Role of ICT in business

Strategic Role of ICT in Business

  • Information and Communication Technology (ICT) plays a vital part in achieving an organisation’s strategic goals.
  • Organisations use ICT to enhance productivity by automating key processes for efficiency.
  • ICT can provide a competitive edge by improving a company’s ability to respond quickly to changes in the business environment.
  • It aids in decision-making by providing access to real-time, reliable and comprehensive data.

Application of ICT in Business Operations

  • Communication: ICT enables swift exchange of information across different platforms, improving teamwork and customer service.
  • Spreadsheets and Databases: Software like Excel helps businesses store, analyse and manage data efficiently.
  • Accounting systems: ICT improves financial control and transparency through accounting software like Sage and QuickBooks.
  • Marketing: Digital marketing through social media and email campaigns helps businesses reach a wide range of customers cost-effectively.

Use of ICT in Supply Chain Management

  • ICT streamlines inventory control, reducing the cost and lead time of products.
  • ICT-based EDI (Electronic Data Interchange) systems enable efficient communication between suppliers and buyers.
  • RFID (Radio Frequency Identification) technology aids in tracking goods, ensuring visibility and accuracy in supply chain management.

The Transformational Impact of ICT

  • Operational excellence: ICT leads to improved internal business processes, making an organisation lean and efficient.
  • Customer intimacy: Through CRM systems, businesses can centralise customer information, enhancing service and increasing customer satisfaction.
  • Product leadership: Companies can use ICT to develop unique, innovative products and services that stand out from the competition.

Managing ICT in Business

  • Implementing business continuity planning (BCP) ensures uninterrupted ICT services.
  • Regular checks for hardware and software maintenance prolong system life span and improve performance.
  • Adherence to ICT policies and procedures, such as password policy and internet use policy, guarantees safe ICT practices.
  • Protection against cyber threats and potential data loss is achieved through data backups, firewalls, and antivirus software. Fostering a culture of ICT professionalism and ethics safeguards the company’s reputation.

ICT and Sustainability

  • ICT can lead to significant energy savings through remote working and virtual meetings.
  • Companies can reduce their carbon footprint by responsibly recycling ICT equipment.
  • Using digital platforms can minimise paper consumption, contributing to environmental sustainability.