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Illustrate how the following developments in Information and Communications Technology (ICT) have impacted business: (i) Electronic Data Interchange (EDI) (ii) The Internet and the World Wide Web (iii) Video-conferencing. - Leaving Cert Business - Question A - 2009
Question A
Illustrate how the following developments in Information and Communications Technology (ICT) have impacted business: (i) Electronic Data Interchange (EDI) (ii) The... show full transcript
Worked Solution & Example Answer:Illustrate how the following developments in Information and Communications Technology (ICT) have impacted business: (i) Electronic Data Interchange (EDI) (ii) The Internet and the World Wide Web (iii) Video-conferencing. - Leaving Cert Business - Question A - 2009
Step 1
Electronic Data Interchange (EDI)
Answer
Electronic Data Interchange (EDI) refers to the automated method of processing transactions between suppliers and customers.
Impact of EDI:
- Faster Processing: EDI speeds up the processing of transactions compared to manual methods.
- Cost Efficiency: Reduces costs associated with processing transactions such as labor, stationery, and overheads, while also decreasing the time required for these transactions.
- Inventory Management: Stock levels can be optimized since EDI enables real-time updates on orders. This leads to better order fulfillment and minimizes excess stock holding costs.
- Reduced Errors: With automated processing, the likelihood of human error is diminished as transactions are automatically generated.
- Training Needs: Installation of EDI systems may require training for staff to operate the new technology effectively.
Step 2
The Internet and the World Wide Web
Answer
The Internet serves as a massive network of interconnected computers, facilitating the exchange of information and communication.
Impact of the Internet and WWW on business:
- Business Facilitation: Enables e-business models, effectively connecting businesses both in B2B (Business to Business) and B2C (Business to Consumer) settings.
- Communication Efficiency: Businesses can communicate directly with consumers, improving customer service through immediate feedback.
- Market Research: Companies can conduct market research through their websites, analyzing user interactions to cater specifically to consumer interests—a practice prominently exemplified by platforms like Amazon.
- Online Services: Businesses can provide online support and services, reducing overhead costs and increasing flexibility (e.g., teleworking initiatives).
- Security Risks: There are inherent risks such as credit card fraud and the need to maintain secure websites.
Step 3
Video-conferencing
Answer
Video-conferencing allows real-time meetings between individuals in different locations through digital platforms.
Impact of Video-conferencing:
- Global Cooperation: Teams can collaborate regardless of geographical boundaries, enhancing productivity and communication.
- Cost Efficiency: It minimizes the costs associated with travel and accommodation as meetings can be conducted remotely.
- Environmental Benefits: Reduces air miles, thereby contributing positively to environmental sustainability.
- Flexibility for Meetings: Video conferencing can create opportunities for more frequent meetings without logistical challenges, ensuring all participants can engage actively.
- Setup Requirements: Implementing video conferencing systems requires initial investment and training to maximize its effectiveness.