Economic Impact of Computing Science

1. ECONOMIC IMPACTS

2. THE PAST
• Until the early 1990s computers were rarely seen within homes.
The were generally very expensive and slow.
• By the late 1990s dial up internet was available in most houses
and by 2004 broadband and fibre internet was freely available.
• By 2014 Smartphones and tablets became popular and 4g
internet for portable devices became more accessible, meaning
faster speeds when moving around.
• This means a lot more people are now connected to the
internet meaning businesses have access to a much wider
market.

3. ECONOMIC IMPACT
• The Economy is looking at both the supply of money and the
production and consumption of goods and services within
society.
• The use of Computers can have a negative and positive effect
on the Economy.

4. E-COMMERCE
• E-Commerce is the buying and selling of goods on the internet.
• The internet has changed the way we buy and sell goods. As
well as this a consumer can compare prices on the internet to
ensure they are given the best deal.
• It is estimated that 40% of shops will close in the next five
years and more people and buying their projects online.

5. E-COMMERCE
The advantages of using E-Commerce websites over traditional
shops are:
1. No rental or buying costs of high street shops and no costs for
furniture and staff.
2. Cost of goods can be reduced, since there is no overheads. Therefore
prices can be competitive.
3. EFT (Electronic Funds Transfer) reduces the security problems in
handling cash.
4. Can be accessed from anywhere and can target a larger market
including overseas.

6. MAINTAINABILITY
• Maintainability is recognising the need for maintenance on an
Information System. This can include upgrades of the system in
order to meet the needs of the consumer.
• Companies often need to bring their sites offline in order to
perform these changes. This can have an impact on sales or
gaining new customers while it is down.
• Business will try and minimise this impact by bringing sites
offline when site activity is low. They will make sure that their
downtime is limited to 1-2 hours, often giving advanced
warnings.

7. SCALABILITY
• Scalability is a measure of how well an information system can
cope with increasing demand as the business grows as well as
finding out if there is potential for economic growth.
• An example could be if an online store suddenly receives a very
big order to manufacture. The company will need to decide
whether to meet the order demand by taking on more staff and
resources or even rent larger premises.
• However, if the company sells software for example that will
require the user to download their project then there is very
little extra cost for the increase of demand.

8. OTHER ECONOMIC IMPACTS
• Due to the increase in the use of computers there has been job
losses where the use of human employees are no longer
needed.
• There has been an increase in the creation of jobs as well due
to the need for technical maintenance and software engineers.
• Computers to perform tasks better, faster and cheaper which
saves and makes money for the business.

9. • More use of online services would create a "competitive
advantage“ for the business. For example Amazon has
increased in a variety of services and often companies that have
no bought into online services are left behind.
• Demand for the computer technology has created a problem in
developing countries. Recycling computer parts and
manufacturing are often given to workers who are often very
under paid, lack acceptable health and safety regulations and in
some cases child labour.
OTHER ECONOMIC IMPACTS

10. • The freedoms granted by technology are leading to increased
insecurity in the workplace. Some workers are under threat as
companies shift their production lines or call centres overseas
to low-wage economies.
• High paid jobs have been created and entire economies have
began changing for the better due to the need for highly
educated and skilled employees. Due to internet, employees
could be located anywhere in the world. Decreasing the need
for an office.
OTHER ECONOMIC IMPACTS

11. BUSINESS COSTS
Advantages of online information systems:
• E-Commerce is relatively cheaper way of introducing your business to the global
market.
• No need to rent/buy high street shops which also need to be furnished, lit, and
heated.
• Delivery no longer needs to go via the retailer.
• Customers can shop / use services 24/7 increasing profit.
• Social media, 'viral' marketing and web advertising can make it cheap to
promote and maintain your brand identity and relationship with customers.

12. BUSINESS COSTS
Disadvantages of online information systems:
• Initial set-up costs can be high when purchasing equipment, training staff and
employing experts to install like for example programmers, technicians and
media specialists.
• There are running costs to be met: electricity for the hardware, communications
bills for internet connections and web hosting, ongoing maintenance, hardware
and software updates.