Information and communication technology (ICT) have become the

backbone of businesses nowadays. Can you imagine a world where emails,

video conferencing, and document sharing don't exist? It's hard to imagine a
modern business functioning without these essential technologies. With ICT,
businesses can collect, store, and analyze data more efficiently, which in
turn helps them make informed decisions. And let's not forget about
communication technologies that enable companies to coordinate with
employees and clients worldwide.
Business technology refers to applications of science, data, engineering, and
information for business purposes, such as the achievement of economic
and organizational goals. The main element of technology is the idea of
change, and how it can affect business and society.

Importance of ICT in business

Information and communication technology (ICT) has become a vital part of
modern business operations. With the increasing amount of data being
generated, businesses need ICT tools to help collect, store, and analyze this
data. This has led to the development of sophisticated software and
hardware solutions that enable businesses to manage their operations more
efficiently. From inventory management to customer relationship
management, ICT has become an integral part of every aspect of a business.

Without these technologies, businesses would face major disruptions, as

seen in scenarios where Google or news channels experience downtime.
Additionally, ICT plays a critical role in e-commerce, location flexibility for
employees, and analyzing business performance.

In short, ICT has revolutionized the way businesses operate, enabling them
to become more efficient, productive, and competitive in the global market.
Information and Communication Technology (ICT) refers to the use of digital
technologies to process, store, and exchange information. It includes tools
and applications such as computers, smartphones, internet, social media,
email, and software.

Role of technology in business:

ICT is considered to be all uses of digital technology that exist to help
individuals, businesses and organizations use information. So ICT is
concerned with the storage, retrieval, manipulation, transmission or receipt
of digital data. Importantly, it is also concerned with the way these different
uses can work with each other.
Types of technology:
Traditional:
Productivity tools, for example: - Word; - Excel; - database software: Access;
- presentation software: PowerPoint, Prezi; and, - graphics software: Adobe
Photoshop
Specialist applications:
Accounting: QuickBooks. - Computer Aided Design (CAD). - Management
Information Systems.
Digital communication technologies:
Internet and mobile.

Ways in which technology has influenced banking and commerce:

Through the introduction of Automatic Teller Machines (ATMs) and
Automated Banking Machines (ABMs) which facilitate the deposit and
withdrawal of funds, as well as other services without having to go into a
bank to access teller services. The location of ATM machines in hotels, petrol
stations, malls and supermarkets adds to the convenience of customers who
can transact business without having to wait in line at a bank.
The practice of on-line banking which enables customers to access their
accounts from home and other locations using personal computers. This
facility enables customers to check their balances from the comfort of their
homes and permits easy and convenient payment of utility and other bills.
Customers with more than one account can also use this facility to transfer
funds from one account to another.
Through electronic commerce (e - commerce). Using the internet,
individuals and businesses are now able to make business transactions via
the World-wide web, without having to visit a physical brick and mortar
store. E-commerce has given rise to many on-line stores which permit
customers to browse for products and pay for them electronically.

Ways in which technology can improve business:

(i) Speed and time;
(ii) Easier storage;
(iii) Improved sharing of information;
(iv) Automation

Distinguish between E-commerce and E-business;

In both cases, the e stands for "electronic networks" and describes the
application of electronic network technology - including Internet and
electronic data. E-commerce covers outward-facing processes that touch
customers, suppliers and external partners, including sales, marketing, order
taking, delivery, customer service, purchasing of raw materials and supplies
for production and procurement of indirect operating-expense items, such
as office supplies. It involves new business models and the potential to gain
new revenue or lose some existing revenue to new competitors. Interchange
(EDI) – to improve and change business processes. E-business includes e-
commerce but also covers internal processes such as production, inventory
management, product development, risk management, finance, knowledge
management and human resources. E-business strategy is more complex,
more focused on internal processes, and aimed at cost savings and
improvements in efficiency, productivity and cost savings.
Ways in which technology can improve business:
(i) Speed and time;
(ii) Easier storage;
(iii) Improved sharing of information;
(iv) Automation

Benefits of technology to business:

