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2- ICT as a growth Enabler
Chaptor-2 LITRETURE REVIEW 2.1-Understanding 2.1.1- Meaning and Prospective 2.1.2- Evolution of ICT (184.108.40.206) Late 1970¶s ± early 1980¶s: programming, drill and practice; (220.127.116.11) Late 1980¶s ± early 1990¶s: computer based training (CBT) (18.104.22.168) Early 1990¶s: Internet-based training (IBT); (22.214.171.124) Late 1990¶s ± early 2000: e-Learning; (126.96.36.199) Late 2000: Social software + free and open content. 2.1.3Definition-
2.2- Application of ICT in different industries 2.2.1- In Real estate ± 2.2.2- In Retail sector2.2.3- In Education2.2.4- In Manufacturing sector2.2.5- In Banking sector ± 2.2.6- In Dairy saector-
2.2.7- In Healthcare sector2.2.8- In Tourism industry2.2.9- In automobile industry2.2.10- In textile industry2.3- Country Perspective 2.3.1- Global Perspectives188.8.131.52- Japan 184.108.40.206- Ethiopia 220.127.116.11- .Kenya 18.104.22.168- Iceland22.214.171.124- Europe 126.96.36.199- Taiwan 2.3.2- Indian perspective2.4- MODELS2.4.1- Continuum of approaches of ICT in schools 188.8.131.52- The emerging approach 184.108.40.206- The applying approach 220.127.116.11- The infusing approach 18.104.22.168- The transforming approach 2.4.2- Proposed ICT based services for Agriculture Extension2.4.3- ICT and e-Governance for Rural Development2.4.4- Seven Perspective of ITC analysis frameworks model-
Chaptor -4 Industrial Analysis 4.1 Meaning and Concept of retail4.2- Retail Scope and Prospects: 4.3- Major Key players in Indian Retail Market 4.3- IMPACT OF ICT IN RETAIL INDUSTRY 4.3.1- Increase of ICT and e-business use since 2003: 4.3.2- ICT infrastructure, skills and investments improved: 4.3.3- Electronic procurement: 4.3.4- Internal e-business systems: 4.3.5- Electronic sales and distribution: 4.3.6- Micro and small firms lag behind medium-sized and large ones: 4.3.7- Integrated IT management is absent in retail sector: 4.4- CHALLENGES: 4.5- STRATEGY: 4.6- Characteristics and Reasons of unorganized retail 4.7- The suggestions might be 4.8- Impact on Unorganized Retailers
. as is well known.Adoptation of ICT by the Shopkeeper as a Growth Enabler in the city of Allahabad Chaptor-1 Introduction 1. Adoption of the ICT is considered to be a means to enable these businesses to compete on a global scale. this is also helped by the declining prices of ICT products and services. the computer chip or microprocessor. 2006). and above all. the reduction in cost and improvements in functionality of ICT show no sign of abating. Online transactions over the world-wide-web and processing sales/purchases on credit cards would not have been possible without ICT..g. As the world economy continues to move toward increased integration as a result of advances in information communications technology. plays a dual role: as an industry per se and as the means to manage all other economic activities. satellite communication. fiber(information) and optic global communication networks. ICT also presents an opportunity for developing countries and countries with economies in transition to dramatically improve their economies. the raw cost of computer processing power has declined by roughly 50 percent about every two years as per Moore¶s Law3 and even at the end of the century. is maturing. nearly 50 years after the invention of the transistor. Integration of ICT with business processes has added a new dimension to the role of ICT in managing globalization and given rise to e-commerce and other e-services that are truly global in nature. Fortunately. The number of chips made for devices other than computers (e.Present Senaiorio .1. Economic reforms introduced in the 1990s in many countries emphasized the importance of reforms in the telecommunications sector prior to reforms in other sectors to ensure effective and efficient management of businesses in the open market environment. and the increasing reduction in trade barriers. and broadband services further reduced barriers caused by distance in the effective management of global enterprises. mobile phones) is much larger than that going into computers. some of the greatest opportunities for small businesses will derive from their ability to participate in the regional and international markets (Mutula and Brakel. convergence of computer communication technologies. The developed countries were among the leading developers and early users of ICT. The advent and rapid development of digital technology. with improved efficiency. the Internet and the world-wide-web. The core product of the information age. Since the 1960s. ICT.
In fact. such as process efficiency. and the availability of finance for ICT. 1. (2003). characterized by highly unequal access to and use of ICT. The introduction of ICT will offer various new investment opportunities within local industries. service quality. The digital divide. provided the right policy measures and enabling environment were in place. (2004) confirms the positive effect of information and communication technologies (ICT) on firm performance in terms of productivity. cost savings. particular in the area of SMEs.and closer customer and supplier relationships (Chong et al. Dedrick et al. This requires the implementation of sustainable measures to improve access to the Internet and . In this respect. as well as the challenges that developing countries faced in their efforts to participate fully in the information economy. manifests itself both at the international and domestic levels and therefore needs to be addressed by national policy makers as well as the international community. Moreover. 1998).. Industries that are developing may take advantage of ICT which are being recognized by many previous studies. 2001). interoperability and standardization.2. In order to do so. trust and security. organization and process flexibility and customer satisfaction. Some empirical studies by Bartelsman and Doms (2000). Kohliand Devaraj (2003) and Melville et al. SMEs should consider information and communication technology (ICT) as an important approach in their business to take competitive advantage from the global markets (Mutsaers et al. market value and market share. profitability. ICT is a resource of SME which may help them to access and contribute to in order to enhance its competitiveness (Swash..ICT as a growth Enabler Information and communication technologies (ICT) created opportunities for economic growth and development. 1998). Their study also reveals that ICT has some effect in terms of intermediate performance measures. Brynjolfsson and Yang (1996). ICT as an enabler for growth and development could benefit both developed and developing countries. there is a need to accelerate the implementation of ICT to improve business performance. it is important to measure the key factors driving the growth of ICT and providing appropriate recommendation on this study. The adoption of ICT by companies requires a business environment encouraging open competition.
