The Information and Communication Technology and PC World Business - Research Paper Example

Information and Communication Technology (ICT) has made dramatic changes in the contemporary society and has impacted on almost all facets of life across the spectrum. New technology has also impacted on the way businesses operate. The advent of the internet in particular has revolutionised the way people conduct business. Essentially, the role of business is to serve its customers profitably and perfect service is only possible if a business has the right information in the hands of the right people at the right time of which this can only be attainable through the appropriate use of information technology. Therefore, the challenge facing any business today is to plan for, develop, manage and use its three most important resources-information, information and technology and people. Against this background, this essay seeks to analyse the impact of the internet on the operations of PC World Business on the way in which the company collects, stores and processes information. The essay will begin by outlining a brief description of the organisation and the business it is involved in. This will be followed by an explanation of key concepts underlying the discussion such as information technology, information systems as well as the internet. The main body will evaluate how the organisation is harnessing the internet in its operations particularly on decision making and gaining competitive advantage. PC World Business is a UK based computer organisation that specifically deals with selling an assortment of PCs ranging from notebooks, laptop as well as desktop computers. It also deals with selling accessories as well as software for all models of computers. The organisation also deals with printers as well as cartridges. Basically, PC World Business offers more than 60 000 products and it operates more like and information organisation as going to be discussed in detail below. Through the use of the internet, this organisation is regarded as a force to reckon with in the PC world. In order to outline the impacts of internet on the conduct of business by PC World Business, it is imperative to explain some terms that have a bearing on how information is collected, processed and used in an organisation. Information and communication technology (ICT) is the technological realm which deals with the use of computers and computer based programs for the conversion, protection, processing, transmission and retrieval of information. In short, it can be defined as the use of computers and software to manage data (About.com, n.d). On the other hand, information systems are the means by which people and organisations, utilising technologies, gather, process, store, use and disseminate information (UK Academy for Information Systems). In the same vein, management information systems (MIS) deals with planning for, development, management and use of information technology to help people perform the tasks related to information processing and management (Haag, Cummings & Dawkins 2000). Three key resources from this definition are information, information technology and people. There are various functions that a knowledge worker must undertake to ensure that the organisation maximises its advantage. Perhaps, the most visible and explosive information technology tool is the internet. The internet is basically a network of networked computers all over the world (Haag, Cummings & Dawkins 2000). Indeed, the advent of the internet brought about dramatic changes in the processing and dissemination of information. On the internet, you can find almost any information you want by simply typing the subject which accessed from the internet through the use of specialist search engines such as Google. With Google, you can search and access any kind of information related to any subject. This is advantageous in that all the workers with access to the internet can easily get any information that is related to their field of specialisation. Specialized information in particular is usually reliable because it deals with target subjects which characterize any particular job. This information would be specifically targeted at companies which specialize in computing hence relevant information would be available always to the workers who can use search engines. Morden communication technology has made dramatic changes in the contemporary marketing communication landscape. A close analysis of the operations of PC World Business shows that the internet has had immense, positive impact on the way it collects, stores and processes information. Through the use of the internet, it can be noted that the above mentioned company has greatly improved the performance of the employees and has also improved the marketing strategies employed to reach the customers. It can be seen that consumers now have the ability to make evaluations on their preferred choice of goods and products owing to the improvements in communication technology (Robinson 1997). Marketers on the other hand are cognisant of these sweeping impacts caused by new technology which has led to significant changes in the way they carry out their business. A number of well known examples of competitive gain from the use of MIS particularly the internet exist in the operations of PC World Business. It can be argued that there are many successful business organizations in the market that are strategically so viable to such an extent that rival competitors can hardly exceed their performance. Such stable status can be achieved only when they apply certain strategies that can hardly be imitated by the competitors for long-term survival and stability, which is known as competitive advantages. Porter (1980) suggested a framework for competitive advantage through his generic strategies. In order to survive in the long term, Porter (1985) has argued that a firm needs to have sustainable competitive advantages. There are two sources of competitive advantage; cost advantage and differentiation. Through his