Chaptor-1 Introduction 1.1- Present Senaiorio 1.

2- ICT as a growth Enabler

Chaptor-2 LITRETURE REVIEW 2.1-Understanding 2.1.1- Meaning and Prospective 2.1.2- Evolution of ICT (2.1.2.1) Late 1970s early 1980s: programming, drill and practice; (2.1.2.2) Late 1980s early 1990s: computer based training (CBT) (2.1.2.3) Early 1990s: Internet-based training (IBT); (2.1.2.4) Late 1990s early 2000: e-Learning; (2.1.2.5) Late 2000: Social software + free and open content. 2.1.3Definition-

2.2- Application of ICT in different industries 2.2.1- In Real estate 2.2.2- In Retail sector2.2.3- In Education2.2.4- In Manufacturing sector2.2.5- In Banking sector 2.2.6- In Dairy saector-

2.2.7- In Healthcare sector2.2.8- In Tourism industry2.2.9- In automobile industry2.2.10- In textile industry2.3- Country Perspective 2.3.1- Global Perspectives2.3.1.1- Japan 2.3.1.2- Ethiopia 2.3.1.3- .Kenya 2.3.1.4- Iceland2.3.1.5- Europe 2.3.1.6- Taiwan 2.3.2- Indian perspective2.4- MODELS2.4.1- Continuum of approaches of ICT in schools 2.4.1.1- The emerging approach 2.4.1.2- The applying approach 2.4.1.3- The infusing approach 2.4.1.4- The transforming approach 2.4.2- Proposed ICT based services for Agriculture Extension2.4.3- ICT and e-Governance for Rural Development2.4.4- Seven Perspective of ITC analysis frameworks model-

Chaptor -4 Industrial Analysis 4.1 Meaning and Concept of retail4.2- Retail Scope and Prospects: 4.3- Major Key players in Indian Retail Market 4.3- IMPACT OF ICT IN RETAIL INDUSTRY 4.3.1- Increase of ICT and e-business use since 2003: 4.3.2- ICT infrastructure, skills and investments improved: 4.3.3- Electronic procurement: 4.3.4- Internal e-business systems: 4.3.5- Electronic sales and distribution: 4.3.6- Micro and small firms lag behind medium-sized and large ones: 4.3.7- Integrated IT management is absent in retail sector: 4.4- CHALLENGES: 4.5- STRATEGY: 4.6- Characteristics and Reasons of unorganized retail 4.7- The suggestions might be 4.8- Impact on Unorganized Retailers

REFERENCES

Adoptation of ICT by the Shopkeeper as a Growth Enabler in the city of Allahabad Chaptor-1 Introduction 1.1- Present Senaiorio . The advent and rapid development of digital technology, satellite communication, fiber(information) and

optic global communication networks, convergence of computer

communication technologies, and above all, the Internet and the world-wide-web, and broadband services further reduced barriers caused by distance in the effective management of global enterprises. Integration of ICT with business processes has added a new dimension to the role of ICT in managing globalization and given rise to e-commerce and other e-services that are truly global in nature. Online transactions over the world-wide-web and processing sales/purchases on credit cards would not have been possible without ICT. Economic reforms introduced in the 1990s in many countries emphasized the importance of reforms in the telecommunications sector prior to reforms in other sectors to ensure effective and efficient management of businesses in the open market environment. ICT, as is well known, plays a dual role: as an industry per se and as the means to manage all other economic activities. The developed countries were among the leading developers and early users of ICT. ICT also presents an opportunity for developing countries and countries with economies in transition to dramatically improve their economies. Fortunately, this is also helped by the declining prices of ICT products and services. Since the 1960s, the raw cost of computer processing power has declined by roughly 50 percent about every two years as per Moores Law3 and even at the end of the century, nearly 50 years after the invention of the transistor, the reduction in cost and improvements in functionality of ICT show no sign of abating. The core product of the information age, the computer chip or microprocessor, is maturing. The number of chips made for devices other than computers (e.g., mobile phones) is much larger than that going into computers. As the world economy continues to move toward increased integration as a result of advances in information communications technology, and the increasing reduction in trade barriers, some of the greatest opportunities for small businesses will derive from their ability to participate in the regional and international markets (Mutula and Brakel, 2006). Adoption of the ICT is considered to be a means to enable these businesses to compete on a global scale, with improved efficiency,

and closer customer and supplier relationships (Chong et al., 2001). In this respect, SMEs should consider information and communication technology (ICT) as an important approach in their business to take competitive advantage from the global markets (Mutsaers et al., 1998). Moreover, ICT is a resource of SME which may help them to access and contribute to in order to enhance its competitiveness (Swash, 1998). Some empirical studies by Bartelsman and Doms (2000), Brynjolfsson and Yang (1996), Dedrick et al. (2003), Kohliand Devaraj (2003) and Melville et al. (2004) confirms the positive effect of information and communication technologies (ICT) on firm performance in terms of productivity, profitability, market value and market share. Their study also reveals that ICT has some effect in terms of intermediate performance measures, such as process efficiency, service quality, cost savings, organization and process flexibility and customer satisfaction. The introduction of ICT will offer various new investment opportunities within local industries, particular in the area of SMEs. Industries that are developing may take advantage of ICT which are being recognized by many previous studies. In fact, there is a need to accelerate the implementation of ICT to improve business performance. In order to do so, it is important to measure the key factors driving the growth of ICT and providing appropriate recommendation on this study.

