Application Areas Of Information And Communication Technology (ICT)

APPLICATION AREAS OF INFORMATION AND COMMUNICATION

TECHNOLOGY (ICT)
Introduction
In this chapter, we shall look at how computers have been applied in the modern society to add
value to the information systems of various organizations.

An information system is a collection of specific human and machine efforts required to support
the decision-making process, data processing, information output and presentation.

What is meant by ICT?

It’s the integration of computerized electronic devices and telecommunication infrastructure for
the purpose of communication. Therefore ICT not only refers to computers but also all other
devices that are used for effective and efficient communication

Application areas of information and communication technology

Information and communication technology (ICT) has been applied in various areas such as in
the development of:
i. Financial systems
ii. Retail systems
iii. Reservation systems
iv. Educational systems
v. Communication systems
vi. Industrial systems
vii. Scientific and research systems
viii. Library systems
ix. Entertainment systems
x. Transportation systems
xi. Home use
xii. Office expert systems
xiii. Marketing
xiv. Virtual reality systems
xv. Law enforcement systems among many others.

1. Financial systems
Financial systems enable organizations to manage their finances. They include:
1. Payroll systems.
2. Accounting systems.
3. Banking systems.

a. Payroll systems
Their objectives are to process accurate information of employees such as gross pay,
deductions and the net pay. Since much money spent on human resource, a payroll
system is also designed to produce several analysis reports e.g. a breakdown of payroll
expenses against production/income of the company.

b. Accounting systems
They are popular in business management. There are six key business accounting
activities/subsystems:
i. Customer order entry and billing
ii. Inventory management

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 Application Areas Of Information And Communication Technology (ICT)

iii. General ledger accounting

iv. Accounts receivable
v. Accounts payable
vi. Cash book

Customer orders entry and billing subsystem records incoming customer orders,
authorizes delivery of items or services ordered and produces/generates invoices for
customers who do not pay in advance or on cash basis.

Inventory management
It’s used to keep track of the items in stock and help the management determine
which items to reorder. This helps the management to have enough stock at all times
to meet the needs of the customers.

General ledger accounting

It’s used to keep track of how much a business makes and its worthiness by
summarizing the financial transactions. It produces reports on income, sources of
income, expenses, and the net profit or loss earned. A summary report of these
transactions is called a balance sheet and is usually generated at the end of an
accounting period.

Accounts receivable
It keeps track or records of the amount owed by each customer. This helps the
management to make a follow-up by billing the customers for overdue payments.

Accounts payable
Accounts payable system keeps track of the amount the business owes others e.g.
suppliers, tax organizations, transport etc. Hence, it helps the management to produce
cheques for payment of these amounts.

Cash book
A cash book is used to record daily transactions.it records the receipts and cash
payments. The book has two accounts namely: cash account and bank account. With
the help of a cash book, the cash and bank balances can be easily accounted for.
c. Banking systems
The banking industry was one of the earliest consumers of information and
communication technology. The computerized banking services include:
i. Processing customer transactions.
ii. Cheque clearing and processing.
iii. Electronic funds transfer.

Processing customer transactions

Computers are used in banks to carry out financial transactions such as recording
deposits, withdrawals and calculating interests on savings and loans. Such
systems also generate reports on the current status of accounts. In most banks;
these transactions are entered via terminals, which are connected, to a central
computer for centralized processing. An automated teller machine used in
banking activity by offering 24 hour service to customers and more flexibility in
cash deposits and withdrawals.
Assignment:Advantages of ATM’s
Cheque clearing and processing

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 Application Areas Of Information And Communication Technology (ICT)

Computerized cheques clearing and processing is made possible due to the

special characters on cheques printed using ink containing magnetic particles.
The characters identify the bank in which the cheque is drawn, the customer
account number, the cheque number and the amount of the cheque. Using a
magnetic ink character reader, these details are automatically entered into a
computer for cheque processing. Manual processing used to take lots of time but
with computer systems, millions of cheques are processed every day hence
improving efficiency in service delivery to customers.

Electronic funds transfer (EFT)

EFT is the movement of money using information and communication
technology. When a cash dispenser is used, the amount withdrawn by a customer
is deducted from his/her account. Another example is when paying for goods and
services using a credit card. Payment is transferred electronically from the
customers account to the recipients account

2. Retail systems
Computers are used in retail stores such as supermarkets, distributor outlets etc. Computers are
used in such stores for:
i. Stock control
ii. Transactions handling at the electronic point of sale terminals (EPOS)

a. Stock control
A computerized stock control system is used to track what is in stock and what needs
reordering so as to reduce the risk of understocking or overstocking. Overstocking ties up
valuable space and capital that could have been used for other valuable items. On the other
hand understocking causes customer dissatisfaction.

b. Transactions handling at the electronic point of sale terminals

An electronic point- of -sale (EPOS) is a computer terminal used in retail stores to input and
output data at the point where sales are transacted e.g. at the supermarket checkout counter.
An EPOS terminal has all facilities of a normal cash register, but with additional direct data
capture devices, e.g. bar code reader, card reader, a monitor and a receipt printer. In such
retail stores, goods are identified by means of bar codes. For each item, a record is stored in
secondary storage medium containing: the item number, item name or description, quantity in
stock and the price.

Transactions at the point of sale terminal may involve the following steps:
i. The bar code reader (wand) is passed over the items bar code. The bar code is
automatically converted to the item number, e.g. 2160, which is read to the computer.
ii. Using this number, the computer searches for the item with a corresponding number
in the products database.
iii. Once the record is found, its description and price lookup file is used for processing
the sale.

The advantages EPOS

i. Correct prices are used at the checkout counter.
ii. Faster since the attendant does not have to enter detail manually.

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 Application Areas Of Information And Communication Technology (ICT)

3. Reservation systems
Reservation systems are distributed networked systems that are used mainly to make bookings in
areas such as airlines, hotels, car-rental, theatres etc. Bookings are made from a remote terminal
connected to a centralized computer database. To access the database, a customer makes
enquiries via the remote terminal connected to the central computer. e.g. to make airline booking
enquiries such as finding out the seats reservation a customer uses a remote terminal in the
nearest booking. The response is immediately available to the customer within a few seconds.
Such a computerized reservation system is referred to as online enquiry since an individual
directly requests for information through a terminal from a central computer and receives an
immediate response.

4. Educational systems
Initially most educational institutions used computers for administrative tasks such as compiling
examinational reports, writing memos and accounting purposes. Computers are playing an
increasingly important role in educational institutions in the following ways:
i. Computer aided instruction (CAI)
ii. Computer aided learning (CAL)
iii. Electronic learning (e-learning)
iv. Computer based simulation

Computer aided instruction (CAI)

This refers to the use of a computer to learn, drill and practice particular educational principles.
For example when learning a new concept, the learner is presented with the explanation of the
concept. The computer then presents questions from which the learner is to select the correct
answer. Some CAI programs present learning content in form of educational games, which makes
learning more fun especially for young children. A good example is a typing tutor program.

Computer aided learning (CAL)

This presents educational materials the way a teacher does in a classroom. For example, the
program may pose a question and depending on the learner’s performance, it may present new
content or revisit the topic. In order to make learning effective, most computer aided learning
programs have clear graphical presentations such as video clips and voice for demonstrating or
explaining difficult concepts.

Electronic learning (e-Iearning)

In e-learning, lessons and lectures are presented from a central site and the presentation is
transmitted to remote conference terminals or displayed on TV screens. The learner can also
access learning material on the Internet, sit for online examinations and receive results the same
way. Learners therefore do not need to go physically to a college.

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 Application Areas Of Information And Communication Technology (ICT)

Computer based simulation

This refers to the science of representing the behavior of a real-life situation by using
computerized models. Simulation has become very popular in learning and training institutions.
For example, in distant or e-learning, where a learner is not in physical contact with a trainer,
simulation software can be used to provide the learner with clear illustrations about a certain
concept or skill.

Simulation programs are mostly used in educational areas where practical skills have to be learnt
like training drivers, pilots, engineers etc. have to be instructed using a virtual environment

5. Communication systems
Effective and efficient data communication is achieved by use of high-speed electronic devices
such as computers, cell-phones, radios and television. Examples of communication systems are:
i. Facsmile (Fax).
ii. Radio.
iii. Television set.
iv. Video conferencing.
v. Telecommuting.
vi. Internet.

a. Facsmile (Fax)
This is a telecommunication device used to send documents via telephone lines. A
document is placed in the machine, scanned and converted into analog form then
transmitted over the telephone line. The receiving fax machine converts the analog data
into the original softcopy and prints a hardcopy.

To send fax over the Internet, a special modem, called a fax modem is attached to the
sending and receiving computers. This eliminates the need for a stand-alone fax machine.

b. Radio communication
Computers are used in radio broadcasting stations to do the following:
i. Record and manage radio programmes meant for broadcasting.
ii. Manage the radio transmission and track performance. Most transmissions
equipments are computerized for easy troubleshooting and operation.
iii. Automate the running of the selected programmes.
iv. Create slides, simulated objects and sound effects when preparing electronic and
printed media advertisements.
v. Download information from Internet that can be used in preparing programmes
such as international news.