Here. This trend will continue to grow and will contribute significantly to the increase in ICT-related exports from a number of developing countries. . At the same time. even in developing countries. making them more efficient and transparent. concluded in 1996.telecommunications and increase IT literacy at large. high-quality access to the Internet and ICT products and services. Outsourcing and exports of IT and software services were becoming an important source of economic activity and income for many developing economies. as well as development of local Internet content. forms a basis for liberalization and hence better dissemination of ICT products. From a trade policy perspective. to search for business information and to showcase their products. The importance of ICT for enhancing the competitiveness of small and medium-sized enterprises (SMEs). and increasing trade flows. e-strategies should be better integrated into the overall policy frameworks and strategies of countries. have Internet access and use it to communicate with suppliers and customers. These activities require affordable. Many SMEs. One barrier still faced by companies relates to delivery logistics and delays in customs clearance. the WTO Information and Technology Agreement (ITA). The inflow of foreign investments and international support through development cooperation measures is equally important. ICT can contribute by computerizing trade logistics and customs systems. International support for efforts by African and other least developed countries to develop ICT was encouraged.
Manufacturing Banking. Textile 4.Chaptor-2 LITRETURE REVIEW 1-Understanding y y Meaning and Perspective Evolution 3. Retail. Education.Applications Reai Estate. Dairy. Healthcare.Country Perspective y y Global perspective Indian perspective ICT 2.Models y y Continum of approaches of ICT in schools Proposed ICT based services for Agriculture Extension ICT for Rural Development y . Tourism . Automobile.
Gujarat. alongside reading. and in developing human resources. countries have recognized Information and Communication Technology (ICT) as an effective tool in catalyzing the economic activity in efficient Governance. Orissa. Meghalaya. it improves over time and hence keeps lowering the costs for users.1-Understanding 2. Madhya Pradesh.2. it underpins the success of modern corporations. A usage of ICT tends the person to lead with the situation of flourish or perish. one of the basic building blocks of modern society. Haryana. IT together with Communication Technologies has brought about unprecedented changes in the way people communicate. Information and Communication Technology has permeated in every walk of life affecting the technology fields such as launching satellites. services or processes. Punjab. Karnataka. The Internet is a driving force for much development and innovation in both developed and developing countries. ICT permeates the business environment. Government started initiatives to develop standards and implementation of ICT policies helped in strengthened India¶s position in the software driven ICT sector in the world. ICT is a crucial resource in education. within a very short time. and in the organization and management of learning institutions.Meaning and Prospective ICT is a so-called general-purpose technology with three far-reaching characteristics: it is pervasive as it spreads to all economic sectors. i. Kerala. For example states of Tamil Nadu. At the same time. conduct business. ICT adds value to the processes of learning. . Rajasthan.e. managing businesses across the globe and also enabling social networking. This last property can be termed the ³enabling role of ICT for innovation Information and communication technology (ICT) has become.3. writing and numeracy. it facilitates research. Many countries now regard understanding ICT and mastering the basic skills and concepts of ICT as part of the core of education. pleasure and social interaction. development and market introduction of new products.1. and it spawns innovation. Across the globe. and it provides governments with an efficient infrastructure. Goa. There is a growing recognition of the newer and wider possibilities that technology presents before the society in the modern times. Maharashtra. Andhra Pradesh. Delhi.
social. technology also contributes to environmental. Pay roll system. interactive telecommunications systems. data and information systems. By its very nature. ICT also includes calculators.Bar code reader. and projections. among them computerbased media). store. Information and communication technology is simply one of the most pervasive and enabling technologies of many that have emerged. and disseminate information (using a variety of media. ICT Tools- Mobile phones Email A convenient way of using written communicati on Allows convenient verbal communication Faxes Allows text and pictures to be sent anywhere immediately An Internet Can be used for good external communicatio n ICT Other Tools An inttranet Allows fast internal communication Television.Sikkim. Pondicherry etc. cultural. audio and video recordings and broadcasts. curriculum software. Information and Communication Technology (ICT) refers to the tools used to create. and economic change. West Bengal. In general. technology changes how people perceive a task or problem and how they deal with it. Uttar Pradesh. retrieve. Smart cards . announced several ICT policies in their respective states. Electronic weighing machine. still images. and some forms of assistive technology. networks.
(2. The fifth: the era of social software and free and open content is still to come ± I hope. drill and practice This is the era when I got into computers in my own school. (2.1.3) Early 1990¶s: Internet-based training (IBT).4. (2.2. The phases are: (2.1. 1996). It was in the early years of 1980¶s and our math teacher was teaching also the new school subject called in Finnish ³ATK´.2.2.2) Late 1980¶s ± early 1990¶s: computer based training (CBT) with multimedia.1.4) Late 1990¶s ± early 2000: e-Learning. The Rise of the Network Society (Oxford. drill and practice.2. (2.1.5) Late 2000: Social software + free and open content.1.2. (22.214.171.124) Late 1970¶s ± early 1980¶s: programming. Blackwell.2.1) Late 1970¶s ± early 1980¶s: programming. Source :M. Castells. The abbreviation stand for ³automated data processing´ ± and the name of the subject already .2.Evolution of ICTfour major phases in the history of using computers in education.