(i) reach more potential customers, develop a business relationship with potential
customers;
(ii) Streamline operations, reduce costs, improve efficiency, maximize profit,
minimize waste, and devote talent to core business instead of overhead;
(iii) Provide better service to customers;
(iv) Support better relationships with key partners;
(v) Allow customers to better guide the business.
Types of ICT used in business
Types of information and communication technology used in business:
1. Intranet: A network used by employees of a business to communicate
privately is called an intranet. Intranet is used to share ‘inside’
information on the company that the company does not want to go
public. This may include training videos, employee information, or
plans of the company.
2. Extranet: Also a private network. Along with employees, other
stakeholders like suppliers and wholesalers can also access the
extranet of the company. Using the extranet, suppliers can
communicate with employees about stocks or dealers can order the
required quantity of goods.
3. Website: Websites are now the ‘storefronts’ of a business. A
commonly repeated factoid is that there are as many websites as the
number of people in the world. The website lets the business talk to
its customers directly and receive feedback.
4. E-commerce website: Along with using a website for communication,
businesses use their websites to sell their products. The buying or
selling of goods using the internet is called e - commerce.
5. Software robots: Chatbots are the most widely used software robots.
Do you remember surfing on a random website when a pop-up comes
up asking you if you need any help finding particular information? If
you go ahead and reply, you communicate with a ‘software robot’ that
helps you navigate better. Software robots are special software
created to work as a virtual workforce.
6. Servers: Servers are computers or programs that help client
computers with the required information. Servers usually are ultrafast
processing computers with a large storage capacity.
7. Cloud technologies: Cloud servers let businesses store their data on
the server of another company. If a company is using cloud service,
then they don’t have to invest a huge amount of money in setting up
their server.
 8. Digital communication apps: Many businesses use mobile applications
to communicate internally. There are some apps like Slack or Google
Workspace that help communication while working remotely feasible.
9. Technologies to facilitate home working: Nowadays many businesses
have adopted a work-from-home policy. There are technologies such
as the Microsoft Office suite where people can work simultaneously
on a single project. Zoom calls have also smoothened communication
for larger groups of employees.

Role of information and communication technology in business

Now that we are aware of some of the ICT technologies, let us see how it
has impacted businesses in recent times. The role of ICT in business is to
provide tools and systems that enable efficient communication,
data management, analysis, and decision-making processes, as well as to
enhance productivity, customer engagement, and competitive advantage.
ICT can support various aspects of businesses like the location of employees,
collecting, storing, and analyzing information, e - commerce, and digital
communication.

Location of employees

As per the statistics published by the Office of National Statistics in the UK,
the proportion of adults who worked from home in 2020 increased to 37%
on average from 27% in 2019. Many businesses ran completely remotely,
without their employees reporting to work for the entire period of the
pandemic. Even without a pandemic, many businesses have overseas units.
Some businesses have production factories, call centers, or administrative
departments overseas. Many businesses frequently outsource work abroad.

Many software technologies help employees around the world

communicate effortlessly. Services like Microsoft teams or Slack provide a
solution for informal communication and aid discussions, while Zoom calling
provides a platform for large teams to communicate. Of course, there is an
option of emails for formal communication.

The impact of ICT is so strong on businesses that now many businesses are
replacing employees with technology. If you visit any McDonald's, you can
place an order using their kiosk. In supermarkets, you have self-checkout
counters. All these are examples of the impacts of ICT on employees.

Collecting, storing, and analyzing information

Data collection and analysis is probably the most important function
businesses are now concentrating on. Proper data analysis can identify
trends and customer behavior that in turn can help businesses decide on
their strategies.

Different companies collect data differently, on different things. For

example, Tesco collects data like frequently bought items, average money
spent per order, what groceries are selling fast, etc.

Another mode for data collection is feedback forms. You may have given
feedback about how you liked the service after talking to a customer service
agent. The data collected will help businesses not only access their
employee but also to improve their business processes.

After collecting the data, the business has to store it properly so that
businesses can analyze it. Companies can invest in their servers to store data
or use cloud services provided by Amazon or Google.

Data analysis is to find out the correlation between data to make

conclusions that will help decision making. This could be a simple decision
such as which flavor of Coca-Cola customers prefer in South London. If the
answer is Diet Coke, then it does not make sense to fill all shelves with
Cherry Coke.

Digital communication
Email, texts, webchats, videoconferencing, communication apps, and social
media are all examples of digital communication. Some of the known names
include Gmail, WhatsApp, Messenger, Zoom, Google Hangouts, Facebook,
Instagram, and LinkedIn.

