Impact of ICT Innovations on Business

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Impact of ICT Innovationson Business(Collaborating with ICT Innovations for

Business Survival)Dr. Wayne Summers

Columbus State University,Columbus, GA, US

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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IMPACT

It took 35 years from the date thetelephone was invented for it toreach 25% of the world population.

It took 26 years for the television toachieve the same feat,

16 years for the personal computer,

only seven years for the Internet


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IMPACT

Internet users worldwide havequadrupled between 2000 and 2005

In the world, there are now moremobile than fixed line phones

Approximately 70% of thedeveloping worlds population nowlives within the footprint of a mobilephone service


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IMPACT

ICT plays a vital role in advancingeconomic growth and reducingpoverty. A survey of firms carriedout in 56 developing countries finds

that firms that use ICT grow faster,invest more, and are moreproductive and profitable than those

that do notOVERALL SUMMARY OF THE IC4D

http://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/R

esources/282822-1141851022286/IC4D-Summary.pdf
http://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1141851022286/IC4D-Summary.pdfhttp://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1141851022286/IC4D-Summary.pdfhttp://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1141851022286/IC4D-Summary.pdfhttp://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1141851022286/IC4D-Summary.pdfhttp://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1141851022286/IC4D-Summary.pdfhttp://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1141851022286/IC4D-Summary.pdfhttp://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1141851022286/IC4D-Summary.pdfhttp://siteresources.worldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/Resources/282822-1141851022286/IC4D-Summary.pdf


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IMPACT

Information and communicationstechnologies (ICT) have had unevendeployment both between nations

and within nations. These differencesin the use of ICT and the Internetare part of the digital divide

Peslak, A. A review of national information and communication technologies (ICT) and aproposed National Electronic Initiative Framework (NEIF), First Monday, volume 11,number 5 (May 2006), http://firstmonday.org/issues/issue11_5/peslak/
http://firstmonday.org/issues/issue11_5/peslak/http://firstmonday.org/issues/issue11_5/peslak/


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Impact of ICT Innovations on Business

Introduction

History / Development ofInformation & communications

Technology (ICT)

Impact Of ICT Innovations OnBusiness

Future of ICT

Conclusions


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Introduction

Information technology and businessare becoming inextricablyinterwoven. I don't think anybody

can talk meaningfully about onewithout the talking about the other.Bill Gates
http://www.woopidoo.com/business_quotes/authors/bill-gates-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/bill-gates-quotes.htm


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Introduction

That seems to me a vital point. It is incontestable that thespread of computing power has reduced radically the costsfor companies of collecting, analysing, retrieving and re-using information. The growth of voice and datacommunications means companies are increasingly able toshare and spread this information at great speed, over

large distances. So as computers become cheaper and more powerful, the

business value of computers is limited less bycomputational capability and more by the ability ofmanagers to invent new processes, procedures andorganisational structures that leverage this capability.

Just as electricity enabled development of the continuousproduction line processes, the decentralised availability ofinformation through IT allows the reduction of hierarchicalstructures within firms and greater empowerment andcapabilities for work teams and individual workers.


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Introduction

ICTs can also transform a firm's relations with itscustomers, providing increased scope to tailorproducts to individual requirements.

ICTs also allow more lean and timely inventory

management. In other words, investment appears to have a

greater beneficial impact if complemented byorganisational changes, greater use of delegateddecision-making and improvements in relatedworkforce skills.](http://www.dti.gov.uk/ministers/archived/alexander141101.html


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History / Development of

Information & communications

Technology (ICT) Almost everybody today believes that nothing ineconomic history has ever moved as fast as, orhad a greater impact than, the InformationRevolution. But the Industrial Revolution moved

at least as fast in the same time span, and hadprobably an equal impact if not a greater one. -Peter Drucker

The new information technologyInternet ande-mailhave practically eliminated the physical

costs of communications. - Peter Drucker I think there is a world market for maybe five

computers. - IBM Chairman Thomas Watson,1943

Hi / D l f


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History / Development of

Information & communications

Technology (ICT)Six stages of ICT in public sector Email System and Internet Network (internal

usage)

Enabling Inter-Organizational and Public Access

to Information (one way to public) Allowing Two-way Communications (posting

email & fax addresses; tracking information status reports)

Allowing Exchange of Values (public able to makepayments, etc.)

Digital Democracy

Portal for Citizens


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Impact Of ICT Innovations On

Business

In the last forty years, adoption andimplementation in the public sectorhas been slower than the private

sector in most of the Asia Pacificcountries. The private sector hasbeen encouraged to use ICT in manytypes of business functions such as

information management, payroll,and accounting since the 1960s.[Ong 2001]


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Future of ICT

Moore's Law asserts that the price of the InformationRevolution's basic element, the microchip, drops by 50percent every eighteen months.

Peter Drucker argues that like the industrial revolution twocenturies ago, the information revolution so far has onlytransformed processes that were here all along. In contrast,

he argues that E-commerce, facilitated by ICT, has thepotential to be to the information revolution what therailroad was to the Industrial Revolution - a totally new,totally unprecedented, totally unexpected development thattransformed both the mental and economic geography ofcompanies and communities.


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conclusions

Security is, I would say, our top prioritybecause for all the exciting things you willbe able to do with computers.. organizing

your lives, staying in touch with people,being creative.. if we don't solve thesesecurity problems, then people will holdback. Businesses will be afraid to put their

critical information on it because it will beexposed.Bill Gates
http://www.woopidoo.com/business_quotes/authors/bill-gates-quotes.htmhttp://www.woopidoo.com/business_quotes/authors/bill-gates-quotes.htm


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conclusions

This new knowledge economy will rely heavily onknowledge workers. ...the most striking growthwill be in knowledge technologists: computertechnicians, software designers, analysts inclinical labs, manufacturing technologists,

paralegals. ...They are not, as a rule, muchbetter paid than traditional skilled workers, butthey see themselves as professionals. Just asunskilled manual workers in manufacturing werethe dominant social and political force in the 20th

century, knowledge technologists are likely tobecome the dominant social-and perhaps alsopolitical-force over the next decades. -- "Thenext society" Economist.com(November 2001)
http://www.economist.com/http://www.economist.com/http://www.economist.com/


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I want to know what good is a Websearch engine that returns324,909,188 "matches" to my

keyword. That's like saying, "Goodnews, we've located the product youwant. It's on Earth."


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ICT sector performance

Access

Malaysia

Upper-

middle-

income

group

East

Asia &

Pacific

Region

2000 2004 2004 2004

Telephone main lines (per 1,000 people) 199 176 220 194

Mobile subscribers (per 1,000 people) 220 573 490 248

Population covered by mobile telephony (%) 95 96 84 73

Internet users (per 1,000 people) 214 392 133 75

Personal computers (per 1,000 people) 95 170 99 37

Households with television (%) 84 98 92 80


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Documents

Impact of ICT Innovations on Business