Information and communication technologies (ICT)
ICT is defined as a diverse set of technological tools and resources used to transmit, store, create,
share or exchange information.
Although there is no single, universal definition of ICT, the term is generally accepted to mean
all devices, networking components, applications and systems that combined allow people and
organizations (i.e., businesses, nonprofit agencies, governments and criminal enterprises) to
interact in the digital world.
In adopting ICT strategies, a business seeks to utilize aspects of information, communication and
technology to help the business achieve its objectives. It should add value to business operations
and help the business save time and costs. ICT can lead to:
improved communication in business operations through the use of mobile phones,
emails,
internet and intranet e.g. mobile money applications, e-commerce, management
information
systems;
improvements in record keeping and management e.g. using Quick Book, MS Projects
online market research and information gathering on competitors;
more efficient deliver using GPS systems
using the internet to advertise products
use of robotics and computer aided design software to enhance production; Computer
aided
manufacturing to increase production efficiency
improved stock control management through the application of electronic point of sale,
electronic data interchange and electronic funds transfer
Types of ICT used in the business environment
A Management Information System (MIS): A system, manual or computerized designed to
collect, sort and analyse data to provide information to enhance decision making. The
information for the MIS is used to generate reports on areas such as employee absences and
overtime, cash flow, sales and profitability.
Examples of Management Information Systems
Transaction Processing System: Supports the day to day operations of the business e.g.
electronic
transfer of funds
Decision Support System: Provides information for managerial decision making e.g. sales
figures for reports.
Office Automation System: Provide support for office operations e.g. communication
Executive Support System: Provides information for high level management or executive
decision making
Human Resource Information System: Provide information related to the people aspect of the
organization e.g. performance management
Marketing Information System: provides information on the marketing aspects of the
organization e.g. market research, pricing strategies
Productions: Computer Aided Design, computer aided Instructions; Computer Aided
Manufacture, Net Suite Manufacturing Edition (integrated inventory, warehouse management,
order management, e-commerce platform etc.), Fishbowl Manufacturing (inventory
management with integrated QuickBooks accounting, material requirement planning);
Accounting and Finance: QuickBooks, Sage Intacct (Cloud based accounting software),
NetSuite (enterprise resource planning and customer relationship management), Multi-view
(financial solutions), Deskera ERP (cloud based suite that automates sales, billing, distribution,
sales commission calculations, purchasing, payment etc.)
Ways in which ICT can improve efficiency of business operations
It is important for businesses to keep up with the changing pace of the technological
environment. Business efficiency can be improved by ICT in the following ways e.g.:
more efficient business operations e.g. document templates; digital filing system;
instant communication through the use of emails, video conferencing;
access to information via websites; request information at any time; share information;
use software programmes to collect and interpret data;
customer relationship management software records customer information e.g. buying
history,
follow up on complaints;
Application of Automation and Mechanization
Automation is described as the employment of machines in a continuous process of operation. It
is characterized by minimal use of labour in the process. Mechanization is the substituting of
human and animal labour with machines such as robotics and computers to produce more
efficiently. Capital intensive production involves the increase use of more equipment and
machinery than labour. Labour intensive production is dependent on the extensive use of manual
labour.