generic strategies, a ‘Cost Leadership’ is where a firm seeks to be low-cost producer in its industry whereas ‘Differentiation’ is when a firm seeks to be unique in its industry through features of its products that are highly valued. In this case, the internet has greatly helped PC World Business to lower costs on money spent on marketing activities while at the same time maximizing the returns. Antion (2005) states that the internet is relatively cheaper to use but the returns are tremendous. The use of the internet at PC World Business has greatly improved the performance of the employees in the organisation. The internet has made it relatively easier for the employees to gather information about their customers and they can process it efficiently to meet their needs. Through specially designed website, it is possible for the organisation to gather the views of the customers about their products directly and it is also possible for marketers in the organisation to engage in dialogue directly with the customers since the website is developed in such a way that it is possible to get feedback from both ends since it is a two way communication channel. The employers are also constantly in touch with their suppliers which makes them effective in their operations. Should they require anything, the internet is at their disposal and they can link directly with whoever they want in order to get the information they want. In terms of information gathering and processing, the use of the internet at PC World Business has immensely contributed to the efficiency and effectiveness of the organisation. The use of the internet at PC World Business has also greatly improved the marketing of PCs and other related accessories. In this particular case, marketing is essentially concerned with bridging the gap between the sellers of the PCs and consumers and the main aim is to satisfy the needs of the customers profitably. The objectives of marketing communication are mainly dependent on what the company wants to achieve and integration of various communication disciplines in the communication plan is likely to produce desired results. Communication with the customers is greatly enhanced by the use of the internet by PC World Business. It has been noted that during the contemporary era, new information and communication technology has revolutionised the ways of communication and doing business. The advent of the internet has brought about new features that make communication relatively easy and can reach a wide range of people located in diverse geographical areas. Electronic communication via the use of the internet is very fast and effective. In terms of marketing, Kotler (1999) calls this online marketing. Various companies including PC World Business have set up their online channels where marketing information about their products can be readily available from time to time. Thus, the internet is a medium that uses broadcasting and publishing with the aid of connectivity of computers that are online. Unlike other traditional forms of media, the use of the internet can facilitate a two way communication process between the buyers of the computer products and sellers. Compared to other forms of communication media, online marketing through the internet use offers a variety of benefits to both the marketer and the customer. It is convenient, lots of information can easily be accessible without much hassles. It does not limit advertising space and can reach multitudes of people at the same time. It allows marketers to communicate with both new and existing markets in an integrated way that is beneficial to both the customers and the marketers. At PC World Business, the specially designed website allows the marketers to tailor their messages as well as other advertising or marketing related in such a way that it will appeal to the targeted customers. The colourful pictures that accompany the advertisements have greatly contributed to the success in business of the organisation in question to a greater extent. With the use of the internet, it becomes easier to target as well as reach the customers and it can be said that to date, PC World Business has managed to double its operations in the past two years through the effective use of the internet. The internet can play a cost effective role in the communication mix where direct selling can be made possible through engaging dialogue between the marketers and customers. Advertising is also aided where awareness of product can be easily done through interactive involvement. The website of the organisation is designed in such a way that it is easy to get any information about a product or about the organisation itself without many hassles. Information processing in the information society we are currently living is ideal for any business and it can be noted that the internet has greatly contributed to the success of PC World Business in selling various computer related accessories given that this is a competitive industry. Information dissemination is pivotal in the environment which is competitive and it allows the marketers to review the information they post on the official website. In the case of the above mentioned organisation, it can be noted that the customers have access to up to date information every time. The use of the internet by PC World Business has also immensely contributed towards the revenue generated by the organisation as a whole. The internet facilitates online shopping where the buyer does not need to go to the shop physically to obtain any product of choice. With online shopping, the customers can purchase various products using credit cards or other online transactions regardless of the geographical location they are. Deliveries in local areas are done within 24 hours of purchase and in other areas abroad, they will be done within seven working days. Online transactions are secure and convenient to use and this has benefited the above mentioned organisation a lot to satisfy the needs of the buyers. Where there is mutual trust between the buyer and