Submitted By: Rabia Shafiq |

Submitted to: Sir Haris Sb.

M.I.S(85
07)

ADVANCED
BUSINESS

ICT ISSUES IN

Introduction to ICT:

Definition -Management Information System (MIS):

A management information system (MIS) is a broadly used and applied term
for a three-resource system required for effective organization management.
The resources are people, information and technology, from inside and
outside an organization, with top priority given to people. The system is a
collection

of

information

management

methods

involving

computer

automation (software and hardware) or otherwise supporting and improving

the quality and efficiency of business operations and human decision
making.
As an area of study, MIS is sometimes referred to as IT management
(information technology management) or information services (IS). Neither
should be confused with computer science.

Definition Information and Communications Technology

(ICT):
Information and communications technology (ICT) refers to all the technology
used to handle telecommunications, broadcast media, intelligent building
management systems, audiovisual processing and transmission systems,
and

network-based

control

and

monitoring

functions.

Although ICT is often considered an extended synonym for information

technology (IT), its scope is broader.

ICT has more recently been used to describe the convergence of several
technologies and the use of common transmission lines carrying very diverse
data and communication types and formats.
Converging technologies

that

exemplify ICT

include the merging

of

audiovisual, telephone and computer networks through a common cabling

system. Internet service providers (ISP) commonly provide Internet, phone
and television services to homes and businesses through a single optical
cable. The elimination of the telephone networks has provided huge
economic incentives to implement this convergence, which eliminates many
of the costs associated with cabling, signal distribution, user installation,
servicing and maintenance costs.

IMPORTANT SUB TOPICS:

Network:
When you have two or more computers connected to each other, you have a
network. The purpose of a network is to enable the sharing of files and
information between multiple systems. The Internet could be described as a
global network of networks. Computer networks can be connected through
cables, such as Ethernet cables or phone lines, or wirelessly, using wireless
networking cards that send and receive data through the air.
In information technology, networking is the construction, design, and use of
a network, including the physical (cabling, hub, bridge, switch, router, and so
forth), the selection and use of telecommunication protocol and computer
software for using and managing the network, and the establishment of
operation policies and procedures related to the network.

Information Technology (IT) definition:

Information technology (IT) is

the

use

of

any

computers,

storage, networking and other

physical devices, infrastructure
and

processes

process,

store,

to

create,

secure

and

exchange all forms of electronic

data.
Typically, IT is used in the
context

of

enterprise

operations as opposed to personal or entertainment technologies. The

commercial use of IT encompasses both computer technology and telephony.
The term information technology was coined by the Harvard Business
Review, in order to make a distinction between purpose-built machines
designed to perform a limited scope of functions and general-purpose
computing machines that could be programmed for various tasks. As the IT
industry

evolved

from

encompassed transistors and integrated

the

mid-20 th century,

circuits --

computing

it

capability

advanced while device cost and energy consumption fell lower, a cycle that
continues today when new technologies emerge.
IT software and hardware
IT includes several layers of physical equipment (hardware), virtualization
and management or automation tools, operating systems and applications
(software) used to perform essential functions. User devices, peripherals and
software, such as laptops, smartphones or even recording equipment, can be
included in the IT domain. IT can also refer to the architectures,
methodologies and regulations governing the use and storage of data.

Business applications include databases like SQL Server, transactional

systems such as real-time order entry, and email servers like Exchange, Web
servers

like

resource

Apache, customer

planning systems.

relationship

These

management and enterprise

applications

execute

programmed

instructions to manipulate, consolidate, disperse or otherwise affect data for

a business purpose.
Computer

servers

run

business

applications.

Servers

interact

with client users and other servers across one or more business networks.
Storage is any kind of technology that holds information as data. Information
can take any form including file data, multimedia, telephony data and Web
data, data from sensors or future formats. Storage includes volatile random
access memory (RAM) as well as non-volatile tape, hard disk and solid-state
flash drives.

ICT USED IN BANKING:

Todays business environment is very dynamic and undergoes rapid changes

as a result of technological innovation, increased awareness and demands
from customers. Business organizations, especially the banking industry of
the 21st century operates in a complex and competitive environment
characterized by these changing conditions and highly unpredictable
economic climate. Information and Communication Technology (ICT) is at the
centre of this global change curve.
The application of information and communication technology concepts,
techniques, policies and implementation strategies to banking services has
become a subject of fundamental importance and concerns to all banks and
indeed a prerequisite for local and global competitiveness. ICT directly
affects how managers decide, how they plan and what products and services
are offered in the banking industry. It has continued to change the way banks
and their corporate relationships are organized worldwide and the variety of
innovative devices available to enhance the speed and quality of service
delivery.

ICT IN BANKING:

Traditional Banking:

In the past, banking took place on the High Street.

The branches were only open 9am-3pm Monday to Friday, which was

very inconvenient for people who worked full time.

Banks had to employ many staff to deal with customers as this was the
only way that services could be provided

Automatic Teller Machines

Customers can do transactions without having to queue.

This save the customers time,
Saves the bank a huge amount of money since fewer staff are
needed.

With ATMs customers can

Check bank account balance;

Withdraw money,
Print statements
Transfer funds between accounts,
Pay utility bills

Customers are able to use almost any ATM in any bank, supermarket or
garage and it is normally a free service.

