How do businesses use computers and technology, and how does ICT help them work better?
Explain what ICT is, describe common ways businesses use ICT, and explain how ICT helps a business work more effectively
A simple guide to using ICT in business. What ICT is, common business uses like email, spreadsheets and online sales, and how ICT helps, with Singapore examples.
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What this dot point is asking
You need to explain what ICT is, describe common ways businesses use ICT, and explain how ICT helps a business work more effectively. ICT stands for Information and Communication Technology - the computers, phones, software, and internet a business uses. Keep your answer practical and tied to a real business, and be ready to mention a problem that can come with relying on ICT.
The answer
What ICT is
ICT stands for Information and Communication Technology. It means the computers, phones, software, and internet that a business uses to store information, do tasks, and communicate. Almost every business today uses some ICT.
Common ways businesses use ICT
Businesses use ICT in many ways:
- Email and messaging - to contact suppliers, customers, and staff quickly.
- Spreadsheets - to keep records of sales, costs, and stock, and to add up figures automatically.
- Word processing - to write letters, invoices, and other documents neatly.
- Selling online - through a website or an online shop, and taking electronic payments.
- Social media - to promote products and reach customers.
- Stock and till systems - to record sales and track what is in stock.
How ICT helps a business work better
ICT helps a business work more effectively because it:
- Saves time - tasks like adding up sales or sending a message are fast.
- Reduces mistakes - a spreadsheet adds up correctly every time.
- Makes communication faster and wider - email and social media reach many people quickly and cheaply.
- Reaches more customers - an online shop can sell beyond the local area, even all day.
- Keeps neat records - information is stored, organised, and easy to find.
Problems with relying on ICT
ICT also brings some problems a business must manage:
- Breakdowns - if the system or internet fails, the business may be unable to take payments, communicate, or reach its records.
- Cost - computers, software, and a website cost money.
- Training - staff need to learn to use the technology.
- Security - data can be stolen or lost if it is not kept safe.
A business that uses ICT well gets the benefits while planning for these problems.
Examples in context
Example 1. A cafe using a spreadsheet and social media. A cafe owner records her daily sales and costs in a spreadsheet that adds them up automatically, saving time and avoiding adding-up mistakes. She posts photos of new bakes on social media to bring in customers cheaply. ICT helps her run the cafe better and reach more people, though she keeps a backup in case her laptop fails.
Example 2. A shop with an online store. A small shop opens an online store so customers can buy day or night, even from other parts of Singapore, and pay electronically. Sales rise because the shop is no longer limited to passers-by. But when the internet went down one day, the online store could not take orders, showing the breakdown risk of relying on ICT.
Try this
Cue. State what ICT stands for, and describe two ways a shop could use ICT. Remember ICT is Information and Communication Technology, then pick real uses such as email and spreadsheets, and link each to a task.
Cue. Explain two ways ICT helps a business work more effectively. Link benefits such as saving time, reducing mistakes, faster communication, or reaching more customers to a real business activity.
Cue. Describe one problem a business might face when it relies on ICT. Think about breakdowns stopping payments or records, the cost of equipment, training staff, or keeping data safe.
Exam-style practice questions
Practice questions written in the style of SEAB exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
Original4 marksA small shop uses computers and the internet to help run the business. (a) State what ICT stands for. (b) Describe two ways the shop could use ICT.Show worked answer →
(a) ICT stands for Information and Communication Technology.
(b) Two ways: use email to contact suppliers and customers; and use a spreadsheet to keep records of sales and costs. Selling online, using social media to promote products, or using software to track stock are also accepted.
What markers reward: ICT correctly written out as Information and Communication Technology, and two real, sensible business uses (email, spreadsheets, online sales, social media, stock software).
Original5 marks(a) Explain two ways ICT helps a business work more effectively. (b) Describe one possible problem a business might face when it relies on ICT.Show worked answer →
(a) Two ways: ICT saves time and reduces mistakes, for example a spreadsheet adds up figures automatically and quickly; and it makes communication faster and wider, for example email and social media reach suppliers and many customers quickly and cheaply. Reaching more customers through online sales is also accepted.
(b) One problem: if the computer system or internet breaks down, the business may be unable to take payments, contact people, or reach its records until it is fixed. The cost of equipment, the need to train staff, or the risk of data being stolen are also accepted.
What markers reward: two clear benefits of ICT (saves time and reduces errors, faster and wider communication, reaches more customers), and one real problem of relying on ICT (breakdowns, cost, training, security).
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