the seller, there will be highly chances of creating loyalty among the existing customers which is the case with PC World Computers. Online shopping can be done for 24 hours which is a great advantage to PC World business given that the shop does not need to be open for a transaction to be carried out. This has given the organisation the opportunity to maximise the revenue generated which is the essence of being in business to satisfy the needs of the customers profitably. Another advantage that has been brought by the use of the internet to PC World Business is that the organisation is better positioned to keep pace with the other competitors given that it is able to scan the environment and come up with strategies that are meant to counter the challenges that can be offered by the other competitors. The purpose of business is to attract as many customers as possible but this is not an easy feat given that the industry is characterised by many competitors. The internet has made possible for the organisation to gather information about the other competitors. As noted above, almost any information can be found online hence PC World harnesses the internet to gathers information about rival competitors that will be used in the formulation of strategies meant to counter the challenges of competition. In order for business to survive in a competitive environment, it is imperative for the organisation to know the operations of the others. The internet has also helped PC World Business to stay abreast with current events taking place in the environment. There are various factors such as social, economic, political, cultural as well as environmental factors that characterise the environment in which the business is operating and the use of the internet has greatly helped in gathering of information that is helpful to the well being of the organisation. The organisation greatly benefited from the information gathered through the internet during the period of the global economic recession in the recent years ago. This enabled the organisation to put strategies in place so that it was better positioned to achieve its long term strategies regardless of the fact that people had little disposable money. In order for a company to operate effectively, there is every need to have information about the pertinent issues that may affect the organisation and this information can be easily gathered through the use of the internet. It can be seen that PC World Business has managed to keep pace with the developments taking place in the business environment in which it operates through the effective use of the internet to gather as well as disseminate vital information about its operations. Decisions made from the information gathered through the internet are more informed which is one benefit of using the internet by PC World Business. To a greater extent, it can also be noted that PC World business has immensely benefited from using the internet where it can be seen that the company is better positioned to influence product development from different actors given that it deals directly with the customers. The internet allows the organisation to carry out market research which helps it to establish the needs and interests of the customers. This information is then relayed to the manufacturers and suppliers of different computer accessories. By virtue of being responsive to the needs and wants of the customers, the organisation has managed to create loyalty among the customers which is a big advantage for organisation’s survival in a competitive advantage. Loyalty among the employees entails that they will make return purchases and there will also be referral purchases which is advantageous to the organisation. It has been noted that each year there has been a steady increase in the number of customers for PC World Since the period it started using the internet full time in its operations about a decade and some years ago. However, the only disadvantage of using the internet on an individual level is that the organisation has been forced to resize its workforce. This means no work for the other affected employees. Through the use of the internet, it can be noted that the work which used to be done by several people could be done by only a single person which can be a disadvantage to those people affected. In terms of business wise, the advantages of the internet outweigh the disadvantages of using it which brings us to the conclusion that the internet plays a significant role in the operations of a business. Over and above, it can be concluded that Information and Communication Technology (ICT) has made dramatic changes in the contemporary society and has impacted on almost all facets of life across the spectrum. New technology has also impacted on the way businesses operate. The advent of the internet in particular has revolutionised the way people conduct business. Essentially, the role of business is to serve its customers profitably and perfect service is only possible if a business has the right information in the hands of the right people at the right time of which this can only be attainable through the appropriate use of information technology. PC World Business has benefited in several ways from using the internet and some of them include the following: it has greatly improved the marketing of PCs and other related accessories, it has improved the performance of the employees, has helped the organisation to keep pace with the changes taking place in the environment and it has also allowed online shopping which can be done for 24 hours. These are among the major notable benefits that have been witnessed by the above mentioned organisation through the use of the internet. This has also given the organisation a competitive advantage in that it is better positioned to make informed decisions from the information gathered from the internet. Bibliography Antion T (2005). The ultimate guide to electronic marketing for small business. New Jersey. John Wiley & Sons. 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