Impact of IT on Economics

People expected to be available 24/7 e.g. with Blackberries

Mobile phones have evolved so much in the last few years, and have revolutionised many professions.

There are many jobs out there with the main requirement of people using computers and many other devices in order to complete tasks. For example, employees working in a call centre, do not only communicate with their customers, but they are required to use computers in order to be able to view every single persons details in order to proceed or complete anything asked by the customer.

There are jobs where people need to be available all the time to use IT devices, for example a mobile. They are required to do so in order to complete their tasks during the journey and it’s great because people working wouldn’t actually need to arrange meetings if there is no need of it if they can use their own devices to do so.

Some people need to be available to be contacted 24/7 through a website or an email service because of their activities that makes them to be available at all times. People are able to have a conversation online with a customer adviser for example, and they are available at all times, because the company expects their customers to be helped with their doubts or emergencies anytime. People can also call workers where are available to be phoned in case of emergency.

Flexibility of working patterns: working from home, working shift, etc

IT has revolutionised and created many new opportunities. People can actually work from home by using their home computer. There are many tasks to complete for those working from their home, from completing surveys to advertising an official website to other people through email or even a social network. Workers get paid to make a website more popular and the most clicked website by persuading people and make them visit the website very often by offering a special value to them for example.

The good points of working from home are:

·         The worker does not need to move from house and will never use transport or anything to reach a place.

·          The amount of money the worker can get paid can be very high depending on how many hours and how many people are being advertised a page for example.

Bad points of working from home may be

·         It can be stressful at times because the worker will need to use the computer for many hours, and talk to many people everyday.

·         At times it can be very hard to get money because the worker wouldn’t find many people interested.

Easier to source products from all over the world ( growth of economies in India and China)

It is easier to get products from all over the world because people can actually go online and find what they are interested in. Many online businesses owning an online website where they can get customers to buy their products, are making lot of profit because of they may sell products at the best value for people. Many businesses in India and China do earn lot of money by selling products online.

The good point of sourcing products from all over the world are:

• It is quick and easy to buy products online
• It is cheaper to source products from elsewhere
• Many people are interested of buying products from all over the world

The bad points are:

• Taxes and shipping may be expensive at times
• The quality of some products may be very low
• Some products may be missed and not delivered

Machines taking place of number of workers – less need for unskilled labour

We know that IT has offered many jobs, but it has given also more facilities. There are many jobs that do not need a special worker to do a specific task anymore, but a computer replaced, because it does the job that normal a worker does sometimes.

Good points of replacing workers with computer machines that can do a task:

·         The company would save money because they wouldn’t have as many employees if they use computers

·         It is sure that computer does all the tasks, instead of having someone who is not sure what to do

Bad points are:

·         Sometimes computer machines may experience faultiness and do not work properly

·         Less work places for people who are looking for employment

Easier to set up small business using the web

Internet has become a great tool for businesses. Businesses can actually start they’re own businesses by creating a webpage attracting other customers. Businesses can now advertise and sell their products and services.

Small Businesses will have to face costs at the start in order to set up their website. Businesses would need to buy:

• Domain - Businesses will need to buy their own domain, allowing them to have their own name of the website.
• Web hosting - Businesses will need their website to be published in the world wide internet, and available to be seen by customers.

Good points of starting a business using the web are:

·         Businesses can advertise themselves on the web, including social networks like Facebook for example.

·         Businesses can earn extra profit by placing adverts around their webpage, and get money depending on how many clicks their website has received per day.

·         Receive feedback from customers improving their businesses

·         Be able to post pictures and videos about their products or services.

·         Get more customers

Bad Points are:

·         The business will have to spend lot of time with confronting customers, so they would need more staff to do so

·         The business will also receive messages where people will criticise their company

Easier to track consumer spending – marketing

IT has also changed the way companies can know what customers are interested in and what they buy. For example, Amazon uses a system where they can send information about products that their customers might be interested in, by checking what their customers bought in the past. It’s a good way of getting more customers buying from their websites.

Good Points

·         Businesses will get more chance of customers buying products from their website, because people will see a list of things that relates to products bought in the past.

Bad Point:

·         Sometimes this system might be wrong and show products that does not really involve with the customer’s interests

How have Ebay, Amazon, LastMinute, iTunes, GoCompare affected the Market?

Online websites like Ebay and Amazon, have massively affected the Market and the way of selling and buying things.

Good Points:

·         People do not need to move from their houses

·         Get better deal on products that costs more in stores

·         People can also sell things

·         Be part of an auction bid, with getting the chance of winning it

·         it is quick and easy, people can make a transaction in less then a minute

Bad Points:

·         People get scammed a lot by sellers using the websites, by getting products that do not look the same or are fake

·         People might be confused and buy products from a fake official website, risking their credit card details stolen

·         It might take time to report a failure of shipping to the website

Companies have affected the Market by adding features of bidding and selling on the Internet. Companies like Ebay offers everyone to sell their stuff through their website, and also review other products available online. Advertising and webspaces are now used by companies to persuade new customers on the Internet. This affects the Marketing because street shops won't sell as much as online services anymore, and people often prefer of buying stuff off the internet because it is much cheaper and also have the availabilty of being part of bids, and sell their stuff for other interested people.