In less than a century, computers have directly or indirectly changed the lives of most people. Computers, in all their forms, are used by most of the world’s students and much of the world trade industry, education and entertainment now depends on them.
The economic reasons for using computerized systems can be summarized as increased productivity compared with manual systems. This results from the ability of computer systems to communicate and process data repetitively, accurately and rapidly; to store data rapidly and reliably; to search information rapidly and reliably; and to produce output in a variety of formats. For example, an organisation may be able to improve its economic position by:
- Using less space for storing bulky paper documents
- Reducing the risk of losing vital information
- Operating a ‘just in time’ (JIT) ordering strategy with automated reordering
- Making its sales system available to customer through a website
- Responding faster to customers’ requests
- Making good quality information available through the use of intranet
- Using CBT(computer based training) to improve the quality and flexibility of staff training
- Maintaining or increasing production with fewer workers
Changing Employment
Computerisation requires changes to the working environment, business methods or processes and to the services provided by an organisation. The success of a new computer based system may be limited by factors such as:
- Poor communication with users during the analysis and design stages
- Delays in development during which the organisations requirement change
- Lack of compatibility with the organisations existing hardware and software
- Incorrectly designed business procedures
- Insufficient testing of the solution or training of users
Computerising existing jobs
A company considered outsourcing rhe payroll system, but decided to keep in house and computerise it. This had a large effect on th payroll workers:
- A ‘new technology’ agreement was struck between the workers’ trade union and the management because there was a mutual recognition the computerisation and changes in employment were necessary for the compant to remain in business in a fiercely competitive industry. Such as agreements can lead to greater productivity fir the company and better working conditions for the workers.
- The new system was more efficient, contributing to the overall efficiency of the company. However the company now only needed one full-time post and one part-time post. This waqs very stressfull for the workers whose posts were affected.
- The two people who remained needed to go on training courses in order to be able to use the new system. At first they were worried that they would find the new skills difficult to learn and were uncertain about their futures, although they both adapted well to the new system.
- The workers higher level of training has made them more highly qualified and the company has slightly increased their rates of pay. Their extra training will also make them more employable if they need to change jobs.
- The jobs that they do have changed. Computers have relived them of many tedious, repititve tasks requiring a high level of concentration and accuracy. They also feel de-skilled now that their responsibilities have been reduced to entering and updating data, printing payslips and transmitting the electronic direct credit payments file to the company’s bank. This has made it harder for them to feel proud of what they doand that there jobs give them a place in society.
Off shore and outsourcing
computer technology has enabled some jobs to be relocated anywhere in the world especially now that VOIP technology has made international telephony so cheap. For example a steel making company could move its customer service system, for responding to customers phone calls, to another country.