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 Application Areas Of Information And Communication Technology (ICT)

c. Television sets
Data or information is transmitted via a TV channel the same way the channel is used to
broadcast conversional TV programs. The most common types of data transmitted via TV
include:
i. Teletext (ceefax)
This refers to a computerized service whereby news and other information are
provided on television screens to subscribers. A TV is configured using a special
add-on card or adapter. The subscriber can browse for information using a
remote controlled device. However teletext is a one-way communication
(simplex), which means that the subscriber cannot communicate back to the
service provider.

ii. Videotex (view data)

Videotex offers a half duplex communication service over a telephone line or cable
television channel. A subscriber can interact with the service provider database and
the information is displayed on a home TV screen. View data is used in reservation
bookings, ordering for goods and services as well as sending electronic mails.

d. Video conferencing
This refers to the use of computers, a digital video camera, audio capturing equipment
and communication networks to enable people in different locations to see and talk to one
another.

Each participant's computer is attached with a video camera (camcoder), speakers and a
microphone. With such devices and appropriate communication software, a person can
participate in a virtual conference room. In such a room, all participants can see each
other on the computer screen as if they were sited in a real conference room.

Video conferencing communication is popular in TV broadcasting stations where a field

reporter interacts with newscasters. It is also popular in organizations where top
managers in different geographical locations hold meeting via the Internet or the
organizations intranet.

e. Telecommuting
This is a term used to refer to a situation where an employee works usually at home using
a computer connected to the workplace network. Telecommuting takes advantage of the
growing communication networks to reduce unnecessary travel to the place of work. This
inturn translates to reduced travel expenses and less stress due to commuting
inconveniences such as traffic jams.

Assignment:
Advantages of telecommuting
Reduces unnecessary travel to the place of work.
Reduces travelling expenses.
Reduces stress due to commuting inconveniences caused by traffic jams.

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 Application Areas Of Information And Communication Technology (ICT)

f. The Internet
The Internet transmit huge amount of data in form of text, images, sound and video.
Some of the services available on the Internet are:
i. World wide web (www)
World wide web refers to a collection of web pages, which may be made up of text,
images, animations, sounds and video held on web servers. One can access the
information using a computer or any other communication device such as a mobile
phone. However, for a mobile phone to be used to access the Internet, it must have
the wireless application protocol (WAP). A computer connected to the Internet or a
WAP-enabled mobile phone allows the user to access a wide range of information such
as news, entertainment, banking, reservations, business news, e-mails among others.

ii. Electronic mail (e-mail)

This is a very fast and efficient means of sending and receiving messages, data, files
or graphics. Once you subscribe for Internet services through a service provider, you
can send or receive e-mails to or from anyone connected to the Internet using a
computer or a WAP-enabled cellular phone.

6. Industrial system
The application of computer technology in industrial or manufacturing processes has become one
of the most effective method of automated production. This has resulted in tremendous
improvement in productivity.
Industrial plants such as motor vehicle manufacturers, chemical plants, refineries and mining
plants use computer systems in a number of ways. Some include:
i. Computer aided design / Computer aided manufacturing.
This is an integrated system that allows products that have been designed using design
application software, to be transmitted into an automated manufacturing system for the
product to be manufactured as per the computer model. For example design of motor
vehicle brake pads involves designing the model using computer aided design software
then feeding it to an automated machine which engineers the required shape and
dimensions as per the specifications.

One application of computer-aided manufacturing is the use of robots to carry out

assembly line operations. A robot is a computer-controlled device that emulates a human
being in carrying out operations that would otherwise be hazardous, repetitive and boring
to a human being. Such operations may include welding, lifting heavy objects, spray
painting of vehicle bodies, removing red-hot materials from furnaces etc.

ii. Industrial Simulation.

This allows activities that would be expensive and dangerous in real life situation to be
put under test. For example, a car or plane crash test simulation is the use of a virtual
model on the computer screen that attempts to represent the real situation or object. This
enables the manufacturers identify the weaknesses of the real situation or object hence
put the correct reinforcement to their designs.

Motor vehicle seat belts are tested for their effectiveness in case of a car crash using a
computer model. The general name of using computer models in such circumstances is
known as nondestructive testing (NDT).

iii. Process control.

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 Application Areas Of Information And Communication Technology (ICT)

Computerized process control refers to the use of a computer system to control an

ongoing physical process especially in manufacturing. Such process controls may include
regulating temperature, pressure, fluid flow etc. Computerized process control is mostly
used in petroleum refineries, chemical plants and other manufacturing companies to
manage machine intensive processes.