1.2- ICT as a growth Enabler Information and communication technologies (ICT) created opportunities for economic growth and development, as well as the challenges that developing countries faced in their efforts to participate fully in the information economy. ICT as an enabler for growth and development could benefit both developed and developing countries, provided the right policy measures and enabling environment were in place. The digital divide, characterized by highly unequal access to and use of ICT, manifests itself both at the international and domestic levels and therefore needs to be addressed by national policy makers as well as the international community. The adoption of ICT by companies requires a business environment encouraging open competition, trust and security, interoperability and standardization, and the availability of finance for ICT. This requires the implementation of sustainable measures to improve access to the Internet and

telecommunications and increase IT literacy at large, as well as development of local Internet content. At the same time, e-strategies should be better integrated into the overall policy frameworks and strategies of countries. The inflow of foreign investments and international support through development cooperation measures is equally important. International support for efforts by African and other least developed countries to develop ICT was encouraged. The importance of ICT for enhancing the competitiveness of small and medium-sized enterprises (SMEs). Many SMEs, even in developing countries, have Internet access and use it to communicate with suppliers and customers, to search for business information and to showcase their products. These activities require affordable, high-quality access to the Internet and ICT products and services. One barrier still faced by companies relates to delivery logistics and delays in customs clearance. Here, ICT can contribute by computerizing trade logistics and customs systems, making them more efficient and transparent, and increasing trade flows. From a trade policy perspective, the WTO Information and Technology Agreement (ITA), concluded in 1996, forms a basis for liberalization and hence better dissemination of ICT products. Outsourcing and exports of IT and software services were becoming an important source of economic activity and income for many developing economies. This trend will continue to grow and will contribute significantly to the increase in ICT-related exports from a number of developing countries.

Chaptor-2 LITRETURE REVIEW

1-Understanding
y y Meaning and Perspective Evolution

3- Country Perspective
y y Global perspective Indian perspective

ICT
2- Applications Reai Estate, Retail, Education, Manufacturing Banking, Dairy, Healthcare, Tourism , Automobile, Textile 4- Models y y Continum of approaches of ICT in schools Proposed ICT based services for Agriculture Extension ICT for Rural Development

2.1-Understanding 2.1.3- Meaning and Prospective ICT is a so-called general-purpose technology with three far-reaching characteristics: it is pervasive as it spreads to all economic sectors; it improves over time and hence keeps lowering the costs for users; and it spawns innovation, i.e. it facilitates research, development and market introduction of new products, services or processes. This last property can be termed the enabling role of ICT for innovation Information and communication technology (ICT) has become, within a very short time, one of the basic building blocks of modern society. Many countries now regard understanding ICT and mastering the basic skills and concepts of ICT as part of the core of education, alongside reading, writing and numeracy. ICT permeates the business environment, it underpins the success of modern corporations, and it provides governments with an efficient infrastructure. At the same time, ICT adds value to the processes of learning, and in the organization and management of learning institutions. The Internet is a driving force for much development and innovation in both developed and developing countries. ICT is a crucial resource in education. Information and Communication Technology has permeated in every walk of life affecting the technology fields such as launching satellites, managing businesses across the globe and also enabling social networking. Across the globe, countries have recognized Information and Communication Technology (ICT) as an effective tool in catalyzing the economic activity in efficient Governance, and in developing human resources. There is a growing recognition of the newer and wider possibilities that technology presents before the society in the modern times. IT together with Communication Technologies has brought about unprecedented changes in the way people communicate; conduct business, pleasure and social interaction. A usage of ICT tends the person to lead with the situation of flourish or perish. Government started initiatives to develop standards and implementation of ICT policies helped in strengthened Indias position in the software driven ICT sector in the world. For example states of Tamil Nadu, Andhra Pradesh, Delhi, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Punjab, Rajasthan,

Sikkim, Uttar Pradesh, West Bengal, Pondicherry etc. announced several ICT policies in their respective states. Information and Communication Technology (ICT) refers to the tools used to create, store, retrieve, and disseminate information (using a variety of media, among them computerbased media); data and information systems; networks; interactive telecommunications systems; curriculum software; and some forms of assistive technology. ICT also includes calculators, audio and video recordings and broadcasts; still images; and projections. By its very nature, technology changes how people perceive a task or problem and how they deal with it. In general, technology also contributes to environmental, cultural, social, and economic change. Information and communication technology is simply one of the most pervasive and enabling technologies of many that have emerged. ICT Tools-

Mobile phones Email A convenient way of using written communicati on Allows convenient verbal communication

Faxes Allows text and pictures to be sent anywhere immediately An Internet Can be used for good external communicatio n

ICT
Other Tools

An inttranet Allows fast internal communication

Television, Pay roll system, Electronic weighing machine,Bar code reader, Smart cards

2.1.4- Evolution of ICTfour major phases in the history of using computers in education. The fifth: the era of social software and free and open content is still to come I hope. The phases are: (2.1.2.1) Late 1970s early 1980s: programming, drill and practice; (2.1.2.2) Late 1980s early 1990s: computer based training (CBT) with multimedia; (2.1.2.3) Early 1990s: Internet-based training (IBT); (2.1.2.4) Late 1990s early 2000: e-Learning; (2.1.2.5) Late 2000: Social software + free and open content.

Source :M. Castells, The Rise of the Network Society (Oxford, Blackwell, 1996). (2.1.2.1) Late 1970s early 1980s: programming, drill and practice This is the era when I got into computers in my own school. It was in the early years of 1980s and our math teacher was teaching also the new school subject called in Finnish ATK. The abbreviation stand for automated data processing and the name of the subject already

tell you pretty well what it was all about. We were using Nokia MikroMikko. There were not many software at all, but there were the MS Basic for programming and naturally that was what the ATK lessons were almost all about. (2.1.2.2) Late 1980s early 1990s: computer based training (CBT) with multimedia Same point when the multimedia computers, with advanced graphics and sound came to the mass markets it was presented a claim that the drill and practice exercises failed to teach much because they didnt contain multimedia. It was said that students would learn if they could watch animations in colours, small video clips and then do the exercises. This was the golden era of CD-ROMs and multimedia computers. This combination was seriously expected to have a huge impact on the ways we learn. The times were good for CD-ROM producers and of multimedia PC manufacturers. (2.1.2.3) Early 1990s: Internet-based training (IBT) The third wave or hype of using computer in education came with the raise of the World Wide Web. The failure of CD-ROMs were claimed to be related to the challenges to update the content in the CD-ROMs. The promoters of the new paradigm claimed that information changes so fast that one should update it almost every day. The solution is here: the Internet and the Internet-based training. (2.1.2.4) Late 1990s early 2000: e-Learning The Internet-based training got mature in late 1990s and early 2000 in a form of elearning. The hype around e-learning is a kind of classical example of creating needs. Thousands of websites, articles and companies made it clear for all somehow related to education that this is something you must be involved it. The IT managers of thousands of educational institutions and organizations were asked by the educational experts to come up with e-learning solutions and companies were happy to help the IT managers. The e-learning industry was build, even though it was not proven that anyone (except the IT managers) needed these products. The markets for e-learning courses and especially for Learning Management Systems (LMS) were created.

