3.THE BACKGROUND OF IT IN BUSINESS4
4.THE CONVERGENCE OF IT AND BUSINESS IN THE DIGITAL ECONOMY6 5.INFORMATION TECHNOLOGY'S SIGNIFICANCE IN STRATEGIC BUSINESS PLANNING11 5.1 THE STRATEGIC ALIGNMENT OF ICT AND BUSINESS STRATEGY11
Information technology significance in the business environment 1.Executive Summary
A central tenet of network based technologies is their ability to eliminate geographical, distance and time constraints that have traditionally manifested themselves as boundaries encapsulating and protecting local business institutions from the more harsh realities of global competitive forces. The convergence of information and communication technologies in the Internet is not only of technological relevance, but also holds substantial implications for business in removing traditional boundaries and barriers to business operations. The Governor of the South African Reserve Bank, Mr TT Mboweni, in addressing the Black Management Forum Conference on 13 October 2000, brought home the true consequences of this reality in stating that; “Financial markets around the world are being integrated into a single global market and, whether we like it or not, emerging and developing countries are being drawn into this process. The growing economic interdependence of countries worldwide can be seen in the greater volume and variety of cross-border transactions and in the faster and more widespread diffusion of technology ... Another consequence of globalisation, is increased competition. Financial liberalisation, the removal of controls and the breakdown of international barriers, make it possible for new entrants to participate in markets which were previously closed to them.” This statement gives meaning to the fact that South Africa is no longer an island unto itself, but that it has become part of the so called global village. It is a...