EFFECT OF INFORMATION TECHNOLOGY ON BUSINESS

1.1 Introduction

Information Technologies ITs have indispensable and positive impacts to transforming Business Education systems all over the world. For instance, ITs are dependable tools in facilitating the attainment of one of the millennium development goals (MDGs), which is achievement of universal primary Business Education by the year 2015, (Fisseha Mikre, 2011). It is also believed that, Information Technology (IT) facilities play an important role to enhance the quality of Business Education all over the world. Almaghlouth (2008), in his study demonstrated that, there are a range of reasons for the importance of IT in Business Education.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

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1.2 Background of Study

Information Technology (IT) may be viewed in different ways. Information Technology (IT) includes all forms of technologies such as internet, computers, websites, telephones, mobiles, wireless devices, networks, hardware, software and telecommunication equipment (Latu and Koh, 2007). The author posited that IT is simply about sharing and having access to data with ease. It is regarded as the super highway through which information is transmitted and shared by people all over the world.

Nigeria as country has numerous business and investment potentials due to the abundant, vibrant and dynamic human and natural resources it possesses. The performance and effectiveness of entrepreneurs in the country as an instrument of economic growth and development has long been under scrutiny. This intense scrutiny has been against the backdrop of the low performance and inefficiency that characterized small business particularly in assessing its role on economic growth and development. A nation’s ability to generate a steady stream of business opportunities can only come about when its people take to entrepreneurial activities. Good entrepreneur can create a strong economy. Nigerians have equally made their marks in diverse fields such as science, technology, academics, business and entertainment. Entrepreneurship activities and innovative ingenuity in Nigeria have developed enterprises in areas such as agriculture/agro-allied, solid minerals, transportation, information, and telecom, hospitality and tourism business, building and construction etc.

According to Nkechi etal (2012) these human and natural resources notwithstanding, Nigeria is still one of the poorest countries in the world and has one of the highest rates of youth unemployment in sub-Sahara Africa, and despite its alleged strong economic growth. In respect of the above sad and deplorable situation, the government has done little to reduce the misery and frustrations of the citizenry. This has foisted a state of hopelessness on majority of young and old people who have resorted to any means including crime to succeed in life. They resort to vices because they are not gainfully engaged. In order words, they are unemployed; not because they lack the qualification but because the system has been crippled politically, economically, socio-cultural and even religiously Nkechi etal (2012).

The need for entrepreneurship development in the country today is necessitated by the fact that entrepreneurship development is a major factor in economic growth and development and also the permanent cure for extreme hunger and poverty necessitated by unemployment. Entrepreneurship is the act of being an entrepreneur. Entrepreneurs are people who have the ability to see and evaluate business opportunities, gather the necessary resources to take advantage of them and initiate appropriate action to ensure success. An entrepreneur is a risk taker, a man who braves uncertainty, strives out his own and through native with devotion to duty and singleness of purpose creates a business and industrial activities which may be new or expand existing one.

Therefore, in Jalingo Metropolitan Area where the research was carried out, the activities that was conducted is to know the Effect of Information Technology on Business.

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1.3 Statement of Problems

Information technology has given birth to many complex machines some of which are beyond the operational scope of an average business man. Only few businessmen can afford the high cost of training required to operate these machines.

Moreover, the costs of acquiring the machines are very exorbitant. The exchange rate of the naira is too down to earth when compared with other major currencies of the world like the American dollars, British pound set the high cost of machines is almost defeating the goal of information technology.

Another problem associated with information technology is maintenance and servicing of these machines. All these machines are manufactured in highly technologically advanced countries such as France, Japan etc. The user nations such as Nigeria lack the expertise and technical know-how to maintain and service the machines. When these machines break-down, the business can no longer use them and the operations of that business are greatly impaired.

Another great problem is that the information technology is an ever-changing sea. The rate at which the manufacturers and producers turn out these machines overwhelms stakeholders in the business world. As new discoveries are made, new machines are manufactured with their attendant different operational procedures. This keeps stakeholders on their toes as they are un-sure about what is to replace the present machines.

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1.4 Aim and Objectives of Study

The aim of the study is to scrutinize the Effect of Information Technology on Business using Jalingo Metropolitan Area as a case study. In achieving this aim, the following specific objectives were laid out as follows:

1. To identify the challenges of information technology on small and medium scale enterprise.
2. To find out the information needed at various levels of management and the consideration made in choosing information technology equipments is in business organization.
3. To find out the various information machines used in business administration and management.
4. To make recommendation on ways and means to making information technology more efficient and effective.

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1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Does an information technology activity reduce the level of unemployment?
• Does an information technology enhance business development?
• What are the challenges of information technology on small and medium scale enterprise?
• What is the information needed at the various levels of business management?
• What are the considerations made in choosing information technology equipment in business organization?

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1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: Information technology does not have any direct impact on business administration and management.
• H1: Information technology has direct impact on business administration and management.

Hypothesis Two

• H0: The machines of information technology used in business administration and management do not require effective handling.
• H1: The machines of information technology used in business administration and management require effective handling.

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1.7 Significance of Study

This research work will be relevant and beneficial to the following people:

Stake holders: It is hoped that through this study, the stakeholders in the information industry would be enlightened in terms of knowledge, qualification, experience and performance appraisal.

Higher Institutions of learning: It will highlight the need for higher institutions of learning and other agencies engaged in the training and of computer or information services to combine theory with practical. This can only be made possible if those schools and agencies procure the machines themselves.

The society: The larger society will benefit from this study in that it will educate them on the many sides to information technology and its effectiveness in business administration and management in the modern business world.

The Government: This study will be of significance to the government with respect to policies on the importation of information equipments. The high costs of these machines are consequent upon the high tariff imposed on the machines, cost of the machines became less and therefore affordable.

Further learning: This study no doubt will contribute to learning and then add to the frontiers of knowledge.

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1.8 Scope of Study

The study focuses on the Effect of Information Technology on Business using Jalingo Metropolitan Area as a case study.

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

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1.10 Definition of Terms

Owing to the multiplicity of meanings of words in certain cases, the research needed to give certain words used in the study their contextual meanings.

Information: This is data that have been processed into a form which is meaningful to the recipient and which is of a perceived value of both current or prospective decision and action by the recipient.

Technology: It is the scientific knowledge used in practical ways in industry for example in designing new machines.

Data: There is raw, unanalyzed facts such as number, name or quantities

File: This is a group of related data of information.

Hardware: This includes the physical components of information handling.

Software: The stuff that enables you to tell the computer what to do.

Processing: A series of clients, actions or operations that transfer the original material that is data into finished product called information.

Machines: An apparatus with several parts, suing mechanical power to perform a particular task.

Storage: It is the process of saving data and instruction permanently.