.1. small video clips and then do the exercises. (2. The hype around e-learning is a kind of classical example of creating needs. articles and companies made it clear for all somehow related to education that this is something you must be involved it.2.2) Late 1980¶s ± early 1990¶s: computer based training (CBT) with multimedia Same point when the multimedia computers. The IT managers of thousands of educational institutions and organizations were asked by the educational experts to come up with e-learning solutions and companies were happy to help the IT managers.2. but there were the MS Basic for programming and naturally that was what the ATK lessons were almost all about. This combination was seriously expected to have a huge impact on the ways we learn. The promoters of the new paradigm claimed that information changes so fast that one should update it almost every day. The solution is here: the Internet and the Internet-based training.4) Late 1990¶s ± early 2000: e-Learning The Internet-based training got mature in late 1990¶s and early 2000 in a form of elearning. The times were good for CD-ROM producers and of multimedia PC manufacturers.1. It was said that students would learn if they could watch animations in colours.1. Thousands of websites. This was the golden era of CD-ROMs and multimedia computers. The failure of CD-ROMs were claimed to be related to the challenges to update the content in the CD-ROMs. The e-learning industry was build. The markets for e-learning courses and especially for Learning Management Systems (LMS) were created.3) Early 1990¶s: Internet-based training (IBT) The third wave or hype of using computer in education came with the raise of the World Wide Web. (2. There were not many software at all.tell you pretty well what it was all about.2. with advanced graphics and sound came to the mass markets it was presented a claim that the drill and practice exercises failed to teach much because they didn¶t contain multimedia. We were using Nokia MikroMikko. (2. even though it was not proven that anyone (except the IT managers) needed these products.
as a medium to enhance instruction or as a Law. Adeya N. 2 April 2004 3 The study of the technology used to handle Free online March 2004 information and aid communication.5) Late 2000: Social software + free and open content I really hope that in the late 2000 social software and free and open content will make a real breakthrough in the field of educational technology. transmit and display data activities and information electronically ICTs are embedded in networks and services that Adeya N.J. storing and disseminating information 2002 4 5 6 2002 7 2002 .C. resources used to communicate. W. Blogs and wikis have already brought web back to its original idea: simple tool for your personal notes that are easily accessible and even editable by your peers and your potential peers.3.com ICT sector as a combination of manufacturing international REV 3 and services standard classification of industries that capture.1.DefinitionS.No. store and manage information.1. Web. and to desseminate. television . nightflight .com communication device and application. cellular phones . N. replacement for other media Electronic means of capturing. affect the local and global accumulation and flows of public and private knowledge ICTs designates multimedia. computer and network hardware and software satellite system and so on. processing. 2. C. 1 Definition Author Year March 2004 ICT is an umbrella term that includes any Whatis. dictionary ofcomputing. that encompassing radio .2. as well as any services and application associated with them.(2. the Internet or the Pelgrum. ICT are a diverse set of technological tools and Blurton C.
The problem of confidence building seems to be critical because customers may prefer not to make a purchase at a small on-line shop without knowing about its product/service quality and reputation. To adopt a deterministic slant risks propagating myths. socially and culturally. heavily branded (large) retailers.2. and that it will change the needs and preferences of owners.In Retail sectorUse of Internet commerce among SMEs in the retail industry is lower than in business services and manufacturing.2. and this approach led to the formulation of a ³socio-technical framework´ to explain ICT transformation in real estate. and if ICT is placed in context within a ³socio-technical framework´. organisational structures and consumer demand patterns are also interacting and creating a potent mix of forces for change. This being the case.Application of ICT in different industries 2. future research on the impact on ICT is more likely to achieve tangible and measurable results if longitudinal studies are developed to identify temporal and spatial change. such .2. occupiers and their customers. economic and political factors. Because of the way in which technological change occurs. governments and citizens interact economically.1. Several studies suggest that even the most price-sensitive Internet consumers respond very strongly to well-known. In this sense any form of technology can only be understood in the context of forces which shape and are shaped by it. but that productivity. it will be vital to maintain an active research agenda in the field to monitor and benchmark changes and for professionals to recognize the role of ICT in transforming real estate.2. ICT cannot be treated in isolation: to do so is to be guilty of technological determinism.2. However. This paper has highlighted the characteristics of the most recent new economy (as part of the information society) and highlighted an increasing body of evidence to support the view that such an economy is not only strongly technology-driven. 2. It is likely that ICT will continue to create shifts and transformations in subtle ways. led to a transformation in the ways that businesses.In Real estate ± ICT has. in alliance with a range of social.
such as swift and reliable delivery of the purchased items. For example. Even within a school. The school is still firmly grounded in traditional. take notes. administrators and teachers are just starting to explore the possibilities and consequences of adding ICT for school management and the curriculum.3.as amazon. and are assessed on the prescribed content 2. various units or courses may use different approaches. teachers tend to lecture and provide content while students listen. 2. teacher.com. 2001). An early study of Internet brand establishment analysing 20 000 on-line consumers who compared and purchased books from 33 on-line bookshops found that most did not choose the lowest price offer and that the shop¶s name/brand was an important determinant of their choice (Smith and Brynjolfsson.4. such as a book. The approaches are hierarchical with the emerging approach as a beginning point. Each school must work within the context of its own system to fit choices to what best suits its unique situation and culture. Such schools begin to purchase computer equipment and software perhaps have had some donated. Expectations of a higher level of services from better-known retailers.2. In this initial phase.centered practice. Miniaturised ICT devices and microsystems to produce high added value products are gaining an increasing importance within the economy. Alongside technological and product .2.In EducationAdvances in technology and the way technology is incorporated into a system is a dynamic process. Mastering the manufacturing of such devices is of strategic impoIrtance for product innovation. make some consumers willing to pay a premium even for a standardised product. and the transforming approach as a goal many perceive as the future of education.In Manufacturing sectorThe impact miniaturised ICT can have on new product functionality is enormous. The emerging approach is linked with schools at the beginning stages of ICT development. The retailer¶s brand is considered as a proxy for the credibility of the shop.
developments. whereas mass-manufacturing products for commodities are addressed in the microelectronics area. cross sell opportunities and customer benefit.5. mobile banking are either underway or are planned in near term. Most banks across segments have already implemented core banking systems and general ledger automation systems.In Banking sector ± Almost all the Banks surveyed mentioned that IT initiatives are business driven. more effort should be devoted to the rapid transfer and implementation of the new ICT technologies into µmanufacturable¶ products. Significant decision factor that influence expenditure in IT is RoI expressed in terms of revenue to be earned. cost saving. 2. Initiatives such as internet based transaction banking. as compared to commodity-manufactured monolithically integrated components. offers a new opportunity for Europe: to keep manufacturing close to its customers.2. where most of the value is added. Customised products are common in the micro-nanosystems where the technology depends strongly on the system requirements. As more ICT products become customised. customised flexible production is becoming a key aspect to support this innovation process. The areas where ICT has most effectively been able to contribute are: Treasury Retail Cards Wholesale (including merchant banking) Payment and Settlements It is imperative for Banks to measure IT performance and improve IT delivery processes. The trend towards customisation. self service kiosks. the time to market and first time right issues are becoming predominant. ICT has been instrumental in maximizing business value. This may turn out to be as important as the mastering of extreme cost pressures related with commodity production of integrated components. .
