Information Technology Reference
In-Depth Information
1.4.1
ICT and Service Production
Traditional views of information systems usually regard ICT as a process that is
used to produce “services within the company.” Recent developments have enabled
ICT to produce “services” as products for sale. In addition, there are new kinds of
“services” in logistics networks, which have created a new distribution industry.
Conventional service industries, such as financial services, also welcomed the
creation of new services.
1.4.1.1 Relationship Between ICT and Production
Visualization of the entire production process can be regarded as “services within
the company.” Traditional MIS theory has focused on the corporation's generation
and processing of information about production processes, such as inventory,
accounting, finance, and the like. These processes are enabled by ICT. Hence, the
relationship between ICT and production is simply described as ITeS.
1.4.1.2 The “Clicks and Mortar” Model
At the early stage of Internet use, opening a homepage was considered as the main
function of ICT. ITeS at this stage was intended to assist in the creation of websites
for one's company or for others. For example, Yahoo! gained success in providing
indexes to websites and made portal sites for introducing these websites. Another
successful example at this stage was Amazon.com, which opened a web-based store
instead of a physical one.
Subsequently, companies that had physical stores decided to open online stores,
creating the “clicks and mortar” business model. As online stores and the system for
deliveries and payments are established, the range of products sold expanded to
include intangible goods, such as software, music tracks, movies and books, thus
marking the era of digital content.
In the early twenty-first century, ICT has become a powerful tool in providing
various services, with ITeS as an important part of the industry. Web 2.0 was also
introduced since the production of services was mainly done through web-based
technologies. The evolution of technology lowered the entrance barriers to ITeS,
paving the way for the creation of RSS feeds, Facebook, Twitter, and other types of
SNSs.
1.4.1.3 Online Gaming
Online games have emerged from the convergence of videogames and SNSs. Social
Network Games that allow users to enjoy themselves and interact with one another,
