Chapter 1

Information and communication

technologies:
evolution and revolution

SESSION OBJECTIVES

Introduce technological concepts

Establish a level of understanding of ICTs
Appreciate the key elements of the technological revolution
Increase awareness of technological developments and some
major trends
Establish a level of understanding of terminology and critical
issues
Demonstrate that ICT developments have a profound impact on
organisations
Explore the relationship between the Internet, Extranets and
Intranets
Discuss the growth of the online population and the issues
related
to it

INTRODUCTION
ICTs enhance the ability of organisations to:
Manage their resources
Increase their productivity
Communicate their policies and market their offerings
Develop partnerships with all their stakeholders

(consumers, suppliers, public sector organisations,

interest groups etc)

ICTs enable organisations to:

Expand geographically
Co-ordinate their activities regionally, nationally and globally
Facilitate expansions, mergers, acquisitions & growth
Operational expansion is also assisted through enabling

management of more resources

Defining Information & Communication Technologies

(ICTs)
o Thomas (1988) philosophically suggests that technology
consists of society's poll of knowledge concerning the
industrial, mechanical and practical areas".
o Peppard (1993) defines IT as the enabling mechanism which
facilitates the processing and flow of information in an
organisation and between organisations, encompassing the
information the business creates, uses and stores, as well as
the technologies used in physical processing to produce a
product or provide a service.
o Runge and Earl (1988) includes telecommunications in ITs and
proposes that "telecommunication networks provide the
information highways over which new products and services
can be offered, thereby redefining concepts of customer
service, opening up new arenas of innovation and altering the
economics of distribution".

Defining Information & Communication

Technologies
(ICTs)

ICTs cover the entire range of electronic tools,

which facilitate the operational and strategic
management of organisations by enabling
them to manage their information, functions
and processes as well as to communicate
interactively with their stakeholders for
achieving their mission and objectives.
Information Communication Technologies
include a combination of Hardware, Software,
telecommunications, netware, groupware and
humanware.

Contribution of
Information & Communication Technologies (ICTs)

Enable effective data processing & communication for

organisational benefit
Offer opportunities & challenges for suppliers in all
industries
Support development & maintenance of organisational
competitiveness and competitive advantage
Provide enormous capabilities for consumers
Support integrated systems of networked equipment and
software
ICTs are becoming more affordable & user friendly

Information & Communication Technologies

(ICTs)
Terminology
Hardware: Physical
equipment such as mechanical, magnetic,
electrical, electronic or optical devices (as opposed to computer
programmes or method of use).

Software: Prewritten detailed instructions that control the

operation of a computer system or of an electronic device.
Software co-ordinates the work of hardware components in an
information system. Software may incorporate standard software
such as operating systems or applications, software processes,
artificial intelligence and intelligent agents, and user interfaces.
Telecommunications: The transmission of signals over long
distances, including not only data communications but also the
transmission of images and voices using radio, television,
telephony and other communication technologies.
Source: Adapted from Gupta (1996); OBrien (1996); Laudon and Laudon (2002); Werthner and Klein (1999);
Halsall (1996)

Information & Communication Technologies

(ICTs)
Terminology
(continued)
Netware:
Equipment and
software required to develop and
support a network or an interconnected system of computers,
terminals and communication channels and devices.

Groupware: communication tools, such as email, voice mail,

fax, videoconferencing that foster electronic communication and
collaboration among groups.
Humanware: the intellect required for the development,
programming, maintenance and operation of technological
development. Humanware incorporates the knowledge and
expertise pool of the society
Source: Adapted from Gupta (1996); OBrien (1996); Laudon and Laudon (2002); Werthner and Klein (1999);
Halsall (1996)

Information & Communication Technologies (ICTs)

Characteristics
Boundary: Clear distinction between internal and external
elements. Internal elements are controllable by organisations
Environment: External elements to the system including
assumptions, constrains and inputs to the system
Inputs: All resources imported to the system including data,
material, supplies, energy
Outputs: Products and resources of the systems in various
formats including reports, documents, displays, announcements
provided to the environment of the system
Components: Activities or processes within a system that
transform inputs to outputs
Interfaces: Point of contact between system and its
environment
Storage: holding areas used for the temporary and permanent
storage of information

Information Systems &

Management
Information Systems
interrelated components working together to collect, process,
store and disseminate information to support decision making,
co-ordination, control, analysis and visualisation in an
organisation (Laudon and Laudon, 2002; Turban et al, 2002)

Information Management is responsible for providing

information technology & communication services &
resources for:
- products and services
- operations
- management
- control activities
- co-operative work of an organisation
it overlooks Information Technology and Information Systems

The 4 Stages of ICT Evolution

DATA PROCESSING - 1960s

o Improved operational efficiency by automating information based
processes

MANAGEMENT OF INFORMAION SYSTEMS (MIS) - 1970s

o Increased management effectiveness & efficiency by satisfying the
organisational information requirements
o Information systems were used primarily to address the needs of
internal management and co-ordination

The 4 Stages of ICT Evolution (Continued)

STRATEGIC INFORMATION SYSTEMS (SIS) 1980s
- Improved competitiveness, changing the nature or conduct of
business
- Integrated ICT networks were used to:
- Achieve organisational strategic objectives
- Enhance performance
- Co-ordinate activities across functional & business unit lines
- Support interaction with external entities

NETWORK ERA - Late 1990s

- Intra- & Inter-organisational networks proliferated
- Local & wide area networks
- The Internet, Intranets and Extranets
- Revolutionised communication
- Enabled multi-level integration & efficient collaboration

The Information Superhighway

Global Systems - Internet

The Internet is a global protocol of communication

Provides window to the world
Supports a wide variety of different tools &

functions
Enables communication & sharing of data globally
Web pages contain text, graphs, animations,

sounds & videos and multimedia information in a

networked environment
Supports a global networked environment
Wide implications for societies, communities and

organisations

The Information Superhighway

Internal Systems - Intranets

Closed", "secured", controlled or "fire-walled"

networks within organisations or individual

departments
Enable organisations to improve internal

management at all levels

Integrate all internal functions and maximise

efficiency
Share media-rich data and processes

The Information Superhighway

Partner Systems - Extranets

Allow partners to interact electronically

Enhance interactivity & transparency between
organisations
Link & share data and processes to format a low cost &
user friendly electronic commerce arrangement
Empower co-operation between partners
Enable a certain degree of transparency and
interactivity
Enhance efficiency, productivity & effectiveness without
compromising on security and confidentiality

The Information Superhighway

New ICT Developments

Ambient Intelligence
Interoperability and interconnectivity
Digital Television
Wireless applications
o Cellular Phones - GSM
o Wireless Application Protocol (WAP)
o NTT DoCoMos I-mode
o Third generation (3G) mobile technology
o Universal Mobile Telecommunications System (UMTS)
o Bluetooth

A New Wave of Technological Evolution

Lines of technological
evolution

Source: After Werthner and Klein

(1999)

A New Wave of Technological Evolution

Information Technology introduces improvements to
enhance:
- speed
- interoperability
- reliability
- adaptation
Major ICT Developments:
- eCommerce through iDTV and the mobile devices
- object-orientated relational databases
- software evolution driven by intelligent applications
- data mining & knowledge management
- user friendly interfaces - WYSIWYG
- intelligent geographical information systems
Integration of all applications to enable interoperability on
different platforms & through different media
Advanced cryptography can improve on-line security