Information and communication technologies (ICT) have been progressively incorporated by the Indian public healthcare sector and funded by international development organizations (IDOs) in what. Existing levels of trust helped them to reinforce the working relationships. This also lead to user led innovation through a pilot exercise before the actual implementation. In any ICT platform if the benefits far out weigh the costs. The waiting time for payment was completely eliminated. It is a distributed data architecture. the implementation was carried out in a limited way and the system was expanded after validation. This helped them to create trust. y The new system endowed substantial benefits to the customer. 2002). seems like a very rational and straightforward attempt to modernize and improve healthcare management. at first glance.2. The critical factors that contributed to the success of this project is worth look into: y Understanding the baseline operations comprehensively is the starting point for designing a customer oriented ICT platform. . helped in the hardware/software customization. thereby facilitating the user acceptance. y Amul had been known for treating all its customers alike.In Dairy saectorThe experience of conceptualizing and implementing an ICT platform for a dairy industry (Amul) is a challenging task. The understanding of ground conditions helped Amul to design the system considering customer needs. the rate of diffusion will be high.2.7. 2. The reputation of the agency was a major factor that increased the acceptance of the new technology. y Working closely with the supplier.In Healthcare sectorWith regard to India¶s inability to meet the healthcare needs of the majority population.6. y Here again.2. one of th overriding concerns is the inefficiency that pervades the public healthcare sector (Government of India.
reviews and local tourism information. both small on-line and off-line agencies. Japan and the United States have established real-time connections with large car manufacturers to respond to the latter¶s requests for design/production processes reflecting their changing demands and specifications for just-in-time parts delivery. Many firsttier suppliers in Europe. small firms offering best/better prices can win price-sensitive travelers. such as cruise packages. while others.9. Since the Internet and many travel-related sites allow on-line customers to compare the price of air tickets and other travel services.2. B2B transactions via ICT have a 30-year history. restaurants and travel agencies have been active in fostering cross-border Internet e-commerce. 2. Most suppliers. even large ones.2. 2.In Tourism industryIn tourism. Some small travel agencies.In automobile industryIn the automobile industry. take advantage of direct on-line sales of (discounted) airline tickets and travel packages.It is able to deliver the quality primary healthcare services both to the poor and richer segment of the rural areas at affordable prices. The Internet allows travelers direct access to travel recommendations. making the most of ICT. Many smaller suppliers.e. an area dominated by SMEs in OECD countries. Small players with a Web page can now attract those preferring personalized (and possibly less expensive) services. however more advancements are required to replicate the model for tertiary healthcare in rural areas. especially those in second . their customers) and customer push has been a major factor in the adoption of ICT by the sector . see ICT (and its recent Internet forms) as a strategic necessity for not losing business with car producers (i. hotels and inns. some small tour operators. Tele-medicine is extremely helpful in primary and secondary healthcare. have shifted towards selling leisure products entailing higher commissions.8. many of which was previously only distributed through the physical offices of (large) travel agencies. Telemedicine can great potential to improve the quality of healthcare services in the rural areas and can help the existing hospitals to handle the critical cases by getting the help of specialist doctors through video-conferencing.
2. high speed and security measures to protect the transmission of confidential data and other critical messages. 2002c). and physical stores remain the principal sales channel for the foreseeable future. they can return it to the nearest physical store. Consumers may check a printed catalogue before placing an order over the company¶s Web site and if the shipped item is not satisfactory. . Eliminating the clerical errors associated with re-entry of order information and reduced lead-time contributes to lower inventory costs. however.or lesser tiers. along with music and video. In fact. 2. ICT systems in advanced OECD countries have attempted to integrate different communication networks into a single Internet network. This should allow high quality. which may differ depending on the trading partners.10.In textile industryTextile products. are among the leading consumer products sold over the Internet (OECD. have not implemented ICT because the system. as well as to achieve greater participation by smaller suppliers. and these benefits of ICT are considered to be largely in favour of their customers. the small size of B2C e-commerce generally does not justify a small retailer¶s investment. Projections for online apparel sales in 2003 ranged from 2-8% of sales. Large retailers see B2C e-commerce as a complementary channel that provides more options to consumers. Such multiple channel retailing may not be feasible for many small shops. To realise larger benefits by streamlining business information and materials flows. has been costly to install and because they see asymmetric benefits in favour of large manufacturers. books and magazines and software.
but sales and purchases over the Internet have yet to take off. and 6% in the United Kingdom and Denmark.3. Excluding the financial sector they were 10% in Norway. Taking a wide definition of electronic commerce to cover transactions over computer-mediated networks (including traditional EDI) and inter-firm transactions. only one in eight on average reported making Internet sales. except in Greece and Luxembourg . Twice as many businesses on average use the Internet for purchases as for sales (Figure 3).Country Perspective 2. Shares for SMEs are probably lower than these shares for the whole economy (see OECD 2002b and 2002c). Source: OECD. For 16 countries for which both Internet purchasing and Internet sales data are available. August 2002. it still accounts for a relatively small proportion of economic activity for firms of all sizes.2% in the United States. e-commerce sales were 13. ICT database. While available data suggest that electronic commerce is growing.2.9% in Finland.Global PerspectivesComputers and access to the Internet have become common in most OECD countries. Eurostat.3% of total business sector sales in Sweden and 7. 1. E-commerce Pilot Survey 2001 .4% in the United Kingdom. Purchasing over the Internet is more common than selling. For retail sales (B2C) shares were much lower.3. with between 63% and 93% of businesses reported using the Internet. around 1.1.
