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CHAPTER 1

INTRODUCTION


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India is well-known around the world for its rapid economic growth rates over the last fifteen

years or so, fuelled in part by the spectacular growth in its export-oriented software and ICT-based services

sector. Many other countries look to India as a model for global outsourcing and try to imitate elements of

this in their own strategies (Carmel 2003; Heeks and Nicholson 2004). Success at a particular period of time

does not, of course, guarantee its continuation and commentators have expressed concerns such as rising

wage rates and skills shortages of ICT professionals (CACM,2007), and increasing competition from

countries such as China (Negroponte 2003). It is likely, however, that India will remain a major player in the

ICT industry for years to come and thus its global image as an ICT success story will continue.

In wake of the events of Arab Spring and increasingly over the last decade, there has been

attention and expectations on the role that Information and Communication Technology (ICT) based

technology platforms such as websites and wikis, social media, interactive geomapping, and SMS and voice

based reporting can play in increasing accountability, participation and transparency in public administration

(R. Avila, et al., 2010; Davis, 2004; Pina, et al., 2009). Public bureaucracies are under pressure to adapt and

more openly improve the ways they interact with citizens through the adoption of webbased technologies.

Factors such as the gap between public expectation and perceived governmental performance, the role of

mass media, political scandals, lack of transparency, and corruption contributed to a decline of public trust in

government in the last two decades (Nye, 1997; Sirker&Cosi, 2007). Innumerable studies indicate that

public investments in services have resulted in inadequate returns. Additionally, the failure in many

countries to achieve substantial poverty reduction and much inequity among marginalized people contributes

to a lack of trust in government. Improved governance processes and increased public trust in governments

has been associated with increased responsiveness to citizens through two way interactions between

governments and citizens (Avila R, et al., 2010; Joshi, 2010; Mc Gee &Gaventa, 2010).

More access and transparency of information has been perceived as a way to enhance trust in

governments by improving accountability of government services and empowering citizens with e

governance (Demchak, Friis, & La Porte, 2000). Egovernment can be interpreted in various ways.

Definitions of e-government vary from the translation of private sector ecommerce experiences to the

public sector to a issues of actual governance such as online engagement of stakeholders in shaping,

debating, and implementing public policies (Pina, et al., 2009).

The field of technology for transparency, accountability and participation is an increasingly

dynamic space for innovation. Whether it is using the power of crowds to a monitor elections, or educating

citizens about how the government spends money on public service, or monitoring local and national

government budgets, information and communication technologies (ICTs) are tools that have been used to


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shift how accountability and transparency are incorporated into public service delivery. Over the last decade,

both accountability and transparency have emerged as critical ways to a address both developmental failures

and democratic shortfalls (Mc Gee &Gaventa, 2010). This is based on the argument that through greater

accountability, leaky pipes of corruption and inefficiency will be repaired, aid will be channelled more

effectively, and in turn development initiatives will produce greater and more visible results (McGee et al,

2010, p. 3). In the context of democracy, there are increasing expectations that democracy must lead to

material outcomes through new forms of democratic accountability. There has been a shift in perception that

traditional form of stateled accountability is increasingly seen to be inadequate. Instead, innumerable

Multistakeholder and citizenled approaches have increased in visibility and importance. Such

initiatives now supplement or supplant traditional state led ones (Ibid).

Technology plays a unique and interesting role in the space of accountability and transparency

initiatives. A study by Avila (2010) indicates ICTs, particularly online and mobile technology tools, arechanging the transparency and accountability field. Many of the initiatives including complaints

mechanisms, public information/transparency campaigns, and public expenditure monitoring, are based on

ICT platforms (R Avila, et al., 2009). A number of websites function as portals where citizens can list their

complaints related to their governments performance and administration. Citizens have better access to

information through technologies and new ways to participate (R Avila, et al., 2009). Citizen journalism and

the concept of digital democracy are rapidly emerging and citizens are demanding their rights in public

online of the private sector. Many of these efforts are just beginning, but the literature indicates that several

cases show that they are moving ahead of traditional transparency organizations and their models.(R.

Avila, et al., 2010). Technology based transparency efforts are noted for their speed in execution and

stimulating change. These initiatives are developed by a number of different types of stakeholders and

include collaborative approaches including governments and/or service providers. Technology for

transparency efforts are often classified as pull or push efforts. Specifically, push efforts have goals of

giving voice to civil society. Pull efforts on the other hand raise awareness on the part of the public. These

pull efforts try to provide an accessible information pool from which the public can pull relevant

information to better inform their demand for improved governance and service delivery. For the purposes

of this paper, we focus on technologies for transparency in relation to public officials, government processes,

and budgets rather than other aspects of governance such as the judiciary.

This paper will focus on analyzing the conditions under which new technologies can enhance

delivery of public services to the poor through improved accountability and transparency. It will examine the

linkages between the use of innovations in technology, increased accountability and the effects on the


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delivery of public services to poor communities. Specifically, the paper will investigate the role that the

combination of social media, geomapping and other platforms can play in this process, while bearing in

mind those more traditional technologies, such as community radio and print media can also be effective

channels. Adopting a socio technical approach as it does, i.e. that both the technical and societal aspects of

ICTs for transparency and accountability need to be discussed, the paper targets a diverse range of

stakeholders, from government policymakers, ICT specialists, academics, regulatory agencies to "ordinary"

citizens. The paper is structured in the following way. The next section lays down the theories behind

transparency, accountability and participatory initiatives, while critiquing the assumptions inherent within

these. Section 3 outlines traditional (non/preICT) transparency and accountability initiatives, in terms of

firstly making information Transparent, the auditing of government services and information, including

participatory budgeting, and the resultant potential for dialogue and activism second to technologies for

transparency, reviewing technologies such as websites and wikis, social media, interactive mapping, mobilephones, and arguing that other technologies such as community radio should not be forgotten. Section 5

enters into the discussion on the value of ICTs, as opposed to "offline" attempts at transparency and

Accountability, and research and policy recommendations.


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WHAT IS ICT?

Information technology (IT) is a fancy name for data processing, according to Newton. IT means

all equipment, processes, procedures and systems used to provide and support information systems (both

computerized and manual) within an organization and those reaching out to customers and suppliers. The

term information and communications technology (ICT) was coined to reflect the seamless convergence of

digital processing and telecommunications.

ICTs include hardware, processes, and systems that are used for storing, managing, communicating

and sharing information. These tools can be either manual or computerized (digital). This definition of ICTs

extends to older non-digital devices such as analogue radio and television. Beyond hardware, i.e., computers,

wireless devices, telecommunications towers, etc. ICTs include computer software and associated systems

such as management methods and practices, or the so-called application layer.

An ICT with a far-reaching impact is the Internet, a worldwide network of computers connected

through a robust digital technology called the IP protocol (Internet protocol), which permits the efficient

routing, transmission and management of bits and bytes of data between computers. Mobile devices such as

cellular or mobile phones are also an especially important class of ICTs. (Labelle, 2005)

Fig1.1

The diagram given below helps to explain the meaning of ICT which says that the various Ict devices

which are connected to network like WAN ,LAN, MAN, etc use the tools such as e-mails ,etc to provide the

stored data available on internet, database system to various sectors such as retail, agriculture, industries.


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Fig 1.2

1.1CONTEXT

The contribution of information and knowledge in bringing about social and economic Developmenthas made the world better connected than ever before. The advent of new age Information and

Communication Technologies (ICTs) has provided a much wider choice in collection, storage, processing,

transmission and presentation of information in multiple formats to meet the diverse requirement and skills

of people. Industries, governmental agencies, NGOs etc. have invested significantly in extending the reach

of ICTs during the last two decades.


