Amalgamated usage of Information Technology And Business – a New Gateway for Global Markets

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Amalgamated usage of Information Technology And Business – a New Gateway for Global Markets

Dr. Karthik Mohandoss,1

Quality Assurance Officer/Assistant Professor, Administrative & Financial Sciences Department, Oman College of Management & Technology, Halban, Barka, Muscat, Sultanate of Oman.

Dr. J. Saravanesp

Assistant Professor, Department of Computer Science,

MKU College, Madurai, India

Abstract: The Digital era has seen Computers and communication taking major stakes in almost all domains. The technological process and the use of information technology persist and will take hold of the entire globe. The indications are very obvious in its impact on the business process and global economy. It cannot be hype to state that it changed our lives and changed the entire business fraternity. The part of IT has truly made the firms to have the ability to reach more clientele and offer them service properly on time by networking with international players worldwide. The drastic change the society of industry to the society of information and from the industry economy to knowledge economy is a consequence of the effect of the IT and its progression. This study is to depicts information technology; prospect of Internet based businesses to gain competitive advantage and its progress in market environment.

Keywords: IT (information technology), business, Internet, e- commerce, business process reengineering

  1. INTRODUCTION

    IT describes any technology used to form, store, analyse, process and disseminate information that is imperative to business performance. The business process manufactures products and services for revenue. Information technology is vital to the business sector as it optimizes the processing of information to produce goods and services for profit. Irrespective of the organization the size, technology has substantial benefits that will facilitate the bridge between supply and demand resulting in profits. In the last decade, globalization and computerization have redefined the industry, market, politics, lifestyle, culture, and social regulations. Globalization refers to ultimate amalgamation of economic and cultural institutions. This integration is transpired by the use of information technology.

    Technological amalgamation impacts the culture, competence and relationships of a business. It also impacts the security of confidential information and trade advantages. The information revolution is encapsulating basics of business process and running towards dynamic economy. Impressive cost reductions in acquiring, processing, and transferring g information are shifting the way the business is done.

    Information Technology (IT) has matured and evolved over the last five decades. Information Technology not only personify personal computers and smart phones, but also current state of art machinery in factories, automotive industry, aviation production, a range of household appliances etc.,It has transpired our way of living by effectively reducing cost and time. Information Technology includes the MIS Management information systems (computers, hardware, software, networks) used to automate and support business tasks and decision-making. Information is used to automate simple and custom tasks such as word processing and complex procedures like manufacture, scheduling and logistics.

    It helps in providing an environment where businesses operate capably and profitably. Technological creativities over the past few eras have expressively amplified the nature of competition in the business economy. The use of computers, software for business and the net has transformed the business process from local boundaries of business to domestic and international market to effectively compete against competitors. Technology has enforced businesses to stay flexible, adapting their process to newer and enhanced technological advances.

  2. INTERNET THE CHIEF CATALYST OF AMALGAMATION

    Since the inception of the internet a lager area of the business scenario has changed and specifically the mode of communication. The time needed to transfer information across globally and domestically has been reduced by the internet applications. The net is undoubtedly needed by the business entities for their commercial operations. The area of marketing in now utilizing the online advertising as a source of its success. The internet is having a wide scope of bringing the business in to success.

    Awareness Campaign

    The presence of web through a web site is a prerequisite for most organizations to get recognition in the market space. Beside with their own websites, a few businesses attempt to connect their own self in the societal interacting platforms. By establishing profiles on platforms such as

    LinkedIn, Facebook, Instagram, blogs etc., the businesses execute "soft" marketing create a awareness with likely clienteles, patrons and the public in general.

    Communication interface

    Communication is essential in business and interface with consumer, clients through the communication systems is imperative. Furthermore, the communication made on real time like messenger, net calls by skype, whatsup etc., and virtual conferences and meetings have become possible and

    1. Decrease expenses and sequence times.

    2. Improve quality.

    3. To decrease cost

    4. To achieve accuracy in the methods

    5. Coordination at real time

    6. Integration of team work

    7. Effective and Efficient system

    8. To make the system user friendly

    CUSTOMER

    significant in todays business environment of digital era.

