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jue_lilyn

Development And Adoption Of Internet And Ict In Malaysia

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From the 1955 to 1995, the concept of the IT expanded that covers three stages of the evolution which is Electronic Data Processing (EDP) era, Management Information Systems (MIS) era, and Internet era.

Computers were first introduced in Malaysia in 1960s and used in the public sector. The first public network, MAYPAC, was implemented by TELEKOM MALAYSIA in 1980s. The establishment of Government databases was increased during the late 1980s and early 1990s. At the beginning of the 21st century, most of the government agencies have launched their Web site. In the early and mid 1990s, use of ICT in the government sector focuses on individual agencies effort in modernizing the administration; education and training, and information provision for public, researchers, and business usage.

For the 2000 survey general trend of ICT applications, a total of 209 companies responded to the survey accounting for a response rate of 14.3% (NPC Productivity Report, 2000):

* For the ICT infrastructure, microcomputers remained the most extensively used type of computers with 91% of companies using them. The use of workstations and minicomputers had decreased to 35% (1998:47%) and 18.5% (1998:39.8%) respectively. 54.1% of companies used client servers and 52.7% with standalone systems. 31.9% of companies used host-based systems while the more complicated systems like host-based integrated with client server and the multi-channel access networks accounted for 25.6% and 15%. Companies also provided high accessibility to PC/terminal where 55.7% indicating a ratio of one user to one computer.

* Email was used by 77.7% of users while in 2000 it increased to 89.9%. Majority of companies (94.2%) have access to the Internet and 85% of them use mail messaging. Internet also allows users to obtain news and references (74.4%) and doing business research (67.6%). Only 24.2% use the Internet to operate online sales and purchases. 62.3% of companies have their own Web site and most of them (63.8%) used it to support their marketing functions.

* Most companies used ICT in area of operations (95.2%) and sales and marketing activities (86.9%). In the support activities, two areas where high usage of ICT is indicated are in the financial and accounting (96.6%) and general administration (93.3%). In terms of intensity, the study showed that intensity of ICT is high for almost all the areas in the support activities, which comprises general administration (44.3%), finance and accounting (76.2%), procurement/purchasing (29.2%) and human resource development (26.6%).

* 42% companies invested between RM100 000 to less than RM1 million; and only 7.3% spent RM5 million and above on ICT that are mainly financial institutions and insurance companies.

* Issues concerning cost of implementing ICT include high cost of maintenance (48%) and high capital outlay (47.2%). The other problems are keeping pace with the technology changes (45.3%), lack of qualified ICT staff (31.6%) and resistance to change by users (27.6%).

* The impacts of ICT are better customer service (73.6%), innovating new process (55.7%), promoting revenue growth (45.7%), forming business alliance (44%) and innovating new product (43.4%).

Marketer cannot succeed in exploiting Internet and ICT unless the right IT infrastructure and development are take place to meet the demands of the users. In the ICT area significant importance has been placed on perceived usefulness as a significant contributor to attitudes and adoption of new technology.

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