(2.1.2.5) Late 2000: Social software + free and open content I really hope that in the late 2000 social software and free and open content will make a real breakthrough in the field of educational technology. Blogs and wikis have already brought web back to its original idea: simple tool for your personal notes that are easily accessible and even editable by your peers and your potential peers. 2.1.3- DefinitionS.No. 1 Definition Author Year March 2004

ICT is an umbrella term that includes any Whatis.com communication device and application, that encompassing radio , television , cellular phones , computer and network hardware and software satellite system and so on, as well as any services and application associated with them. ICT are a diverse set of technological tools and Blurton C. resources used to communicate, and to desseminate, store and manage information.

April 2004

The study of the technology used to handle Free online March 2004 information and aid communication. dictionary ofcomputing, nightflight .com ICT sector as a combination of manufacturing international REV 3 and services standard classification of industries that capture, transmit and display data activities and information electronically ICTs are embedded in networks and services that Adeya N. C. affect the local and global accumulation and flows of public and private knowledge ICTs designates multimedia, the Internet or the Pelgrum, W.J. Web, as a medium to enhance instruction or as a Law, N. replacement for other media Electronic means of capturing, processing, Adeya N.C. storing and disseminating information 2002

2002

2002

2.2- Application of ICT in different industries 2.2.1- In Real estate ICT has, in alliance with a range of social, economic and political factors, led to a transformation in the ways that businesses, governments and citizens interact economically, socially and culturally. However, ICT cannot be treated in isolation: to do so is to be guilty of technological determinism. This paper has highlighted the characteristics of the most recent new economy (as part of the information society) and highlighted an increasing body of evidence to support the view that such an economy is not only strongly technology-driven, but that productivity, organisational structures and consumer demand patterns are also interacting and creating a potent mix of forces for change. In this sense any form of technology can only be understood in the context of forces which shape and are shaped by it, and this approach led to the formulation of a socio-technical framework to explain ICT transformation in real estate. Because of the way in which technological change occurs, future research on the impact on ICT is more likely to achieve tangible and measurable results if longitudinal studies are developed to identify temporal and spatial change, and if ICT is placed in context within a socio-technical framework. To adopt a deterministic slant risks propagating myths. It is likely that ICT will continue to create shifts and transformations in subtle ways, and that it will change the needs and preferences of owners, occupiers and their customers. This being the case, it will be vital to maintain an active research agenda in the field to monitor and benchmark changes and for professionals to recognize the role of ICT in transforming real estate.

2.2.2- In Retail sectorUse of Internet commerce among SMEs in the retail industry is lower than in business services and manufacturing. The problem of confidence building seems to be critical because customers may prefer not to make a purchase at a small on-line shop without knowing about its product/service quality and reputation. Several studies suggest that even the most price-sensitive Internet consumers respond very strongly to well-known, heavily branded (large) retailers, such

as amazon.com. An early study of Internet brand establishment analysing 20 000 on-line consumers who compared and purchased books from 33 on-line bookshops found that most did not choose the lowest price offer and that the shops name/brand was an important determinant of their choice (Smith and Brynjolfsson, 2001). Expectations of a higher level of services from better-known retailers, such as swift and reliable delivery of the purchased items, make some consumers willing to pay a premium even for a standardised product, such as a book. The retailers brand is considered as a proxy for the credibility of the shop.

2.2.3- In EducationAdvances in technology and the way technology is incorporated into a system is a dynamic process. Each school must work within the context of its own system to fit choices to what best suits its unique situation and culture. Even within a school, various units or courses may use different approaches. The approaches are hierarchical with the emerging approach as a beginning point, and the transforming approach as a goal many perceive as the future of education. The emerging approach is linked with schools at the beginning stages of ICT development. Such schools begin to purchase computer equipment and software perhaps have had some donated. In this initial phase, administrators and teachers are just starting to explore the possibilities and consequences of adding ICT for school management and the curriculum. The school is still firmly grounded in traditional, teacher- centered practice. For example, teachers tend to lecture and provide content while students listen, take notes, and are assessed on the prescribed content

2.2.4- In Manufacturing sectorThe impact miniaturised ICT can have on new product functionality is enormous. Miniaturised ICT devices and microsystems to produce high added value products are gaining an increasing importance within the economy. Mastering the manufacturing of such devices is of strategic impoIrtance for product innovation. Alongside technological and product

developments, more effort should be devoted to the rapid transfer and implementation of the new ICT technologies into manufacturable products. As more ICT products become customised, the time to market and first time right issues are becoming predominant, customised flexible production is becoming a key aspect to support this innovation process. Customised products are common in the micro-nanosystems where the technology depends strongly on the system requirements, whereas mass-manufacturing products for commodities are addressed in the microelectronics area. The trend towards customisation, as compared to commodity-manufactured monolithically integrated components, offers a new opportunity for Europe: to keep manufacturing close to its customers, where most of the value is added. This may turn out to be as important as the mastering of extreme cost pressures related with commodity production of integrated components.

2.2.5- In Banking sector Almost all the Banks surveyed mentioned that IT initiatives are business driven. Significant decision factor that influence expenditure in IT is RoI expressed in terms of revenue to be earned, cost saving, cross sell opportunities and customer benefit. Most banks across segments have already implemented core banking systems and general ledger automation systems. Initiatives such as internet based transaction banking, self service kiosks, mobile banking are either underway or are planned in near term. ICT has been instrumental in maximizing business value. The areas where ICT has most effectively been able to contribute are: Treasury Retail Cards Wholesale (including merchant banking) Payment and Settlements It is imperative for Banks to measure IT performance and improve IT delivery processes.

2.2.6- In Dairy saectorThe experience of conceptualizing and implementing an ICT platform for a dairy industry (Amul) is a challenging task. It is a distributed data architecture. The critical factors that contributed to the success of this project is worth look into: y Understanding the baseline operations comprehensively is the starting point for designing a customer oriented ICT platform. The understanding of ground conditions helped Amul to design the system considering customer needs. y Here again, the implementation was carried out in a limited way and the system was expanded after validation. The reputation of the agency was a major factor that increased the acceptance of the new technology. y The new system endowed substantial benefits to the customer. The waiting time for payment was completely eliminated. In any ICT platform if the benefits far out weigh the costs, the rate of diffusion will be high. y Working closely with the supplier, helped in the hardware/software

customization, thereby facilitating the user acceptance. This also lead to user led innovation through a pilot exercise before the actual implementation. y Amul had been known for treating all its customers alike. This helped them to create trust. Existing levels of trust helped them to reinforce the working relationships.

2.2.7- In Healthcare sectorWith regard to Indias inability to meet the healthcare needs of the majority population, one of th overriding concerns is the inefficiency that pervades the public healthcare sector (Government of India, 2002). Information and communication technologies (ICT) have been progressively incorporated by the Indian public healthcare sector and funded by international development organizations (IDOs) in what, at first glance, seems like a very rational and straightforward attempt to modernize and improve healthcare management.

It is able to deliver the quality primary healthcare services both to the poor and richer segment of the rural areas at affordable prices. Tele-medicine is extremely helpful in primary and secondary healthcare, however more advancements are required to replicate the model for tertiary healthcare in rural areas. Telemedicine can great potential to improve the quality of healthcare services in the rural areas and can help the existing hospitals to handle the critical cases by getting the help of specialist doctors through video-conferencing.

2.2.8- In Tourism industryIn tourism, an area dominated by SMEs in OECD countries, some small tour operators, hotels and inns, restaurants and travel agencies have been active in fostering cross-border Internet e-commerce. The Internet allows travelers direct access to travel recommendations, reviews and local tourism information, many of which was previously only distributed through the physical offices of (large) travel agencies. Small players with a Web page can now attract those preferring personalized (and possibly less expensive) services. Some small travel agencies, making the most of ICT, take advantage of direct on-line sales of (discounted) airline tickets and travel packages, while others, both small on-line and off-line agencies, have shifted towards selling leisure products entailing higher commissions, such as cruise packages. Since the Internet and many travel-related sites allow on-line customers to compare the price of air tickets and other travel services, small firms offering best/better prices can win price-sensitive travelers.

2.2.9- In automobile industryIn the automobile industry, B2B transactions via ICT have a 30-year history. Many firsttier suppliers in Europe, Japan and the United States have established real-time connections with large car manufacturers to respond to the latters requests for design/production processes reflecting their changing demands and specifications for just-in-time parts delivery. Most suppliers, even large ones, see ICT (and its recent Internet forms) as a strategic necessity for not losing business with car producers (i.e. their customers) and customer push has been a major factor in the adoption of ICT by the sector . Many smaller suppliers, especially those in second

or lesser tiers, have not implemented ICT because the system, which may differ depending on the trading partners, has been costly to install and because they see asymmetric benefits in favour of large manufacturers. Eliminating the clerical errors associated with re-entry of order information and reduced lead-time contributes to lower inventory costs, and these benefits of ICT are considered to be largely in favour of their customers. To realise larger benefits by streamlining business information and materials flows, as well as to achieve greater participation by smaller suppliers, ICT systems in advanced OECD countries have attempted to integrate different communication networks into a single Internet network. This should allow high quality, high speed and security measures to protect the transmission of confidential data and other critical messages.

2.2.10- In textile industryTextile products, along with music and video, books and magazines and software, are among the leading consumer products sold over the Internet (OECD, 2002c). Projections for online apparel sales in 2003 ranged from 2-8% of sales, however, and physical stores remain the principal sales channel for the foreseeable future. Large retailers see B2C e-commerce as a complementary channel that provides more options to consumers. Consumers may check a printed catalogue before placing an order over the companys Web site and if the shipped item is not satisfactory, they can return it to the nearest physical store. Such multiple channel retailing may not be feasible for many small shops. In fact, the small size of B2C e-commerce generally does not justify a small retailers investment.

2.3- Country Perspective 2.3.1- Global PerspectivesComputers and access to the Internet have become common in most OECD countries, but sales and purchases over the Internet have yet to take off. While available data suggest that electronic commerce is growing, it still accounts for a relatively small proportion of economic activity for firms of all sizes. Taking a wide definition of electronic commerce to cover transactions over computer-mediated networks (including traditional EDI) and inter-firm transactions, e-commerce sales were 13.3% of total business sector sales in Sweden and 7.9% in Finland. Excluding the financial sector they were 10% in Norway, and 6% in the United Kingdom and Denmark. For retail sales (B2C) shares were much lower, around 1.4% in the United Kingdom, 1.2% in the United States. Shares for SMEs are probably lower than these shares for the whole economy (see OECD 2002b and 2002c). Purchasing over the Internet is more common than selling. For 16 countries for which both Internet purchasing and Internet sales data are available, only one in eight on average reported making Internet sales. Twice as many businesses on average use the Internet for purchases as for sales (Figure 3), with between 63% and 93% of businesses reported using the Internet, except in Greece and Luxembourg .

