Higher Information Systems. Economic Implications of ICT. What we will learn. In this section we have looked at: Economic Implications of ICT: Cost of ICT for an Organisation Effect on Productivity and Profitability ICT Careers. Economic Implications of ICT.
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Economic Implications of ICT
Cost of ICT for an Organisation
Software and hardware mean the company can become more productive (efficient) and expand its market. This is the main reason for upgrading either of these expensive items.
Initial Set Up– the cost to install the hardware, software and network as well as training staff.
Running costs– the cost of maintaining the system, data connections, consumables paper, ink , electricity, salaries and support staff.
Investment costs– renewing hardware software and keeping licences up to date.
If companies don’t invest then they will not increase their profitability.
Effect of ICT on Productivity and Profitability
If you increase your productivity – how efficiently you produce your goods (less mistakes spend less money) then you will increase your profitability (how much money you make).
Computers have made companies more profitable because they can do more tasks faster than the human equivalent and don’t make as many mistakes.
ICT has introduced lots of new types of jobs. Most professional level jobs require further or higher education. A degree is needed for top level jobs.
In this section we have looked at: