Why Do Business Use ICT?
ICT can be used in order to reduce costs.
This means either
Lower Prices
This should increase sales leading to increase revenue and profits.
Lower Costs
This will lead to increase profits
How Can ICT Help Businesses?
There are many ways including:
Improving Communication
ICT allows communication to take place more quickly
Keeping Accurate Records
Spreadsheets can be used for financial work
This saves the time and reduces the risks of errors
Databases can be used to store
Staff Records
Reduce administrative costs
Customer Records
Quicker access to information
Better customer service
Marketing
Product
Market research can be carried out and analyzed more quickly
Price
Can collect information about competitor’s price more easily
Place
GPS and route-planning software can reduce delivery times
Internet can make products more easily available
Promotion
New Forms of advertising are available
Production
ICT has helped business improve production using:
CAD/CAM and CIM
Automated factories mean that more can be produced in less time
This means that there is less waste
This means a business is more competitive
Robotics
Can work 24 hours a day, if necessary
Can do boring jobs
Do not need regular breaks and are usually quicker
They are consistently more accurate
They can work in dangerous situations e.g. Bomb Disposal
Stock Control
ICT has created the following tools for businesses:
Electronic Point of Sale (EPOS)
Database of stock, which is kept up to date using barcodes
Re-ordering is done automatically saving time
This means businesses hold less stock, so saves money
Electronic Data Interchange (EDI)
Sales and stock information is automatically sent to head office
Electronic Fund Transfer at Point of Sale (EFTPOS)
This system allows customers to pay electronically using a card-debit or credit
Let’s try to find the ways in which organizations use ICT:
4. Use of ICT in teaching and learning
6. Use of ICT in time management