In addition to a government portal covering a wide range of e-business issues with links to related support services. introducing successful business practices of small ICT/e-commerce adopters. Examples of ICT/e-commerce awareness raising programmes for SMEs .Awareness raising and business consultation Awareness-raising activities have been helpful in diffusing initial information about ICTs and e-commerce. Prize and award programmes may give high visibility and publicity to the best users but may have little impact on nonadopters if the lessons are not widely shared. for example the e-Business Guide developed by Australia¶s National Office of the Information Economy is a comprehensive on-line resource that is aimed at business people who want a quick and easy explanation of e-business. what it is. seminars and workshops that demonstrate possible integration of ICTs and e-commerce into SMEs¶ processes are common (Table 2). Case studies can provide practical business pointers to managers and employees. its benefits and what is needed to get started. Various policies aim at overcoming these handicaps. Government programmes have included business case studies. and have been a major policy focus.
net) and ebiz. Some governments provide training free of charge. in some cases. and initiatives for reducing the digital divide (OECD. most of which focuses on basic ICT use. ICT skills have been addressed in a broader context of education and training. Most governments provide ICT training or training support. and training programmes for SMEs are among major policy targets. In many cases. see Table 3).Source: OECD (2002b). Financial support to cover part of training expenses has also been common.NET site (www. European Commission (2002b). Training is increasingly provided over the Internet and. in conjunction with ICT and e-commerce awareness and business consultation services. 2002b. the AUSe. This reflects the recognition of the importance for small business managers .enable site Training Competence factors including internal ICT knowledge and e-business management capabilities are crucial for successful adoption.ause.
and employees of ICT applications and required skills. The UK Online for Business initiative is an example of such a programme. might fail to effectively respond where SMEs¶ demands for ICT skills are dramatically changing and more specialised. The Learndirect programme offers both on-line access to ICT training and off-line consultation with trained staff at local Learndirect centres. however. Governments may also need to encourage a favourable business environment for provision of private ICT training services at a reasonable cost. Government training programmes. combining on-line information and consultation services with off-line business support services. rather than ICT technologies alone. such as how to effectively integrate e-business processes into existing business models and strategies to change organisational structures . Training programmes therefore need to be more focused on managerial understanding and skills for e-business. Business management capabilities are becoming a new category of generic competency in the context of overall management of business processes.Examples of ICT/e-commerce training programmes for SMEs . Commercial training services may be more sensitive to businesses¶ changing and specific needs and government training programmes need to cooperate fully with commercially available services.
2. Thus Ethiopia presents a good example of a developing country in which the use of ICTs in education has central support.2. He convinced the manager to launch the company¶s Web site. also attracted the attention of many business readers. Both the Regional Education Bureaux and public universities are responsible to the Ministry of Education . the education sector has been identified by the Government as a priority area. although they still do not accept customers outside of Japan. An advertisement in Nikkan Kogyo. Simultaneously. annual e-commerce sales of magnet products via the site had already reached more than USD 700 000.26magnet. 2. 2002). the company used both an on-line campaign and off-line advertising. deployment and exploitation of ICTs to help develop Ethiopia into a socially progressive and prosperous nation with a globally competitive. After the local newspaper covered the company¶s e-commerce growth.jp).1. To increase the number of visits to the site.1.1. By 2000. modern. an industry newspaper. The Figure shows that Regional Education Bureaux have responsibility for financing and supervising schools and the College of Teacher Education sector. other small firms in the region were encouraged to engage in Internet e-commerce.Japan A magnet manufacturer¶s e-commerce success Ni-roku is a Japanese magnet manufacturer with 12 employees. He consulted a small ICT service firm.Ethiopia The Government of Ethiopia has a stated objective to use the development. dynamic and robust economy (FDRE. an employee created the company¶s Web site (www.3. and the site has remained operational and generating revenue through 2004. although he was not confident that it would generate revenue that might counterbalance the decline in the company¶s off-line sales. which was established in 1940. an on-line product catalogue was later added to the site. In September 1997.co. A free magnet offer campaign on the Web site combined with an on-line questionnaire to (potential) customers lured 1 000 visitors to the site during the peak early month. which helped the company to create the Web page and took training to enable him to update it.3. In response to requests from businesses as well as individual buyers. In 1996 a company employee bought a personal computer at his own expense to use the Internet.
.Kenya Over the last five years. The government is also connecting the ministries to run integrated information systems for example the Integrated Financial Management Information System (IFMIS) and the Integrated Personnel and Pensions Database (IPPD). the Government Information Technology Investment and Management Framework is connecting all ministries to the Internet under the Executive Network (Limo 2003). Funding for these investments is achieved through partnerships between the government and development partners. The government contribution is usually in the form of technical and support staff and facilities including buildings.1. .Source: Manchester Centre for Development Informatics Working Paper 44 2.3.3. The foreign funding component constitutes the largest percentage of this investment in terms of technology. the Kenyan government has initiated some capital investment towards set up and installation of ICT infrastructure. So far.
IT strategy generally is not formulated in the board room. Focus on the 'Kenya ICT Week'. but onlyabout half of the companies have backups stored in locations far removed from the company database. (9).1.. 2004.source : Aineruhanga.to upper-level employees who have a vision oftechnology and can suggest methods by which technology can be brought to bear on creating .IcelandIceland is an extraordinarily technology literate country that has embraced the internet and the corresponding technologies. The motivation for outsourcing is not reduced labor costs but rather.. it is the IT professionals who bring their recommendations to the board where it is generally approved for implementation. The role of technology has permeated the larger business to the level of adoption of outsourcing as a normal means of doing business. Trust in the use of internet cables ranges from high to low.4. Almost all of the companies have a need for mid. M. Security of data is of paramount importance.3. 2. there is a better utilization of existing employee skills and the reduction of time in addressing new technology services. Chakula Newsletter.