The communication where information is transmitted between two

computers electronically is called digital communication.
Because of digital communication, businesses can communicate with
potential customers (through websites), or stakeholders (intranet and
extranets).

Many businesses use social media platforms to communicate with their

customers. Twitter, Instagram, and Facebook are much-used by businesses
to make announcements or collect feedback, or simply for marketing
purposes.

Advantages and disadvantages of ICT in

business
ICT has helped businesses work efficiently and develop fast - but there are
some drawbacks along with the benefits.
Advantages of ICT
1. Fast communication: emails are quick, but chat on platforms like
WhatsApp are quicker. ICT lets businesses communicate anywhere on
the globe within a fraction of a second.
2. Cost-effectiveness: working from home simply saves money and time.
Efficient technologies reduce the time required to complete the task.
For example, a tractor will plow better and faster as compared to the
old way of using various practical tools.
3. Better information security: private data can be better protected by
ICT in comparison to paper files. Sensitive information can be
protected using a high level of encryption. This tool can also save
customers from fraudsters and identity thieves.
4. Overcome cultural barriers: Technology does not differentiate
between users based on religion, race, or gender. Technology also
helps people understand different views and opinions.

Disadvantages of ICT
1. Lack of security: Even though IT provides better security than
traditional ways, it is still susceptible to external attacks like hacking or
software viruses.
2. Unemployment: Many information and communication technologies
are replacing human employees. It is making many jobs such as
customer support redundant. For instance, recent driverless car
technology may replace all taxi drivers in the future.
3. The initial cost of implementation and maintenance: It may cost a lot
to implement and maintain a secure and user-friendly website. Also,
businesses have to comply with new laws and regulations that are
introduced.
4. No human touch: Working from home has increased mental health
concerns within individuals. Many businesses worry about their
employees lacking human interaction. When it comes to chatbots,
 many customers wish to talk to a real person who can understand and
solve problems faster rather than the software.

ICT is highly important for businesses to survive, compete, and grow. ICT has
an impact on every part of the business from production, supply chains,
marketing and sales, and business communication. There are many
advantages of ICT like cost-effectiveness, efficiency, and security. But if not
implemented properly, ICT can be disastrous to businesses because of
disadvantages such the high initial cost of implementation, unemployment,
lack of human touch, and cyber-attacks.

Information and communication

technology examples in business
Examples of communication technology used in business include email,
instant messaging, video conferencing, virtual phone systems, and social
media platforms. Here are some examples:

 Amazon uses Amazon Chime, a communication tool that allows for

online meetings, video conferencing, and chat messaging between
employees, as well as email and phone communication.
 Slack is a software company that uses its own communication
tool, slack, for internal communication between employees, as well as
for communication with clients and partners. Slack allows for real-time
messaging, file sharing, and video calls.
 Walmart uses Workplace by Facebook, a collaboration tool that allows
for real-time messaging, video calls, and group communication.

Information and Communication Technology in Business -

Key takeaways
 Information and Communication Technology (ICT) refers to the use of
digital technologies to process, store, and exchange information.

 ICT includes tools and applications such as computers, smartphones,

internet, social media, and email.

 A network used by employees of a business to communicate privately

is called an intranet.

 An extranet is also a private network. Along with employees, other

stakeholders like suppliers and wholesalers can access the extranet of
the company.

 Software robots are special software created to work as a virtual

workforce.

 Cloud servers let businesses store their data on the server of another
company.

 The buying and selling of goods that occurs using the internet are
called e-commerce.

 E – Commerce that happens using mobile devices is called m-

commerce.

 Communication, where information is transmitted between two

computers electronically, is called digital communication.

 The benefits of ICT are fast communication, cost-effectiveness, better

information security, and no cultural barriers.
  ICT also has disadvantages including the high initial cost of
implementation, unemployment, no human touch, and cyber-attacks.

