Ipyet/ICTs in Businesses

Module 4.2: Information and Communication Technology (ICT) in Business

A discussion paper by

Brian Sikute

''Welcome to the Information and Communication Technology (ICTs) in Business session. What makes this session exciting is the fact that ICTs have changed the way that we live, communicate, work including and now, the way that we learn. I look forward to sharing and having discussions on how that we can enhance the way that we do business using ICTs. ''

Introduction
Advances in information communication technology (ICT) have made it possible to work and communicate faster and more efficiently than before. Business enterprises, particularly those with more resources and expertise, have harnessed the opportunities made available through this technology and used them to enhance their business operations and become more profitable.

This session will look at available technologies that can be employed to enhance business operations while keeping the cost of such technologies low. Discussions will focus on introducing participants to ‘free and open source’ technology options for businesses. We shall call these options ‘Sustainable ICTs’.

Benefits of ICTs
In the area of economic development, ICT can provide access to markets and jobs, and promote competition and efficiency. It cannot feed the poor but can enable wealth creation and cost reduction through applications such as price discovery, marketing assistance (using eBay-like auction exchanges), and finding jobs through online job search tools (such as monster.com).

ICT and e-commerce offer benefits for a wide range of business processes. At firm level, ICT and its applications can make communication within the firm faster and make the management of the firm’s resources more efficient. Seamless transfer of information through shared electronic files and networked computers increases the efficiency of business processes such as documentation, data processing and other back-office functions (e.g. organising incoming orders and preparing invoices). Increasingly sophisticated ICT applications such as KMS (Knowledge Management System) and ERP (Enterprise Resource Planning) allow firms to store share and use their acquired knowledge and know-how. For example, customer databases with a history of client-specific correspondence help managers and employees to respond more effectively to customers. A company-wide electronic data source aims to disseminate employees’ professional experience, for example tips for winning a contract, from which others in the firm can learn (Box 1).

At inter-firm level, the Internet and e-commerce have great potential for reducing transaction costs and increasing the speed and reliability of transactions. They can also reduce inefficiencies resulting from lack of co-ordination between firms in the value chain. Internet-based B2B interaction and real-time communication can reduce information asymmetries between buyers and suppliers and build closer relationships among trading partners (Moodley, 2002). In fact, adopters of e-commerce tend reduce transaction costs, increase transaction speed and reliability, and extract maximum value from transactions in their value chains (OECD, 2002a).

Sustainability
Can we build a picture of good ICT sustainability from the theories and lessons learned used in other development sectors?

Hypothesis: - Sustainability of an ICT activity is likely to be strongly influenced by the technology used e.g. operation and repair may be critical to the success of the activity. In other sectors it has been found that some form of standardisation of a technology instrument has helped development ensuring a sufficient use to encourage a market that can supply spares and technology support.

Other implicit cost savings

 * Security - Installations of open source server software are more secure than a commercial alternative and therefore, there is a lower risk of losing data or productive staff time needed to clean up after a security breach.


 * Lower virus vulnerability - Open source servers that are less vulnerable to virus infections provide cost savings in terms of decreased liability in these areas.


 * Upgrade or recurring licensing costs - With open source software, updates are continually free.

Total Cost of Ownership (TCO)
Technology is an increasingly essential resource. But as budgets tighten, however, business enterprises are coming under pressure to articulate the costs and benefits of existing and planned technology expenditures. Thus, adoption of total cost of ownership (TCO) and return on investment (ROI) tools to measure the cost and effectiveness of technology initiatives are becoming more common. Gartner, a leading information technology research firm, defines Total Cost of Ownership (TCO) as a comprehensive set of methodologies, models and tools to help organizations better measure and manage their IT investments. Simply stated, TCO evaluates all costs, direct and indirect, incurred throughout the life-cycle of an IT asset, including acquisition and procurement, operations and maintenance, and end-of-life management.

Table 1 shows the model into which cost components are loaded, which is listed along the left side of the table. Each column represents the individual years of a PC’s life cycle; the cost for a component appears in the appropriate year. For example, the PC acquisition cost (sample cost of USD 1,150 used) occurs only once, at the beginning of the first year of the PC’s life cycle. Other costs, such as software and patch deployment, occur every year.

