Comparing the Use of IT Within Contrasting Establishments

Unit Two:

Comparing the Use of IT

Within Contrasting Establishments

Why do organisations use ICT?

Nowadays, almost every organisation uses ICT in some way. Small businesses may have only very limited uses, such as keeping accounts or typing up quotes for potential customers. These companies will only have very basic software, and would not need a very powerful hard drive.

However, larger companies who hire more people would probably make more use of ICT. These larger companies are divided in functional areas, which each perform different jobs. Large organisations usually split themselves into four main departments: sales, purchasing, operations and finance. Each section will hire a number of different people, and each will have different needs and uses for ICT.

The use of ICT has had a large impact on modern society and businesses, as the use of computers makes the running of an organisation more efficient, and as technology is constantly improving, there are always more ways to improve it. However, before a system can be used, it must be designed and created. The designer needs to be told the company’s needs, and problems with the current system must be identified so that improvements may be made. For example, the advertising department of an organisation may be finding that they cannot see all their work on the computer screen at any one time. Such a problem may be solved by purchasing wider monitors, so that they may see all of the necessary work. The new system may then be introduced to the employees.

Different organisations use ICT to different extents. Some companies do not use ICT to its full capabilities, whereas others will be permanently updating software in order to keep ahead of rivals. Others still will be completely reliant on ICT, such as Internet stores and services. Very different organisations still need to keep records of the same things. For example, a phone company and a clothing store sell very different items, but both need to keep records of employees, salaries, suppliers, and, in some cases, customers.

How do organisations use ICT?

As previously mentioned, large organisations are divided into four main departments, each of which have very different uses and needs for ICT:

An important part of any business is sales. This is the section which brings money, and therefore keeps the company going. It aims to convince people to buy the product on offer, and also to ensure that customers are prepared to return to the business in the future. Marketing of the goods or services is included in this department. Catalogues may be prepared, mail shots sent out, posters and leaflets designed, and adverts put out in newspapers, magazines, or even on the television. Banners may be put on specific Internet sites, and sales presentations given to businesses. Salespeople may also call round to prospective customer’s houses or businesses, or the client may be contacted via telephone. Some companies even supply employees with company cars with the name and contact details of their company on the side, so that other drivers will see the car and hopefully remember the company. Customer orders are also dealt with here, which may involve telephone sales, organising order forms, and dealing with orders over the Internet.

Purchasing is another vital part to any organisation. Many things need to be purchased, but this will vary depending on the company and services provided. For example, a manufacturer will need to by parts for the product, and all components must be had in abundance as the lack of one part would hold up the entire production line, and so cause the company to lose potentially vast amounts of money. Purchasing involves placing orders with suppliers (who will supply the parts), following orders, and pursuing parts which should have been delivered, but that have not turned up. A company which provides a service rather than a product will still need to make purchases of gas, electricity, telephone, water, cleaning, equipment etc. Companies will always want to find the supplier with the best quality products, sold at the cheapest price. Before purchasing anything, an organisation will look for a suitable supplier, exploring a number of different suppliers before they commit themselves. Purchasing also includes arranging payment and discussing any discount possibilities. Delivery times will also need to be arranged. The orders will then need to be placed, the delivery received, the goods checked, and the bill paid.

Service providing organisations need a department to cope with the everyday transactions. This department is known as the operations function. This is the area which provides the actual service, and is the production part of the organisation. Some types of companies will need larger operations departments than others, for example, a travel agent will need a larger production team than a restaurant.

The final department is in charge of finance. This department is responsible for recording the amount of money that the company is spending and the amount being received. It also deals with paying the employees, tax collection, National Insurance ...