d) Procedures - They include the rules, policies and protocols that need to be - observed or

followed to be able to use the hardware and software in a manner that makes the functioning of
the computer system in an orderly and efficient fashion.
(procedure is a set of coded instructions that tell a computer how to run a program or
calculation)
(They are small sections of code that are used to perform a particular task and they are used for
two main reasons.
The first reason is that they can be used to avoid repetition of commands within the program.)

e)Information - These refer to the various forms or types of information that are fed into the
hardware to be processed by the people (users) using specific software to be able to arrive at
the desired specific output in the pursuit of business objectives.
- refers to the data na nakikita ta ha monitor na ginpo-process han computer.
any data nga na appear ha computer.
- (Information is data put into context.
EX: PSA gather data of civil registration AND DATA IS RAW AND UNORGANIZED FACTS
THAT NEED TO BE PROCESSED but once it is organized and structured. Readily presented it
is called INFORMATION

Capabilities of ICT

Information & Communication Technologies offer a wide range of capabilities or services

that can be used in practically all sectors of the economy. As cited by Schultheis and Sumner
(1998),

The Capabilities of ICT are categorized into eight broad areas.

a) Transactional - IT can transform unstructured processes into routine transactions. For

example, IT can support an admissions decision process by building a predefined minimum
admission application screening process with the use of an automated system.
-mayda unstructured data na pede maayos through the uses of ICT like many companies na
nagamit hin automated system ha ira admissions decision han ira application screening
process.
- A transaction system typically consists of software applications, databases that are used to
record, process, and store transactions. Like include sales, purchases, returns, refunds, and
other types of financial transactions.

b) Geographical - IT can transfer information with rapidity and ease across large distances,
making processes independent of geography.

- For example, application development teams in India can use COBOL and other procedural
languages to create business information systems that are implemented, tested, and ultimately
used by many American firms.
COBOL stands for Common Business Oriented Language. A compiler is a computer program
that takes other computer programs written in a high-level (source) language and converts them
into another program, machine code, which the computer can understand.

c) Analytical - IT can bring complex analytical methods to bear in a process. For example,
American Express designed an expert system for credit authorization that capitalizes on the
knowledge and experience of expert credit authorities and applies expert analytical support for
the budgetary analytical process.
- (through the capabilities of ict there are big companies that can assimilate and monitor
data from smaller categories)
-through advances han ICT na momonitor & na pipin-point han mga big companies kun hino an
pede nira paglaanan hin budget

d) Informational- IT can bring vast amounts of detailed information into process. For example, in
the process of making budgetary decisions, managers need access to the details of past
activity. A budget database can improve access to detailed historical information and can
effectively support the budgetary analysis process.

- one of the capabilities of ICT,is it can provide detailed info. nga need han most
business :included sales, purchases, returns, refunds, and other types of financial transactions.

e) Sequential - It can enable changes in the sequence of tasks in a process, often allowing
multiple tasks to be worked simultaneously. For example, the redesigning of the new product
design and manufacturing process at Xerox was made possible through the design of a
centralized database of product-design specifications, which could be updated and referred to
during various stages of the product-development process.

-through the uses of ICT nagkakamayda logical order or sequence.

f) Knowledge management - IT allows the capture and dissemination of knowledge and

expertise to improve process. For example, the use of group support systems, including
electronic mail, computer-based meeting system, and electronic conferencing. It provides
opportunities for the sharing of meeting minutes, agenda, and historical information on business
plans and activities.
g) Tracking - IT allows the tracking of tasks status, inputs, and outputs. For example, the use of
a project-management reporting system can provide information on project status, activities,
and deliverables to team members and to management on ongoing basis and as these activities
and accomplishments are updated.

h) Disintermediation - IT can connect two parties within a process that would otherwise
communicate through an intermediary. For example, many applications in electronic commerce
are eliminating the middleman. Using Internet- based facilities, customers can order computers,
T-shirts, office supplies, and a vast array of other products and services over the World Wide
Web.
- reduction in the use of intermediaries between producers and consumers, for example
by investing directly in the securities market rather than through a bank.
- The term disintermediation refers to the process of cutting out the financial intermediary
in a transaction. It may allow a consumer to buy directly from a wholesaler rather than
through an intermediary such as a retailer, or enable a business to order directly from a
manufacturer rather than from a distributor.

Role of ICT in Value Chain

Given the capabilities of the ICTs described earlier, certain specific applications of ICT find their
way to the value chain process means lifecycle of a production from production, consumption
to disposal processes.”

Table 2. Information technology supporting primary activities in the value chain

This are uses of information tech. in value chain activities

PRIMARY ACTIVITIES
● can be greatly improved by employing computers then using commercial software.

● inbound logistics tasks can be made simpler by employing just-in-time system

● using control systems in the case of production and operation systems in factories.
SECONDARY ACTIVITIES
communication within and outside the business organization.
● can be made more convenient by adopting the electronic mail function of computers and
the Internet.

● Hiring of employees can be easily done by posting vacancies in the company's website

● Procurement of required office supplies or raw material inputs to production can be also
done using the firm's website

● commercial software that will allow advertising and marketing of products and services
only and auction schemes can be also done online.

Concept of Convergence
This is a scenario that allowed computers to be connected using telecommunication lines (and
eventually power lines) thus allowing fast transmission of information anywhere in the world.
Convergence essentially means the integration of computers and telecommunication
technologies. Simply described, it means combining the functions of these two technologies or
systems into a single product.
-convergence covers both hardware and software components resulting to the use of other
technologies
-In some industry circles, convergence is also taken to mean multimedia, as in the case of the
integration of voice, data, audio, and video into a single device or service (like televison &
cellphone)
-More recently, some business organizations and analysts use convergence to describe the
merging of wireless communication with the Internet, leading eventually to remotely (or
wirelessly) controlled Internet-enable appliances

Impact of ICT in Industry and Business

In the view of Schultheis and Sumner (1998), the level of impact of information and
technologies appeared to be a three-tiered scenario covering:

a) Industry level b)Firm level c) Strategy level

Schultheis and Sumner also theorized that the industry level impact of ICT has resulted to
changes in terms of the following:

a) Products and services b) Production economics c) Market

The economies of scale and best or optimum operating system ICT can provide results to a
choice of marketing strategy options particularly the idea of low-cost leadership as a business
level strategy. The flexibility that some production systems and technologies used in conjunction
with ICTs can lead to production differentiation option as another form of business level
strategy.

Digitalization of Products and Services

The speed at which technologies have been developed has greatly influenced the
extent of exploitation of natural resources of planet earth to benefit humanity.

In particular, the discovery and development of new products and services brought
about by the natural evolution process as well as market demands itself have resulted in
replacements and substitutes for certain products.

As new technologies emerged, new products are introduced in the market to the delight
of some and disillusionment of others. As it closed doors of opportunities for some
traditional businessmen, it opened wide doors of opportunities for enterprising
individuals and organizations using or adopting ICT.

The rapid development in materials engineering and electrical/electronics engineering

resulted to changes and improvements in many industries as shown in Table 5. In
specific terms, the development cited by Pitts and Lei (2000) as shown in Table 5
transformed Kodak in the way they conduct their business as partly explained by Figure
9.