication. Location of employees As per the statistics published by the Office of National Statistics in the UK, the proportion of adults who worked from home in 2020 increased to 37% on average from 27% in 2019. Many businesses ran completely remotely, without their employees reporting to work for the entire period of the pandemic. Even without a pandemic, many businesses have overseas units. Some businesses have production factories, call centres, or administrative departments overseas. Many businesses frequently outsource work abroad. Many software technologies help employees around the world communicate effortlessly. Services like Microsoft teams or Slack provide a solution for informal communication and aid discussions, while Zoom calling provides a platform for large teams to communicate. Of course, there is an option of emails for formal communication. The impact of ICT is so strong on businesses that now many businesses are replacing employees with technology. If you visit any McDonald's, you can place an order using their kiosk. In supermarkets, you have self-checkout counters. All these are examples of the impacts of ICT on employees. Collecting, storing, and analyzing information Data collection and analysis is probably the most important function businesses are now concentrating on. Proper data analysis can identify trends and customer behaviour that in turn can help businesses decide on their strategies. Different companies collect data differently, on different things. For example, Tesco collects data like frequently bought items, average money spent per order, what groceries are selling fast, etc. Another mode for data collection is feedback forms. You may have given feedback about how you liked the service after talking to a customer service agent. The data collected will help businesses not only access their employee but also to improve their business processes. After collecting the data, the business has to store it properly so that businesses can analyze it. Companies can invest in their servers to store data or use cloud services provided by Amazon or Google. Data analysis is to find out the correlation between data to make conclusions that will help decision making. This could be a simple decision such as which flavour of Coca-Cola customers prefer in South London. If the answer is Diet Coke, then it does not make sense to fill all shelves with Cherry Coke. Advantages and disadvantages of ICT in business ICT has helped businesses work efficiently and develop fast - but there are some drawbacks along with the benefits. Advantages of ICT 1. Fast communication: emails are quick, but chat on platforms like WhatsApp are quicker. ICT lets businesses communicate anywhere on the globe within a fraction of a second. 2. Cost-effectiveness: working from home simply saves money and time. Efficient technologies reduce the time required to complete the task. For example, a tractor will plow better and faster as compared to the old way of using various practical tools. 3. Better information security: private data can be better protected by ICT in comparison to paper files. Sensitive information can be protected using a high level of encryption. This tool can also save customers from fraudsters and identity thieves. 4. Overcome cultural barriers: Technology does not differentiate between users based on religion, race, or gender. Technology also helps people understand different views and opinions. Disadvantages of ICT 1. Lack of security: Even though IT provides better security than traditional ways, it is still susceptible to external attacks like hacking or software viruses. 2. Unemployment: Many information and communication technologies are replacing human employees. It is making many jobs such as customer support redundant. For instance, recent driverless car technology may replace all taxi drivers in the future. 3. The initial cost of implementation and maintenance: It may cost a lot to implement and maintain a secure and user-friendly website. Also, businesses have to comply with new laws and regulations that are introduced. 4. No human touch: Working from home has increased mental health concerns within individuals. Many businesses worry about their employees lacking human interaction. When it comes to chatbots, many customers wish to talk to a real person who can understand and solve problems faster rather than the software. ICT is highly important for businesses to survive, compete, and grow. ICT has an impact on every part of the business from production, supply chains, marketing and sales, and business communication. There are many advantages of ICT like cost-effectiveness, efficiency, and security. But if not implemented properly, ICT can be disastrous to businesses because of disadvantages such the high initial cost of implementation, unemployment, lack of human touch, and cyber attacks. Information and communication technology examples in business Examples of communication technology used in business include email, instant messaging, video conferencing, virtual phone systems, and social media platforms. Here are some examples: Amazon uses Amazon Chime, a communication tool that allows for online meetings, video conferencing, and chat messaging between employees, as well as email and phone communication. Slack is a software company that uses its own communication tool, Slack, for internal communication between employees, as well as for communication with clients and partners. Slack allows for real-time messaging, file sharing, and video calls. Walmart uses Workplace by Facebook, a collaboration tool that allows for real-time messaging, video calls, and group communication. Information and Communication Technology in Business - Key takeaways Information and Communication Technology (ICT) refers to the use of digital technologies to process, store, and exchange information. ICT includes tools and applications such as computers, smartphones, internet, social media, email. A network used by employees of a business to communicate privately is called an intranet. An extranet is also a private network. Along with employees, other stakeholders like suppliers and wholesalers can access the extranet of the company. Software robots are special software created to work as a virtual workforce. Cloud servers let businesses store their data on the server of another company. The buying and selling of goods that occurs using the internet are called e-commerce. E-commerce that happens using mobile devices is called m-commerce. Communication, where information is transmitted between two computers electronically, is called digital communication. The benefits of ICT are fast communication, cost-effectiveness, better information security, and no cultural barriers. ICT also has disadvantages including the high initial cost of implementation, unemployment, no human touch, and cyber attacks.
