The Impact of Computers on Business and Society

The Impact of Computers on Business and Society • When were computers first used? • What were they like? • How have they changed since? • How have things advanced in your lifetime? • How have advances in ICT changed the way we work and play?

History • Computers have only been around since the 1940 s • The first commercially available computers appeared in the 1950 s • Computers have revolutionised the way offices operate • The picture on the right shows a typical Victorian office – what do you notice about it?

Pre-History What sort of things in the modern office or shop wouldn’t have existed 50 years ago? • Computers • Printers • Photo-copiers • Fax-machines • Mobile phones • The internet • Databases

Your Lifetime • How has ICT changed things in your lifetime? • In my lifetime I have seen the introduction of: – Calculators instead of log tables & slide rules – Barcodes in shops – Itemised bills and receipts – The worldwide web – access to lots more information – Improved broadcasting – digital television, RDS, PDC, etc. – Digital video, music and photos – Miniaturisation – enables us to carry mobile computing devices and take video, music and photos – Increased processing power, making games much more realistic

Sines, Cosines and Logarithms

Computer History • The picture below shows a typical computer of the 1940 s • In what ways is it obviously different from a modern computer?

Mainframes – 1950 s • The earliest computers were what we now call mainframe computers • The first commercially available computers appeared in the 1950 s (e. g. LEO, shown right) • Mainframe computers centralise the processing and use dumb terminals, which are often text only – they do no processing or storage, they are just monitors and keyboards

Mainframes • Terminals are cheap • It’s easy to add another terminal • No software to configure on the terminals • Background processing can continue after logout • Space – large computer room required! • Security – people can use it from anywhere • Speed – fast connection required for quality graphics • Limited facilities – no local printers, disc drives, etc.

Individual PCs – late 70 s • When integrated circuits (“chips”) made computers small and affordable, everyone could have their own – processing was dispersed throughout the organisation • This changed the way people worked - everyone had access to data processing facilities and could word-process their own letters – no more typing pools!

Networking • When networking is added, dispersed systems become distributed systems • Shared hardware, • Dependency - server or software and data cable failure affects all users (potentially!) • Can share templates for letters, etc. • Security issues passwords, restricted • Improved access, viruses, etc. communications • Performance - network • Centralised slows down under load management of users, backups, etc.

Client-Server Request for information Application or web-site Results of query Database Client • Data stored & maintained centrally • Can connect remotely - e. g. from home • Improved security - data is not stored by the client • Less traffic as only parts of the data are transferred Server • The database is centralised • The application or web-site itself contains no data • Less secure as users may connect from anywhere • Communication cost for remote connections • Performance?

Where is ICT used? Where has ICT changed working practices? • Offices • Factories • Schools How has it changed the way people work? • Control technology – e. g. robots • Communication – teleworking & ecommerce • Research

ICT in Factories • In the past, cars were assembled by large numbers of people. The work was boring and workers made mistakes when they built cars - quality could be poor. Workers also went on strike very often because they were unhappy about their jobs. • Now, cars are made by robots that don’t get bored or go on strike, so quality is more consistent. Some people are still required to supervise and maintain the robots. • Are there any things that you would rather see made by hand?

Competitive Advantage • ICT is used to speed up or simplify business processes - e. g. mail order, customer management • For example: – customers can order goods via a web-site, a confirmation e-mail is sent, and the goods are dispatched from the warehouse - no money needs to be sent, or order forms filled in and posted. – sometimes the goods can even be downloaded directly from the web-site, e. g. software, video clips. – customers can view their account activity on-line and track orders, and there is less paperwork for the company - they could even have automated “pickers”

Case Study - Guardian Royal Exchange • Old “manual” system: – an advisor visits the customer, completes forms outlining cover requirements and budget and posts them to the head office – actuaries at the head office produce the “illustration” (quotation) and send it to the advisor – the advisor returns to customer with the illustration – if the customer agrees, the “proposal” form is completed and the paperwork is sent off to the head office • There was a 60% rejection rate due to proposals being completed incorrectly, or illustrations being done for ineligible customers, etc.

Case Study - Guardian Royal Exchange • New “computerised” method: – The advisor visits the customer with his laptop and enters the customers personal details – The software suggests suitable products and performs “illustrations” – If the customer chooses to buy, the “proposal” is completed on the laptop and printed out for the customer – Back at the office, the advisor plugs the laptop into a phone-line and transmits the data to head office. • Using this method, the advisor can complete the sale in one visit, and use of cross-field validation, etc. , reduced the rejection rate to less than 2%!

Social Implications • There can be resistance to using new technology – this can lead to systems lying unused – in the GRE example, so few advisors wanted to use the laptops that they introduced a higher commission rate for policies transmitted electronically • The workforce will need to be trained to use new systems • Sometimes companies introduce new ICT systems with the intention of reducing the workforce - in the GRE example they would have been able to get rid of head office actuarial staff

“Hot Desking” • Employees don’t always have their own desk! • In organisations where people travel or work from home there may be a smaller number of hot desks that are shared between the employees • e. g. sales staff who spend most of their time on the road – it would be a waste of space to give them a permanent desk • e. g. when Ill Health team had two offices, noone had a permanent desk because that would mean we had two each!

Hot-desking • Less furniture is required • Less office space is needed • This could have a big cost benefit • Modern technology – e. g. laptops and wireless networks – makes it easier to do • Needs careful timetabling to make sure you don’t run out of desks • It’s difficult to personalise the space so you don’t feel “at home” at your desk. • Communication is more difficult • Not suitable for all jobs

Teleworking • More than two million people are now classed as teleworkers • These are people who work at home (or in some other location away from the office) • Usually these people will work in hi-tech industries and communicate with their employers via the internet (although there are other types of home workers) • Although employers might find it harder to trust them, employees who work from home are usually more productive due to lower stress

Teleworking • No time is spent commuting too and from work • Employers can recruit all over the country – where the skills are • Workers can be more motivated due to flexibility – e. g. fitting around child-care • Reduced costs for employer • It can be hard for people to understand that you’re working! • Support, training, etc. , can be more difficult – as ECOS students know! • Workers can feel isolated from their colleagues • Increased heating, etc. , bills for employee

Flexible Working • Many employees work from 9 -5, but some are employed flexibly • Flexible working might include flexi-time – where you can arrive and leave when you want as long as you do the right number of hours per week (and usually core hours) • Flexible working might mean working only certain days, or maybe working evenings or early mornings to suit your personal circumstances – e. g. child-care arrangements

Flexible Working • Employers get to keep • It’s not suitable for all types of work – e. g. the best staff – e. g. shops with fixed after they have children opening hours, or • People can work when teachers! it best suits them and • The employees need to may be more be trusted to work motivated and more when they say they will productive • Communication could • You can avoid rush be more difficult hours and save time outside of “core hours” commuting

Social Implications • Are there fewer jobs now, because some jobs can be done by a computer or robot? • Are there more jobs, because hardware and software needs to be designed, made and sold? • Are people less sociable now, because they can shop, work, and learn from home? • Are people more sociable now, because they can use social networking sites and share their thoughts and photos in blogs? • Are people better informed now because of the internet? • Is the internet being used to spread propaganda? • Does CCTV make you feel safer? • . . . or does it make you feel watched?

Social Networking • “Social Networking” is now very popular. Examples of social networking sites include Twitter, Facebook and Instagram.

On-Line Shopping • On-line shopping is becoming increasingly popular, but why? And are there any downsides?

Environmental Impact • What impact does ICT have on the environment? • Does it reduce CO 2 emissions because we can shop from home? • Does it increase CO 2 emissions because we need to have everything delivered? • Do we use more paper because we print lots of things out? • Do we use less paper because we can e-mail and text instead of writing letters? • Does working and shopping from home use more energy? • Or does it use less energy, because we don’t need to heat shops and offices?

Other Issues • Information overload – we can access more information than we can actually process! • Are we trading quality for convenience? – Is digital radio/television better for the consumer, or just better for the broadcaster, because they can cram in more channel/adverts? – Does downloading MP 3 s replace the pleasure of browsing in record shops? Or does it just restrict the choice for music fans? – Are digital photos better than ones taken on film? • “Early adopters” are required by manufacturers to introduce new technology, but often get a raw deal: – e. g. problems with early versions of software, such as Windows Vista – e. g. DAB and Blu-Ray – specifications change, making early hardware redundant (and, with DAB, a reduction in the quality) – Converting all your CDs to MP 3 to save space, and then finding that storage becomes much cheaper and you didn’t need to do it

The Impact of ICT on Society • What effects do you think ICT has had on your life? • Do you worry about its effect on society?