    Acquiring Information

    On Internet searching for information has become a must

    COMPETITION

    [Manage the counterparts] [Improvise value

    BUSINESS to Product]

    for the business firms to conduct research activities to aid

    CHANGE

    ORGANISATION

    COST

    their success in the digital era. The traditional way of information search through the libraries has been digitalized nowadays and has been made simple to access. Despite retrieving the information, digital library records, real time information such as stock exchange and gold rate

    [Manage with Efficient Strategies] [Prove Cost- effective]

    information, online ticket booking information are flexibly available to the users.

    Isolated Services

    Several firms have placed their employees, contractors and the consultants as tele commuters. They can be placed locally or at a place far away from the firms place of operation. The firms nowadays use the aid of the internet to help them in the process of communication among the offices located at different places.

    Business Transactions

    The information transaction, fund transactions has been made relaxed, quicker and cost effective. Secure payment systems are part of business transactions, a precious reality offered by the internet.

  3. PROCESS REENGINEERING

    Process Reengineering of business engrosses the essential redesign of core business processes to accomplish vivid improvements in productivity, innovation and worth. The objective of Business Process Reengineering is to deliver more value to the customer and clients. The value system focuses on the customer requirements. Unproductive activities are eliminated by redesigning functional requirements and using structured information for decision making and constantly sustain organizational growth. Figure 1 depicts the objectives of an organization during business process reengineerin.

    Business Process Reengineering is an initiative that emphasis on,

    1. Customer needs

    2. Business process redesign

    3. Using IT to facilitate development

    4. Restructure a business with teams with end-to-end responsibility for a process

    5. Revisit forecasting of market trends

    6. Rethink basic organizational process and issues

    7. Improve business environment with both the factors internally and externally

      Figure1: Objectives of Business Process Reengineering

  4. E-BUSINESS AND E-COMMERCE

    Electronic business (E-business) refers to the use of the network (Web), Internet, intranets, extranets to carry on with the business. Electronic Business is the online existence of business. It can also be well-defined as business done with the assistance of internet or E-data exchange (EDI). E-commerce is one among the vital components of e-business. The word e-business became admired following an IBM advertising campaign about computerized procedures to automate business processes. On October 7th, 1997, the IT and consulting firm published an eight-page essay in the Wall Street Journal and used the term e-business to describe how corporate systems would fundamentally change in the digital era. IBM defined e- business as redesigning strategic business processes and meeting the challenges of a new market increasingly characterized by globalization, and based on new knowledge.

    The electronic business is not only restricted to selling and buying of the goods, they also incorporate other tasks such as offering service to the clientele, sharing of information among the employees or the partners of the business. Important operations of the business are carried out with the help of the E-media, two varieties of the E-business are v available and they are

      • Pure-Play or Click: These types of business are existing electronically only with the help of internet.

      • Brick and Click: these type of business entities is existing in both online websites and offline physical mode.

    1. commerce means the process of purchasing and selling of the products in the network. The E-business is little different to it and it is not only limited to the transactions commercially, they also give other services. The process of shopping online is becoming famous as its easy for customers and all these are feasible due to the existence of the E-networks, E-commerce and the E-business. E- commerce is concerned with the firms dealings with its customers, clients or suppliers. Conversely, E-business refers to undertaking industry, trade, and commerce, with the help of information technology and communication. The process by which the selling, buying, placing order and payment for the products are carried over the internet, which is called as the E-commerce. Both the parties of buying and selling can carry out the transaction without seeing each other or interactions.

      The banking activities done online, shopping through online, ticket booking, and social medias are few examples of real time application in the world of e-commerce. The fundamental requirement of the E-commerce is a website. All the activities focusing sales and marketing are carried out with the aid of internet. Transaction involving cash is carried out with the aid of the e-media is know as the E- commerce. The below given are the types of them

      • B2B This is carried out between two business entities and hence called as business to business.

      • B2C The business entities sell their goods to consumers.

      • C2C One consumer carries out commercial transaction with another consumer.

      • C2B Consumer and business entities carry out the commercial transactions.

    Vital Variances Between e-commerce and e-business

    The themes offered in the table 1 underneath are considerable in differentiating e-commerce and e-business.

    1. Procurement and Retailing of goods and services through the internet is recognized as e-commerce. Contrasting e-business, this is an electronic occurrence of business, by which all the business activities are steered through the internet.

    2. E-commerce is a key constituent of e-business.

    3. E-commerce comprises dealings which are connected to money, but e-business includes financial as well as associated activities

    4. E-commerce has a vociferous method that asylums clienteles, dealers, suppliers, etc. On the other hand, e-business has an ambient method that covers interior as well as exterior procedures.

