Information Technology and Economy

Topics: Economy, Information technology, Economics Pages: 5 (1506 words) Published: May 22, 2011
The impacts of Information Technology in the Economy are not an issue that can be fully covered in a presentation or a research work. This subject includes a lot of aspects and dimensions and has stimulated the interest of researchers, research centres and international organisations the last 30 years. As far as the evaluation of the impacts of Information and Communication technologies in the Economy are concerned, the multidimensional character is also accompanied by different points of view [1],[3] regarding the achieved results up to today, as well as fr the oncoming consequences the following years.

The extensive utilisation of Information technology in business sectors began the 70s. Since the 70s up to day a huge improvement has taken place and more are in progress with no visible or predictable limits together with the development of the innovation team up with the wide enforcement of the technological achievements to the business sector. The changes of the economic and social status were tremendous worldwide. This is the reason that this period is characterized as the Third Industrial revolution. Generally, we can distinguish the history of inrush and exploitation of Information and Communication technologies into three separate phases: A)The first phase includes the period that Information technology was mainly used for the recording and processing of information and for supporting the economical and productive units to increase their productivity. This was initiated by the appearance of microcomputers during the early years of the 80s providing the necessary accessibility and availability to the digital technology and making it popular.

B)During the second phase, which is called “Information Society”, the digital technology influenced all sectors of the Social and Economic Life. The degree of influence was so intense that led to large rates of growth in Industry and Services. The Information Technology industry as well as other sectors, which could exploit the innovative technology, faced periods of prosperity and incensement of their productivity.

C)The Third phase came as a result of the diffusion and interaction of Internet technology and Globalisation. The networking of Information Systems and local networks and the extensive use of personal computers not only as a tool of recording and processing of data, but also as a mean of communication with multiple applications (entertainment, education, Knowledge management, social activity, etc) took off the utilisation of the digital technology consituting today an integral part of our life. The growth of Internet technology was so great that the changes in the production and services were rapid and sweeping.

A considerable number of researchers[1],[2],[3],[4] have worked on the study of the benefits and the evaluation of utilization of information technology in economy and social Life. Developed or developing countries use to call the current status of the economy “New Economy” and consider the economic situation as a result of the exploitation of Information and Communication technology in the economic activities. The main advantages of this situation can be discriminated as follow: A)High rates of productivity. The rates of productivity increase are sufficiently high and are expected to become higher, while the economic results are usually presented after the depreciation of corresponding investments. The increase of the rates of growth at the beginning of new millennium is considered to be a result of the investments in the Information Technology that took place during the 90’s. The use of Information and Communication Technology resulted the insertion of automated production procedures and better management of productive units. B)Improvement of quality of the offered services and products. In a lot of cases a better quality of products resulted without important increase of production cost. In this, the applications of robotics...
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