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Implications Of Information And Communication Technology For Business

1941 words - 8 pages

Implications of Information and Communication Technology for Business

Time and geographical factors have a huge affect on the communication
methods we use. In the business world time is money, and no matter how
far u need to communicate to, it normally has to be done quickly and
efficiently. This is where Information Systems (IS) and Information
Communication Technology (ICT) have a huge impact on businesses
nowadays, especially large scale organisations. Currently, Local Area
Networks (LANs) are becoming more common in normal size businesses,
and large-scale organisations tend to use Wide Area Networks (WANs),
intranets and extranets.

A LAN is a computer network that spans a relatively small area. Most
LANs are confined to a single building or group of buildings. However,
one LAN can be connected to other LANs over any distance via telephone
lines and radio waves; this is what we call a WAN (a system of LANs
connected together).

Each node (individual computer) in a LAN is able to access data and
devices anywhere on the LAN. This means that many users can share
expensive devices, such as laser printers, as well as data. Users can
also use the LAN to communicate with each other, by sending e-mail or
engaging in chat sessions. Hence LANs can be very useful for a small
to medium sized businesses.

For big businesses/organisations, WANs are more useful, as it means
the business is not limited to where it can be based. For example a
company may have its head quarters in London, but have an office in
Cambridge. With the use of a WAN the same benefits as the LAN can be
achieved, but in a greater geographical situation.

Another option for an organisation for sharing information, other than
using a LAN/WAN is to use an intranet. An intranet is a network based
on TCP/IP protocols (just like the Internet). An intranet's web sites
look and act just like any other web sites, but the firewall
surrounding an intranet fends off unauthorised access. Accessibility
is usually only for the organisation's employees and/or others with

Like the Internet itself, intranets are used to share information.
Secure intranets are now the fastest growing segment of the Internet
because they are much less expensive to build and manage than private
networks (LANs/WANs).

Installing an intranet should cut costs down for producing, accessing
and distributing information within an enterprise, as well as making
employees more flexible and efficient. Feedback will be faster within
the organisation which means that work shall get done much quicker and
with better efficiency.

As well as using intranets, some organisations find using extranets
even more efficient. An extranet is an intranet that gives limited
access to people outside the intranet/organisation. You can access an

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