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1.2BACKGROUND

The Government of India, has invested heavily in the ICT infrastructure strengthening over the past

few years, and has taken several policy initiatives to attract private sector investments in ICT infrastructure

and service delivery. It resulted in higher rate of growth of access to ICTs. Consequently, the digital divide,

in terms of access to mobile subscribers, fixed telephone lines and internet is getting smaller.

A number of experiments, pilot projects and other initiatives on applications of ICTs in different

sectors have been going on in India during the last two decades. Many of these initiatives have clearly

revealed the huge potential of ICTs in improving the efficiency, effectiveness and reach of rural (as well as

urban) service delivery and ensuring the much needed transparency in government and business.

1.3PURPOSE

The purpose of this report is as follows:

To understand the application of ICT To understand the role of ICT in unorganised retail sector and its benefit to the

shopkeepers.

1.4TYPES OF ICTAPPLICATIONS

ICT application can be broadly categorised into the following types:

Decision support to public administrators Improving services to citizens, and Empowering citizens to access information and knowledge (Bhatnagar, 2000)


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1.5THEORIES OF TRANSPARENCY, ACCOUNTABILITY AND PARTICIPATORY INITIATIVES

(TAIS)

TRANSPARENCY INITIATIVES:DEFINITIONS ANDASSUMPTIONS

In the last decade, the capacity of government and civil society to undertake transparency initiatives has

substantially grown, increasingly aided by technology. In wake of the events of Arab Spring and

increasingly over the last decade, there has been attention and expectations on the role that Information and

Communication Technology (ICT) based technology platforms such as websites and wikis, social media,

interactive geomapping, and SMS and voice based reporting can play in increasing accountability,

participation and transparency in public administration (Avila R, et al., 2010; Davis, 2004; Pina, et al.,

2009). Public bureaucracies are under pressure to adapt and more openly improve the ways they interact

with citizens through the adoption of webbased technologies (Ibid.). Factors such as the gap between public

expectation and perceived governmental performance, the role of mass media, political scandals, lack of

transparency, and corruption contributed to a decline of public trust in government in the last two decades

(Nye, 1997; Sirker&Cosi, 2007). Innumerable studies indicate that public investments in services have

resulted in inadequate returns. Additionally, the failure in many countries to achieve substantial poverty

reduction and much inequity among marginalized people contributes to a lack of trust in government.

Improved governance processes and increased public trust in governments has been associated with

increased responsiveness to citizens through two way interactions between governments and citizens (R.Avila, et al., 2010; Joshi, 2010; Mc Gee &Gaventa, 2010).

More access and transparency of information has been perceived as a way to enhance trust in

governments by improving accountability of government services and empowering citizens with e

governance (Demchak, Friis, & La Porte, 2000). Egovernment can be interpreted in various ways.

Definitions of e-government vary from the translation of private sector ecommerce experiences to the

public sector to a issues of actual governance such as online engagement of stakeholders in shaping,

debating, and implementing public policies (Pina, et al., 2009).

The field of technology for transparency, accountability and participation is an increasingly dynamic

space for innovation. Whether it is using the power of crowds to monitor elections, or educating citizens

about how the government spends money on public service, or monitoring local and national government

budgets, information and communication technologies (ICTs) are tools that have been used to shift how

accountability and transparency are incorporated into public service delivery. Over the last decade, both


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accountability and transparency have emerged as critical ways to a address both developmental failures and

democratic shortfalls (Mc Gee &Gaventa, 2010). This is based on the argument that through greater

accountability, leaky pipes of corruption and inefficiency will be repaired, aid will be channelled more

effectively, and in turn development initiatives will produce greater and more visible results (McGee et al,

2010, p. 3). In the context of democracy, there are increasing expectations that democracy must lead to

material outcomes through new forms of democratic accountability. There has been a shift in perception that

traditional forms of stateled accountability are increasingly seen to be inadequate. Instead, innumerable

multistakeholder and citizenled approaches have increased in visibility and importance. Such initiatives

now supplement or supplant traditional state led ones.

Technology plays a unique and interesting role in the space of accountability and transparency initiatives.

A study by Avila (2010) indicates ICTs, particularly online and mobile technology tools, are changing the

transparency and accountability field. Many of the initiatives including complaints mechanisms, publicinformation/transparency campaigns, and public expenditure monitoring, are based on ICT platforms (R

Avila, et al., 2009). A number of websites function as portals where citizens can list their complaints related

to their governments performance and administration. Citizens have better access to information through

technologies and new ways to participate (R Avila, et al., 2009). Citizen journalism and the concept of

digital democracy are rapidly emerging and citizens are demanding their rights in public online of the private

sector.

Many of these efforts are just beginning, but the literature indicates that several cases show that they are

moving ahead of traditional transparency organizations and their models.(R. Avila, et al., 2010).

Technology based transparency efforts are noted for their speed in execution and stimulating change. These

initiatives are developed by a number of different types of stakeholders and include collaborative approaches

including governments and/or service providers. Technology for transparency efforts are often classified as

pull or push efforts. Specifically, push efforts have goals of giving voice to civil society. Pull efforts

on the other hand raise awareness on the part of the public. These pull efforts try to provide an accessible

information pool from which the public can pull relevant information to better inform their demand for

improved governance and service delivery. For the purposes of this paper, we focus on technologies for

transparency in relation to public officials, government processes, and budgets rather than other aspects of

governance such as the judiciary.

This paper will focus on analyzing the conditions under which new technologies can enhance delivery of

public services to the poor through improved accountability and transparency. It will examine the linkages

between the use of innovations in technology, increased accountability and the effects on the delivery of


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public services to a poor communities. Specifically, the paper will investigate the role that the combination

of social media, geomapping and other platforms can play in this process, while bearing in mind that more

traditional technologies, such as community radio and print media can also be effective channels. Adopting a

sociotechnical approach as it does, i.e. that both the technical and societal aspects of ICTs for transparency

and accountability need to be discussed, the paper targets a diverse range of stakeholders, from government

policymakers, ICT specialists, academics, regulatory agencies to "ordinary" citizens.

The paper is structured in the following way. The next section lays down the theories behind

transparency, accountability and participatory initiatives, while critiquing the assumptions inherent within

these. Section 3 outlines traditional (non/preICT) transparency and accountability initiatives, in terms of

firstly making information transparent, the auditing of government services and information, including

participatory budgeting, and the resultant potential for dialogue and activism. Section 4 moves on to

technologies for transparency, reviewing technologies such as websites and wikis, social media, interactivemapping, mobile phones, and arguing that other technologies such as community radio should not be

forgotten. Section 5 enters into the discussion on the value of ICTs, as opposed to "offline" attempts at

transparency and accountability, and research and policy recommendations.

Viewed from a broader development perspective, things are not so simple. The new wealth that has arisen

in India from the ICT boom benefits the relatively wealthy and educated in the first instance (Kambhampati

2002). Will this trickle down to the poor and uneducated? Statistics paint a mixed picture of the current

situation. On the one hand, India is now the worlds fourth largest economy in purchasing power parity

terms, and has enjoyed high growth rates for over a decade rising to an average of over 8% per annum in the

period 2004-7 (World Bank 2007). On the other hand, India was ranked as 128th

out of 177 countries on the

human development index 2005 (UNDP 2005) which is a composite index based on life expectancy, literacy

and education levels, and economic standard of living. Shocking statistics include the percentage of

malnourished children under 5 being 46%, the adult female literacy rate as only 48%, and the percentage of

the rural population using adequate sanitary services as 18% (World Bank 2007, UNICEF 2004).

