ICT in Business

Information and Communication Technology (ICT) is used by businesses to carry out daily activities, communicate with employees and customers, manage information, and complete transactions. It helps businesses perform tasks more efficiently and supports better decision-making.

This note explains common uses of ICT in business, including video conferencing, Human Resource Management (HRM) systems, access-control devices, e-banking, and online shopping.

Uses of ICT in Business

1. Video Conferencing

Video conferencing is a technology that allows people in different locations to communicate through live audio and video using computers, smartphones, or other connected devices.

Businesses use video conferencing for meetings, interviews, training sessions, and presentations. Participants can see and hear one another in real time without travelling to the same location.

Benefits of video conferencing include:

• Saves time: Employees can attend meetings without travelling.
• Reduces travel costs: Businesses can reduce expenses related to transport and accommodation.
• Supports remote communication: Staff, customers, and business partners can communicate from different locations.
• Useful for training and presentations: Trainers can share information with employees who are not physically present.

A stable internet connection, a camera, a microphone, and a suitable application are commonly needed for video conferencing.

A company with offices in Colombo and Kandy can hold a meeting online. Employees from both offices can discuss work and share information without travelling between the two cities.

2. Human Resource Management (HRM) Systems

Human Resource Management (HRM) refers to the management of an organisation's employees. An HRM system is software used to store and manage employee-related information and support human resource activities.

An HRM system can help a business manage:

• Recruitment: Recording applicant information and supporting the process of selecting new employees.
• Training: Organising and keeping records of employee training.
• Payroll: Calculating employee salaries and maintaining payroll records.
• Attendance: Recording employee working hours and attendance.
• Performance: Keeping information about employee performance and reviews.
• Employee records: Maintaining details such as employee names, contact information, job roles, and employment records.

Using an HRM system can make these activities faster and more organised. It can also reduce errors caused by repeated manual data entry. The accuracy of the information still depends on correct data entry and suitable system controls.

A business can use an HRM system to record employees' attendance and maintain salary information. The system can use these records to support payroll calculations and help the HR department manage employee information.

3. Fingerprint Scanners

A fingerprint scanner is a biometric device that captures the pattern of a person's fingerprint. A system can compare the captured fingerprint with a previously registered template to help verify the person's identity.

Businesses may use fingerprint scanners to:

• Identify employees.
• Record employee attendance.
• Control access to restricted rooms or buildings.
• Reduce the possibility of one employee recording attendance for another.

Fingerprint-based systems can make identification and access control more convenient than methods that rely only on a shared password or a manually written attendance sheet. However, they need suitable registration, maintenance, and security measures. A fingerprint scanner should be part of an access-control system rather than the only protection for sensitive areas.

Employees may place a finger on a scanner when arriving at work. The system checks the fingerprint against registered data and records attendance when the identity is verified.

4. Card Readers

A card reader is an electronic device that reads information stored on an identification or access card. Depending on the technology, the card may be read by inserting, swiping, or tapping it near the reader.

Businesses use card readers to manage access to buildings, rooms, and other restricted areas. They may also use them to record employee attendance.

Common uses include:

• Allowing authorised employees to enter a building or room.
• Recording when an employee enters or leaves.
• Supporting access control in offices and other workplaces.
• Reducing the need for manual attendance records.

The card reader sends the card's identifying information to an access-control system. The system checks whether the card is authorised and then allows or denies access according to its settings.

An employee taps an authorised ID card on a reader at the office entrance. The access-control system checks the card and unlocks the door if access is permitted.

5. E-Banking

Electronic banking (e-banking) is the use of electronic systems and networks to access banking services and perform financial transactions.

Businesses and customers can use e-banking to:

• Check account balances.
• Transfer money between accounts.
• Pay bills.
• Review account activity and transaction records.
• Manage accounts without visiting a bank for every transaction.

E-banking can save time and make financial services available remotely. It also provides electronic records that can help businesses track payments and account activity.

Users should protect their banking credentials, use secure connections, and verify transaction details before confirming payments.

A business can use online banking to transfer money to a supplier's bank account. The business can then review the transaction record instead of visiting a bank branch to make the payment.

6. Online Shopping and E-Commerce

E-commerce (electronic commerce) is the buying and selling of goods or services through electronic networks, especially the internet. Online shopping is a common form of e-commerce in which customers browse products and place orders through a website or application.

Businesses use e-commerce platforms to display products, receive orders, communicate with customers, and arrange payments and delivery.

Benefits of online shopping and e-commerce include:

• Convenience: Customers can browse and order products online without visiting a physical shop.
• Wider product choice: Customers can view different products offered through an online store.
• Access beyond shop hours: An online store can accept orders at times when a physical shop is closed, subject to the services available.
• Wider customer reach: Businesses can make products available to customers in different locations.
• Time saving: Customers can compare products and place orders online.

An online business also needs to manage product information, orders, payments, delivery, and customer service. Secure payment handling and accurate product details help support customer trust.

A customer visits an online store, selects a product, enters delivery details, and places an order. The business receives the order and arranges payment processing and delivery.

Benefits of ICT in Business

ICT can support business activities in several ways:

• Saves time and cost: Electronic systems can reduce manual work and unnecessary travel.
• Improves communication: Employees and business partners can communicate using tools such as video conferencing.
• Increases productivity: Employees can complete many routine tasks more quickly with suitable systems.
• Supports decision-making: Businesses can use stored information and transaction records to understand their operations.
• Improves security and access control: Fingerprint scanners and card readers can help restrict access to authorised people.
• Improves customer service: Online platforms allow businesses to share product information and receive customer orders.

The benefits depend on selecting suitable technology, maintaining systems, training users, and protecting business information.

How ICT Supports Business Activities

The examples in this note support different business functions:

• Communication: Video conferencing helps people communicate in real time across different locations.
• Human resource management: HRM systems help organise employee information and HR processes.
• Identification and access control: Fingerprint scanners and card readers help verify identity and manage entry.
• Financial transactions: E-banking supports account management and electronic payments.
• Sales and customer reach: E-commerce enables businesses to display products and receive orders online.

These systems may be used together. For example, an employee's attendance information may be recorded by an access device and managed through an HRM system, while the business uses e-banking to pay salaries or suppliers.

Exam-Focused Points

When answering examination questions, identify the business activity first and then explain how the relevant ICT tool supports it. For example, do not describe a fingerprint scanner as a general-purpose payment device; relate it to identity verification, attendance, or access control.

Summary

ICT helps businesses communicate, manage employees, control access, complete financial transactions, and sell products online. Video conferencing supports remote meetings, HRM systems organise employee information, and fingerprint scanners and card readers help manage attendance and access. E-banking supports electronic financial services, while e-commerce allows businesses to reach customers and receive orders through the internet. Together, these technologies can save time, improve productivity, and support efficient business operations.