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 ICT

The use of ICT is dependent on:

• Staff being trained and having the appropriate skills
• Compatibility across ICT systems
• How the information is used