A major development issue, therefore, is whether India can seriously address the needs of its entire

people, including the vast numbers of poor and uneducated in the rural areas and the urban slums. A related

sub-question is whether, and to what extent, can ICTs be used to provide development benefits to all Indian

citizens. There are increasing attempts to use technology in this way through projects such as e-government

services and telecentres in poor areas. The purpose of this paper is to use the published academic literature to

examine such development initiatives and to address the following research questions: what has been


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achieved to date in terms of the use of ICTs for the broader development of India, what remains problematic

and what approaches should be adopted in the future?

The main empirical basis for the paper is secondary data drawn from examining all peer-reviewed

academic articles over the last decade with an explicit focus on ICT projects in India in a range of selected

journals. These included three journals with a specific ICT for development focus, namely Information

Technologies and International Development, Information Technology for Developmentand the Electronic

Journal of Information Systems in Developing Countries. These were complemented by articles in eight

mainstream IS journals, a list of which can be inferred from the references given at the end of the paper. The

full set of papers included a substantial number with a focus on the Indian outsourcing phenomenon but

these have been largely excluded from the material that follows due to the emphasis in this paper on the

broader development of India. A total of 45 papers were included for the analysis which follows.

The rest of the paper is organised into three sections. The next section develops a framework for

analysing ICT initiatives aimed at development goals in four broad categories. The research literature in

each of these categories is then examined to describe initiatives that have taken place in India, what

development impacts have been achieved, and other implications from the studies, including difficulties that

have been encountered. The discussion and conclusions section then synthesises results from these analyses

to address the research questions above and, more generally, to discuss the role of ICTs in development as

part of wider socio-technical interventions.


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CHAPTER 2

LITERATURE REVIEW


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2.1MEANING AND CONCEPT OF INFORMATION &COMMUNICATION TECHNOLOGY

ICT stands for "Information and Communication Technologies." ICT refers to technologies that

provide access to information through telecommunications. It is similar to Information Technology (IT), but

focuses primarily on communication technologies. This includes the Internet, wireless networks, cell phones,

and other communication mediums.

Information and Communication Technology (ICT) plays a major role in all aspects of national life: in

politics, in economic life, as well as in social and cultural development. It transforming lives of people, the

way they do business, access information and services, communicate with each other, provides

entertainment and has benefits relating to human rights by supporting freedom of expression and right to

information. (ICT) is a pervasive input to almost all human activities and breaks barriers to human

development by providing content to knowledge, breaking barriers to participation and breaking barriers to

economic opportunity (e.g. by requiring less initial capital investment and by being more labour intensive

(though skill intensive too)). According to the European Commission, the importance of ICTs lies less in the

technology itself than in its ability to create greater access to information and communication in underserved

populations. Many countries around the world have established organizations for the promotion of ICTs,

because it is feared that unless less technologically advanced areas have a chance to catch up, the increasing

technological advances in developed nations will only serve to exacerbate the already-existing economic gap

between technological "have" and "have not" areas. Internationally, the United Nations actively promotes

ICTs for Development (ICT4D) as a means of bridging the digital divide.

This preliminary research on ICT adoption in Africa and the Asia-Pacific was conducted in three African

countries (Ghana, Nigeria and Cote dIvoire) and two Asia-Pacific countries (Fiji and the Philippines). The

findings suggest that there are serious barriers to ICT use in educational and socioeconomic development, such

as issues of infrastructure support, access to the ICTs, training and skills development, and hierarchical social

relations which determine who has access to ICTs. The study found that in Africa and Asia-Pacific countries,

ICTs are generally considered appropriate, even though there remain concerns over economic priorities -- basic

needs of the people or computers.

The study found that the implementation of ICTs is occurring in a context where the cultural and

institutional barriers are not well addressed. The assumption often made is that if one just purchases a few

computers and modems, a post-industrial society can magically result. Africans and those in the Asia-Pacific

countries are generally in the position of consumers and thus in a position where they cannot yet define the

media in their terms. ICT can be thought of as an integrated system that incorporates the technology and


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infrastructure required to store, manipulate, deliver and transmit information, the legal and economic institutions

required to regulate ICT access and usage, and the social and inter-personal structures which allow information

to be shared, facilitate access to the ICT infrastructure, and through which innovation takes place.

The Internet and other ICTs have fundamentally changed the way the world works (Kirkman et al.

2002). It then sets out to analyse, understand, and measure the link between ICT and development, with a

particular focus on the issues of developing countries. The economic reasoning of its premise on the role of ICT

in the development process is that the technology enhances the functioning of the markets because it provides

information to producers and consumers in order to help them make efficient choices (Eggleston et al. 2002).

Three broad sub-systems make up the ICT system, each of which comprises further subsystems:

technology and infrastructure (comprising communication and data processing);institutions (comprising legal and economic institutions) and

Social structures and processes (these influences ICT usage and the inter-personal links that facilitatethe transfer of information).

The world is experiencing a new industrial and technological revolution which is bringing about a

significant, fast and extensive transformation of society and economic activity resulting in a rapid

transformation of the processes of production as well as the transmission of goods and services produced.

The ICT systems are pervading virtually all forms of human endeavor: work, education, leisure,

communication, production, distribution and marketing as well as the content of information networks.

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 stands for Information Communications Technology. There isn't any universally excepted

definition of ICT because the applications and technology involved in this constantly keeps changing almost

on a daily basis. The changes happen so fast which makes it difficult to keep up with them. ICT deals with

digital data and the ways of storing, retrieval, transmission and receipt. More importantly ICT deals with the

ways these concepts work when put together. The C in ICT stands for Communication of data over some

distance by electronic means. This is achieved by the use of networks connecting different hardware to send

and receive data like, personal computers; digital television etc. networks are further divided into (LAN)

local area networks usually linked within an office building and (WAN) Wide area network, a very common

example of the WAN is the internet which is connected over a vast distance. Muddassar Memon.

UNESCO aims to ensure that all countries, both developed and developing, have access to the best

educational facilities necessary to prepare young people to play full roles in modern society and to contribute


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to a knowledge nation. Because of the fundamental importance of ICT in the task of schools today,

UNESCO has previously published books in this area as a practical means of helping Member States: for

example, Informatics for Secondary Education: A Curriculum for Schools (1994) and Informatics for

Primary Education (2000). Rapid developments in ICT now demand a completely new document in place of

the first of these publications. This book has two key purposes. The first is to specify a curriculum in ICT for

secondary schools that is in line with current international trends. The second purpose is to outline a

programme of professional development for teachers necessary to implement the specified ICT curriculum

successfully.

In keeping with their complex nature and multiple applications, Information and Communication

Technologies (ICTs) may be viewed in different ways.


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2.2CLASSIFICATION APPROACH FOR LITERATURE REVIEW

Figure 2. 1 Approach for Literature Review

2.3HISTORICAL BACKGROUND

Information has always played a very important part in human life. However, in the mid-20th century,

the role of information increased immeasurably as a result of social progress and the vigorous development

in science and technology. In addition, as Trostnikov (1970) has pointed out, rapid expansion of a mass of

diversified information is occurring, which has received the name information explosion. As a result, the

need has arisen for a scientific approach to information and for elucidation of its most characteristic

properties.

Scientists desire to treat the Internet as an open experimental system has repeatedly clashed with the

military interest in a stable and secure environment. In 1983, for example, the Defense Department split off

the military users from the ARPANET to create a second network called MILNET, so that military userswould not be disrupted by scientists experiments with the network. A more recent dispute has been over the

use and export of encryption technology, which the US government has tried to restrict in the name of

national security. Computer scientists have argued that such restrictions are futile (since strong encryption is

already available outside the US) and have a chilling effect on scientific communication. There is also a gap

in the US between the internationalism of the scientific community and the more narrowly nationalist


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outlook of the government. The US has been at odds with much of the world on issues such as technical

standards, export restrictions for encryption, and the move to IPv6, which many countries see as necessary to

create a sufficient supply of IP addresses (of which the US currently controls the lions share). Computer

scientists have in some cases organized to insert the views of scientists into these political debates.