Source: OECD, ICT database, August 2002; Eurostat, E-commerce Pilot Survey 2001

Awareness raising and business consultation Awareness-raising activities have been helpful in diffusing initial information about ICTs and e-commerce, and have been a major policy focus. In addition to a government portal covering a wide range of e-business issues with links to related support services, seminars and workshops that demonstrate possible integration of ICTs and e-commerce into SMEs processes are common (Table 2). Government programmes have included business case studies, introducing successful business practices of small ICT/e-commerce adopters. Case studies can provide practical business pointers to managers and employees. Prize and award programmes may give high visibility and publicity to the best users but may have little impact on nonadopters if the lessons are not widely shared. Various policies aim at overcoming these handicaps, for example the e-Business Guide developed by Australias National Office of the Information Economy is a comprehensive on-line resource that is aimed at business people who want a quick and easy explanation of e-business; what it is, its benefits and what is needed to get started. Examples of ICT/e-commerce awareness raising programmes for SMEs

Source: OECD (2002b), European Commission (2002b), the AUSe.NET site (www.ause.net) and ebiz.enable site Training Competence factors including internal ICT knowledge and e-business management capabilities are crucial for successful adoption, and training programmes for SMEs are among major policy targets. In many cases, ICT skills have been addressed in a broader context of education and training, and initiatives for reducing the digital divide (OECD, 2002b, see Table 3). Most governments provide ICT training or training support. Some governments provide training free of charge, most of which focuses on basic ICT use. Financial support to cover part of training expenses has also been common. Training is increasingly provided over the Internet and, in some cases, in conjunction with ICT and e-commerce awareness and business consultation services. This reflects the recognition of the importance for small business managers

and employees of ICT applications and required skills. The UK Online for Business initiative is an example of such a programme, combining on-line information and consultation services with off-line business support services. The Learndirect programme offers both on-line access to ICT training and off-line consultation with trained staff at local Learndirect centres. Government training programmes, however, might fail to effectively respond where SMEs demands for ICT skills are dramatically changing and more specialised. Commercial training services may be more sensitive to businesses changing and specific needs and government training programmes need to cooperate fully with commercially available services. Governments may also need to encourage a favourable business environment for provision of private ICT training services at a reasonable cost. Business management capabilities are becoming a new category of generic competency in the context of overall management of business processes, rather than ICT technologies alone. Training programmes therefore need to be more focused on managerial understanding and skills for e-business, such as how to effectively integrate e-business processes into existing business models and strategies to change organisational structures .Examples of ICT/e-commerce training programmes for SMEs

2.3.1.1- Japan A magnet manufacturers e-commerce success Ni-roku is a Japanese magnet manufacturer with 12 employees, which was established in 1940. In September 1997, an employee created the companys Web site (www.26magnet.co.jp). By 2000, annual e-commerce sales of magnet products via the site had already reached more than USD 700 000, and the site has remained operational and generating revenue through 2004, although they still do not accept customers outside of Japan. In 1996 a company employee bought a personal computer at his own expense to use the Internet. He convinced the manager to launch the companys Web site, although he was not confident that it would generate revenue that might counterbalance the decline in the companys off-line sales. He consulted a small ICT service firm, which helped the company to create the Web page and took training to enable him to update it. To increase the number of visits to the site, the company used both an on-line campaign and off-line advertising. A free magnet offer campaign on the Web site combined with an on-line questionnaire to (potential) customers lured 1 000 visitors to the site during the peak early month. An advertisement in Nikkan Kogyo, an industry newspaper, also attracted the attention of many business readers. In response to requests from businesses as well as individual buyers, an on-line product catalogue was later added to the site. After the local newspaper covered the companys e-commerce growth, other small firms in the region were encouraged to engage in Internet e-commerce. 2.3.1.2- Ethiopia The Government of Ethiopia has a stated objective to use the development, deployment and exploitation of ICTs to help develop Ethiopia into a socially progressive and prosperous nation with a globally competitive, modern, dynamic and robust economy (FDRE, 2002). Simultaneously, the education sector has been identified by the Government as a priority area. Thus Ethiopia presents a good example of a developing country in which the use of ICTs in education has central support. The Figure shows that Regional Education Bureaux have

responsibility for financing and supervising schools and the College of Teacher Education sector. Both the Regional Education Bureaux and public universities are responsible to the Ministry of Education

Source: Manchester Centre for Development Informatics Working Paper 44

2.3.1.3- .Kenya Over the last five years, the Kenyan government has initiated some capital investment towards set up and installation of ICT infrastructure. Funding for these investments is achieved through partnerships between the government and development partners. The foreign funding component constitutes the largest percentage of this investment in terms of technology. The government contribution is usually in the form of technical and support staff and facilities including buildings. So far, the Government Information Technology Investment and Management Framework is connecting all ministries to the Internet under the Executive Network (Limo 2003). The government is also connecting the ministries to run integrated information systems for example the Integrated Financial Management Information System (IFMIS) and the Integrated Personnel and Pensions Database (IPPD).

source : Aineruhanga, M., 2004. Focus on the 'Kenya ICT Week'. Chakula Newsletter, (9),.

2.3.1.4- IcelandIceland is an extraordinarily technology literate country that has embraced the internet and the corresponding technologies. The role of technology has permeated the larger business to the level of adoption of outsourcing as a normal means of doing business. The motivation for outsourcing is not reduced labor costs but rather, there is a better utilization of existing employee skills and the reduction of time in addressing new technology services. IT strategy generally is not formulated in the board room; it is the IT professionals who bring their recommendations to the board where it is generally approved for implementation. Security of data is of paramount importance, but onlyabout half of the companies have backups stored in locations far removed from the company database. Trust in the use of internet cables ranges from high to low. Almost all of the companies have a need for mid- to upper-level employees who have a vision oftechnology and can suggest methods by which technology can be brought to bear on creating

competitive efficiencies. Most IT leaders are engineers by academic training who have learned business knowledge through experience, and many have taken advanced training to enhance their IT knowledge and skills.

