Role of ICT in Business ICT in a business environment can be used for: Recording data Storing data Retrieving data Manipulating data Communication Used in: Administration – invoices, communication Finance – record transaction, budgets, cash flow, profit and loss Communications – email, instant messages, mobile phones

Software - Spreadsheets Spreadsheets can manipulate data, produce work in rows and columns and formula can be used. Spreadsheets and Budgets: budgets can be set up so that actual figures can be entered. Using formula means that the variance can be calculated automatically. From each budget, a master budget can be produced. Spreadsheets and Cash Flow: helps to monitor the cash within a business. It is easier to perform “what if” situations Spreadsheets – like Excel – is commonly used to produce an electronic record of transactions in businesses. Budgets: budgeted figures and actual figures can be inputted onto a spreadsheet and formula used to see the differences. It can also be used to see “what if” situations and used as a simulation model to see the impact of certain situations. Cash Flow: using formula means that the business are not continually working out the monthly inflows and outflows. Break-even: the business can see what would happen if they increased their price or if costs were to rise or fall and what impact these would have on the break-even point. Spreadsheets and Break-even: can easily change variables to see what impact changes have on the break-even position and units to be sold.

Software – Word Processing Commonly used for letters, reports and documents Can import graphs, charts and graphics Checks spelling and grammar Easy to edit and format Good quality presentation Use of templates Can use mail merge Software – Database Keep customer records Keep stock records Can produce a booking system Word-processing – Word – is used in many different ways in a business. It can keep templates of letters and reports so that they are kept on file for when they need to be used. Mail merge can also be used so that a business can send out the same letter to many customers but adding a personal touch. Databases – Excel and Access – are used to keep records for a particular reason – i.e. stock lists or a client database. Other programs that could also be used to improve the efficiency of a business is PowerPoint for presentations and Publisher as a desk top publishing tool.

Internet, Email and E-Commerce Global market place E-commerce Market performance Price comparison sites E-Mail Messages can be sent to groups Quick information transfer rate Low costs There are advantages and disadvantages for Internet use for businesses. The positive is that the internet opens up a global market for a business and they can post to customers over the world. They can also get stock form a variety of countries. Using the internet can be cheap depending on ISP, etc. The negative aspects are that it makes it easier to compare prices with other country so that a customer may go to a competitor because they are cheaper or have cheaper postage costs. Goods also have to be paid for and this would involve having a secure payment site. E-Commerce Shopping 24/7 Low overheads Global markets

How software improves efficiency Speed – quicker processing time so save the business time and money. Also transactions can be processed much quicker. Accuracy – with the use of verification and validation data can be inputted more accurately. This can help with decision making. Data handling – data can be inputted and manipulated anywhere on a network User Friendly – The user does not have to have vast computer knowledge to use most of the programs. Capacity – large quantities of data can be held with using very little physical space.

Specialist Software Management Information System (MIS) Is used for decision making by managers Information is taken from internal and external sources Accountancy Software (i.e. SAGE) Used for various accounting needs Enterprise Resource Planning (ERP) Helps with various sections of running a business i.e. product planning

Legal Issues Data Protection Act Controls the collection, storage, processing and use of data. Health and Safety Time in front of the screen Repetitive strain injury (RSI) Confidentiality and security use of passwords Anti-virus software System back up Data Protection - data should be: Collected fairly and lawfully Held and used for specific purpose Adequate, relevant and not excessive Accurate and kept up to date Not kept longer than is necessary