Habits of openness and sharing on the Internet also conflict with the desire of business interests for

secrecy, closed proprietary interfaces, and tightly controlled dissemination of intellectual property. The

1970s saw debates over whether technical standards for networking should be proprietary or public, with the

eventual triumph of the open TCP/IP standard thanks to US government backing. In the 1980s, tensions over

business use of the taxpayer funded. Internet eventually led to its privatization and commercialization. More

recent conflicts focus on intellectual property, such as the entertainment industry's push for harsh legal

measures to restrict copying. Computer scientists have complained that these laws criminalize normal

scholarly research and communication for scientists working in this area.

L. A. Ogunsola and W. A. Aboyade (2005) This paper presents an historical development of

telecommunications starting from Lanlate I Satellite Earth Station which was Nigerias first international

satellite telecommunications gateway to the outside world. An overview of the general level of development

of information technology in Nigeria is also highlighted and it also examines the extent to which it is being

used in support of information delivery and communication in science and technology. The importance of

information technology devices to the general development of national economy and educational

advancement is also discussed. The paper emphasizes that for the survival and relevance of higher education

institutions in Nigeria, ICT should be declared an institutional priority with adequate funding and support. It

is finally concluded that the tremendous advancement in computer technology, software engineering and

telecommunications as well as the resultant radical changes and advances in the techniques of data and

information processing, storage, retrieval and dissemination in Nigeria within a decade is, no doubt, a

revolution.

Preker et al. (1999) showed technical progress accounted for 40-50% of mortality reductions between

1960 and 1990 making technology a more important source of gains than higher incomes or higher

education levels among women.The UNDP report asserts that, cross-country studies suggest thattechnological change accounts for a large portion of differences in growth rates.


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2.4EVOLUTION OF ICT

The world has undergone an evolution in terms of structural change and technological transformation.

However, Africa is still lagging behind in this modern whose development is largely determined and led by

technological advances. Increasingly, ICT plays an important role in determining levels of development and

the quality and accessibility of services in our modern societies. It is in this context that governments and

world leaders made a strong commitment towards building a people-centered, inclusive and development-

oriented Information Society for all, where everyone can access, utilize and share information and

knowledge (WSIS, 2003 and 2005).

2.4.1 Information Technology Era

Information technology (IT) is a term that encompasses all forms of technology used to create, store,

exchange, and use information in its various forms (business data, voice conversations, still images, motion

pictures, multimedia presentations, and other related forms) including the both telephony and computer

technology that have been the driver of what has often been called "the information revolution."

2.4.2 Electronic calculating machine: In 1946, the first entirely electronic calculating machine

ENIAC was made up of 30 separate units, weighing 30 tons, occupying 1,800 square feet with 17,468

vacuum tubes. The machine had a capacity for doing nearly 400 multiplications per second.

2.4.3 Mainframes: Thereafter, the decades from the 1950s to 1970s are deemed as the ones for

organizational mainframe and mini-computers. In this mainframe era, an IBM computer that could perform

10 million instructions per second and was costing a hefty $10 million in 1975.

2.4.4 Evolution of the Microprocessor: In 1969, Intel produced the first microprocessor i4004. This

is the time when the computers entire Central Processing Unit (CPU) was placed on a single silicon chip.

The rapid development of microprocessor in 1980s, the microprocessor revolution, brought a major

acceleration of downsizing: replacement of traditional mainframe and minicomputers with micro based

alternatives. This trend also drives users to low-cost solutions based on PCs, LANs, network servers, and

multiple microprocessor-based systems.

2.4.5 The Internet era: The internet is a worldwide system of computer networks, communicating and

facilitating rapid information flows. Today, the Internet is a public, cooperative, and self-sustaining facility

accessible to hundreds of millions of people worldwide. More recently, Internet telephony hardware and

software allows real-time voice conversations.

2.4.6 Communication: Past to Present


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From ancient writing techniques and newspapers weve moved on to text messaging and email. From

Morse code and telegraphs to telephones and radios, we now moved on to televisions, computers and cell

phones.

TVs that utilized tubes with vacuum seals and boasted analog signals and black and white color are

now Flat Screen LCDs or Plasmas that boast all digital High Definition Signals, thousands of lines of

resolution and millions of color pixels. Rotary phones and dial up communication has been transformed to

portable phones. From there they moved on to satellite communication cellular phones. Hand written

symbols, numbers and letters went from being carried to being digitally transferred. We no longer have to

wait for days to receive information as most of our data messages can be transferred in a matter of seconds

over high speed broadband internet connections with computers that boast Gigabytes of Ram and Gigahertz

of processor speed.

2.5WHATS NEXT?

With all of the evolution that has taken place, with TVs, phones, and computers, we wonder what is

going to be the next best thing. Despite the popularity of all of these forms of communication individually, I

cant help but pick a technology that does all three. The technology that can host phone calls, transfer data,

and hosts television broadcasts gets my vote.

2.5.1 The Inadequate Cell Phone

You may be thinking that your cell phone is where Im headed with this. Granted, cell phones can

transfer data (text messaging, email, web-browsing, etc.), and they obviously allow you to make phone calls.

Some of them do stream live video broadcasts. They are highly mobile too! I, however, want something that

is better equipped for the challenge. Cell phones cannot process information as fast as a computer can send

out emails or internet surf. They cannot produce the visual stimulation that a TV is capable of. So, although

they can do all three, Im not picking a super cell phone as the next best thing.

2.5.2 The Impractical Television

This leaves me with my TV and my computer. I am not sure how you feel about this, but I dont think

I want my LCD TV to serve as my phone. For practical purposes, my TV is on my wall, in my living room.

Two problems with this are that I would not be able to pick my TV up and move to another room to make a

phone call if I wanted privacy and if you have people over watching a game I doubt they would want you to

interrupt the game to take a call. If you know how annoying that phone number that pops up on your TV

when you have Digital Phone service can be, then you know what Im talking about.

2.5.3 The Super Computer!


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Process of elimination leaves the computer as the last tech standing. Computers are highly capable of

data transfer. They can host live video broadcasts with exceptional quality. Now if we can just get them to

host phone calls wed be on to something. Oh wait, they already can! I know that making phone calls

through your computer has been something you could do for a long time with a microphone and

headphones/speakers. However, with the help of Voice over Internet Protocol (VoIP) phone technology it

simply has not been easier. In addition, the development of ridiculously great laptops has pretty much made

phone calling through your computer as mobile as your cell phone; sort of. An explanation is coming up

soon.

2.5.4 The Integration of VoIP

VoIP allows you to make phone calls in three different ways. Youll need a high-speed broadband

internet connection for all three options. First, you can still make that phone call through your computer

using a microphone and headphones/speakers, or a headset that does both. Second, you can actually still use

an old phone you have lying around your house to make an internet phone call with the help of a VoIP

adapter that hooks up to a broadband connection. A third option, (mainly for businesses that have multiple

incoming/outgoing calls) is to buy a special VoIP phone that is just like many other businesses phones but it

plugs directly into a broadband connection. It has all sorts of special features right on the user interface so

that you can easily answer and transfer calls multiple phone calls. Picking the option that best suits you

depends on what your intended use is.

2.6EVOLUTION OF ICT APPLICATIONS

2.6.1 Data Processing: They are characterized as being transaction-based, cyclically processed,

usually batch-oriented, and usually operating in a current time frame.

2.6.2 Information Management: Management Information Systems (MIS) facilitate and control the

day-today business in organization with Decision Support Systems (DSS) providing support to decision

makers in making fast, effectiveness and strategic decisions.

