Impacts of Information Technology on Society in the New Century
The last few decades have seen a revolution in computing and communications, and all indications are that technological advances and information technology are accelerating. Both technical and technological improvements have resulted in a dramatic increase in the power and use of new information technology and a reduction in communication costs. These developments present many important opportunities but also present great challenges. Today, the invention of information technology is having a wide impact in many domains of society, and policy makers are pursuing issues related to economic productivity, intellectual property rights, protection of privacy, and access to and provision of information. The long-term results of the current elections will be felt, and their social and economic implications will need to be addressed.
The most important result of the development of information technology is electronic commerce on the Internet, a new way of running a business. It can radically change economic activities and the social environment. Already, it is affecting large sectors such as communications, finance and retail, and could expand into areas such as education and health services. This means that the smooth use of information and communication technology applies to the entire value chain of electronically run businesses.
1. Business model, trade And market structure
Information technology is an important way to influence work to reduce the importance of distance. In many industries, the geographical distribution of work is changing significantly. For example, some software firms have found that they can control software engineers by sending projects to India or other countries where salary prices are very low. That important projects can be worked around the clock. Firms can outsource their manufacturing Rely on telecommunications in other countries and to continue marketing, In this way, the technology can enable better distribution of labor between countries, which in turn affects the demand for different skills in each nation.
This technology enables different types of work and employment to beat each other. Firms have more freedom to explore their economic activities, which creates greater competition among markets in the region for infrastructure, labor, capital and other resources. It also opens the door to regulatory arbitration: firms can quickly choose which tax authority and other regulations apply.
Computer and communication technologies also promote market-like production and distribution. An infrastructure of computing and communication technology provides round-the-clock access to information on any price and product at a low price as per the wishes of the buyers, which will reduce the barriers to information in the effective operation of the market. Infrastructure can also provide resources such as sales clerks, stockbrokers and travel agents to influence and mediate real-time transactions, whose job is to provide uncertain information between buyers and sellers.
Eliminating middle menus will reduce costs in the production and distribution value chain. Information technology has facilitated the evolution of refined mail order retailers, in which goods can be instantly ordered via telephone or computer network and then shipped to suppliers through integrated companies. Who rely heavily on computer and communication technology to control their work. By eliminating the entire transport channel, non-physical goods such as software can be sent electronically. Payment can be made in new ways. The result is shifting to a distribution channel, with lower prices, lower prices and lower profit margins.
The impact of information technology on the cost structure of firms can be illustrated by the example of e-commerce. Key areas for cost reduction when selling through e-commerce rather than traditional stores include physical establishment, order placement and execution, customer support, stability, inventory carrying and distribution. While setting up and maintaining an e-commerce website can be expensive, maintaining such a storefront is definitely less expensive than any physical competition because it is always open, millions around the world. Individuals can access it, and it has some variable costs, so it can be measured to meet demand.
Maintaining one ‘store’ instead of several eliminates the cost of duplicate inventory. In addition, e-commerce is very effective in reducing the cost of attracting new customers, as advertising is usually cheaper than other media. Furthermore, the electronic interface allows e-commerce merchants to check that an order is internally permanent and that the order, receipt and receipt match. Through e-commerce, firms can transfer most of their customer support online so that users have direct access to the database or manual. This results in a significant reduction in prices while improving the quality of service. E-commerce shops require very few, but highly skilled, employees. E-commerce also allows for savings in inventory costs.
Quick input can be ordered and delivered, no large inventory required. The greatest impact on costs associated with falling inventories is found in industries where the product has a limited shelf life (such as bananas), rapid technical instability or falling prices (such as computers), or where the product is booming. (Such as books, music). While shipping costs can increase the prices of many products purchased through e-commerce and significantly increase the final price, the distribution of digital products such as financial services, software and travel, which are important parts of e-commerce, An important thing can happen. Cost reduction.
Although e-commerce makes some intermediaries useless, it creates more reliance on others and some new intermediaries. Arbitration services that can add costs to e-commerce transactions include advertising, secure online payments, and delivery. This increases the importance of advertising to establish a brand name and thus increase consumer identity and trust. For new e-commerce startups, this process can be costly and represents a significant transaction cost.
The natural features of e-commerce also suffer from openness, global reach, and lack of physical gestures, thus increasing some of the costs for e-commerce merchants compared to traditional stores. An important feature of e-commerce is the convenience of direct delivery of purchases. In the case of solid objects such as books, there are shipping costs, which in most cases lead to price increases, thus negating many of the savings associated with e-commerce and reducing transaction costs. Whether to add.
The Internet is helping to expand existing markets by removing many distribution and marketing barriers that could prevent firms from accessing overseas markets. E-commerce reduces the cost of information and transactions to operate in overseas markets and provides a cheap and efficient way to strengthen customer-supplier relationships. It also encourages companies to come up with innovative ways to promote and deliver their products and services. Although e-commerce on the Internet provides tremendous potential to global markets, some factors, such as language, transportation costs, local reputation, as well as cost and ease of access to the network, make this possibility more or less the only one. That is why there is a decrease.
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