Effective Use of Information Communication Technology

Efficient Use of ICT

Usage of Information Communication Technology (ICT) in Businesses

As a part of strategy, most organizations are gearing towards faster and leaner solutions implying resorting to an infrastructure that is more value-creation and customer oriented. In this parlance, you as an SME manager can aim to move in this direction.

The spread of ICT is rampant in all parts and its utility across various processes in your organization is seemingly beneficial. An important point worth considering is how ICT can enable your organization become a truly integrated and customer-oriented player is to understand how you can leverage ICT in the entire processes.


Leveraging ICT in Businesses


  • A typical organization often requires enhancing the speed of information across various levels in the system. Resorting to traditional techniques of basic telecom infrastructure is the simplest option.


  • For your organization, as it grows in size, you can think of deploying an EPABX or internal telephone exchange.


  • Whilst the scale of communications increases in the organization, you may aim to switch over to less-expensive techniques like Voice-over-internet protocol. It is experienced that telecom costs are reduced by 15-45% using this technique over the traditional phone-lines


  • Enhancing the speed of communication should also be coupled with enhancing the speed of decision making. This can be done by leveraging the computing facilities . Once all the computing infrastructure in the organization is established, you can aim to establish network connectivity through LAN or WAN


  • Communications can be enhanced further through the usage of electronic mail, popularly known as the email. Various service providers enable organizations set up email systems and use the internet effectively


  • Integration of various processes and sub-processes is a key in any organization, big or small. Usage of ICT can be leveraged to automate certain functional processes like
    • Finance: Automation can be achieved for record keeping, transactions analysis, key financial statement preparation and also enable immediate availability of data when it is most required
    • Human Resource: Pay-roll automation is the most important aspect in HR automation. Also, monthly MIS generation, leave schedules and planning etc can be done by automated software for HR
    • inventory: Production systems can be integrated through inventory automation, whereby at a click of a button all stock-records can be accessed by anyone authorized to do so, in order to improve planning
    • Overall, all processes can be integrated into ERP systems

  • Marketing function can be enhanced further by leveraging tools like the website and e-commerce . What e-commerce enables is online product catalogues, online payment systems and world-wide visibility for the organization


Focusing on Energy Efficiency while Adopting ICT

The global information and communications technology (ICT) industry accounts for approximately 2 percent of global carbon dioxide (CO2) emissions, a figure equivalent to aviation, according to a new estimate by Gartner, Inc. Despite the overall environmental value of IT, Gartner believes this is unsustainable. Gartner’s estimate of the 2 percent of global CO2 emissions that ICT is responsible for includes the in-use phase of PCs, servers, cooling, fixed and mobile telephony, local area network (LAN), office telecommunications and printers. Gartner has also included an estimate of the embodied (that used in design, manufacture and distribution) energy in large-volume devices, namely PCs and cell phones. It also included all commercial and governmental IT and telecommunications infrastructure worldwide, but not consumer electronics other than cell phones and PCs. In advanced systems like data centers, the consumption of energy is even inefficient. The following table shall elucidate:

Table: Component-wise power consumption for Computing & Automation peripherals


Power Consumption





Computer Room AC


IT Equipment






Power Distribution Unit


Switchgear/ Generator


Source: Benchmarking & Maturity Model for Green Practices, Dr. Sandeep Garg, BEE

The ICT industry needs to gain a better understanding of the full life cycle of ICT products and services, and innovate to reduce environmental impact. This does not currently happen because of the lack of a commercial or legislative need to do so. However, BEE has been making serious attempts towards spreading customer awareness and asking the customers to press for energy rated products. These ratings would describe how energy efficient a particular device is. Under ICT, the BEE has started providing ratings for desktops, notebooks & data centers. The energy efficiency program has multiple benefits:


  • Reduces capital investment in energy supply infrastructure
  • Enhances national economic efficiency by reducing energy bills
  • Enhances consumer welfare
  • Reduces pollution and helps meet climate change goals


Under the BEE standards, for determining typical energy consumption (TEC) levels, desktops and integrated desktops must qualify under five categories – A, B, C, D & E, depending primarily upon physical cores and system memory. For notebooks, three categories would be used – A, B & C with similar parameters as desktops. Depending upon the specifications, the BEE provides rating to a particular appliance manufacturer for the product. This needs to be displayed on the product.

It is therefore not only in the interest of climate change that emissions should be controlled but also in the interest of the end-users as it leads to efficient usage and helps in controlling energy bills.