Impacts of Computers in Business and Commerce.

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Impacts of Computers in Business and Commerce

ICT has the capacity to make a business more efficient, more cost effective and more responsive to the needs of its customers. ICT can assist business activities such as, research and development, design, manufacturing, marketing, distribution and sales and feedback.

Research and Development: The computer based analysis for a product, which already exists, can provide vital information on the market for a new product to be launched. Also, certain programs can help new product designs, before a final design is made.

Design: Computer Aided Design (CAD) software allows designers to create detailed designs for a product, which then can be emailed to the managers for a feedback. Then the final design can be made using Computer Assisted Manufacture (CAM).

Manufacturing: The use of Computer Assisted Manufacture (CAM) software can help the specific and professional production of various components used for the final product itself.

Marketing: Once the product is ready, direct mailing can be used (with the help of a mail merging software) to notify the existing customers, that a new product is being launched. The organization could create a web site advertising the product and to keep customers informed of current promotions available.

Distribution: A stock control system such as just in time stocking can be used to ensure that supply meets demand. Also, intranet systems can guarantee that distributors are alert of delivery requests.

Sales and Feedback: Electronic point of sale (EPOS) systems can be used at the sales outlets. These types of systems can help create feedbacks on the sales of different products.

Banking

  • The banking industry makes widespread use of ICT in all its operations.
  • The bank may use telephone banking which enables the customer to ring the bank to check a balance or a pay a bill 24 hours, 365 days year.
  • Customers may use ATMs which enables them to re-draw cash at any time over 1000’s of cash points all over the country.
  • A debit card can be used to make purchases at petrol stations, supermarkets or department stores. The money can then be automatically debited from the customers account.
  • Credit cards can be used to make purchases over the phone of via the Internet.
  • Large quantities of checks are processed each day using MICR (magnetic ink character recognition).
  • Direct Debit can pay the salaries and bills automatically.

Shopping

Via the Internet, it is possible to buy anything you want. Customers seeking the best deals on certain range of products can just type in the name of a product in a search engine for example, google and browse through the certain sites to find out what they are looking for. Products can be ordered online using the Internet. Electronic Data Interchange (EDI) is a system of sending orders, paying invoices and sending information electronically. This system can be used for doing the weekly shopping over the Internet. The customers can go online to the supermarkets website, sign in and simply just order what they want. The order will then be sent to their destination.

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Business to business

Trading between businesses is one of the major growth markets on the Internet. International carriers can make a large amount of savings by taking orders over the internet, so the customers can get online information about the whereabouts there products is and when they will be delivered.

Advantages

  • Reduce costs by using fewer people.
  • Improve accuracy by reducing the amount of manual processing
  • Process the data more quickly giving up to date information.
  • Can provide management information in a concise form.

Disadvantage

  • Can be very troublesome and have a big effect on ...

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