IS the internet an Information technology? what is its impact on: 1.) Administra

Question

IS the internet an Information technology? what is its impact on:

1.) Administration (Decision making that orchestrates day-to-day operations for a firm)

2.) Firm Infrastructure (Hardware/software that facilitates primary/suppor activities)

3.) Human Resources (Employee management such as hiring and payroll)

4.) Technology Development (Development of apps that support primary business activities)

5.) Procurement (Purchasing of goods/serivces that are required as inputs to the primary activities)

Explanation / Answer

There is a big influence of technique on our daily life. Electronic devices, multimedia and computers are things we have to deal with everyday.

Especially the Internet is becoming more and more important for nearly everybody as it is one of the newest and most forward-looking media and surely “the” medium of the future.

Yes, Internet is aninformation technology. The Internet is the global system of interconnected computer networks that use the Internet protocol suite (TCP/IP) to link billions of devices worldwide. It is a network of networks that consists of millions of private, public, academic, business, and government networks of local to global scope, linked by a broad array of electronic, wireless, and optical networking technologies.

The Impacts of Information Technology (IT) on Administration:

In the last decade, much research in information systems has presented information technology as the fastest and most efficient way for an organization to go towards performance and efficiency. The 21st century was claimed as the digital revolution era. At the opening session of the first World Summit of Information Society , the Secretary-General of the United Nations, Kofi Annan, stated are going through a historic transformation in the way we live, learn, work, communicate and do business (...) Technology has produced the information age. Such terms like information age, information society and knowledge society1 are often used to describe the deep-seated impact of the ICT on our lives. Experts argue today that we are living a new industrial revolution more fundamental than the former. Tapscott and Caston point out The companies which will not be aware of this new era and will not know how to clear themselves a road during the period of transition will be vulnerable and quickly old-fashioned.

In the mid 1980`s, technology has played a major role in the development of business in the world. Almost all business sectors have leaned on technology to get into the competition in order to survive. Information systems have been the key step towards efficiency when automating different tasks in the companies, presumably to help reduce margin error and realize larger savings. In the mid 1990`s, the Internet brought a new breath in the market when extending the frontiers of the globalization, challenging time and space; therefore, having aprofound impact on he way the world conducts economic and business practices.

Interner impact on Firm Infracture:

The communications infrastructure of the Internet consists of its hardware components and a system of software layers that control various aspects of the architecture.

Business 'cluster' is “used to represent concentrations of firms that are able to produce synergy because of their geographic proximity and interdependence” . Steinfield, C. et al. found, that “the amount of perceived social capital significantly predicted market exposure” of company performance in a knowledge-intensive business cluster. Social capital strengthens regional production networks.

The rate of networking (defined as various forms of strategic alliances and joint ventures) generally reflects the levels of social capital and trust that exists (Rosenfeld, 1997). Robert Putnam (1993) found that stock of social capital predicts economic performance.There is some evidence suggesting that social relationships play an important role in the survival of small businesses (Granovetter, 1984), yet the relative contribution of other factors, such as managerial skills and environmental context are unknown.

At the institutional level, disciplinary climate and academic norms established by the school community and the mutual trust between home and school are major forms of social capital. These forms of social capital are found to contribute to student learning outcomes in East Asian countries such as Singapore, Korea, and Hong Kong. They have been shown to have a significant impact, not only on creating a learning and caring school climate, but also on improving the quality of schooling and reducing inequality of learning outcomes between social-class groups.

impact of internet on human resource management:

The Internet has truly found its way into just about every facet of business today. So, it would come as no surprise that even the very area of Human Resources (HR) has been impacted by this virtual entity. The immediate impact of the Internet Revolution on Human Resources has been difficult to measure in terms of dollars and cents however; noticeable changes have been seen in how HR functions in businesses and organizations.

Whereas in the past companies had elaborate HR systems in place, it remained difficult to track things such as leave days owing to employees and monitoring the performance of employees. However the Internet has revolutionized the HR function in many organizations.

HR has in recent times moved from a pure administrative function to a strategic business partner. The area where the greatest impact has been seen was in the area of recruitment. Candidates can now be sourced in almost "real time" as opposed to traditional methods of placing advertisements in the media and then having to wait days or even weeks for applicants to respond.