7. Scientific and research systems

Computers have a wide variety of applications in science, research and technology. Some of
which are:
i. Weather forecasting.
This have been automated using computerized systems, hence weather predictions are
more accurate and reliable. Due to the large volume of data collected from rainfall, air
pressure, humidity, temperature, wind speed and cloud cover, computers help in
analyzing, processing and predicting weather patterns using such data.

Another application of computers in weather forecasting is the use of geographical

information system (GIS) and the geographical positioning system (GPS). This system
represents geographical data in graphical form by positioning and superimposing it
on the world map. Geographical information system is used to represent data on weather
patterns in a clearer and coherent manner on a world map. Similarly, the path of storms
can be accurately tracked and predicted. Such information is very important for the
aviation industry and many other sectors of the economy.

ii. Medical research.

In health sciences, health professionals use computer technology for diagnosis; keeping
patients' records, inventory control etc. Computers are now being used to control devices
that help to care-for the handicapped such as the deaf, blind, bed ridden etc. In some
health institutions, a more specialized computer system referred to as an expert system
may be in use. An expert system is an interactive system that generates conclusions
from captured data by comparing it with a set of rules held in-a database called a
knowledge base. The system emulates the reasoning of a human expert in a narrow field
of specialization. Expert systems have been developed to help medical professionals
diagnose illnesses more accurately in the absence of human experts.

iii. Military and space exploration science.

The dynamic growth in military, space science and exploration would not be a reality
today were it not for computer technology. Space exploration and military research
bodies such as America's national aeronautics and space administration (NASA) make
extensive use of computer systems, for research, design, development and control of
unmanned spaceships, aeroplanes and missiles.

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 Application Areas Of Information And Communication Technology (ICT)

8. Library systems
Libraries use computerized systems for a number of tasks. Examples are:
i. Lending system
The library lending system manages the issuance and return of borrowed reading
materials. Books, magazines, journals, reports etc. are given unique identification
numbers or codes. Once a member borrows a book, his/her details are recorded. When
the book is returned the borrower's record is updated to reflect the new status.

ii. Inventory control system.

This involves use of computers to manage stock, which includes checking for books
currently in the shelves and those on high demand for the purpose of adding more.
Similarly, books that have become obsolete can be retired to the archives

iii. Cataloguing system.

A catalogue is a collection of cards with information about each book or reference
materials found in the library. These cards may be kept in a drawer sorted in alphabetic
order either by title or author name. To enhance service delivery and efficiency,
computerized cataloguing has replaced the manual cards catalogue. This electronic
catalogue is updated constantly when new reference materials are acquired.

9. Entertainment systems
The advancement in multimedia technology has produced computers that can be used in
recreational and entertainment. Some application areas of computers in recreation and
entertainment include:

i. Games
Games have come a long way from the simple solitaire to modem simulated 3D games:
Digital Video Disks (DVDs) and three-dimensional (3D) multimedia games are now
possible on personal computers. There are computer games that simulate sports such as
driving, war combat etc. such games gives the player maximum pleasure in a virtual
environment on the screen.

Although some games can be played using other accessories e.g. on the TV screen using
a game console, such games have been developed using computers.

ii. Music and video

Video compact discs (VCD) and Digital Video Discs (DVD) have become a common
feature in the entertainment industry. In music industry, computers are used in recording,
synthesizing, editing and adding special effects to music.

In video industry, computers are used to produce highly simulated and animated movies,
generate scenes and actors. Some movies use a lot of computer-generated images that
make the movie interesting.

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 Application Areas Of Information And Communication Technology (ICT)

10. Transportation systems

Computers play an increasingly important role in transportation industry in areas such as:
i. Automobile traffic control
In busy towns where there are round abouts and road junctions, you will mostly find
traffic control lights. These lights control both human and motor vehicle traffic using the
three lighting system i.e. green, red and amber. These lights are either controlled using a
small clock switch or a computer system. The clock switches the lights at regular
intervals. However, some clock controllers are intelligent enough to vary the frequency
oflight change according to traffic direction and volume during rush hours. Computerised
traffic light systems have sensor pads laid underneath the road which detect the pattern of
the traffic flow. The collected data is sent to a computer system which detects and
analyses the traffic flow and builds up a simulated image of the actual scene. Control
signals can then be output to the traffic lights or motorists through their receiver devices
to vary the light timings or redirect traffic to less busy roads
ii. Air traffic control
Computers are used to monitor air traffic movement, take off and landing of crafts. This
has helped minimize human control errors and mistakes that could result from human
controlled systems. The computer technology used to direct aircrafts to follow the
shortest path between two locations is known as geographical positioning system (GPS).

iii. Shipping control

Computers are widely used to control and guide the paths taken by spaceships and water
vessels as they travel to distant lands. The geographical positioning system is also used in
shipping control

11. Home use

Because microcomputers are nowadays affordable, most people are using computers at home for
preparing domestic budgets, entertainment, research and teaching children on educational
concepts.