    5. E-commerce needs a website that can signify the corporate. On the other hand, e-business necessitates a website, CR Management and Creativity Resource Planning for successively carrying over the business over the internet.

    6. E-commerce customs the internet to link with the rest of the world. In disparity to e-business, the internet, intranet and extranet are used for linking with the parties.

    Table 1: Comparison of E-commerce and E-business

    E-commerce

    E-business

    Definition

    Trade of products, over the internet is known as E-commerce.

    Running business using the internet is known as E-business.

    Classification

    Subset

    Superset

    Focus on monetary transactions

    Yes

    No

    Process

    Commercial transactions

    Business transactions

    Approach

    Extroverted

    Introverted

    Base Required

    Website

    Website, CRM, ERP, etc.

    Type of Network

    Internet

    Internet, Intranet and Extranet.

  5. THE GROWTH OF BUSINESS THROUGH INTERNET:

    Information and Communication Technology simplifies the manufacture of goods quicker with the support of computerized information structures, and services are quick and effective [8]. Information and Communication Technology known as ICT technology has become the main tool in business activities in the modern world [7Internet is becoming part of everyday life for the whole world. In the digital era, E-business has developed in to a vital business discipline.

    E as the primary letter in Internet usage has presumed countless reputation not only in the world of information and communication technology but also in businesses. It has become an important component for many areas of research. So, we can mention: E-marketing, E- commerce, E-finance, E-commerce, E-learning, E- markets and others. The Internet represents a technological innovation, whose effects array from communication to interaction; however, its potential has not been completely analyzed and studied [10]. Figure 3 represents the internet users as of on June 30, 2018. Table 4 represents the world internet user statistics in regard with population.

    Sales have increased in Europe in 2010 compared to 2009 online sales by 19.6% which makes 5.5% of all retail business (Center for Retail Research, 2010 www.retailresearch. org).

    Table 4: Internet users in the World (Source Internet World Stats: www.internetworldstats.com/stats.htm) Note: Basis: 4,208,571,287 Internet users on June 30, 2018

    WORLD INTERNET USAGE AND POPULATION TATISTICS JUNE 30, 2018 – Update

    World Regions

    Population ( 2018 Est.)

    Population

    % of World

    Internet Users 30 June 2018

    Penetration Rate (% Pop.)

    Growth 2000-2018

    Internet Users %

    Africa

    1,287,914,329

    16.9 %

    464,923,169

    36.1 %

    10,199 %

    11.0 %

    Asia

    4,207,588,157

    55.1 %

    2,062,197,366

    49.0 %

    1,704 %

    49.0 %

    Europe

    827,650,849

    10.8 %

    705,064,923

    85.2 %

    570 %

    16.8 %

    Latin America / Caribbean

    652,047,996

    8.5 %

    438,248,446

    67.2 %

    2,325 %

    10.4 %

    Middle East

    254,438,981

    3.3 %

    164,037,259

    64.5 %

    4,894 %

    3.9 %

    North America

    363,844,662

    4.8 %

    345,660,847

    95.0 %

    219 %

    8.2 %

    Oceania / Australia

    41,273,454

    0.6 %

    28,439,277

    68.9 %

    273 %

    0.7 %

    WORLD TOTAL

    7,634,758,428

    100.0 %

    4,208,571,287

    55.1 %

    1,066 %

    100.0 %

    Online Purchase (Percent retail)

    Online Sales (£ millions)

    Online Sales Ranking

    London

    15.5%

    £9,923.9

    1

    Tokyo

    13.8%

    £8,453.3

    2

    New York

    13.4%

    £6,314.1

    3

    Paris

    12.1%

    £5,639.9

    4

    Los Angeles

    11.6%

    £2,358.1

    5

    Sydney

    11.1%

    £1,681.8

    6

    Manchester

    12.5%

    £1,521.9

    7

    Berlin

    13.2%

    £1,306.0

    8

    Singapore

    6.6%

    £1,207.0

    9

    Hong Kong

    5.1%

    £1,015.4

    10

    Dubai

    5.9%

    £962.6

    11

    Copenhagen

    13.3%

    £914.9

    12

    Amsterdam

    9.4%

    £879.1

    13

    Barcelona

    6.1%

    £800.9

    14

    Milan

    5.1%

    £685.2

    15

    Madrid

    6.8%

    £683.0

    16

    Oslo

    12.8%

    £647.4

    17

    Stockholm

    10.6%

    £559.6

    18

    Rome

    4.8%

    £500.7

    19

    Moscow

    5.5%

    £374.1

    20

    Rio de Janeiro

    6.5%

    £295.1

    21

    Johannesburg

    6.6%

    £92.3

    22

    Totals

    £46,816.3

    Statistical mean

    9.5%

    £2,128.0

    Online Purchase (Percent retail)