Table 1. Cash Flow (U.S. Dollars per PC per Year)

Ongoing costs such as software and patch deployment increase each year that the PC is in service. Retrieval/disposal costs and disposal cost recovery are incurred only in the final year. Out-of-warranty repair costs emerge as the warranty expires, in the fourth year. (Note: Costs used here are only sample data; costs vary with each organization.)

Why use Ubuntu?
'''Ubuntu is easy to use And it comes with thousands of free applications. Ubuntu does everything you need it to. It'll work with your existing PC files, printers, cameras and MP3 players.'''

Ubuntu Features
'''Free apps, safe and fast web browsing, a dedicated music store and much more. Ubuntu brings the very best technologies straight to your desktop.'''

Browse the web
Ubuntu includes Mozilla Firefox – for fast, safe web browsing. You can also choose alternative browsers including Google Chromium from the Ubuntu Software Centre. Included software:

Supported software:
 * Firefox web browser Firefox web browser


 * Flash Flash
 * Google Chrome

Create professional documents and presentations
OpenOffice.org is fully compatible with Microsoft Office and has everything you need to create professional documents, spreadsheets and presentations. OpenOffice.org is easy to use, packed with the features you need and completely free.

Included software:


 * OpenOffice.org

Get all the software you need
The Ubuntu Software Centre gives you instant access to thousands of open-source and carefully selected free applications. And now you can buy apps too. Browse software in categories including: education, games, sound and video, graphics, programming and office. All the applications are easy to find, easy to install and easy to buy.

Featured applications from the Ubuntu Software Centre:

 * Blender – the world renowned tool for creating 3d artwork, animations and games.


 * Frozen Bubble – Play solo or join you friends in this addictive game as you try to burst the bubbles before they reach the bottom.


 * Cheese! – Have fun with your web cam. Use this simple app to take pictures, create special effects and share your photos with your friends.

Email and chat
Get chatting with Empathy. Quickly integrate your chat accounts from Yahoo, Gmail, MSN, Jabber, AOL, QQ and many more. Evolution Mail provides easy, intuitive email. Included software:


 * Empathy IM

Supported software:
 * Evolution Mail


 * Skype Skype


 * Thunderbird

Social from the start
Ubuntu's new Me Menu lets you access your Facebook and Twitter accounts straight from the desktop. You can connect to all your favourite chat channels and make updates through a single window. Being connected for work or fun has never been so easy.

Included software:


 * Facebook


 * Twitter


 * Identi.ca

Music streaming to your phone
New in 10.10. Ubuntu's music player includes an integrated store, so you can buy and download new tracks with just a few clicks. And thanks to Ubuntu One's file-syncing magic you can stream your music uninterrupted to your Android device or iPhone.

Included software:


 * Ubuntu One Music Store


 * Rhythmbox music player

Support for:


 * iPhone


 * Android

Photo magic
Ubuntu is chock full of apps to help you manage, fix and share your photos with the world, whatever gadget you use to take them. Support for cameras and phones is legendary and all without drivers. And Shotwell allows you to manage and share your pictures easily - on all the most popular photo and social network sites. And did we mention the apps are free?

Included software:


 * Shotwell


 * Flickr

Support for:


 * GIMP

Discover Ubuntu One
Ubuntu One is the personal cloud service that simplifies your digital life. Imagine buying music and getting it delivered to the computers of your choice. Or synchronising your files and notes and accessing them from anywhere. Or consolidating your computer and mobile phone contacts and safely sharing documents and pictures with them. Ubuntu One does all this and more.

Discover Ubuntu One

Make, play and edit video
Watch all your favourite content from YouTube, iPlayer, and MSN Player. Play your own videos with Movie Player or use Pitivi to edit your videos.

Included software:


 * Pitivi video editor


 * Movie Player

Start fast with Ubuntu
Ubuntu loads quickly on any computer, but it's super-fast on newer machines. After loading, opening a browser takes seconds, unlike other operating systems that leave you staring at the screen, waiting to get online.

Choose from hundreds of games
The Ubuntu Software Centre offers hundreds of games, including puzzles, adventures, tactical challenges and more. All free to choose and free to use.

Supported software:


 * Minecraft

Accessibility in Ubuntu
At the heart of Ubuntu's philosophy is the belief that computing is for everyone, whatever your circumstances. Ubuntu is one of the most accessible operating systems and is fully translated into 25 languages with more being added all the time.

Get Ubuntu Desktop Edition