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.