TECHNOLOGY AND THE GLOBAL BUSINESS ENVIRONMENT

Sharlean Mayne-Lawson
 SPECIFIC OBJECTIVES

Students should be able to:

 Explain the concept of business technology
 Explain the role of information communication technology (ICT) in business

 Describe the types of ICT used in business

 Ways in which technology has influenced banking and commerce
 Distinguish between e-commerce and e-business

 Identify ways in which ICT can be used to improve efficiency of business

operations
 Discuss the ethical implications of the use of ICT in business
 EXPLAIN THE CONCEPT OF BUSINESS TECHNOLOGY

 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.
 EXPLAIN THE ROLE OF INFORMATION
COMMUNICATION TECHNOLOGY (ICT) IN BUSINESS

 ICT is considered to be all uses of digital technology that exist to

help individuals, businesses and organizations use information.

 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.
 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

 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
 WAYS IN WHICH TECHNOLOGY HAS
INFLUENCED BANKING AND COMMERCE
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 store. E-commerce has given rise to many on-
line stores which permit customers to browse for products and pay for them
electronically.
 DESCRIBE THE TYPES OF ICT USED IN BUSINESS
 TRADITIONAL
(i) Productivity tools, for example: - Word; - Excel; - database
software: Access; - presentation software: PowerPoint, Prezi; and, -
graphics software: Adobe Photoshop.

(ii) Specialist applications: - Accounting: QuickBooks. - Computer

Aided Design (CAD). - Management Information Systems.

 Digital communication technologies: (i) internet; and, (ii) mobile.

 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.
.
 DISTINGUISH BETWEEN E-COMMERCE AND E-BUSINESS

E- Commerce involves new business models and the potential to gain new
revenue or lose some existing revenue to new competitors.

It includes:
Electronic data
Email
Electronic fund transfer
Digital libraries
interchange (EDI) – to improve and change business processes
 DISTINGUISH BETWEEN E-COMMERCE AND E-BUSINESS

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.
 IDENTIFY WAYS IN WHICH ICT CAN BE USED TO IMPROVE
EFFICIENCY OF BUSINESS OPERATIONS

 More efficient business operations namely document templates and the digital
filing system
 Instant communication and the sharing of information through emails and video
conferencing
 The use of software to collect and interpret data
 speed and time is saved in the use of information for many things
 easier storage
 Automation
Customer relationship management software records customers information: buying
history, follow up on complaints
 IDENTIFY WAYS IN WHICH ICT CAN BE USED TO IMPROVE
EFFICIENCY OF BUSINESS OPERATIONS

Benefits of technology to business:

 Reach more potential customers and develop a business relationship with
potential customers

 Streamline operations, reduce costs, improve efficiency, maximize profit,

minimize waste, devote talent to core business instead of overhead
 Provide better service to customers
 Support better relationships with key partners
 Allow customers to better guide the business.
CONSEQUENCES OF UNETHICAL USE OF ICT

 Security
 Privacy
 Intellectual property infringement
 Impact on humans
 Distraction
 CONSEQUENCES OF UNETHICAL USE OF ICT

SECURITY
Cyber crime can take many forms. These are:
 Unauthorized access to data- malicious computer hackers cam gain
unauthorized access to data. When sensitive client/business information is
obtain, this is stolen, exploited and sold for money

Corporate espionage is product information or trade secrets stolen so competitors

can gain an advantage in the market
 Sabotaging a system – the system will then not function properly

 Stealing credit card numbers and banking fraud- to engage in online banking,
diverting funds and purchase items with stolen information
 CONSEQUENCES OF UNETHICAL USE OF ICT

SECURITY
 Skimming- the card is used at an ATM or point of sale location and the data is
captured. The cardholders’ funds are then used
 Phishing attacks- Links and emails are clicked leading to harmful websites.
Personal and financial data is then obtained. The device can also be infected with
virus

The consequences are:

 Companies and individuals can suffer financial ;losses
 Loss of confidence by customers
 Hackers found guilty are prosecuted by law
 CONSEQUENCES OF UNETHICAL USE OF ICT

Privacy
The major consequences are:
 Customers’ information are made public and often mis-used

 Identity theft can occur

 Customer information can be used for spam or junk mail

 Viruses can be spread to customers

 CONSEQUENCES OF UNETHICAL USE OF ICT

PRIVACY
Privacy may be affected in the following ways:
 COOKIES-Commercial websites use cookies to collect persons information and
use that information to recommend products/offers to customers. Users can
agree to continue browsing or not

 E-MAILS AND SOCIAL MEDIA PROFILES- Personal information and photos

may be obtained and misused. Even with restricted audience, other viewers can
still have access and share information with the wrong persons.
 The use of social media can lead to cyber bullying or intimidating persons or
manipulating social media to damage a product or the reputation of a company
 CONSEQUENCES OF UNETHICAL USE OF ICT

 CAMERA SYSTEMS– These are installed in public and private institutions.

Many times the camera system have video recorders and can be paired with
facial recognition technology and automatic vehicle registration number.
Information about persons location can be misused. Spy cam can also be used to
view and record individuals without their knowledge

 Intellectual property infringement- There is an infringement when songs, writing

theories music … which are protected by law is used without permission.
 This involves piracy of the material where there is unauthorized use where items
are downloaded, copied and distributed example games. The person/business can
loose income and control over the material
 CONSEQUENCES OF UNETHICAL USE OF ICT

Impact on humans
 increases unemployment as It reduces the need for many types of labour

 Creation of jobs: example network managers, web designers, system analysts, etc

 Training of persons and keeping them up to date on the net ICT changes and
developments

 Working from home- Many business offer this option example, during COVID
 CONSEQUENCES OF UNETHICAL USE OF ICT

 Fake news and cyber bullying on many occasions are spreading with the use of
ICT
 Health issues through the prolonged use of the computer (neck, back and
shoulder pains, headache, eyestrain) which can lead to loss in productivity
 Distraction- Employees are able to access thee internet for personal use at any
time. Iy can be a distraction to employees in working hours which can lead to
loss in productivity
 Accidents can occur – example, use of the cellphones while driving
 Employees may receive verbal and written warnings and be eventually
dismissed if they frequently mis0use computers and other ICT devices during
work
 Technology has enabled businesses to track their inventory, optimize their
logistics, and improve the efficiency of their supply chains, leading to reduced
costs and improved customer satisfaction.

 Innovation has also played a crucial role in driving international business

growth. Businesses that invest in research and development can create new
products and services that meet the evolving needs of their customers.
 Innovation has led to the emergence of new business models in international
business. For instance, the sharing economy, which is based on the concept of
peer-to-peer sharing of goods and services, has disrupted traditional business
models in the hospitality, transportation, and finance industries.

 Companies like Airbnb and Uber have leveraged technology to create new
business models that challenge established players in these industries. These
disruptive business models have not only created new opportunities for
businesses but also changed the way customers consume products and services.
 However, with the rise of technology and innovation, international businesses also face
several challenges. One of the most significant challenges is the threat of cybercrime. As
businesses become more dependent on digital technologies, they become more vulnerable
to cyber-attacks.

 These attacks can lead to data breaches, financial losses, and damage to a business's
reputation. Therefore, businesses need to invest in cybersecurity to protect their data and
systems from cyber threats.

 Another challenge that businesses face is the need to adapt to changing regulations and
policies across different countries. International business involves complying with
different legal and regulatory frameworks in various countries, which can be complex and
time-consuming. Companies must ensure that they comply with local laws and regulations
to avoid legal and financial penalties