2.3.1.5- EuropeThe existence of ICT facilitates economic internationalization and allows some emerging economies to develop high-skilled. Developing economies are making use of their comparative advantage in low labour costs to growth.ICT could reinforce inequalities if no policies are engaged to tackle its challenges. ICT and digital divide could encourage a global race-to-thebottom, leading to an eventual dualisation of the labour market worldwide. This situation affects strongly the European economy. The challenge is not only steaming from low-cost competition in low-skilled sectors, but from high value sectorsas well. To meet this challenge Europe has no choice but to opt for the development of avant-garde sectors, albeit in an international scenario increasingly low-cost oriented.The guarantees of success are reduced as we are not accomplishing the goals that were set in 2000 in the Lisbon Strategy. This keeps the EU away from economies like the USA or Japan and brings us closer to new competitors like China and India.

2.3.1.6- TaiwanIndustrial transformation in Taiwan, as well as in other emerging Asian latecomer countries, requires the changing focus on HR development. With a strong intension of building a knowledge economy, many latecomer countries need to provide governmental support to facilitating the technology development and ICT capability building, especially for the service sector as it gradually evolves to be dominant in the national economy. This may imply a less focus on the remaining fraction of the manufacturing sector, as large parts of manufacturing and production may be shifted to sites in less developed region. However, it seems that the strategic ICT industry led by the government, as in Taiwans case, has largely concentrated on manufacturing of personnel PC, notebook PC, semiconductor and opt-electronics (ITRI, 2004). Contrarily, high skill emphasis at the national level does not match the needs of low-medium skills required by the sector.It is noted that the Taiwanese government has put a great deal of efforts on assisting work force recruitment for MNCs. However, at firm level, companies

continue experiencing recruitment difficulty and retention issues, especially for the mediumlower ICT skills. By large, it is suggested that there might not be a strong and/or positive link between the national level of promoting ICT development and advancement and firm level of easy access to a readily deployable pool of ICT HRs.

2.3.2- Indian perspective-

Information and communication technology essentially refers to the digital processing, storage and communication of information of all kinds1. Therefore, IT can potentially be used in every sector of the economy. The true impact of IT on growth and productivity continues to be a matter of debate, even in the United States, which has been the leader and largest adopter of IT2. However, there is no doubt that the IT sector has been a dynamic one in many developed countries, and India has stood out as a developing country where IT, in the guise of software exports, has grown dramatically, despite the countrys relatively low level of income and development. An example of ITs broader impact comes from the case of so-called IT-enabled services, a broad category covering many different kinds of data processing and voice interactions that use some IT infrastructure as inputs, but do not necessarily involve the production of IT outputs. Indias figures for the size of the IT sector typically include such services. The numbers on Indias software exports are well-publicised (www.nasscom.org). The latest figures on the software and services sector indicate that annual revenue was Rs.480 billion ($10.1 billion) in 2001-02, up from Rs.382 billion ($8.4 billion) in 2000-01 (NASSCOM, 2002a) This translates into overall growth of 26 per cent in rupee terms and 20 per cent in dollar terms. While growth rates have been high, Indias IT sector is still small, relative both to the world market and to Indias GDP. World sales of software and services in 2000 were $440 billion (Desai, 2002b). Even if this did not grow at all, Indias 2001-02 sales would be just about 2 per cent of the world market. To compare the software sector to GDP, one has to estimate the fraction of sales that constitutes value added. Assuming this fraction to be two-thirds would imply that software directly contributed about 1.5 per cent to GDP. The latest NASSCOM figures no longer include hardware and peripherals, whereas they did earlier (Singh, 2002). Using earlier calculations, the broader IT sector is probably one third again as big, allowing for slower hardware growth. This would imply that the IT sector is about 2 per cent of GDP. Despite Indias emphasis on import-substituting 28ubsidized 28d28on28n, it has not developed a robust, world-class manufacturing industry, and this includes IT hardware. Much of Indias hardware industry consists of assembly tasks, almost entirely for the domestic market. Indias software industry is, of course, more robust at least in certain areas. While selling packaged software to consumer (and most business) markets requires economies of scale and scope, as well as marketing and customer support muscle, project-oriented components of

software development do not, at least to quite the same degree. To some extent, therefore, Indias software industry remains narrowly focused. For example, of Indias 2001-02 software and services exports of Rs.365 billion, two-thirds came from IT services, and close to 88 per cent of that amount came from custom application development and application outsourcing (calculated fromNASSCOM, 2002a; see also Desai, 2002a). Indicators of the strength of Indias software export capabilities include the depth of its base, and the breadth of its global reach. There are over 2 500 Indian software exporters, and while only the top five (TCS, Infosys, Wipro, Satyam and HCL) are or are approaching the status of global brands, they together account for only about 35 per cent of software exports3. The United States remains by far the largest market for Indias software exports, its share of Indias software exports being 63 per cent, with Europe coming in at 26 per cent, and Japan and the rest of the world accounting for the remaining 11 per cent (NASSCOM, 2002a). Individual firms and 29ubsidized29d29 such as NASSCOM have shown themselves to be adept at targeting markets with substantial growth potential, such as Germany, and the reputations built in exporting to the United States are proving important4. IT-enabled services (ITES) have shown the strongest growth in the last two years. They include a variety of types of service: customer call centres; accounting services and other business process outsourcing; and GIS and engineering services. Thus the required degree of technical sophistication of the workforce and the level of use of IT can vary widely. In fact, these three categories make up most of Indias ITES exports, with the first two showing high growth and representing over 60 per cent of the total of Rs.71 billion. There is strong evidence that India has a strong and sustainable comparative advantage in software development and IT-enabled services. Complementarities in particular some form of domestic hardware industry as well as growing demand for software within the domestic market are also important to sustain the growth of the IT sector, as well as to broaden its developmental impact. India faces existing and potential bottlenecks in areas such as infrastructure, availability of a skilled labour force, and financing of entrepreneurial activity that can hinder the contribution of IT to broader economic development. Continuing and accelerating cross-cutting reforms in areas such as labour and investment laws and in 29ubsidized29d29 is preferable to narrowly targeted tax subsidies and other incentives on the IT sector.