Online Job Boards’ have created a vibrant marketplace where candidates can go ‘shop around’ for vacancies and not be limited to only those posted in local media. This has allowed HR departments to be more proactive in the sourcing of candidates for various roles. Various job boards also allow for organizations to search their databases for CV's as opposed to advertising and being reactive.

The second area where the internet and IT in general has had a great impact on HR is communication. The internet has allowed for individuals to communicate with each other across geographical locations and time zones. Organizations now have the capability to monitor staff and communicate important information regardless of where the employee maybe situated.

Training and development has probably made the greatest strides in the utilization of online capabilities. Innovative companies have created entire collections of in-house courses that employees can do to improve various areas of their skills. Third party organizations have also taken advantage of this important area and there are literally hundreds of training courses available online today. Anything from Labour Law to Customer Service improvement courses are available to interested parties. Job seekers can also get advice on a whole range of topics such as career options, interviews and writing of CV's via numerous career and HR related websites.

Recently with the surge in interest in social media such as Facebook and Twitter, HR departments have been given the opportunities to more creatively engage in teambuilding and the creation of company cohesion and improvement of morale through the use of these tools. For example, Facebook’s ‘Pages’ feature allows HR departments to recognize an employee who has performed exceptionally well, and can use these pages as an online "Employee of the Month" poster.

Virtually all areas of traditional HR functions have been influenced by the Internet and related technologies and tools and have mostly improved the effectiveness of HR departments throughout the business world. The and with many more ways to utilize the Internet with in the scope of Human Resources, the full impact and value is yet to be clearly and fully measured. People will always remain at the heart of any business or organization and thus remains important to keep the value of employees at the forefront, regardless of what the internet has to offer!

impact of internet on procurement:

The Internet has changed dramatically the way that companies and people communicate, both within the enterprise and between enterprises. The time dimension of communication is collapsing to an almost instantaneous condition and, simultaneously, the breadth of communication reach has become global. Integration and collaboration possibilities are now at levels never before experienced. e-Procurement is about value creation, for both buyer and seller. e-Procurement is about making the enterprise more efficient and effective. Focus must be on the transactional efficiency of procurement and, most importantly, the effectiveness of your process. Lowering the cost of the purchase order or invoice, for example, is necessary. To lower the cost or eliminate the need to buy goods or services is a major benefit to the bottom-line profitability of your company. The current dramatic rate and pace of Internet-driven change will pale in comparison with what is ahead of us over the next two to three years.

Efficiency : Speed and Cost of Electronic Transactions.

The Internet has enabled companies to realise the potential of electronic data interchange (EDI), namelywith regard to process transactions, such as purchase orders and invoices, completely electronically. It offers any organisation with a desktop computer thecapability to send and receive electronic documents more quickly and at a fraction of the cost of processing paper documents. Today, IBM uses not only EDI, but also an application called Forms Exchange and XML. Both Forms and XML have enabled IBM to move its procurement process to the Internet without disrupting its progress made via EDI. With a 30-minute conference call, suppliers can receive purchasing orders via a Web browser and mail box; with one click the supplier, using Forms Exchange, can automatically create an invoice from an IBM purchase order. The invoice is sent to the Internet server and converted to a standard EDI format for processing through IBM accounts payable, removing several days from the old purchase/ invoice/payment cycle. At IBM, we run a virtually paperless process and have just under 20,000 suppliers doing business with us electronically.

Global Reach

We continually hear a great deal about globalisation and its implications. Many factors contribute to this phenomena, and perhaps none more than the Internet. With the click of a mouse you have access to information - a collaborative environment around the globe. For procurement, this means Web-enabling the procurement process from market information through to execution of the order.