12. Office expert systems

This is an information system usually developed and installed in the office of a human expert or
knowledge worker. A knowledge worker is a person in any field who is formally trained to apply
a specific set of knowledge in his work. Such as a system is capable of simulating the decision-
making process and intelligent problem solution just like a human expert. It also has a set of rules
that help it to make conclusions when some parameters are entered.

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 Application Areas Of Information And Communication Technology (ICT)

13. Marketing
Without proper marketing, a business cannot survive in a competitive environment, hence
computers are being used in a number of ways to enhance marketing. These include:
i. Electronic commerce or e-business
E-commerce is a new way of doing business where the transactions are carried out
electronically without physical interaction between the seller and buyer. For example a
customer may decide to buy an item through the Internet by visiting the supplier's
website, selecting the item and placing it in a virtual shopping tray. The website tracks
the whole session as the customer chooses various items and calculates the total bill.
Payment is then made through a cheque, credit card or through electronic funds transfer.
Once the payment is made, the item is shipped to the customer.
This method of trade has enabled people to do business without much movement hence
saving money and time.

ii. Electronic presentations

Using computers, marketing agents can create exciting presentations concerning the
products of a business and present them to the audience using presentation software.
Electronic presentation adds value to traditional marketing techniques because they are
attractive.

iii. Advertising
Using simulation, presentation and animation software, it is possible to design catchy
advert materials and video clips. Such materials can then be displayed on billboards,
broadcasted over a television or placed on the Internet.

14. Virtual or artificial reality

The term virtual reality (VR) or artificial reality refers to a condition in which a person becomes
psychologically immersed in an artificial environment generated by a computer system. Other
terms used instead of virtual reality are cyberspace, virtual worlds and virtual environment. To
achieve this effect, the following interactive sensory equipment are used:
i. Head mounted display(HMD) / headgear
A headgear is made up of two tiny display screens and sound systems that channel
images and sound from the source to the eyes and ears thus presenting a stereo three
dimensional sound effect in the virtual world. The wearer of the headgear is able to look
around in the virtual environment.

A boom is an alternative to the often-uncomfortable headgear. Screen, optical and sound

systems are housed in a box. The user looks into the box through two screens to see the
virtual world

ii. Gloves
Gloves worn on the hands allow the user to navigate through the virtual world and
interact with virtual objects. The gloves have sensors that collect data about the
movement of the hands and relays the data into the system. They give the wearer a sense
of touch in the virtual world

iii. Body suit

A body suit, worn during virtual reality session is made up of conductor wires wound in a
rubber suit. The wires sense the body movement and relays the data into the virtual
reality system which in turn adjusts the position of the user in the virtual reality world.

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 Application Areas Of Information And Communication Technology (ICT)

iv. Virtual reality software

Virtual reality software such as body electric gives the wearer of the sensory devices an
interactive virtual sensory experience that makes him/her feel as if he/she is in a real
world. The software is responsible for simulation of all the aspects of the virtual reality
world.
Examples:
Unity-game development
3ds Max-games, animation
Unreal Engine-cinematic experiences

Application of virtual reality

Virtual reality is used to represent any three dimensional object or ideas that are either
real or abstract.

Real objects include buildings, landscapes, underwater shipwrecks, spacecrafts, human

anatomy, sculptures, crime scene reconstruction, solar system etc. For example, a house
can be simulated before the actual building is physically set up. A client can be allowed
to virtually move through the house, pull drawers and touch objects all in a computer-
generated environment

Other applications of virtual reality include entertainment, training in areas such as

medicine, military, equipment operations, education, design evaluation, prototyping,
simulation and assembly of sequences, assistance to the handicapped etc.

15. Law enforcement systems

Today, crime has become very sophisticated hence very difficult to deal with. Since immediate
and accurate information is very crucial in crime detection, biometric analysis using computers is
becoming a preferred tool in this area. Biometric analysis refers to the study, measurement and
analysis of human biological characteristics. Biometric devices attached to a computer are used to
identify people by recognizing one or more specific attributes such as fingerprints, voice, lips,
facial features like iris colour etc. Some of the devices that can be used here are video cameras
and biometric scanners.

By Mogendi Philip Page 12 of 12 Form 4 KIKELELWA SECONDARY