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Example research essay topic: Bringing Information Technology Into A Small Part 1 - 1,619 words

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Bringing Information Technology into a Small Business Information technology has changed our lives greatly. Novelties such as television, internet, radio, cellular phones, etc. , have affected the way we instruct, the way we buy, the way we keep ourselves knowledgeable, and also the way we view sports. Nowadays information technologies penetrate more and more fields of small business. That gives companies new opportunities in the market that they were not able to get before.

Now these opportunities are realized by both big and small enterprises, which do their best to bring information technologies into the activity of their company. Recognizing the amazing technological achievements of the came era of information technologies, the American experts have predicted the further progress in this area, the driving force of which are the five basic so-called "information tendencies": 1) Increase of the role of information product; 2) Development of ability to interaction (compatibility); 3) Liquidation of intermediate parts (spontaneity); 4) Globalization; 5) Convergence. Information product (IP) acts as software, databases and services of expert maintenance, IP in the form of a various sort of the information is a source of human knowledge. Information is defined as "saved up ideas and experience of uncountable minds." Hence, the activity of intellectual workers strongly depends on the contents, accuracy and timeliness of the received information. Informational part of IP expands peoples outlook, allows to use resources more effectively, and entertaining part provides leisure.

Quality and availability of both components render essential influence on feeling of self-satisfaction of the separate person. In the world of business intellectual workers make decisions, develop products, sell and buy goods and services, give recommendation which define a course of firms activity. Conducting business operations in significant degree depends on IP, received by intellectual workers. The American experience shows, that the majority of firms spends money on IP, and receives too small feedback in terms of creative productivity of intellectual workers. In USA 30 million managers and other experts called intellectual, cost for their firms 1 trillion dollars per year. At the same time 75 billion dollars (7 % of all expenses) is spent for IT systems which may increase the efficiency of other charges.

The destiny of many intellectual workers today depends from IT. In 1990 about 40 % of intellectual workers in the USA used the help of information technologies. Specialists defined six sectors of economy where the application if IT will most possibly raise the efficiency of trading operations: the industrial goods and the deliveries, packaged consumer and pharmaceutical goods, insurance of the commercial enterprises and separate persons, commercial banks and credits, wholesale trade and services of experts, share trade. Even very superficial view on American reality convinces, that IP creation is thrifty business.

TV serials, films distribution, radio programs, plates, videogame, text and illustrations in books, newspapers and magazines made in the USA IP part of consumer purpose at the end of 1980 years. In particular, by the example of the newspaper market of the USA which experiences the important conceptual and structural transformations, it is possible to show, how the familiarizing of this conservative branch to new IT is happening. Many transformations affect also the development of the world journalism. Change of the American society: increase of the number of divorces and reduction of the number of family, an overload at work, the increasing choice of forms of free time spending, cost, reasons of ecological character, - all this leads to the development of printed editions alternatives. The increasing number of publishing houses considers, that the future only with the electronic versions of their newspapers. By estimations of independent experts, concern Microsoft invested in the development of new medial projects up to 20 % of its scientific budget.

Microsoft issues encyclopedias and directories on CD-ROM, becoming the absolute leader of the world market of encyclopedias, entices leading journalists of large newspapers and TV channels, buys up large photo archives and picture galleries, etc. Creation of IP includes 3 basic stages: development, synthesis and distribution. Eight main types of IP go through these stages: news, documentary programs, knowledge and opinion, data and facts, reports, games, fiction and dramaturgic products, music and humor. All activity in the field of IP is unique, first, from the point of view of risk because it is necessary to satisfy the requests of the two basic categories of clients: consumers and advertisers. Approximately 50 % of income in consumer sector of IP comes from advertising. The second characteristic feature of information service is the presence of the rights to the certain spheres of action.

For example, limitation of a spectrum of used frequencies caused the necessity of reception by the local radio-and television stations of licenses for broadcasting, etc. Besides practically all the companies and the firms connected with the information area, because of the lack of technical and legal differentiations, created the market borders and the rights. The next tendency of IT development is the ability to interaction between all the physical and logic elements of system. One of the major factors for maintenance of compatibility of interaction is the occurrence of new standards on program and hardware, displays, databases and networks that caused processes of standardizations. New technologies are the main motive power in addition to existing forces of the world market. Only some key components: microprocessors, local networks, robotics, specialized automated workplaces, the gauges, programmed controllers have brought to reality the concept of the automated enterprise.

However now the technology can also be the deterrent: absence of ability to interaction of automation means makes its realization irrational. It is caused by explosive expansion of IT therefore standardization of products does not keep pace with technical standards. On the other hand, as a result of more active marketing activity and successes in IT distribution, capture of the big market share by one company, its product becomes the standard for all others. As an example it is possible to give personal computers of firm IBM, operational systems of corporation Microsoft, local network Novell, and standards of household video recording VHS of the firm JVC, Video- 8 firms Sony. Suppliers of information technologies should estimate those individual shifts which happened in their clients interests.

Production will not be defined by purpose of the final product, but more likely by the combination of industrial and market characteristics, for example in great volume of the required shaped products made of plastic or orders for production of powder metallurgy. In the modern world the satisfaction of customers needs defines the manufacturing activity of firms. Ability to interaction is attractive as the concept, however difficult in realization. Difficulties are simultaneously connected with problems of technology and competition. Technological efforts are concentrated on the technical parameters which are defined on the basis of standards. Hence, the presence of standards is the mortgage of interactions achievements.

As it was specified above, speed of occurrence of the new information development is higher than standardization of information products. But recently in connection with the merger of small-scale enterprises and increasing experience on integration of various IP platforms, standardization of activity of various manufacturers is spent already at the stage of the IP creation and development. One more difficulty of the present situation consists in that the IT development substantially defines the processes of systems integration and standards creation. It can appreciably remove terms of realization of those advantages which the newest technologies give. For example, the performance of creation program of fifth generation computers, financed by the Japanese firms, is prevented by the fact that new software architecture is not combined with the existing centers of artificial intelligence yet, new reports cannot be used in the old communication systems, and new computer languages cant be used for old systems, etc. As information technologies penetrate into various spheres of business more deeply, they changes various cost parameters on which the competition is based.

It entails fundamental structural changes in other branches of the economy expressing in such drama tendency as liquidation of intermediate parts. The last means elimination of those stages which include intermediaries between consumers and manufacturers. In particular, in bank sphere the role of small banks decreases because significant resources are required for the introduction of information technologies. Information technologies already provide opportunities for the liquidation of intermediate functions inside the companies and between them. Telemarketing and system of orders "computer - computer" eliminate, for example, the intermediate trading organizations. The buyers having access to general purpose terminals (so-called "electronic booths "), order the goods available on sale and receive electronic coupons.

It is possible to give a lot of similar examples, for example in banking. Estimating a situation, the American experts state the following: "Entering the new weapon of a competition in various fields of activity, IT causes sharp struggle between firms ." They predict that "electronic" commerce will supersede the average part of business (distributors) which today play the important role in getting all kinds of product up to the end user. The principal cause of the information technologies transformation has such powerful force, that the information frequently represents as the basic product of the exchange during the concluding of bargain, for example, when the program of training is bought or the contract on granting of consulting services is concluded. It is fair for mutual relation inside the enterprises (manufacture - maintenance), between the enterprises (buyer - seller) and between the enterprise and the consumer. In these cases the liquidation of intermediate parts is caused by the introduction of the new technologies which provide additional cost of the information due to its processing, storages, transfers and transformations to forms which are more successful and accessible for immediate use.

Here we see the essential advantages of information technologies: ...


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