ICT Developments Report

Mâtthew Gadsden ICT Unit 2 LYJ

Effects on Business

Electronic Data Interchange

Electronic Data Interchange is computer-to-computer transmission of information between two companies, including such documents as purchase orders and invoices.

This has helped businesses as it means no paperwork, no records to keep on paper, as everything is recorded electronically. Invoices can be sent as soon as orders are made meaning that everything is speeded up and data is automatically logged and recorded.

If data is recorded and information is stored quickly then the order process can happen quicker, meaning stock is sent out quicker, making customers more satisfied, which means there is more chance of a customer coming back and sales increasing.

Ecommerce

Ecommerce has helped businesses a lot as it is very convenient and easy to order and view products from online. Prices of products at different shops can be compared. This can all be done from a computer. There is access to a wide range of products in a very large market. Online customer service makes it better than traditional shopping.

“According to Forrester, 37 percent of online consumers use customer service more from Web retailers than traditional retailers because of its potential for ease of use and quick response times.”

Customers like the ability to be able to see help online via message boards, forums, email, live chat systems etc. These usually have a lot greater response times.

Online websites selling products usually contain a lot of specifications and details about the product. This is more in depth than in magazines and in shop details.

Having a website automatically makes the company available by everyone. It is very easy to advertise and market something online as lots of people have internet access and therefore can view and buy products online.

All of these features help a ...

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Customers like the ability to be able to see help online via message boards, forums, email, live chat systems etc. These usually have a lot greater response times.

Online websites selling products usually contain a lot of specifications and details about the product. This is more in depth than in magazines and in shop details.

All of these features help a business to succeed inside a market.

E-mail has made a big effect on how businesses run and function. Emails are free, always there (data stored & recorded) which makes them more useful than a telephone. E-mails can be sent at any time, from any place, to any place with an internet connection.

E-mails can be used inside a business for customer service enquiries, ordering, invoicing, and communications internally inside the business. Branches and departments of the same company can communication and pass data between each other.

E-mailing allows a business to send attachments, such as documents, pictures, etc.

Emails can be sent to multiple addresses as well saving time in the business as passing on messages.

“The most popular way of communication in business is via email.”

E-mailing is cheap, and fast. Messages can be sent to the other side of the world instantly, making it much faster than sending letters. Making the order process faster keeps customers satisfied and helps the business to function and make sales.

Internet

The internet helps businesses to function as an internet connection allows businesses to send and receive emails between its departments, and its customers. The internet can be used for helping to market a product, and make sales online.

Products can be sold or ordered 24 hours a day, seven days a week, 365 days a year without the need for support staff. The Internet enables a company to showcase its products, provide up-to-date information, specifications and applications, as well as sell products all in one place. The information provided on the Internet, as well as product offerings, can be changed or be updated instantly.

“According to Business.com, Over 10 million businesses have connections to the internet.”

Transactions that are web based are much faster than any other transaction. Online ordering helps to eliminate errors and make order processing more efficient. Ordering online means the customer doesn’t need to travel to a shop to buy a product, as they can order it, and pay for it online. Ordering by phone can cost long distance fees and errors can occur with product codes. So ordering online eliminates the chances of human error.

A great function linked with internet web based ordering is that it allows you to track your order.

Mobile Communications

One type of mobile communication is a pager. Pagers can be used internally inside the same department. These are not used as much as you cannot answer them. The callers number is displayed so you know whos calling you. Businesses do not find this useful as the call maybe important.

Handheld Communication Radios are a popular form of communication as they are free, and can easily connect within reasonable distances. Businesses such as security companies use these all the time as it helps them to communication internally. Many handheld communication radios can talk to each other like voice conferencing on a mobile. This is handy for businesses as if different people need to be told the same information, then it can all be done at once. These devices can be moved around anywhere, and being wireless, it does not need to be rewired. It is a simple to remove or add devices from the conversations. Radios do not need to be answered, and are automatically connected, meaning voice messages can automatically be sent and received. The costs to maintain a radio is low, so this is good for businesses with lots of radios.

Telephones and mobile phones can be used internally inside a business for free, and externally between different stores, or different companies.

Overall Conclusion

Overall, it is very useful that businesses can choose to sell and market a product online easily. Businesses can communicate internally in many ways to get products shipped out, invoices made etc. They can also communicate externally with customers with customer service help, and emailing. EDI can be used internally between the business departments to send all of the customer data and required information being the departments. All of these are free methods of communicating between departments and customers which make the business function correctly. Ecommerce is the best way of selling a product as loads of people have internet access, and buy online as it is more convient for the average shopper. The internet is an easy way to market a product as there is a large target market online as lots of different types of consumers have access to the internet. All of these methods really help businesses to function, as they help the different processes of getting a product sent out quicker. Quicker service raises customer satisfaction which creates a bigger chance of a customer returning to a business.

Peer Reviews

Here's what a star student thought of this essay

danielbeal

20th of Feb 2012

Quality of writing

In the 'Overall Conclusion' the report states 'EDI', however the report doesn't state what this term is. It's vital that all technical terms are explained, as this will show the examiner the student's understanding.

Level of analysis

The report states 'Prices of products at different shops can be compared.', although in order to achieve high marks, the student would need to add a real case study. For example the report could include a screenshot of CompareTheMarket.com, and explain how the website compares the prices of a number of car insurance companies. This would back up the student's background research and would make the report stronger in quality.

Response to question

In summary, the report shows a basic understanding of how ICT is used within business. Within some sections, there is a lack of knowledge, and there are no real case studies to back up the background understanding. Quite simply, the report is the bare bones, however for high marks the above and below will need to be implemented. The report states how businesses use electronic versions of documents, such as invoices, although the report doesn't state that a server is used to store these documents. As by storing documents on-line, rather than using paper versions this allows the company to be more effective, however the drawback is that this does have a cost factor and their are a number of security issues. If the student were to explain the above, this would show the examiner that the student understands the process of using and storing electronic versions within a business. With the section 'E-Mails', the report mentions a number of good advantages. However the report will need to be balanced, in order to have a fair view of each section of the Internet. Thus, a number of disadvantages of e-mails would need to be included. For example, someone could ignore an e-mail, and this could cause delay within the business. The section 'Mobile Communication's' I believe doesn't match up with the section title. There is limited information regrading mobile phones, and the section title, should be regrading this matter. The report discuses a pager, radio's and a small part of telephones. This section is quite bad, as it doesn't meet the section title.

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