IT may have a special role to play in growth and development simply because of empirical characteristics that apply at the current time. In particular, the recent and continuing rapid innovation in IT makes it a dynamic sector that is an attractive candidate as a contributor to growth for that reason alone, much as the automobile industry was targeted by the Japanese after World War II. On the other hand, there may be features of IT that make it attractive from a theoretical perspective on economic growth. For example, IT may be one of the sectors in which countries such as India have, or can develop, a comparative advantage. Even if this is so, IT is likely to share this characteristic with several other sectors. A somewhat more special characteristic of IT may be that it is a general purpose technology (GPT), distinguished by pervasiveness, technological dynamism and innovational complementarities. In this case, IT is one of a special few technologies: other examples of GPTs include steam and electricity (both advances in power delivery systems) and synthetic materials. Finally, IT may be unique in its impact on growth. In this view, IT has a special role in the process of innovation, because it affects the rate at which potential new ideas are converted into additions to the usable stock of knowledge in ways that nothing else can5. The 30ubsidized30d30 of this special role is based on the model of recombinant growth (Weitzman, 1998). Each of these possibilities comparative advantage, GPTs (and complementarities more generally), and recombinant growth will be considered below, as will, in turn other aspects of IT and development, which are not necessarily linked to formal growth theory, including greater efficiency in governance and in the working of markets. . Efficiency and Broad-Based Development As an example of information processing enhancing efficiency in agricultural markets, Chakravarty (2000) describes IT use at milk collection centres in co-operative dairies. This permits faster and safer testing, better quality control, quicker and more accurate payments to farmers, and time savings for farmers in their deliveries. The falling cost of information processing means that such success stories can potentially be widely replicated. Another efficiency gain is in the communication of information, where the examples are many. Farmers and fishermen can receive weather forecasts, market price quotes, advice on farming practices, and specific training. Offers to buy or sell livestock, or other two-way communications are also possible. Some of this information dissemination and exchange is best done through voice media

such as fixed or mobile telephones, while other types require the capabilities of the Internet18. Some evidence suggests, not surprisingly, that richer farmers and fishermen, as well as middlemen, are faster adopters of such technologies (The Economist, 2001a), but falling access costs will broaden information access and its benefits. In some cases, corporations dealing in agricultural products have moved to provide their suppliers with Internet access to improve market efficiency, production efficiency, and even bargaining power. The most significant example is ITC, with its e-choupals. Their annual report (ITC, 2002) states: Project e-Choupallinks the Indian farmer with domestic and international markets It already reaches out to more than half a million farmers to provide web-enabled real-time information on the weather, best farming practices and commodity prices. Through virtual clustering, these e-Choupals are conferring the power of scale on even the smallest of individual farmers. Thise-infrastructure will dramatically enhance efficiency in the purchase and sale of agri-inputs and farm produce, with direct benefits to the farmer. 770 e-Choupals are already operational, covering 4 500 villages across four states in India. Even if one allows for the possibility of exaggeration in this statement, and even if one is not satisfied with the distribution of bargaining power and benefits between a large corporation and small farmers, the scale of what has been implemented so far is evidence of the efficiency benefits of IT in Indias agricultural sector. Another area of impact involves communication of information in a more fundamental way. IT-based delivery mechanisms can overcome traditional barriers to widespread delivery of education at all levels. Completely aside from the importance of IT training for the growth of IT exports, even basic education may be enhanced by the use of IT. While it may seem paradoxical that delivery of basic education should rely on high tech, there is nothing new in this. The radio and television have been very successful distance-education media in the past, and computers and the Internet offer several advantages, in terms of the potential for interactivity, 31ubsidized31d31 and sheer volume of material. Given the poor state of basic education19, while improved incentives for teachers and school administrators (either in the public or private sector) will help, technology can play an important complementary and even substitutive role. For example, TARAhaat (a semi-commercial subsidiary of an NGO), in attempting to develop a network of rural Internet centres in a district in Punjab, found that even in the absence of reliable

connectivity that would allow access to a variety of Internet-based services, it was able to tap into an underserved market for education in the vernacular medium in the basics of computers and the English language20. There have been numerous examples of successful pilot e-governance programmes in India. These include: y computer-aided registration of land deeds and stamp duties in Andhra Pradesh, reducing reliance on brokers and possibilities for corruption; y 32ubsidized32d32on of rural local government offices in Andhra Pradesh for delivery of statutory certificates of identity and landholdings, substantially reducing delays23; y 32ubsidized32d checkpoints for local entry taxes in Gujarat, with data automatically sent to a central database, reducing opportunities for local corruption; y consolidated bill payment sites in Kerala, allowing citizens to pay bills under 17 different categories in one place, from electricity to university fees; y e-mail requests for repairs to basic rural infrastructure such as hand pumps, reducing reliance on erratic visits of government functionaries24. As in the broader case of using the Internet for communications and transactions, sustainability of e-governance initiatives is a significant issue. Since governments at all levels are financially strapped, the initial investments and ongoing expenditures for Itbased service delivery may act as a barrier to adoption as well as to long-run sustainability. However, a franchise model can be successful here. Low-cost rural Internet kiosks, a tiered franchising model, and a suite of basic government access services for which users are willing to pay, are key components of what Drishtee, a spinoff of the Gyandoot project in Madhya Pradesh, is implementing in several parts of India25. Co-operation of local governments and 32ubsidized financing have been important elements for Drishtee, as in the case of TARAhaat, with the former being critical in the case of

