In recent decades there has been a revolution in computing and communications, and all indications are that technological progress and use of information technology will continue at a rapid pace. Accompanying and supporting the dramatic increases in the energy and use of new information technologies has been the declining cost of communications consequently of both technological improvements and increased competition. In accordance with Moore’s law the processing power of microchips is doubling every 18 months. These advances present many significant opportunities but in addition pose major challenges. Today, innovations in information technology are experiencing wide-ranging effects across numerous domains of society, and policy makers are performing on issues involving economic productivity, intellectual property rights, privacy protection, and affordability of and access to information. Choices made now will have resilient consequences, and attention must be paid with their social and economic impacts.
One of the very significant outcomes of the progress of information technology is probably electronic commerce over the Internet, a fresh method of conducting business. Though just a few years of age, it might radically alter economic activities and the social environment. Already, it affects such large sectors as communications, finance and retail trade and might expand to areas such as for instance education and health services. It implies the seamless application of information and communication technology along the entire value chain of a company that is conducted electronically.
The impacts of information technology and electronic commerce on business models, commerce, market structure, workplace, labour market, education, private life and society as a whole.
1. Business Models, Commerce and Market Structure
One important manner in which information technology is affecting work is by reducing the importance of distance. In many industries, the geographic distribution of work is changing significantly. As an example, some software firms have found that they’ll overcome the tight local market for software engineers by sending projects to India and other nations where the wages are much lower. Furthermore, such arrangements will take advantage of times differences in order that critical projects could be worked on nearly around the clock. Firms can outsource their manufacturing to other nations and depend on telecommunications to help keep marketing, R&D, and distribution teams in close contact with the manufacturing groups bitcoin. Thus the technology can enable a smaller division of labour among countries, which affects the relative demand for various skills in each nation. The technology enables various types of work and employment to be decoupled from another. Firms have greater freedom to find their economic activities, creating greater competition among regions in infrastructure, labour, capital, and other resource markets. Additionally it opens the door for regulatory arbitrage: firms can increasingly determine which tax authority and other regulations apply.