2.6.3 Knowledge Management: Knowledge management refers to the state of affairs whereby

organizations comprehensively gather, organize, share, and analyze knowledge in terms of resources,

documents, and human skills. The challenge is to select or build software that fits the context of the overall

plan and promote information sharing.


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2.7 DEFINITIONS

YEAR AUTHOR/

ORGANIZATION

DEFINITIONS

1970 Trostnikov Rapid expansion of a mass of diversified information is occurring, which has received

the name information explosion

1994 Mansell The combination of advanced microelectronics and innovations in software

development has led to systemic technologies which have com e to form a pervasive

cluster of information and communication technologies

1998 OECD ICT sector as a combination of manufacturing and services

Industries that capture transmit and display data and information electronically.

2000 Rodriguez and

Wilson

The set of activities which facilitate by electronic means the processing, transmission

and display of information

2000 ESCAP Refers to technologies people use to share, distribute, gather information and to

communicate through computers and computer networks

2000 Marcelle ICTs can be described as a complex varied set of goods, applications and services used

for producing, distributing, processing, transforming information- (including) telecoms,

TV and radio broadcasting, hardware and software, computer services and electronic

media

2000 Kiiski and

Pohjole

At once a worldwide broadcasting capacity, a mechanism for information

dissemination, a medium for interaction between individuals and a marketplace for

goods and services

2002. Marker, P.,

McNamara, K.

and Wallace, L.

ICTs are defined as technologies that facilitate communication and the processing and

transmission of information by electronic means.

Table 2- 1


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2.8SOME MORE DEFINITIONS OF ICT

Technology is the process of using scientific, material and human resources in order to meet human need or

purpose. If we then consider a simple definition of Information as 'that which can be communicated and

understood', we can then put together a basic definition of IT as:

Information Technology is the use of information in order to meet human need or purpose. The definition of ICT therefore: the use of information in order to meet human need or purpose including

reference to the use of contemporary devices such as the Internet.

ICT (information and communications technology - or technologies) is an umbrella term that includes anycommunication device or application, encompassing: radio, television, cellular phones, computer and

network hardware and software, satellite systems and so on, as well as the various services and applications

associated with them, such as videoconferencing and distance learning.

"Information and Communication Technologies" ICT refers to technologies that provide access toinformation through telecommunications It is similar to Information Technology (IT), but focuses primarily

on communication technologies. This includes the Internet, wireless networks, cell phones, and other

communication mediums.

According to ND Century Code, Information Technology means the use of hardware, software, services, andsupporting infrastructure to manage and deliver information using voice, data, and video . To further this

definition for the sake of IT budgeting, ITD offers the following guidance ICT is any technology that enables communication and the electronic capture, processing, and transmission

of information. Radio, television and print media are vital in many developing countries. In recent years

new ICT, such as mobile phones and the internet (and associated applications such as VOIP, transmitting

telephone calls over the internet) have become available to growing numbers worldwide.


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2.9APPLICATIONS OF ICT IN VARIOUS SECTORS2.9.1 E-Business and SMEs

Information and communication technology (ICT) connectivity (PCs and Internet) is very widespread in

businesses of all sizes. As is the case with all technologies, small businesses are slower than large ones to

adopt new ICTs. Potential small business benefits and firm and sector-specific strategies drive the adoption

and use of ICTs. Furthermore, sectors are increasingly global and dominated by large firms and the structure

of their values chains and operations shape opportunities for small and medium size enterprises (SMEs).

Governments have a range of SME e-business and Internet use programmes. However commercial

considerations and potential returns are the principal drivers of small business adoption and profitable use.

The following points summarize the main policy directions derived from the analysis in the attached report.

Business environment Network infrastructure Trust infrastructure Digital products and information services Skill upgrading Intangible investments and assets Information Government on-line Competition Intellectual property

Meti,( 2001) To improve a firms responsiveness to customers, client feedback and information on

employees professional experience, such as know-how for winning a contract, can be electronically stored

and thus available to be shared within the company. Some small and medium size enterprises have exploited

ICT effectively to improve internal communications and have improved their reputation through swift

responses to customers complaints and an ability to capture clients (hidden) needs.

Scally et al., (2001) A study of 484 SMEs with fewer than 250 employees in Lanarkshire (Scotland) shows a

similar pattern of Internet use. Around 60% of the firms with the Internet use it to learn about competitors,

customers or suppliers. Other major uses include providing product information (56%), setting up a Web

page (54%), purchasing goods/services (53%) and building customer connections (48%).


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banks and the foreign banks are handicapped by the lack of a strong branch network in comparison with the

public sector banks.

Kannabiran and Narayan (2005) argued that the economic liberalization of the 1990s in India and the

opening up of the economy to foreign competition, which had major positive effects on the ICT services

industry, put great pressure on the Indian banking industry to improve its services. New private sector banks

were created during this period and the business models of these banks revolved around a strong ICT

backbone.

2.9.3 Service IndustryICT-based initiatives also facilitate enhanced internal economic activity. It includes internet banking and e-

commerce aimed at providing better financial services to citizens and businesses. More generally, the

adoption in private sector companies of a whole range of ICT-based approaches pioneered in Western

countries from the operational to the strategic level is aimed at more efficient businesses across all sectors.

However, one should be wary of assuming a simple relationship between technology adoption and improved

performance as noted in the general literature on ICTs in developing countries (see, for example, Avgerou

and Walsham 2000). Agricultural supply chains are of particular interest to countries such as India, with a

high proportion of its people living in rural areas and deriving their income from agriculture, and ICTs offer

the potential to improve efficiencies in the supply chain, for example through the provision of up-to-date

price information.

2.9.4 E-Grama:Is an e-governance effort(Mishra, et. al. 2004) by NIC Berhampur, Dept of IT, Govt. of India, which started

in December 2002, with the objectives of providing G2C services to common man through different Gram

Panchayat and village level IT KIOSKS using Information and Communication Technology(ICT). In this

model, the self-financed KIOSKS were opened by the villagers, youth clubs and NGOs from their own

resources and they were accessing the intranet portal from the server placed at NIC Berhampur through

different Remote Access Servers(RAS). The e-Grama IT Kiosks are evenly distributed over the

geographical area of the districts - one kiosk per 3 to 4 Gram panchayats. The Kiosks are run by Kiosk

operators, who are given free of cost training at NIC regarding the implementation and running the webbased software Currently a project has been undertaken to apply ICT tools for prevention of AIDS at MKCG

Medical College by effective use of e-Grama IT Kiosks.

2.9.4.1 Population databases: For delivery of health and family welfare services. Name based registry is

essential as a tool for 100% vaccination, antenatal registration and higher institutional delivery. Share


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Mediciti Rural Health Center, located 40 kilometers from Hyderabad does offer regular family welfare

services to a population of 40000 located in 41 rural villages. It opted to develop a name based population

database, run different queries and placed various alerts on vaccination, nutrition, etc. It had to go through a

learning cycle and now stands confident with 100% vaccination, 1% growth rate, and 20% infant mortality.

rate in that area. What is remarkable is that there are no special extra inputs and financial implications to

track every mother, child and deliver service at their doorstep. The computers/database development cost

them some 25 cents for each beneficiary.

2.9.4.2 Handheld computers for field staff: CMC Limited, in collaboration with the Government of

Andhra Pradesh has been implementing a pilot project in Nalgonda District. The World Bank has given a

grant for the pilot project. Under the project, palmtop computers (Compaq Ipaq) have been supplied to

auxiliary nurse midwives (ANMs) with the required software and training. The ANM is supposed to

maintain information of 6000 population in the palmtop and visit the PHC once in a month to synchronize it

with the database in the main computer. The main computer software generates reports, field schedules,

feedback, etc.

