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Illustrate how the following developments in Information and Communications Technology (ICT) have impacted on 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 on business: (i) Electronic Data Interchange (EDI) (ii) ... show full transcript
Worked Solution & Example Answer:Illustrate how the following developments in Information and Communications Technology (ICT) have impacted on 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) is an automated method of processing transactions between suppliers and customers, such as ordering of stock, invoicing, and payment. Its key impacts on business include:
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Faster Method of Processing Transactions: EDI streamlines the transaction process, allowing for faster data exchange.
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Cost Efficiency: Businesses can significantly reduce the costs associated with processing transactions including labor costs and stationery expenses. This results in minimized overhead.
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Reduction of Stock-related Issues: Automated processing ensures better inventory control and management. By optimizing stock levels, businesses can prevent the overstocking or stockouts that often plague traditional methods.
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Reduced Scope for Human Error: Since transactions are automated, there is far less chance of human error in processing orders and payments.
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Installation and Training Cost Savings: Initial setup costs may be offset by the long-term savings in processing costs and increased efficiency.
Step 2
The Internet and the World Wide Web
Answer
The Internet serves as a global network facilitating data transmission and communication, impacting businesses in the following ways:
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Facilitates Communication: The Internet allows for easy communication between businesses and consumers, primarily through email and websites.
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E-commerce Opportunities: Businesses can engage in electronic commerce (e-business) effectively, allowing them to reach a wider audience and facilitate online transactions without geographical limitations.
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Marketing and Research: Companies can utilize the internet for market research and marketing efforts. They can track consumer interests and behaviors, leading to better-targeted marketing strategies.
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Social Media: Platforms like social media enable businesses to connect with customers directly, enhancing customer engagement and brand loyalty.
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Operational Efficiency: Businesses can streamline operations through online tools, reducing overhead costs notably in areas such as customer service and marketing.
Step 3
Video-conferencing
Answer
Video-conferencing has emerged as a vital tool for business operations, especially in recent years. Its impacts include:
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Facilitates Remote Meetings: With video-conferencing, teams can meet in real time from different locations, reducing the need for travel and associated costs.
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Cost-effective Communication: It significantly saves time and resources by eliminating the need for physical meetings, thereby enhancing productivity.
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Flexibility and Convenience: Participants can join meetings from virtually anywhere, making it easier to schedule and attend.
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Enhanced Collaboration: Video-conferencing tools allow for visible communication, aiding in building stronger collaborative relationships among team members, regardless of location.