Impacts of Information Technology
The last few decades have seen a revolution in computers and communications, and all indicators – technological advancement and use of information technology – will grow rapidly. As technology advances and competition grows, so does the power and use of new information technologies. Under Moore’s law, the processing power of microchips doubles every 18 months. This development creates not only very important opportunities but also big problems. Today, information technology innovations are having a profound effect on many sectors of society, with politicians addressing issues related to economic productivity, intellectual property rights, privacy, and access to information. The current election will have long-term consequences, and their socio-economic implications must be taken into account.
One important consequence of the advancement of information technology may be the e-commerce of the Internet and the new way of doing business. Even though he is only a few years old, his economic activities and social environment can change radically. It already affects large sectors such as communications, finance and retail, and can extend to education and healthcare. This includes the continued use of information and communication technology throughout the e-commerce value chain.
Impact of IT and e-commerce business models, trade, market structure, workplace, labor market, education, personal life and society as a whole.
Business model, trade and market structure
One of the most important ways in which IT can influence performance is to reduce the importance of distance. In many industries, the geographical distribution of the work varies considerably. For example, some software companies have found that for software engineers, they can beat the solid domestic market by sending them to India or other countries for a lower salary. In addition, important provisions can be made 24 hours a day, as such provisions can take advantage of the time difference. Companies can obtain their products from abroad and rely on telecommunications to market, research and develop and distribute and distribute products to product groups. In this way technology can create a better division of labor between countries, which affects the relative demand for different skills in each country. Technology allows you to distinguish between different types of work and different types of work. Companies have more freedom to explore their economic activities, which create more competition between regions in the areas of infrastructure, labor, capital and other resource markets. It opens the door to regulatory arbitration: the tax authority and other law firms can choose to enforce.
Computer and communication technologies
Computer and communication technologies also promote models such as the production and distribution market. The infrastructure of computer and communication technology will reduce information barriers to effective market operations by providing customers with 24-hour access to information on any price and product at low cost. This infrastructure can provide real-time transactions and create intermediaries such as sellers, brokers and travel agents whose job is to ensure an important data connection between buyers and sellers. Eliminating intermediaries will reduce production costs and distribution costs. IT has facilitated the evolution of retail mail orders that can be used to quickly order goods over telephone or computer networks, which can then be shipped to suppliers through PCs and integrated transport companies that use the technology. Non-physical items such as software are shipped electronically, removing all congestion. Payments can be made in a new way. The result is cost sharing, lower cost and cheaper delivery routes.
The example of e-commerce can better illustrate the impact of information technology on the pricing structure of companies. Physical positioning, order placement and execution, customer support, robustness, inventory, and delivery are important areas to reduce costs when selling through e-commerce instead of the traditional store. Establishing and maintaining an e-commerce website is expensive, and protecting the front of such stores is more expensive than physically accessing it, as it is always open and accessible to millions of people.