2.9.4.3 Web based initiatives: Several state governments health departments have set-up their web sites

and ritualistically post a bit of static information on such web sites. Some of the better examples are:

Himachal Pradesh, Tamil Nadu and Madhya Pradesh. A good beginning has been made by several state

governments but a lot needs to be done in terms of posting reports, regular documents, detailed statistics, and

more important, responding to queries that come through the web pages.

2.9.4.4 GIS: Ideal for disease mapping, facilities planning and optimization. It has become very popular and

affordable. The cost of software has come down. Digital maps are easily available now for most of the

districts in India. GIS as a planning and management tool is substantially helpful in reducing the monitoring

and implementation costs of health sector programs. With the advent of Internet mapping, information and

data dissemination have become a lot easier, facilitating setting up of a National Health GIS.

ICTAPPLICATION AND

DEVELOPMENT GOALACHIEVED IMPACT FURTHER IMPLICATIONS

Health information systems: improved

health care for the poor

Some evidence of limited progress

in particular states

But still a long way to go to realize

the full potential of health IS in India

Disjuncture between macro-level policy

and micro-level implementation

Difficult of scaling heterogeneous networks

of technology, people, processes and


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institutional context

Table 2- 2

2.9.5 Manufacturing:Computer based control systems can be combined with manufacturing technology, such as robots, machine

tools, automated guided vehicles, to improve manufacturing operations. In this role, the computer can assist

integrating these technologies into a lean and efficient factory capable of competing in world markets.

Organizations such as Allen-Bradley, black and Decker, and Boeing have used information technology and

factory automation to improve manufacturing operations. This combination of information technology and

factory automation is often called computer- integrated manufacturing.

Computer- integrated manufacturing (CIM) blends development in manufacturing with information

technology to achieve competitive advantage. When properly organized, CIM offers the opportunity to

automate design, manufacturing and production planning and control. Each component is described briefly

here:

Engineering design through Computer aided design (CAD) allows an organization to make high quality

specialized designs rapidly. The design can be tailored to meet individual customer needs.

Flexibility manufacturing systems (FMSs) can quickly produce a variety of high quality product efficiently.

An (FMSs) also allow an organization to produce high specialized designs.

.Computer based production planning and control systems allow an organization to cope with the complexity

of managing facilities that produce a wide variety of specialized products without losing efficiency.

When properly combined, these components can yield synergetic results. An organization can have more

flexible and integrated operations, be better equipped to manage complex operations, and exercise better

controls then can a company that operates without CIM. To merge these components into one coordinated

whole, staff from the information systems functions needs to integrate engineering, manufacturing, and

business databases into a cross functional decision support system. Once accomplished, the flexibility to

respond to customer demands with low cost, high quality specialized products becomes a powerful

competitive advantage.

The role of computer and information technology in service operations:

Service by its definition does not have a physical dimension. However many organization classified as a

service providers, actually produced both goods and services. These hybrid operations include restaurants


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which both sell food (a good) and prepare it (a service), department store which sells products as well as the

retailing service, and shops that sell parts and offer repair services.

Mellon bank is using and expert system to successfully battle credit card fraud, which is a multi-billion

dollar problem in the United States alone. The computer based expert system examine 1.2 million account

each day for many factors, such as an unusual number of transactions, charging large accounts, changing

patterns of expenditure. The system usually indicated about hundreds cases that requires more investigation.

Mellon paid about $ I million for the software and predicted it will pay for itself in six months.

Merck and co, one of the largest drug companies in the world, decided to completely revamp itself its

benefits system. To on roll over fifteen thousand salaried employees the old fashioned way using printed

forms would have required Merck to double its person- net stuff. The company spends dollar 1 million to

write computer softwares and install two dozen machines to enroll itself its employees. Enrollment took just

5 weeks and not 1 person was aided to the personal staff. Merck is using similar system to allow employees

to adjust with holding allowances their investment plan without speaking to anyone in payroll. Mercks

software prevents employees from selecting options for which they are not eligible or from making

obviously wrong decisions.

2.9.6 Telecenters

A more direct approach to the use of ICTs aimed at bettering the lives of the poor is through the setting up of

telecentres. Kumar and Best (2006) described the SARI (Sustainable Access in Rural India) project in the

state of Tamil Nadu. Some 80 telecentres kiosks were set up offering a range of services including basic

computer education, e-mail, web browsing and various e-government services including the provision of

certificates. Although the kiosks succeeded initially in delivering the e-government services, many failed

subsequently. Kumar and Best identify a range of reasons for the failure including lack of trained staff,

movement of key officials and, at a deeper level, opposition from government officials at the local level who

perceived a threat from the kiosks to their role, authority and influence in the community and, more darkly,

to their opportunities for corruption. In a later paper on the SARI project, Best and Kumar (2008) noted that

all the privately run telecentres closed whilst those run by a Non-Governmental Organization (NGO) did not,

largely due to additional financing provided by the NGO to offset losses.2.9.7 Computerized Back-end Administrative Systems

The provision of computerized back-end administrative systems is aimed to contribute to development

through more efficient services to citizens, although the effects may not be easily visible to them. In contrast,

the term e-government has come to prominence throughout the world in the last decade, mostly to describe

the highly visible direct services which government can deliver to citizens through the use of ICTs. There is


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an increasing amount of research devoted to this topic, although Heeks and Bailur (2007) argued that much

of this work is over-optimistic in tone. A further type of ICT-based initiative aimed at improving

government services is through the use of geographical information systems (GIS). Many issues that fall

within the remit of government are inherently spatial in nature, such as the planning of roads and utility

systems, and GIS offer a way of analyzing alternative approaches which takes full account of geography and

which utilizes data from a variety of local sources and remote sensing technologies. The specific

development goal is the better planning and implementation of infrastructure, providing improved economic

and social opportunities.

Early efforts on trying to use ICTs to support improved state-level government in India were focused on

back-end administrative systems, and pioneering academic research which traced such initiatives was carried

by Madon (1992, 1993) in the Western Indian state of Gujarat. Computerized Rural Information Systems

Project (CRISP) was designed to support routine reporting of statistics by the agencies but also more tailored

and innovative applications reporting on specific anti-poverty programmes taking place.

2.9.8 E-Government Direct Services

Krishna and Walsham (2005) described two systems in the state of Andhra Pradesh. The first of these was

the Computer-Aided Administration of Registration Department (CARD) system which computerized the

registration of property transfers, resulting in significant reductions in processing time. The second was the

e-Seva project which set up computerized centres where citizens can pay bills to multiple agencies, register

births and deaths, and get a passport and so on. The previous manual processes had to be done in different

places, involved large amounts of citizen time and often bribery to the desk officials to speed things up.

2.9.9 Use of GIS

Specific technologies seem to offer unique opportunities for improved government activities at the national

as well as state level, and GIS are a good example of this. Walsham and Sahay (1999) described a set of 10

GIS projects in India, which took place under the umbrella of the Ministry of Environment and Forests,

aimed at using GIS technology to improve land management in selected districts around the country.

Puri examined a GIS project in the district of Anantpur in the state of Andhra Pradesh. This project respectedthe need to recognize the knowledge that communities have of the land that they inhabit, in addition to the

potential benefits of GIS technologies. Puri described how the project involved participatory mapping

carried out by the local villagers, the results of which were then incorporated in the GIS. The project was

regarded as successful in that the GIS was utilized to help generate improved approaches to land

management practices. Puri argued that the case study demonstrated the need to construct knowledge


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alliances that integrate top-down scientific knowledge with bottom-up indigenous knowledge. Such

approaches require, however, a relatively enlightened view on the part of Indian government officials and

GIS scientists inplacing value on the local knowledge of low status villagers.


