Impact of ICT Innovations on Business (Collaborating with ICT Innovations for Business Survival)

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Impact of ICT Innovations on Business
(Collaborating with ICT Innovations for Business
Survival)

• Dr. Wayne Summers
• Columbus State University, Columbus, GA, US
• summers_wayne_at_colstate.edu

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IMPACT

• It took 35 years from the date the telephone was
  invented for it to reach 25 of the world
  population.
• It took 26 years for the television to achieve
  the same feat,
• 16 years for the personal computer,
• only seven years for the Internet

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IMPACT

• Internet users worldwide have quadrupled between
  2000 and 2005
• In the world, there are now more mobile than
  fixed line phones
• Approximately 70 of the developing worlds
  population now lives within the footprint of a
  mobile phone service

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IMPACT

• ICT plays a vital role in advancing economic
  growth and reducing poverty. A survey of firms
  carried out in 56 developing countries finds that
  firms that use ICT grow faster, invest more, and
  are more productive and profitable than those
  that do not
• OVERALL SUMMARY OF THE IC4D http//siteresources.w
  orldbank.org/EXTINFORMATIONANDCOMMUNICATIONANDTECH
  NOLOGIES/Resources/282822-1141851022286/IC4D-Summa
  ry.pdf

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IMPACT

• Information and communications technologies
  (ICT) have had uneven deployment both between
  nations and within nations. These differences in
  the use of ICT and the Internet are part of the
  digital divide
• Peslak, A. A review of national information and
  communication technologies (ICT) and a proposed
  National Electronic Initiative Framework (NEIF),
  First Monday, volume 11, number 5 (May 2006),
  http//firstmonday.org/issues/issue11_5/peslak/

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Impact of ICT Innovations on Business

• Introduction
• History / Development of Information
  communications Technology (ICT)
• Impact Of ICT Innovations On Business
• Future of ICT
• Conclusions

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Introduction

• Information technology and business are becoming
  inextricably interwoven. I don't think anybody
  can talk meaningfully about one without the
  talking about the other.Bill Gates

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Introduction

• That seems to me a vital point. It is
  incontestable that the spread of computing power
  has reduced radically the costs for companies of
  collecting, analysing, retrieving and re-using
  information. The growth of voice and data
  communications means companies are increasingly
  able to share 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
  by computational capability and more by the
  ability of managers to invent new processes,
  procedures and organisational structures that
  leverage this capability.
• Just as electricity enabled development of the
  continuous production line processes, the
  decentralised availability of information through
  IT allows the reduction of hierarchical
  structures within firms and greater empowerment
  and capabilities for work teams and individual
  workers.

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Introduction

• ICTs can also transform a firm's relations with
  its customers, providing increased scope to
  tailor products 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 by
  organisational changes, greater use of delegated
  decision-making and improvements in related
  workforce skills. (http//www.dti.gov.uk/minister
  s/archived/alexander141101.html

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History / Development of Information
communications Technology (ICT)

• Almost everybody today believes that nothing in
  economic history has ever moved as fast as, or
  had a greater impact than, the Information
  Revolution. But the Industrial Revolution moved
  at least as fast in the same time span, and had
  probably an equal impact if not a greater one. -
  Peter Drucker
• The new information technologyInternet and
  e-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

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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 make
  payments, etc.)
• Digital Democracy
• Portal for Citizens

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Impact Of ICT Innovations On Business

• In the last forty years, adoption and
  implementation in the public sector has been
  slower than the private sector in most of the
  Asia Pacific countries. The private sector has
  been encouraged to use ICT in many types 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
  Information Revolution's basic element, the
  microchip, drops by 50 percent every eighteen
  months.
• Peter Drucker argues that like the industrial
  revolution two centuries ago, the information
  revolution so far has only transformed processes
  that were here all along. In contrast, he argues
  that E-commerce, facilitated by ICT, has the
  potential to be to the information revolution
  what the railroad was to the Industrial
  Revolution - a totally new, totally
  unprecedented, totally unexpected development
  that transformed both the mental and economic
  geography of companies and communities.

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conclusions

• Security is, I would say, our top priority
  because for all the exciting things you will be
  able to do with computers.. organizing your
  lives, staying in touch with people, being
  creative.. if we don't solve these security
  problems, then people will hold back. Businesses
  will be afraid to put their critical information
  on it because it will be exposed.Bill Gates

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conclusions

• This new knowledge economy will rely heavily on
  knowledge workers. ...the most striking growth
  will be in knowledge technologists computer
  technicians, software designers, analysts in
  clinical labs, manufacturing technologists,
  paralegals. ...They are not, as a rule, much
  better paid than traditional skilled workers, but
  they see themselves as professionals. Just as
  unskilled manual workers in manufacturing were
  the dominant social and political force in the
  20th century, knowledge technologists are likely
  to become the dominant social-and perhaps also
  political-force over the next decades. -- "The
  next society" Economist.com (November 2001)

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• I want to know what good is a Web search engine
  that returns 324,909,188 "matches" to my keyword.
  That's like saying, "Good news, we've located the
  product you want. It's on Earth."

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ICT sector performance
Access
Malaysia 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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