In the past few decades there is a huge revolution in computing and communications, and all indications are that technological progress and usage of information technology will continue at a rapid pace. Accompanying and supporting the dramatic increases in the energy and usage of new information technologies has been the declining cost of communications consequently of both technological improvements and increased competition ITnews. According to Moore’s law the processing power of microchips is doubling every 18 months. These advances present many significant opportunities but also pose major challenges. Today, innovations in information technology are experiencing wide-ranging effects across numerous domains of society, and policy makers are acting on issues involving economic productivity, intellectual property rights, privacy protection, and affordability of and access to information. Choices made now could have resilient consequences, and attention must be paid with their social and economic impacts.
One of the very most significant outcomes of the progress of information technology is probably electronic commerce within the Internet, a new way of conducting business. Though just a few years of age, it could radically alter economic activities and the social environment. Already, it affects such large sectors as communications, finance and retail trade and might expand to areas such as education and health services. It implies the seamless application of information and communication technology along the whole value chain of a small business that is conducted electronically.
The impacts of information technology and electronic commerce on business models, commerce, market structure, workplace, labour market, education, private life and society as a whole.
1. Business Models, Commerce and Market Structure
One important method by which information technology affects work is by reducing the significance of distance. In several industries, the geographic distribution of work is changing significantly. For example, some software firms are finding that they’ll overcome the tight local market for software engineers by sending projects to India or other nations where in fact the wages are much lower. Furthermore, such arrangements may take advantage of times differences so that critical projects may be done nearly around the clock. Firms can outsource their manufacturing to other nations and depend on telecommunications to keep marketing, R&D, and distribution teams in close connection with the manufacturing groups. Thus the technology can enable a finer division of labour among countries, which affects the relative demand for various skills in each nation. The technology enables various kinds of work and employment to be decoupled in one another. Firms have greater freedom to find their economic activities, creating greater competition among regions in infrastructure, labour, capital, and other resource markets. Additionally it opens the door for regulatory arbitrage: firms can increasingly choose which tax authority and other regulations apply.Technology Read More