This is where Information Systems (IS) and Information Communication Technology (ICT) have a huge impact on businesses nowadays

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Implications of Information and Communication Technology for Business

 BCH1B01

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Topic 2

Time and geographical factors have a huge affect on the communication methods we use. In the business world time is money, and no matter how far u need to communicate to, it normally has to be done quickly and efficiently. This is where Information Systems (IS) and Information Communication Technology (ICT) have a huge impact on businesses nowadays, especially large scale organisations. Currently, Local Area Networks (LANs) are becoming more common in normal size businesses, and large-scale organisations tend to use Wide Area Networks (WANs), intranets and extranets.

A LAN is a computer network that spans a relatively small area. Most LANs are confined to a single building or group of buildings. However, one LAN can be connected to other LANs over any distance via telephone lines and radio waves; this is what we call a WAN (a system of LANs connected together).

Each node (individual computer) in a LAN is able to access data and devices anywhere on the LAN. This means that many users can share expensive devices, such as laser printers, as well as data. Users can also use the LAN to communicate with each other, by sending e-mail or engaging in chat sessions. Hence LANs can be very useful for a small to medium sized businesses.

For big businesses/organisations, WANs are more useful, as it means the business is not limited to where it can be based. For example a company may have its head quarters in London, but have an office in Cambridge. With the use of a WAN the same benefits as the LAN can be achieved, but in a greater geographical situation.

Another option for an organisation for sharing information, other than using a LAN/WAN is to use an intranet. An intranet is a network based on TCP/IP protocols (just like the Internet). An intranet's web sites look and act just like any other web sites, but the firewall surrounding an intranet fends off unauthorised access. Accessibility is usually only for the organisation's employees and/or others with authorisation.

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Like the Internet itself, intranets are used to share information. Secure intranets are now the fastest growing segment of the Internet because they are much less expensive to build and manage than private networks (LANs/WANs).

Installing an intranet should cut costs down for producing, accessing and distributing information within an enterprise, as well as making employees more flexible and efficient. Feedback will be faster within the organisation which means that work shall get done much quicker and with better efficiency.

As well as using intranets, some organisations find using extranets even more efficient. An extranet ...

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