Impact of ICT on Operations

ICT has an impact on operations within a business

CAD / CAM

CAD and CAM are used for design and manufacture

CAD – computer aided design uses computers to help in the production of designs, drawings and data to be used in manufacturing

CAM – computer aided manufacture uses computers to support manufacturing processes

These can lead to less waste in production

ICT and Communications

ICT can speed up communications within a business reducing the impact of diseconomies of scale

The use of email, intranet and faxes can ensure that information can get round a firm more easily

Spreadsheets and databases allow information to be processed more quickly

ICT and Employment

The increase in the use of ICT has lead to an increase in tele working

Tele working is where people work from home

Due to the increase in tele working and the impact of ICT

ICT and Location

Due to the increase in tele working and the impact of ICT many firms do not need to be linked to a specific location

This can reduce costs as firms locate away from expensive city centres or locate in areas where there is cheaper labour

Problems with ICTT

he use of ICT is dependent on:

- Staff being trained and having the appropriate skills

- Compatibility across ICT systems

- How the information is used