In this task I will be explaining the impacts of IT
What is going on in IT?
The internet is a global computer network connecting millions of
It is used to access online information, online marketing, and used for communication
facilities like emailing and contacting others via social sites.
Mobile computing makes access to the internet portable. In
this case it involves portable devices like a PDA, smartphone or a standard
phone. With mobile computing people can use the internet to communicate with
others. Smartphones and PDAs connect to wireless networks to use the internet
to send emails, go on virtual games and social networking websites.
Software has now become highly developed. You can be able to
do many things like put videos and sound on presentations, using the right
software you can mix music and create and burn DVDs.
Some specialist support software allows organisations to analyze reasons for
increases and decreases in product sales. This information helps organisations
identify ways to increase performance.
Benefits on IT and Business
Productivity gains – using a variety of automated manufacturing processes
and developments in customer support. For example the use of robots and
machinery, they are operational 24 hours a day and seven days a week. Using
automating processes is a massive benefit as it is more effective and is easy
for the organisation to calculate how much products the machinery will make,
how much it will cost to make and how long it will take to make them.
Cost reduction – Development in IT allows reduced costs for some services and
products, for example costs for automated services are usually less than costs
for staff. An example of IT being used to reduce costs is journalists using
video phones to make quick reports. It saves the cost of camera crews,
supporting staff and their travel costs.
Increased profitability – Developments in technology have become more effective
by being able to produce products by machinery, instead of being done by hand.
The benefits to this are that the qualities of the products are better, more
products are made and sold and profits rise.
Efficiency – Organisations become more efficient by having more automated
processes and making use of technology. For example organisations like Argos
have used catalogues for customers to pick and choose which products (whether
its furniture, books or mobile phones) they would like to buy from the store
and this would slightly be a time consuming process. Now they have an online
catalogue that allows customers to search up what they want online and reserve
their items to pick up in store or even have delivered to their homes.
An impact that organisations deal with is cost. Organisations that want to
upgrade their systems have to consider the costs. They will have a budget on
how much to spend but upgrading may be outweighed by the amount of money they
can be able to spend.
Organisations also focus on the impact on procedures. An
organisation requires robust procedures in order to function well. Some
businesses use external companies to validate their quality procedures and
systems. When computer systems and associated software change, procedures require
adjusting to be able to accommodate changes.
Another impact is staff. Organisations don’t really employ
secretaries as much and so staff and managers are expected less to be
administrators in their job roles. This means they all require having IT skills
in order to use administrative software like word processing and spread sheets.
Organisations deal with redundant skills and employees so
they can avoid unnecessary costs. For example, if an organisation is taking
into account to move towards a paper-less office or outsourcing some services
they have, the organisation has to think whether the job role is redundant and
whether the salary saved benefits the business enough.
Organisations cut costs by encouraging staff to work from
home. Some staff (for example a sales representative) benefit from working
remotely instead of having to rush into their offices, having to submit sales
orders or attending meetings. Mobile technology such as netbooks, laptops,
smartphones, email and video conferencing, sales and support staff can spend
more time with customers and less time in offices. There can also be some
issues with staff working from home, for example managers cannot monitor the
productivity of employees who are not in their offices.
When considering staff reductions, changes to job roles and
outsourcing of services, the organisation need to have a plan before making any
changes to staffing structure. For example, if all the sales staff are made
redundant, who will sell the company’s products?
Another impact is dealing with the impact of regular
restructuring on staff. Organisations face challenges that are brought about by
change such as costs of new developments (changes to equipment and recourses),
changes to the environment that involve setting, location and culture, and
changes in human resources which involve the number of staff and the skill
levels needed. They all impact on organisation structures.
Integration of legacy systems is an impact because as
technology develops and with associated software, existing systems also known
as legacy systems, they may turn out to be redundant if they are not compatible
with updated versions or even new technology. Organisations may choose to
replace or even increase their technology so they can be able to support their
business practices. There may be some problems, for example upgrading systems
could require the current system to be out of service for a period of time.