Ethical Issues in Technology

Businesses today are faced with several ethical challenges. Critical decisions
have to be made to ensure we are protecting personal freedoms and using
data appropriately.
Misuse of Personal Information
One of the primary ethical dilemmas in our technologically empowered age
revolves around how businesses use personal information. As we browse
internet sites, make online purchases, enter our information on websites,
engage with different businesses online and participate in social media, we
are constantly providing personal details. Companies often gather
information to hyper-personalize our online experiences, but to what extent
is that information actually impeding our right to privacy?
Personal information is the new gold, as the saying goes. We have
commoditized data because of the value it provides to businesses
attempting to reach their consumer base. But when does it go too far? For
businesses, it’s extremely valuable to know what kind of products are being
searched for and what type of content people are consuming the most. For
political figures, it’s important to know what kind of social or legal issues are
getting the most attention. These valuable data points are often exploited so
that businesses or entities can make money or advance their goals.
Facebook in particular has come under fire several times over the years for
selling personal data it gathers on its platform.

Consequences of unethical use of ICT:

 Security;
 Privacy;
 Intellectual property infringement;
 Impact on humans; and,
 Distraction.
Use of Artificial Intelligence
Artificial intelligence certainly offers great business potential. But, at what
point do AI systems cross an ethical line into dangerous territory?
 Facial recognition: Use of software to find individuals can quickly
become a less-than-ethical problem. There are various concerns about
facial recognition, such as misuse, racial bias and restriction of personal
freedoms. The ability to track movements and activity quickly morphs into
a lack of privacy and can create bias in certain situations.
 Replacement of jobs: While this is anticipated to a certain degree, AI is
meant to increase automation of low-level tasks in many situations so that
human resources can be used on more strategic initiatives and
complicated job duties. The large-scale elimination of jobs has many
workers concerned about job security, but AI is more likely to lead to job
creation.
 Health tracking: The pandemic brought contact tracing into the
mainstream. Is it ethical to track the health status of people and how will
that impact the limitations we place on them?
 Bias in AI technology: Technology is built by programmers and inherits
the bias of its creators because humans inherently have bias. “Technology
is inherently flawed. Does it even matter who developed the algorithms?
AI systems learn to make decisions based on training and coding data,
which can be tainted by human bias or reflect historical or social
inequities,”

Autonomous Technology
Self-driving cars, robotic weapons and drones for service are no longer a
thing of the future—they’re a thing of the present and they come with
ethical dilemmas. Robotic machines in place of human soldiers is a very real
possibility, along with self-driving cars and package delivery via unmanned
drone.
Autonomous technology packs a punch when it comes to business potential,
but there is significant concern that comes with allowing programmed
technology to operate seemingly without needed oversight. It’s a frequently
mentioned ethical concern that we trust our technology too much without
fully understanding it.
Ethical Practices in Technology
Unlike business ethics, ethical technology is about ensuring there is a moral
relationship that exists between technology and users.
Respect for Employees and Customers
Businesses that engage in ethical technology have a firm moral sense of
employee rights and customer protections. Data is valuable, but the
employees and customers who power your business are undoubtedly your
greatest asset. Take care to always observe responsible protections for
employees and customers to practice ethical technology.
Moral Use of Data and Resources
Data is undoubtedly something of value for businesses. It allows companies
to target their marketing strategies and refine product offerings, but it can
also be an invasive use of privacy bringing many ethical considerations to
the forefront. Data protection measures and compliance procedures can
help ensure that data isn’t leaked or used inappropriately.
Responsible Adoption of Disruptive Tech
Digital growth is a business reality. Disruptive tech often isn’t just a way to
outpace the competition—it’s the only way to break even. But embracing
new technologies doesn’t have to coincide with an ethical challenge. Do
your due diligence to ensure that the technology you adopt has protections
in place and you’ll be well on your way to practicing ethical tech.
Create a Culture of Responsibility
Ultimately, we need to create a culture of responsibility within technology. If
the information technology workforce and industry giants believe they are
responsible for the safe and ethical usage of technology, then we will see
more governance and fair use of data.
Emerging ethical dilemmas in science and technology
New ethical problems regarding the use of science and technology are
always arising. When is it right to use science and technology to apply to
real-life scenarios and when does it impede human rights?
  Health tracking and the digital twin dilemma: Should organizations be
able to create your twin in code and experiment on it to advance
healthcare initiatives? And when does that become a practice of
exploitation?
 Genetic engineering: While possessing great potential for human
health and the recovery from damaging genetic mutations, there are
considerable ethical considerations that surround the editing of the
human genome.
Ethical decisions in technology should not be taken lightly. If we believe that
technology can help to solve the world’s problems, addressing the ethics
involved is the only way to us get there.