Transcript Document

Economic Implications
Economic Implications of ICT
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Type of jobs and costs in ICT
The effect of new ICT on business
Business and ICT
Business costs
Jobs in ICT
Starting positions
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Programmer / analyst: Responsible for program
development and modification.
Web administrator: Responsible for developing,
managing and co-ordinating the posting of company
material from departments onto the company website.
Network administrator: Responsible for the day-today management and maintenance of the network.
Salaries: In the region of £20,000 to £30,000
depending on the level of responsibility.
Jobs in ICT
Advanced development positions
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Database manager: Responsible for identifying needs
and developing software accordingly. There is an
increasing role for data mining and data warehousing
experts in this field.
Project leader and senior analyst: Sometimes separate
posts, sometimes a joint post the project leader will
liaise with directors and top managers and translate
ideas into computer related documentation.
IT manager: Generally in charge of the entire IT
operation, staff and equipment.
Salaries: These senior posts can carry very high salaries
with fringe benefits such as company cars.
The Effect of New ICT on Business
• Costs
 Investing in a new computerised system is very
expensive.
 Staff training is a major cost.
• Benefits
 Increased productivity (fewer staff).
 Increased functionality.
 Reports from the computerised system can save
the expense of professionals.
Business and ICT
• Competitive advantage
 Businesses want advantage over their competitors in the same area
of business who have not made a similar investment.
• How to gain competitive advantage
 Employ a systems analyst.
 Complete a feasibility study covering technical aspects and legal
and economic feasibility.
• Huge leap of faith?
 First paper-based mail order company had:
• to move over to a call centre and telephone ordering.
• to tie in with an “intelligent warehouse”.
• to do an exhaustive economic feasibility study to see if they would
gain a competitive advantage over their rivals.
They did all of this, but was it an even bigger leap of faith to
be the first of these companies to introduce Internet ordering?
Business Costs
• Initial costs
 Huge costs to set up a production line, just-in-time ordering,
or a call centre.
 Computers, software, robots, etc.
• Running costs
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Staff required.
Paper, ink cartridges, back-up media.
Software licences.
Maintenance contracts.