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ICT to Support Improved Government Services

ICT Application and

Development Goal

Achieved Impact Further Implications

Telecentres: access to

information for better

freedom of choice

Many initiatives with some

reported benefits

But problematic issues

include financial viability

Poor and disadvantaged often

not reached

Need for alliance of funding agencies, government

organizations, NGOs, villagers etc. to create viable

long-term projects

Sociology of governance approach

Computerized back-end

administrative systems: more

efficient services to citizens

Relatively marginal impact

due to difficulty of changing

administrative culture andcomplex governance structures

Focus shifting to front-end

systems

Culture needs to shift to working more efficiently

and creatively but very hard to achieve

Need to consider link between front-end and back-end government systems

E-government direct

services: visible direct

services

Some success stories but

beneficiaries are mainly the

better-off

Computerized systems do notnecessarily reduce corruption

Core (back-end)

administrative processes may

remain untouched

Pro-poor systems need to have this as a criterion

for success rather than financial viability

Corruption and administrative inefficiency need to

be addressed in conjunction with technology

Use of GIS: better planning

and implementation of

infrastructure

GIS may be something of a

mismatch with local cultural

attitudes and administrativestructures

Top-down projects may fail

due to failure to deliver

benefits at lower levels

Need to construct knowledge alliances that

integrate top-down scientific knowledge with

bottom-up indigenous knowledge

Table 2- 3


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2.10COUNTRY PERSPECTIVE

2.10.1. Global Perspective:

S.NO. COUNTRY RESEARCHER/

ORGANIZATION

YEAR FINDINGS/ABSTRACT

1. United States Garbade and

Silber

1978 The telegraph and trans-Atlantic cable led to significant and

rapid narrowing of inter-market price differentials.

2. Philippines Hayami et al. 1999 Reported data from a survey indicating that rice marketing in

the Philippines is highly competitive, preventing middlemen

from exploiting peasants and consumers through

monopoly/monopsony pricing.

3. Uganda Brynjolfsson and

Hitt

2000 There are now several cellular and mobile telephone

networks, mobile radio communication, paging services,

courier services, private radio and television stations,

multipurpose community telecentres providing

communication services of fax, telephone, e-mail and

Internet, media services, computer services to name a few.

4. Peru Torero 2000 access to a telephone is important in explaining why low

income households do not drop into poverty, but it is not

significant in explaining the transition between poor and non-

poor status

5. Rwanda Brynjolfsson and

Hitt

2000 It is the opinion of the consultants that Rwanda has seriously

under-estimated the effort needed to develop the necessary

human resources to fulfill the 5-year NICI plan. The active

and enthusiastic support of the President of Rwanda for an

ICT-led development process is an extremely strong positive

factor but carries the danger of a top-down approach where

unrealistic targets are not questioned and cannot be

implemented.

6. Tanzania Brynjolfsson and

Hitt

2000 The most visible sign of ICT activity in Tanzania is the

remarkable growth and presence of Internet cafs across the

country. VSAT-based wireless Internet solutions are

available from several ISPs, making high capacity

connections easier to get. The number of people who actually


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use the Internet is increasing rapidly through the Internet

cafs, which are available also in regional towns across the

country. The Tanzanian Telecom company still has a

monopoly on voice telephony, but it is clear that services like

VOIP must be used extensively in clandestine competition.7. Mozambique Brynjolfsson and

Hitt

2000 Mozambique has had an active ICT policy process, setting

priorities for ICT development in Education and the

Development of Human Resources, Health, Governance and

Infrastructure and Universal Access. Many are already being

implemented, such as the modernization of the

telecommunications infrastructure, where the national

telecommunications operator, TDM, is carrying out a very

large investment programme

8. Zambia Brynjolfsson and

Hitt

2000 Zambias situation will not improve until it gets new owners

and managers, with enough political and financial clout to

withstand pressures from government clients to give them

free telecom services. Given the considerable risks of

political interference in the operations of a privately owned

Zamtel, wholly private investors are unlikely to appear.

9. Namibia Brynjolfsson and

Hitt

2000 The majority of the population, however, lives outside of the

modern sector, and except for the (potential) access to mobile

phones, they are not touched by the ICT revolution. School

nets wireless IP network may change this, as many schools

may become local communication centers when they get

connected in the next few years.

10. Ethiopia Ethiopian ICT

Development

Authority

2001 40% import tariffs on ICT equipment makes it too costly for

all but the elite. The incumbent public telecom operator has a

monopoly over all telecom services. Although the number of

mobile phone subscribers is growing, uptake in Ethiopia is

among the lowest in Africa.

11. Turkey Goktas and

Yildirim

2003 importance given to integration of ICTs into education is

increased

12. China China ICT

Development

2004 The number of internet subscribers increased from 33 million

in 2001 to 94 million in 2004. This growth is partly due to


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Authority market forces, namely consumers increasing desire to go

online and competition among service providers. It is thought

that competition is possible because the government views

the ICT sector as an engine for economic growth.

13. Egypt Ministry ofCommunications

and Information

Technology

2004 ICTs transfer of internet subscription charges fromconsumers to Telecom Egypt and internet service providers

(ISPs) coincided with a sharp rise in new users: from ~9 users

per ten thousand inhabitants in 2001, to ~55 per ten thousand

in 2004.

14. Nigeria Ministry of

Communications

and Information

Technology

2004 a new bundle of services including a dedicated range of

phone numbers, affordable rate structure, entrepreneurship

training and exhibition opportunities, and business toolkit on

CD.

explicitly targeting the SME market

15. Africa ITU 2004 The Internet usage rate in the developed world was 8 times

that of the developing countries, and there were 22 million

Internet users in Africa by 2004.

16. Europe Ministry of

Communications

and Information

Technology

2005 Smart wireless tags, including RFID enabling more efficient

Supply-chain management and remote monitoring of work

processes and flows.

16. UK Sheppard and

Hooton

2006 Recognized the importance of working with businesses to

improve competitiveness and productivity and subsequently

companies investment and usage of new technologies

Table 2- 4

2.10.2. Indian Context

The 2007 Global Information Technology report released by theWorld Economic Forum has Networked

readiness Index rankings, which benchmarks the country in their capabilities in ICT. The Networked

Readiness Index (NRI) measures the propensity of countries to leverage the opportunities offered by ICT for

development and increased competitiveness.

India is ranked very lowly on this Index and is falling down further. Not withstanding some specific

clusters of ICT excellence in both countries, their performance overall in leveraging ICT for increased

development appears to be particularly hindered by weak infrastructure, with a very low level of individual

ICT usage for India.


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Collaboration between Innovation destinations

It fosters between the new innovations destinations like India, China and Israel. Between countries, there are

lots of collaborative efforts towards raising funds to invest in state-of-the-art technology companies that will

benefit both the countries. This leads to the development of the entire innovation ecosystem comprising of

entrepreneurs, high-tech companies, startups and possible buyers. Organizations such as TiE and Nasscom

encourage such collaborations that typically benefits all the players of the ecosystem. There is need for more

such collaborations within the companies in ICT industry to achieve inclusive growth and wider economic

benefit.

Creation and Protection of IP

Innovations in the ICT space have mainly centered around software with special focus on CAD/CAM tools

and VLSI design. Owing to the protection offered under the IP regulations, companies have not only been

able to find new revenue channels, but also offer better services to their clients. The R&D growth within the

ICT industry also has a spill-off effect on the non-ICT domain, where both ICT and non-ICT companies

come together to offer next generation products and services. NASSCOM haveundertaken a lot of initiatives

to protect IP rights of companies. Stepsin this regard include anti-piracy campaigns, aggressive

marketingcampaigns for IP rights and their awareness and enforcing compliancewith NASSCOMs code of

conduct by its member companies in the ICTspace.