high skill emphasis at the national level does not match the needs of low-medium skills required by the sector. especially for the service sector as it gradually evolves to be dominant in the national economy.competitive efficiencies. However.1. With a strong intension of building a knowledge economy. notebook PC.It is noted that the Taiwanese government has put a great deal of efforts on assisting work force recruitment for MNCs.3.5. ICT and digital divide could encourage a global race-to-thebottom. Most IT leaders are engineers by academic training who have learned business knowledge through experience. To meet this challenge Europe has no choice but to opt for the development of avant-garde sectors. This keeps the EU away from economies like the USA or Japan and brings us closer to new competitors like China and India. albeit in an international scenario increasingly low-cost oriented. 2004).EuropeThe existence of ICT facilitates economic internationalization and allows some emerging economies to develop high-skilled. at firm level. Developing economies are making use of their comparative advantage in low labour costs to growth. as well as in other emerging Asian latecomer countries. many latecomer countries need to provide governmental support to facilitating the technology development and ICT capability building. as large parts of manufacturing and production may be shifted to sites in less developed region. companies . semiconductor and opt-electronics (ITRI. However. it seems that the strategic ICT industry led by the government.1. 2.TaiwanIndustrial transformation in Taiwan.6. but from high value sectorsas well. leading to an eventual dualisation of the labour market worldwide. and many have taken advanced training to enhance their IT knowledge and skills. as in Taiwan¶s case. This may imply a less focus on the remaining fraction of the manufacturing sector.ICT could reinforce inequalities if no policies are engaged to tackle its challenges. The challenge is not only steaming from low-cost competition in low-skilled sectors.3. requires the changing focus on HR development. Contrarily.The guarantees of success are reduced as we are not accomplishing the goals that were set in 2000 in the Lisbon Strategy. has largely concentrated on manufacturing of personnel PC. This situation affects strongly the European economy. 2.
3. By large. 2. it is suggested that there might not be a strong and/or positive link between the national level of promoting ICT development and advancement and firm level of easy access to a readily deployable pool of ICT HRs.continue experiencing recruitment difficulty and retention issues. especially for the mediumlower ICT skills.2.Indian perspective- .
Using earlier calculations. there is no doubt that the IT sector has been a dynamic one in many developed countries. but do not necessarily involve the production of IT outputs.nasscom.1 billion) in 2001-02.Information and communication technology essentially refers to the digital processing. storage and communication of information of all kinds1. The latest figures on the software and services sector indicate that annual revenue was Rs. The numbers on India¶s software exports are well-publicised (www. Much of India¶s hardware industry consists of assembly tasks. India¶s software industry is. While growth rates have been high. whereas they did earlier (Singh. An example of IT¶s broader impact comes from the case of so-called IT-enabled services. which has been the leader and largest adopter of IT2. IT can potentially be used in every sector of the economy. While selling packaged software to consumer (and most business) markets requires economies of scale and scope.382 billion ($8. India¶s IT sector is still small. The latest NASSCOM figures no longer include hardware and peripherals. up from Rs. Therefore. Even if this did not grow at all. and India has stood out as a developing country where IT. even in the United States. relative both to the world market and to India¶s GDP. a broad category covering many different kinds of data processing and voice interactions that use some IT infrastructure as inputs. World sales of software and services in 2000 were $440 billion (Desai. the broader IT sector is probably one third again as big.4 billion) in 2000-01 (NASSCOM. it has not developed a robust. has grown dramatically. more robust ² at least in certain areas. 2002a) This translates into overall growth of 26 per cent in rupee terms and 20 per cent in dollar terms. world-class manufacturing industry. and this includes IT hardware. India¶s figures for the size of the IT sector typically include such services. 2002b). 2002). one has to estimate the fraction of sales that constitutes value added. as well as marketing and customer support muscle. despite the country¶s relatively low level of income and development.5 per cent to GDP. project-oriented components of . To compare the software sector to GDP. of course. in the guise of software exports.org). However. Despite India¶s emphasis on import-substituting 28ubsidized 28d28on28n. Assuming this fraction to be two-thirds would imply that software directly contributed about 1. allowing for slower hardware growth. This would imply that the IT sector is about 2 per cent of GDP. The true impact of IT on growth and productivity continues to be a matter of debate. almost entirely for the domestic market.480 billion ($10. India¶s 2001-02 sales would be just about 2 per cent of the world market.
these three categories make up most of India¶s ITES exports. Individual firms and 29ubsidized29d29 such as NASSCOM have shown themselves to be adept at targeting markets with substantial growth potential. at least to quite the same degree. and the breadth of its global reach. two-thirds came from IT services. To some extent.71 billion.365 billion. such as Germany. India¶s software industry remains narrowly focused. For example. of India¶s 2001-02 software and services exports of Rs. Infosys.software development do not. accounting services and other business process outsourcing. 2002a). see also Desai. availability of a skilled labour force. Continuing and accelerating cross-cutting reforms in areas such as labour and investment laws and in 29ubsidized29d29 is preferable to narrowly targeted tax subsidies and other incentives on the IT sector. In fact. with Europe coming in at 26 per cent. its share of India¶s software exports being 63 per cent. with the first two showing high growth and representing over 60 per cent of the total of Rs. and close to 88 per cent of that amount came from custom application development and application outsourcing (calculated fromNASSCOM. as well as to broaden its developmental impact. The United States remains by far the largest market for India¶s software exports. they together account for only about 35 per cent of software exports3. and the reputations built in exporting to the United States are proving important4. and Japan and the rest of the world accounting for the remaining 11 per cent (NASSCOM. IT-enabled services (ITES) have shown the strongest growth in the last two years. therefore. and GIS and engineering services. Complementarities ² in particular some form of domestic hardware industry as well as growing demand for software within the domestic market ² are also important to sustain the growth of the IT sector. There are over 2 500 Indian software exporters. and while only the top five (TCS. . There is strong evidence that India has a strong and sustainable comparative advantage in software development and IT-enabled services. 2002a. and financing of entrepreneurial activity that can hinder the contribution of IT to broader economic development. Wipro. Thus the required degree of technical sophistication of the workforce and the level of use of IT can vary widely. India faces existing and potential bottlenecks in areas such as infrastructure. They include a variety of types of service: customer call centres. Satyam and HCL) are² or are approaching the status of ² global brands. Indicators of the strength of India¶s software export capabilities include the depth of its base. 2002a).