Call Centers:
Call Centers is a facility where large numbers of workers spend the day
and night answering telephone calls from customers. The staff deals
with customers from any branch around the country.
Call centers save banks a lot of money because they could deal with a
large number of calls from customers quickly and efficiently. Call
centers could be set up in countries where there are plenty of people
who speak fluent English and are willing to work for a much lower wage

Online banking:
Now the customers can open accounts, check their balances online, move
money, pay bills and print statements from the comfort of their own
homes. Most major banks now offer online banking and some are offering
Internet only banking. Without the overheads of running and staffing high
street branches they can offer higher rates of interest to customers.

Drawbacks of ICT in Banking:

With Online banking, bank fraud - on an industrial scale - could be done
from outside, without having to rely on bank employees to pull it off.
Phishing sites are fake banking websites used by hackers to get the logon
details of customers.
Trojans - bits of rogue software downloaded to people's computers without
their knowledge can be used to "sniff" keystrokes; this can be avoided to
some extent using onscreen keyboards that work with mouse instead of
physical keyboard. But then the Trojans can take screen shots!

REVIEW:
Internet is significant for redefining and reshaping the various concepts in
all spheres of life. To acquire ease, swiftness and downsizing, ICT banking
has a forceful edge over the competitors, homogenize qualitative
services, swell market share, and on the whole, to get better eminence,
ICT has become an appropriate pedestal for banking sector. ICT is helpful
to the banking regulatory authorities, customers and the researchers in
the area for the qualitative expansion of Internet banking.
Internet banking is one of the latest technological wonders in the recent
past involving use of ICT for delivery of banking products & services. ICT
banking is changing the banking industry and is having the major effects
on banking relationships. Banking is now no longer confined to the
branches where one has to approach the branch in person.
ICT Banking adoption is a complex and multifaceted process and a joint
consideration of customers personal, social, psychological, utilitarian and
behavioral aspects is more important than adoption itself and will
ultimately result in the intended behavior.
Customers are encouraged to utilize ICT banking as first priority.
Increasing the customer's arousal by ICT advertisements to use ICT
banking creates a positive attitude toward bank's brand, which in-turn is
the key factors in ICT banking effectiveness.
ICT banking needs compatibility, convenience, and communication on
customer adaptation. In the context of private commercial banks in order
to attract more users to ICT banking, it is not going to be enough only to
introduce ICT banking system, but they need to develop the belief of
usefulness of the system among their users. The importance of ICT

banking needs and the ease of using it should be acknowledged by

demonstration on trial basis.

Advantages to the bank:

There are many advantages for the banks that run an online 'branch'.

It allows customers to access their accounts 24 hours a day

without having to have branches open.

The customers do all of the work themselves so staff numbers

can be reduced.
No need of having high street branches, thus saving rental costs
Less staff is needed so staff costs, insurance, heating and

lighting costs are saved.

Banks can attract new customers to their ONLINE BUSINESS for a
fraction of the cost it takes to get one through the door of a high

street branch.
Because of the lower operating costs, internet banks can offer
very attractive incentives.

Advantages to the customer

There are many advantages to customers who use an online banking
service.

You can do almost everything from the comfort of your own home
You can bank at a time convenient to you, 24 hours a day, 7 days a
week

You don't need to queue up in a branch to be served.

You don't need transport or have to waste time driving to the bank and
trying to find a parking place

You can get instant statements for your account(s).

The savings rate offered are often better than the High Street as online
Banks pass on their cost savings.

It is easy to compare deals between banks and special offers

You can apply for a loan or a mortgage directly from the web site and
get an answer very quickly.

Disadvantages for the bank

Fraud is expensive. Banks lose a lot of money from fraud and online
crime.

There is a need to be always one step ahead of criminals so

investment must be made in coming up with new ways to keep
customer accounts secure.

Less Customer contact and so it is harder to build personal

relationships with their customers

It is difficult to convince a customer to buy an offer through website

than meeting him in person.

Banks have to employ specialist web developers and expensive

computers to run the site.

If the web site goes down then customers cannot access their
accounts.

Disadvantages for customers:

Security worries, hackers might hack the bank details.

Cant get to see who they are dealing with.

If there are problems to sort out, then it is much easier to explain the
problem face to face rather than having to use email or telephone.

You can't deposit cheques or cash. You will need to visit the branch or
send by post.

Conclusion:
ICT banking is a multifaceted process and a joint consideration of customers
personal, social, psychological, and behavioral aspects. Most of the
customers are into ICT Banking for various services like checking account
status, bill payments, fund transfer, etc., but still they think twice to do it
because of safety. It was also noted that ICT banking is known for its
convenience and easy access. The major success of ICT is because of its
convenience, easy access and safety. There ample benefits which one can
avail from Internet banking. In the world of networks, it is said to be that
without ICT business cannot prevail. Thus, the future lies in the hands of ICT
which are most welcomed by the consumers.

RECOMMENDATIONS:

ICT banking is widely used by people who know to access ICT.

Banks can take effective measures in providing guidelines to access

ICT for banking.

People have a threat in their minds about the safety of using ICT. Some
people dont prefer ICT for cash transactions for the same. Banks can
take necessary actions to guide people in securing banking activities.

Since there is not much awareness in semi-urban areas about online

banking, banks can offer special training programs to enhance their

banking services through ICT.

Most people dont prefer ICT as its not their cup of tea. Banks can take
steps to provide easy access so that customers comfort zone is
sustained.