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Questions and Answers
What is the main purpose of information communication technology (ICT)?
How has electronic data interchange (EDI) improved business communication?
Which of the following statements about recent ICT developments is true?
What is one of the impacts of improved networking opportunities through ICT?
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What does the General Data Protection Regulation (GDPR) provide in the context of ICT?
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What benefit does social media provide for businesses in terms of marketing?
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Which of the following tools is commonly used for online payments to facilitate e-commerce?
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What is one major advantage of using video conferencing for business meetings?
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How does computer-aided design (CAD) technology benefit product design?
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What is a key benefit for companies of having their own website?
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Which of the following is a challenge faced by businesses when introducing ICT?
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What major investment is primarily required for businesses to implement ICT solutions?
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What was one result of the 2018 data breach investigated by the Irish Data Protection Commission?
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What issue can arise due to cybercrime that affects businesses?
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What compliance challenge may businesses face after the introduction of GDPR?
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What is a common misconception about the skills required for effective ICT implementation?
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What do cloud computing services allow businesses to do?
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What is a potential financial risk when a business completely depends on ICT for sales?
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Which social media platform is highlighted as being notably utilized by businesses for marketing?
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Study Notes
Introduction to ICT
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Information Communication Technology (ICT) utilizes technology for communication, processing, storing, and transferring data.
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ICT's rapid evolution has impacted businesses tremendously, with the introduction of technologies such as ChatGPT and Zoom being recent examples.
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The General Data Protection Regulation (GDPR) law governs rights and responsibilities in the dynamic landscape of ICT.
ICT Developments and Business Communication Impacts
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Instant Messaging: Mobile device usage and improved communication infrastructure (internet coverage) have accelerated communication speed. Examples include email, texting, WhatsApp, and LiveChat on websites, enabling direct interaction with stakeholders.
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Electronic Data Interchange (EDI): EDI has replaced traditional written communication between businesses, such as purchase orders and invoices. EDI allows for automated stock ordering, immediate transfer of documents, and instant exchange of trading figures between suppliers.
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Improved Networking Opportunities: Social media platforms and apps allow businesses and individuals to establish connections with people in similar business fields. LinkedIn is an example, facilitating networking and participation in interest groups.
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More Effective Marketing Opportunities: Social media platforms help businesses build brand loyalty, establish public image, and communicate directly with their target market. They facilitate global brand awareness at a lower cost compared to traditional marketing methods. Examples include Facebook, where businesses can post frequent updates and interact directly with customers.
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Improved E-commerce Opportunities: The rise of online shopping has made it easier for businesses to sell products online. Platforms like Stripe, PayPal, Shopify, Facebook, and Google provide payment options, allowing for convenient online transactions.
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Video Conferencing: Video conferencing technologies allow for virtual meetings, reducing the need for physical presence and travel expenses. Applications like Zoom, Skype, and FaceTime facilitate global meetings and offer flexibility for remote work.
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Computer-Aided Design (CAD): CAD utilizes computers to assist in product design, allowing for sharing ideas and documentation. Designs can be saved, duplicated, and edited to adapt to changing customer needs and market trends. Examples include Nike, where CAD enables the adaptation of designs for different countries.
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Company Websites: Businesses are increasingly developing their own websites instead of solely depending on physical stores. This allows for 24/7 sales, facilitates contact list building, provides access to LiveChat features, and supports global expansion. It also enables producers to act as retailers. Examples include Nike and Adidas, which have online stores for direct sales to consumers.
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Cloud Computing: Cloud-based file sharing and storage allow employees to access files at any time using various devices. This reduces storage costs, enhances security with password protection, and allows for simultaneous file access by multiple employees in different locations. Examples include Google Drive, iCloud, and Dropbox.
Business Challenges in Introducing ICT
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Investment Required: Implementing functional websites and apps requires significant capital investment for design, functionality, and handling high traffic volumes. Developing a complex smartphone app can cost roughly €100,000 to €500,000.
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Data Breaches: Businesses need robust security measures and spyware to protect sensitive consumer data from hackers. A significant data breach in 2018 involved nearly 50 million Facebook accounts, potentially resulting in a fine of €1.5 billion.
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Over-reliance on ICT: Excessive dependence on the internet for sales can significantly affect business operations if website disruptions occur. In 2018, Amazon experienced website glitches and downtime, resulting in an estimated €80-90 million in lost sales.
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Cybercrime: Hackers can access website data and threaten to release it or disrupt business operations unless ransom demands are met. Examples include Musgraves, a retail company, being subjected to a cybercrime attack in 2017 aimed at obtaining credit and debit card details.
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Regulatory Compliance: GDPR's implementation in 2018 required businesses to allocate resources to ensure compliance. Failure to comply with GDPR regulations can result in significant fines, as evidenced by Google being fined €50 million in 2019.
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Skills Required: Staff need continuous training to adapt to evolving technologies, which incurs costs and time investment. Businesses like Sky TV require employees to be trained on how to interact with customers through website LiveChat features.
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Description
Explore the pivotal role of Information Communication Technology (ICT) in modern business communication. This quiz covers the impacts of technologies like instant messaging and Electronic Data Interchange (EDI) on organizational efficiency and communication speed.