Content

Coupled with the global reach of the Internet is the available content. Initially, in 1994 and 1995, content was static and mostly text. Companies that had Internet sites offered information describing their business with little or no product information. Later, product catalogues began to appear, but little e-commerce occurred because the catalogue content was not tailored to individual customers. It is a challenge to create and maintain content, but catalogue-based procurement has become widespread because it offers the promise of significant savings in processing expense and cycle time. Content means more than catalogue information. From a procurement standpoint, it means that suppliers will maintain and manage content. Content can and will grow to cover all types of information: information about installed equipment, configurations, possible upgrades, etc. It means information about the warranty and service concerning individual products already purchased. The personalisation of Internet content will mean that professional buyers can and will have information structured and focused to assist in routine and complex aspects of their work flow. All of this leads to a reduction in cost and a shorter cycle time.

Integration

As the suppliers enrich the content maintained on their websites and create transaction-based systems, the integration of buyer and supplier systems is possible, bringing true process-to-process and server-to-server connection. This has been the goal of many enterprises for some time. The traditional approach to this objective, database-to-database transaction system, has The Effects of the Internet on Procurement not provided the streamlined and realtime business solution required. This results in business systems with inherent roadblocks to successful integration, such as:

• Redundant data;
• Redundant repositories;
• Redundant transactions;
• Data synchronisation/data co-ordination challenges; and
• Incompatible data structures.

The Internet offers the opportunity to overcome these inhibitors and achieve buyer-to-supplier integration. When this is achieved, the expense and cycle time for transaction processing will be measured in the same infinitesimal dimensions as the computer technology driving the integration. For integration across enterprises to work, standards for content, structure and processes must be used. It is important to recognise these standards throughout a company as it transforms it into a complete, customer-facing e-business.

Collaboration

Collaboration on a common product or objective offers great potential for pooling the creativity and knowledge of buyers and sellers at the speed and reach of the Internet. Collaboration touches every aspect of the buyer/seller relationship. For instance, by working together, sellers can help buying companies to make better and quicker product-development decisions. At IBM we use Web-based applications that allow suppliers to obtain design and technical-drawing files via the Internet. When a supplier requests a product file using a Web browser, the requested design file is obtained from the central IBM repository, automatically translated into the requested view/file format, and forwarded to the requester. A part can be displayed in a variety of views and computer-aided design/computer-aided manufacturing file formats. Suppliers can obtain design drawings throughout a project’s life-cycle. The Internet makes this possible. We use another tool to standardise and simplify the exchange of component pricing information with our contract manufacturers. This application enables procurement to make fast and accurate bid evaluations and component price comparisons to ensure the lowest cost. The entire bill of the material cost-generation process for assemblies is automated. Electronic spreadsheets and templates provide a standard format for data exchange that simplifies negotiations, reduces production cycles and speeds time to market.

Networks and e-Markets

The above descriptions illustrate how the Internet is changing the speed and scale of the way that buyers and sellers interact, and perform basic purchasing transactions. The Internet is changing dramatically the markets themselves with all of the following major effects:

• Transaction speed and cost;
• Global reach;
• Content;
• Integration; and
• Collaboration.

These combine into the phenomenon known as business-to-business (B2B) trading networks or e-marketplaces.

A trading network is a group of suppliers and one or more buying companies that agree to use a common system to conduct business. Over the past 18 months, there has been an unprecedented growth in the number of trading networks that have been established.

The efficiency and effectiveness of electronic B2B commerce must be realised by the buyers and suppliers. Buying companies are pushing hard to establish electronic systems for their procurement operations. The suppliers are under a great incentive to establish electronic interfaces for the procurement systems of their important customers. However, to develop a unique interface for every customer is costly and may be beyond what most suppliers can do. If there are multiple buyers, the networks offer a partial solution. In this scenario, the supplier can establish one interface in order to accomplish business with several customers through the same interface and process.

Internet impoact pn Technology Development :

The Internet has created an entire business function commonly referred to as e-business or e-commerce. E-business represents the use of Internet and business technology in a company’s operations. Most companies in the business environment have implemented some form of Internet or business technology into their business operations. While some companies faced the major changeover when developing an e-business function, other companies may have been on the edge of this technology before the widespread use of the Internet.

Many companies in the traditional business environment were unable to directly sell goods or services to consumers and other businesses. These companies, such as manufacturing and intermediate goods producers, often needed a middleman to help sell goods in the business environment. The Internet allows these companies to set up websites or other electronic order systems to sell products and generate a pipeline for future business sales.

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