in turn other aspects of IT and development. where the examples are many. GPTs (and complementarities more generally). Each of these possibilities ² comparative advantage. A somewhat more special characteristic of IT may be that it is a ³general purpose technology´ (GPT). Finally. or other two-way communications are also possible. or can develop. including greater efficiency in governance and in the working of markets. which are not necessarily linked to formal growth theory. . Offers to buy or sell livestock. IT may be one of the sectors in which countries such as India have. market price quotes. better quality control. Another efficiency gain is in the communication of information. Even if this is so. IT may be unique in its impact on growth. distinguished by pervasiveness. In particular. much as the automobile industry was targeted by the Japanese after World War II. there may be features of IT that make it attractive from a theoretical perspective on economic growth. advice on farming practices. Farmers and fishermen can receive weather forecasts.IT may have a special role to play in growth and development simply because of empirical characteristics that apply at the current time. IT is likely to share this characteristic with several other sectors. 1998). The falling cost of information processing means that such success stories can potentially be widely replicated. On the other hand. For example. a comparative advantage. because it affects the rate at which potential new ideas are converted into additions to the usable stock of knowledge in ways that nothing else can5. and specific training. The 30ubsidized30d30 of this special role is based on the model of recombinant growth (Weitzman. IT is one of a special few technologies: other examples of GPTs include steam and electricity (both advances in power delivery systems) and synthetic materials. quicker and more accurate payments to farmers. IT has a special role in the process of innovation. In this case. Some of this information dissemination and exchange is best done through voice media . In this view. This permits faster and safer testing. Efficiency and Broad-Based Development As an example of information processing enhancing efficiency in agricultural markets. the recent and continuing rapid innovation in IT makes it a dynamic sector that is an attractive candidate as a contributor to growth for that reason alone. technological dynamism and innovational complementarities. as will. Chakravarty (2000) describes IT use at milk collection centres in co-operative dairies. and time savings for farmers in their deliveries. and recombinant growth ² will be considered below.
corporations dealing in agricultural products have moved to provide their suppliers with Internet access to improve market efficiency. best farming practices and commodity prices. Some evidence suggests. and even if one is not satisfied with the distribution of bargaining power and benefits between a large corporation and small farmers. even basic education may be enhanced by the use of IT. production efficiency. 31ubsidized31d31 and sheer volume of material. Given the poor state of basic education19. the scale of what has been implemented so far is evidence of the efficiency benefits of IT in India¶s agricultural sector. Their annual report (ITC. not surprisingly. IT-based delivery mechanisms can overcome traditional barriers to widespread delivery of education at all levels. and even bargaining power. with its e-choupals. are faster adopters of such technologies (The Economist. This«e-infrastructure will dramatically enhance efficiency in the purchase and sale of agri-inputs and farm produce. Through virtual clustering. covering 4 500 villages across four states in India. Completely aside from the importance of IT training for the growth of IT exports. these ³e-Choupals´ are conferring the power of scale on even the smallest of individual farmers. there is nothing new in this. while other types require the capabilities of the Internet18. with direct benefits to the farmer. found that even in the absence of reliable . TARAhaat (a semi-commercial subsidiary of an NGO). as well as middlemen. in attempting to develop a network of rural Internet centres in a district in Punjab. For example. While it may seem paradoxical that delivery of basic education should rely on ³high tech´. Even if one allows for the possibility of exaggeration in this statement. The radio and television have been very successful distance-education media in the past. that richer farmers and fishermen. 2002) states: Project ³e-Choupal´«links the Indian farmer with domestic and international markets «It already reaches out to more than half a million farmers to provide web-enabled real-time information on the weather. but falling access costs will broaden information access and its benefits. in terms of the potential for interactivity. Another area of impact involves communication of information in a more fundamental way. and computers and the Internet offer several advantages.such as fixed or mobile telephones. 770 ³e-Choupals´ are already operational. In some cases. 2001a). while improved incentives for teachers and school administrators (either in the public or private sector) will help. technology can play an important complementary and even substitutive role. The most significant example is ITC.
These include: y computer-aided registration of land deeds and stamp duties in Andhra Pradesh. There have been numerous examples of successful pilot e-governance programmes in India. as in the case of TARAhaat. from electricity to university fees. However. reducing reliance on erratic visits of government functionaries24. y 32ubsidized32d32on of rural local government offices in Andhra Pradesh for delivery of statutory certificates of identity and landholdings. and a suite of basic government access services for which users are willing to pay.connectivity that would allow access to a variety of Internet-based services. substantially reducing delays23. it was able to tap into an underserved market for education in the vernacular medium in the basics of computers and the English language20. allowing citizens to pay bills under 17 different categories in one place. with data automatically sent to a central database. a spinoff of the Gyandoot project in Madhya Pradesh. a franchise model can be successful here. a tiered franchising model. As in the broader case of using the Internet for communications and transactions. the initial investments and ongoing expenditures for Itbased service delivery may act as a barrier to adoption as well as to long-run sustainability. is implementing in several parts of India25. Low-cost rural Internet kiosks. Co-operation of local governments and 32ubsidized financing have been important elements for Drishtee. are key components of what Drishtee. Since governments at all levels are financially strapped. reducing reliance on brokers and possibilities for corruption. y 32ubsidized32d checkpoints for local entry taxes in Gujarat. sustainability of e-governance initiatives is a significant issue. y e-mail requests for repairs to basic rural infrastructure such as hand pumps. with the former being critical in the case of . y consolidated bill payment sites in Kerala. reducing opportunities for local corruption.
a commercial approach may provide more flexibility. It is important to note that once Internet access is available. In this respect. in Jaipur district in Rajasthan. and combined itsInternet kiosks with cable TV franchises for greater and more immediate financial viability . advice on farming techniques. Drishtee has piggybacked on the expansion of a fiber optic company. job information. simply by requiring information. as discussed earlier in this section. to be logged and aggregated completely and systematically outside the government. Individuals can obtain market information. its benefits are not restricted to e-governance. such as basic complaints. Here also. In terms of the discussion in the previous section. For example.Drishtee. beyond that o financial viability. training. the Drishtee model can increase transparency and accountability. the use of a non-governmental intermediary such as Drishtee may have advantages over purely internal government initiatives. This is certainly part of Drishtee¶s long run model. and so on.