    Online Sales (£ millions)

    Online Sales Ranking

    London

    15.5%

    £9,923.9

    1

    Tokyo

    13.8%

    £8,453.3

    2

    New York

    13.4%

    £6,314.1

    3

    Paris

    12.1%

    £5,639.9

    4

    Los Angeles

    11.6%

    £2,358.1

    5

    Sydney

    11.1%

    £1,681.8

    6

    Manchester

    12.5%

    £1,521.9

    7

    Berlin

    13.2%

    £1,306.0

    8

    Singapore

    6.6%

    £1,207.0

    9

    Hong Kong

    5.1%

    £1,015.4

    10

    Dubai

    5.9%

    £962.6

    11

    Copenhagen

    13.3%

    £914.9

    12

    Amsterdam

    9.4%

    £879.1

    13

    Barcelona

    6.1%

    £800.9

    14

    Milan

    5.1%

    £685.2

    15

    Madrid

    6.8%

    £683.0

    16

    Oslo

    12.8%

    £647.4

    17

    Stockholm

    10.6%

    £559.6

    18

    Rome

    4.8%

    £500.7

    19

    Moscow

    5.5%

    £374.1

    20

    Rio de Janeiro

    6.5%

    £295.1

    21

    Johannesburg

    6.6%

    £92.3

    22

    Totals

    £46,816.3

    Statistical mean

    9.5%

    £2,128.0

    As per the data given above the internet usage of the globe in the year 2018, four billion people are using the net and constituting 55.1% of the mankind (2018/Q2). The same study in the 2014 compounded 42.6% of the mankind. The user rate has grown considerably. A pretty tiny country like Oman the sum of users have grown up from 3.2% to 3.7 %. The speediness of data in Oman is extraordinary. The following table proves that the

    OMAN

    OMAN – 4,829,946 population (2018) – Country size: 309,500 sq km

    Capital City: Muscat – population 24,721 (2012)

    3,310,260 Internet users in Dec, 2017, 68.5% penetration, per IWS.

    2,630,000 Facebook subscribers in Dec, 2017, 54.5% penetration

    Mobile Speed: 27.38 Mbps Down load – 15.06 Mbps Up load (2018 Avg.)

    Fixed Broadband Speed: 17.18 Mbps Down load – 6.47 Mbps Up load

    number of handlers and the corresponding net speeds are progressing at significant pace.

    Table 5: Net access in Oman Source Internet World Stats: www.internetworldstats.com

    The global sales are on the raise with the flexibility internet is offering. A recent survey on world capitals people using internet for trade suggests people are opting for flexible shopping through net. Table 6 depicts the global shopping capitals.

    Table 6: Online Sales in global shopping capital (Source: http://www.retailresearch.org/worldshoppingcapitals.php)

    In each global zone the development of net users and the online shopping statistical mean is directly proportional. The indications are clear that it is mounting at a quick pace much to the betterment of business organizations and consumer flexibility. This scenario is firmly possible only because of information technology being the backbone.

  6. CONCLUSION

IT and the Internet are not only confined with communication but are also important in the development of successful business models. It is essential to take note about small business entities are having their own websites in order to be competitive with bigger websites. As the cost of web development has reduced the small players can afford the cost of using the web for marketing their products. The Internet acts as tactical source wherever firms can endorse their business process, services and can expand their operations into fresh markets. Organizations can make use of the novel technology to be more well-organized in leading business actions and generate competitive advantage. E-business has transpired the economy, culture, social trends, society and politics. There can be little doubt that IT and its amalgamation with business process has opened a new gateway for the global market and is expected to see a sustained progress providing efficiency, flexibility, ease of access and Managing business resources greatly convenient to the organization and consumers.

REFERENCE

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[7]. Dimovski. V., & kerlavaj. M. (2004). Comunication Technologies as Management Tools: Case of Slovenia, Faculty of Economocs University of Ljubljana, 636.

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[12]. http:// www.internetworldstats.com/stats.htm

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