Information Technology Reference
In-Depth Information
are equipped with recording functions, but such features are not enough for the
brand to gain a large number of consumers. This can be analyzed in relation to the
service of recording TV programs, which does not create enough competitiveness.
Looking at recording services, one will realize that there is already a large market
for dedicated recorders.
1.4.2.2
ICT to Create Value in Distribution
The concept of distribution includes sales. In other words, value is created through
the sales process. For example, Rakuten, one of the largest online market places,
charges a fee on stores that use its website. The charge includes not only the use of
the website, but also the periodical distribution of advertisement through Rakuten's
customer lists, search engine optimization, and advice on the design of store
websites. Rakuten provides the payment system and distribution support system.
Considering the distribution process as a whole, one can see that it is impossible for
a small store to operate on its own. As a solution, the web-based service provided by
Rakuten is similar to what is provided by a company that manages a large shopping
mall.
1.4.2.3
ICT to Create Value in Financing
One of the most important conditions of development is the financing infrastruc-
ture. In 14 out of 53 countries, the average national per capita income exceeded US
$3,000. Ogimoto et al. (
2011
) and Kihara et al. (
2011
) illustrate the financial
environment supported by ICT. Among emerging economies, Africa has a large
potential to develop. Financing in African countries faces a lack of communication
infrastructure. However, the use of mobile phone networks has quickly expanded in
recent years; thus, through the use of mobile phone networks and smartphones,
“branchless banking” has developed.
Using Short Messaging Services (SMS) and other smartphone functions, various
entities can now provide financing services in Africa without having to establish
bank branches. The entities involved are banks, mobile phone carriers, non-profit
organizations (NPOs), and microfinancing institutions.
Microfinance first became famous in 1995 when Grameen Telecommunication
Corporation (GTC) was set up in Bangladesh. To facilitate further success, techno-
logical advancements in both broadband mobile phones and smartphones have
enabled financing services to penetrate a new geographical area.
1.4.2.4 Service Provision as Production Activities
Providing services is, itself, an act of production, and contributes to an increase in
gross national product (GNP). More importantly, the concept of production needs to
