Role Of ICT In Business

1199 Words5 Pages
Introduction SMME Small, micro and medium enterprise – can be defined as a separate and distinct business entity, they have been identified as businesses that can improve socio-economic conditions of a country and play an important role in unemployment. ICT, Information and Communication Technology, includes any communication devices such as radio, TVs, cell phones, computers, software and hardware etc, as well as the applications those devices offer. ICT has allowed SMMEs to be more efficient and effective in markets. Due to the fact that SMMEs are vital to the economy, they need ICTs to enliven corporate management and promote economic growth. How ICTs have empowered SMMEs ICTs help SMMEs remain competitive. Through technological means…show more content…
Having access to ICTs will make it possible to source out places at which a business can buy it’s products from as well as compare prices between different sellers which will allow owners to identify deals an promotions, from which the business can benefit, without having to physically go to the store. This information is needed to make important decisions for the business. Transaction recording happens more efficiently through the use of ICTs, eg, Computers. Transactions do not need to be written manually, they are saved automatically onto a memory drive every time a sale is made. Computerised programmes make it easier to access inventory levels and allows business owners to monitor the rate of stock turnover and can decide whether or not they need to stock up or stock down on a certain product. Theft can be identified and controlled when stock on hand is compared with stock levels on the system. Sales figures can be readily available at any given time which gives owners the advantage of monitoring how well the business is operating. An important need for ICTs is to be able to interact with other organisations which support SMMEs. The following ICTs are used in the following ways to improve efficiency and effectiveness within SMMEs. Computers, which are used to prepare documents, record business transactions, access finances, attain information & store data. Cell phones, used to communicate with consumers and suppliers to…show more content…
There are two classifications under which these factors lie, namely, Internal Barriers and External Barriers. Internal Barriers can be resolved by and within the business and External Barriers need to be addressed by the government. Factors that affect the adoption may be management related. If the owner’s knowledge about access to internet and information is poor, and if the owner is computer illiterate the he/she cannot administer ICTs in the enterprise. Ignorance towards technology results in the ongoing, old-fashioned way of thinking and business operating. If the owner does not keep upgrading his/her business knowledge, then he/she cannot compete with businesses which are improving technologically each day. Uncertainty about the awareness of the benefits of electronic commerce will prevent the business from reaping these benefits. The lack of IT skills and knowledge of how to apply ICTs in the business activity also prevents businesses from running efficiently. ICTs, however, are very costly. In order for business owners to implement these systems in their business they have got to have the financial resources. The resource of time is also a very important factor but it quite a scarce resource. If an owner is willing and able to give up his/her time to learn about ICTs and how to

More about Role Of ICT In Business

Open Document