Model depicting a continuum of approaches to ICT development in schools 2.2. 2. Teachers . In this initial phase. administrators and teachers use ICT for tasks already carried out in school management and in the curriculum. The curriculum reflects an increase in basic skills but there is an awareness of the uses of ICT. Schools at this emerging phase are still firmly grounded in traditional. This curriculum assists movement to the next approach if so desired.4.4.1. Such schools begin to purchase.126.96.36.199.1. teacher-centred practice.MODELS2. In this secondary phase. some computing equipment and software. or have had donated.Continum of approaches of ICT in schools - Emerging Applying Infusing Transforming Source.The emerging approach Schools at the beginning stages of ICT development demonstrate theemerging approach. administrators and teachers are just starting to explore the possibilities and consequences of using ICT for school management and adding ICT to the curriculum.The applying approach Those schools in which a new understanding of the contribution of ICT to learning has developed exemplify the applying approach.4.
2. 2. user friendly access. The model is designed to address challenges such as: converting extension information into digital form.2.Proposed ICT based services for Agriculture ExtensionThe proposed model is informed by the research findings and caters to the current telecom infrastructure. The curriculum begins to merge subject areas to reflect real-world applications. and is seen in those schools that now employ a range of computer-based technologies in laboratories.1.4. ICT is taught as a separate subject at the professional level and is incorporated into all vocational areas. The focus of the curriculum is now learner-centred and integrates subject areas in real-world applications.4. . The information will be requested and disseminated through mobile applications. impact and financial sustainability. classrooms.1. literacy. This curriculum assists movement to the next approach if so desired. Teachers explore new ways in which ICT changes their personal productivity and professional practice. and administrative offices. the infusing approach involves integrating or embedding ICT across the curriculum. Schools have become centres of learning for their communities. Schools at the applying approach phase adapt the curriculum in order to increase the use of ICT in various subject areas with specific tools and software. crop specific advice. The model is aimed to achieve the following: On-Demand Provision of reliable and timely actionable information to farmers. The information will be about market prices of specific commodities.largely dominate the learning environment. ICT becomes an integral though invisible part of daily personal productivity and professional practice.The infusing approach At the next stage.3. weather updates for their area. 2.4.4.The transforming approach Schools that use ICT to rethink and renew school organization in creative ways are at the transforming approach.
y Creating sustainability financially and technologically in terms of content Source: ALAM. In Pakistan this is relatively easier to achieve as there is one national language understood in the most of the country..y Providing content in local language. M. establishing a help line backed by experts providing advice in real time. Especially. y Automating the agriculture extension by using specialized applications on mobile phones. K. y y Providing voice based content to farmers to overcome literacy barriers. In case of problems that cannot be addressed via mobile applications. Increasing population .. M. A (1999) MAJOR AGRICULTURAL PROBLEMS. aiding in data collection for surveys for institutional users. S.
ICT and e-Governance for Rural DevelopmentThe Information and Communication Technologies (ICT) are being increasingly used by the governments to deliver its services at the locations convenient to the citizens. 2004 .2.4. developed as pilot projects. Ltd. cooperative union. were aimed at offering easy access to citizen services and improved processing of government-tocitizen transactions..C. Most of these projects have seen developments in the Internet Source: Bhatnagar S. SAGE Publications Pvt.3. New Delhi. ³E-Government : From Vision to Implementation ± A Practical Guide with Case Studies´. The rural ICT applications attempt to offer the services of central agencies (like district administration.. and state and central government departments) to the citizens at their village door stepsA large number of rural E-Government applications.
3. OECD (2002b). Curriculum Corporation. The Rise of the Network Society .html on 31st January 2000 13. D¶Silva. Singh 2005 6. 2004 5.NET site (www. Gobal E-Commerce Survey.ause. Deakin University.edn. Eurostat.deakin. SAGE Publications Pvt.C. & Ba . K. Bhatnagar S. 2004. Usluel.edu. Melbourne. Indian Retailing: Shift from Pyramid to Diamonds. Eurostat. 4. ³E-Government : From Vision to Implementation ± A Practical Guide with Case Studies´. OECD. quoted in Wong Poh-Kam and Ho Yuen-Ping (2004). E-commerce Pilot Survey 2001 7. Charru Malhotra et al. RICE (Research in Computer Education) (1999) Using EdNA in the Curriculum ± TeacherProfessional Development on The Internet.cmec. Nikam et al. Ontario. 2002. M. portal player 12. Tan and Wu Ouyang (2004). 2. T. 1999 Toronto. August 2002. E-commerce Pilot Survey 2001 10. / ICT for Rural Development: An Inclusive Framework for eGovernance 15. Anupam (2004)..au/CurrCorp/Currcorp. 262-273 .enable site 9. OECD. Impact of Consumerµs Perception of Retail Store on BuildingCustomer-Based Brand Loyalty in Competitive Environment. ICT database. Oxford. Zixiang A. A kar. Castells (1996).. Manchester Centre for Development Informatics Working Paper 44 11.References 1.ca/international/forum/ on 31st January 2000 14. A Structural Equation Model for ICT Usage in Higher Education. European Commission (2002b). the AUSe... ICT database. 8. Educational Technology & Society. Blackwell. AroraShweta (2010). P. New Delhi. 11 (2). August 2002. CRITO.net) and ebiz. Ltd. Y. (2008). 1999) APEC Workshop Integration of Information and Communication Technologies (ICTs) through Teacher Professional Development December 1-3. Chowdery (2005): ict development in India. Paulo Bastos Tigre (2003). On-line at http://rice. Council of Ministers of Education (CMEC. Canada or on-line at http://www.
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