Focus on machine intelligence

There is a bigger need to explore newer arenas in robotics, sensing systems and other tools of cognitive

powers such that the need for ICT systems to be dependent on prior experiences for growth is reduced.For

ex., innovations in robotic technology

Sustaining and encouraging Innovation

Innovation is the order of the day in the Indian ICT industry, the biggest challenge remains in sustaining

innovation to excel in economic growth.This requires focus on the following areas:

Increase Investment in R&D and human capital

Knowledge economy, as it is popularly called, focuses on building human capital and encourages free rein of

researches. Therefore, there is a need to explore ideas like creation of digital libraries, which will provide a

medium for creating, accessing and preserving knowledge.


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Development of infrastructure to support innovation

The current technologies must be built on such a service infrastructure that will be scalable and dependable

and follow the required security stipulations. The situation today is such that though the focus is towards

convergence, users still function within independent networks and are used to disparate services.

Building Capabilities and Capacity for Growth

India is building its image as technology powerhouse and has brought about change in fast way trying to

catch up to developed countries. India is looked at in a new light as a source of software and engineering

capacity for the world. The policy changes deregulation, opening up of economy and privatization has

helped foster ICT infrastructure. The policy changes have helped affect a brighter future for ICT in India.

Development of highly capable work force continues with high standing of India's education.

Lack of skilled manpower

Seminars, classroom trainings workshops, or on-the-job training can help employees develop technical and

soft skills. ICT Industry specific programmes need to be formulateand the capacity of the institutions

offering these programmes need to be significantly increased. Shortages in core skills call for integrated

training, talent management and succession planning programmes that go hand in hand with efficient

recruiting and retention practices for not only for-profit organizations but also for Government departments.

As India is gearing up to participate in more and more global and larger projects/programs, it is

imperative to hire and nurture quality project managers to add up to the value chain. This is especially

crucial since the available management talent will also need to compete with the multinationals entering the

Indian IT/outsourcing marketplace. Especially for e-Governance projects, it is desirable to organize special

training programmes which provide formal inputs on the planning and implementation of ICT systems. It is

equally important to ensure appropriate tenures for project champions to facilitate a smooth transition, and

internalization of the changed procedures.


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2.11MODELS OF ICT

Figure 2. 2

ICTs can create a Digital Provide that boosts incomes and ultimately leads to economic growth. ICTs have

the ability to disseminate information to isolated, information-deprived locales. Those receiving this

information (predominantly farmers and laborers), as both producers and consumers, will be, for the first

time, able to participate in effective markets. The immediate consequence should be income gains forparticipants, and the ability to better spend their incomes. Over the long term enhanced access to information

should enable producers to significantly improve their practices. Such improvement lays the path to

economic growth.


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2.11.1. Designing business models for mobile ICT services

Figure 2. 3

As depicted in Figure 1 the conceptual framework consists of four interrelated design domains: the service,

organization, and technology and finance design. The service design is put deliberately on top because we

believe that a business model design should start with the demand side of a service offering. Organization

and technology and finance design represent the supply side of a service offering. The finance design is

deliberately put below because we believe that revenues are the bottom line for all design choices. For each

of these domains important design variables and their relationships have been identified, which have been

summarized in so-called domain models.


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Figure 2. 4

The central issue in Service Design is value: a provider intends and delivers a certain value proposition and

a customer or end-user expects and perceives a certain value proposition. In order model this we propose

four related concepts: Intended value and Delivered value on side of the provider, and Expected value and

Perceived value on the side of the customer or end-user. These concepts model the match or gaps betweenthe different perspectives on value similar to Service quality (Parasuraman, Zeithaml & Berry, 1985), see

Figure 2. SERVICE DESIGN ORGANISATION DESIGN FINANCE DESIGN Service design describes a

firms service offering to specific customers end users in particular market segment. Two important

components are: intended value and perceived value. Technology design describes the technical architecture

and functionality that is needed to realize a certain service offering Organization design describes the

configuration of actors (value network) possessing certain resources and capabilities, which together perform

value activities to create value for specific customer Finance design describes how a company intends to

generate revenues from a particular service offering. Important elements are: financial arrangements,

revenues, costs, risks and investments. Interactions and relations Out of reciprocal interactions relations may

develop. Relations are important for a value network as they contribute to trust and commitment within the

network. Multiplicity refers to how many levels the relation has, the more levels, and the stronger the

relation. Strategy and goals Actors differ with respect to the strategy and goals they pursue with the


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collaboration. Collaboration requires partners to share information and give insight into their ways of

working. However, strategic interest may induce partners to act against what is agreed upon, hide the truth or

try to extract confidential information from their collaboration partners. Organizations may defend

themselves by drawing up thick legal contracts and strictly monitoring partners activities. However, these

safeguards do not guarantee that partners will not act opportunistically. Trust between partners is thus an

important condition for an open and constructive collaboration. Organizational arrangements Collaboration

gives rise to complex interdependencies between organizations because no single partner has formal

authority over another partner. Every adjustment has to be discussed and jointly agreed upon (Klein-

Woolthuis, 1999). In order to govern the collaboration actors need to agree formally and informally on how

to divide and co-ordinate the value activities. These agreements should clearly define the responsibilities for

each actor.

Value activities are the activities that an actor is supposed to perform in order for the value network to

deliver the proposed service. A combination of value activities together with the agreements and

responsibilities define the role an actor plays in a value network. Value activities can be seen as costs but

also as investment source. If an actor performs a value activity and gets paid directly for it the activity can be

seen as a cost. If the actor donates the activity in exchange of part of the revenue later it is seen as an

investment. We argue that an actor that does not invest is not a structural actor. Besides financial and social,

organizational resources and capabilities can also be technical. The technical resources and capabilities are

the components to build the technical architecture with. At the same time the existing technical resources of

the actors in the value network impose requirements on the technical architecture, as it has to work with

those resources. In our view there are two technical architectures, one that delivers the service (front office)

and one that connects the actors to work together.

Another important issue in Service Design is the nature of the innovation, we propose to differentiate

between two kinds of innovations: new version services that take an existing service one step further

(evolutionary), and way new services that are new services that are in one or more aspects really new

(revolutionary).


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Figure 2. 5

Organization design describes the value network that is needed to realize a particular service offering. A

value network consists of actors possessing certain resources and capabilities, which interact and together

perform value activities, to create value for customers and to realize their own strategies and goals. Actors

can more or less powerful in the value network depending on their resources and capabilities. Hawkins

(2002) identifies three basic types of partners in a value network: structural partners, which provide essential

and non-substitutable (in-) tangible assets, contributing partners, which provide goods and/or services to

meet specific network requirements, and supporting partners, which provide substitutable, generic goods and

services to the network. Structural partners in principle are better positioned to exert control over the

network than supporting partners. Value network the number of actors and the frequency and type of

interactions contributes to the complexity and density of the value network.


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Figure 2. 6

The most important technological design variables and some of their relevant characteristics are: The

technical Architecture describes the overall architecture of the components listed below. Important

characteristics of the technical architecture are: centralized vs. Distributed, Open vs. Closed, Interoperable

vs. Non-interoperable. The backbone Infrastructure refers to the long- and medium range backbone network

infrastructure. Important characteristics are: High vs. Very high Bandwidth, Future-proof vs. Non-future-

proof Access Networks refers to the first and second mile network infrastructure. Important characteristics

are: Fixed vs. Wireless, High vs. Low Bandwidth, Universally available vs. Deployed in hotspots, Scalable

vs. Non-scalable Service Platforms refers to the middleware platforms enabling different functions, a. o.

Billing, Custome

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