Drishtee. In terms of the discussion in the previous section, the Drishtee model can increase transparency and accountability, simply by requiring information, such as basic complaints, to be logged and aggregated completely and systematically outside the government. In this respect, the use of a non-governmental intermediary such as Drishtee may have advantages over purely internal government initiatives, beyond that o financial viability. It is important to note that once Internet access is available, its benefits are not restricted to e-governance. Individuals can obtain market information, training, job information, advice on farming techniques, and so on, as discussed earlier in this section. This is certainly part of Drishtees long run model. Here also, a commercial approach may provide more flexibility. For example, in Jaipur district in Rajasthan, Drishtee has piggybacked on the expansion of a fiber optic company, and combined itsInternet kiosks with cable TV franchises for greater and more immediate financial viability

2.4- MODELS2.4.1- Continum of approaches of ICT in schools -

Emerging

Applying

Infusing

Transforming

Source- Model depicting a continuum of approaches to ICT development in schools

2.4.1.1- The emerging approach Schools at the beginning stages of ICT development demonstrate theemerging approach. Such schools begin to purchase, or have had donated, some computing equipment and software. In this initial phase, administrators and teachers are just starting to explore the possibilities and consequences of using ICT for school management and adding ICT to the curriculum. Schools at this emerging phase are still firmly grounded in traditional, teacher-centred practice. The curriculum reflects an increase in basic skills but there is an awareness of the uses of ICT. This curriculum assists movement to the next approach if so desired. 2.4.1.2- The applying approach Those schools in which a new understanding of the contribution of ICT to learning has developed exemplify the applying approach. In this secondary phase, administrators and teachers use ICT for tasks already carried out in school management and in the curriculum. Teachers

largely dominate the learning environment. Schools at the applying approach phase adapt the curriculum in order to increase the use of ICT in various subject areas with specific tools and software. This curriculum assists movement to the next approach if so desired. 2.4.1.3- The infusing approach At the next stage, the infusing approach involves integrating or embedding ICT across the curriculum, and is seen in those schools that now employ a range of computer-based technologies in laboratories, classrooms, and administrative offices. Teachers explore new ways in which ICT changes their personal productivity and professional practice. The curriculum begins to merge subject areas to reflect real-world applications. 2.4.1.4- The transforming approach Schools that use ICT to rethink and renew school organization in creative ways are at the transforming approach. ICT becomes an integral though invisible part of daily personal productivity and professional practice. The focus of the curriculum is now learner-centred and integrates subject areas in real-world applications. ICT is taught as a separate subject at the professional level and is incorporated into all vocational areas. Schools have become centres of learning for their communities.

2.4.2- Proposed ICT based services for Agriculture ExtensionThe proposed model is informed by the research findings and caters to the current telecom infrastructure. The model is designed to address challenges such as: converting extension information into digital form, user friendly access, literacy, impact and financial sustainability. The model is aimed to achieve the following: On-Demand Provision of reliable and timely actionable information to farmers. The information will be about market prices of specific commodities, weather updates for their area, crop specific advice. The information will be requested and disseminated through mobile applications.

Providing content in local language. In Pakistan this is relatively easier to achieve as there is one national language understood in the most of the country.

y y

Providing voice based content to farmers to overcome literacy barriers. In case of problems that cannot be addressed via mobile applications, establishing a help line backed by experts providing advice in real time..

Automating the agriculture extension by using specialized applications on mobile phones. Especially, aiding in data collection for surveys for institutional users.

Creating sustainability financially and technologically in terms of content

Source: ALAM, S. M. K., M. A (1999) MAJOR AGRICULTURAL PROBLEMS, Increasing population

2.4.3- ICT and e-Governance for Rural DevelopmentThe Information and Communication Technologies (ICT) are being increasingly used by the governments to deliver its services at the locations convenient to the citizens. The rural ICT applications attempt to offer the services of central agencies (like district administration, cooperative union, and state and central government departments) to the citizens at their village door stepsA large number of rural E-Government applications, developed as pilot projects, were aimed at offering easy access to citizen services and improved processing of government-tocitizen transactions. Most of these projects have seen developments in the Internet

Source: Bhatnagar S.C., E-Government : From Vision to Implementation A Practical Guide with Case Studies, SAGE Publications Pvt. Ltd., New Delhi, 2004

References
1. DSilva, Anupam (2004), Impact of Consumers Perception of Retail Store on BuildingCustomer-Based Brand Loyalty in Competitive Environment. 2. AroraShweta (2010). Indian Retailing: Shift from Pyramid to Diamonds. 3. M. Castells (1996), The Rise of the Network Society , Oxford, Blackwell. 4. Bhatnagar S.C., E-Government : From Vision to Implementation A Practical Guide with Case Studies, SAGE Publications Pvt. Ltd., New Delhi, 2004 5. Nikam et al. 2004; Singh 2005 6. OECD, ICT database, August 2002; Eurostat, E-commerce Pilot Survey 2001 7. CRITO, Gobal E-Commerce Survey, 2002, quoted in Wong Poh-Kam and Ho Yuen-Ping (2004); Paulo Bastos Tigre (2003); Zixiang A. Tan and Wu Ouyang (2004). 8. OECD (2002b), European Commission (2002b), the AUSe.NET site (www.ause.net) and ebiz.enable site 9. OECD, ICT database, August 2002; Eurostat, E-commerce Pilot Survey 2001 10. Manchester Centre for Development Informatics Working Paper 44 11. Chowdery (2005): ict development in India. portal player 12. RICE (Research in Computer Education) (1999) Using EdNA in the Curriculum TeacherProfessional Development on The Internet, Deakin University, Curriculum Corporation, Melbourne. On-line at http://rice.edn.deakin.edu.au/CurrCorp/Currcorp.html on 31st January 2000 13. Council of Ministers of Education (CMEC, 1999) APEC Workshop Integration of Information and Communication Technologies (ICTs) through Teacher Professional Development December 1-3, 1999 Toronto, Ontario, Canada or on-line at http://www.cmec.ca/international/forum/ on 31st January 2000 14. Charru Malhotra et al. / ICT for Rural Development: An Inclusive Framework for eGovernance 15. Usluel, Y. K., A kar, P., & Ba , T. (2008). A Structural Equation Model for ICT Usage in Higher Education. Educational Technology & Society, 11 (2), 262-273