1.2 Adapting with Technological Advances

In addition to the use of cell phones and computers (among other technological devices), which are considered as essential tools of business today, the number of people using the Internet is escalating.

In 2008, the number of businesses that had dotcom addresses reached more than 75 million.

	Internet advertising is growing at a rate of 15% annually.
	The number of American customers who go online for searching and buying products and services reaches 34 million per day.
	Businesses' IT investment is increasing as shown in Figure 1.1.

In 2008, IT investment represented 51% of the total capital investment.

These numbers indicates how information systems and e-business systems are becoming at the core of business processes.

1.2 Adapting with Technological Advances

Figure 1.1 Information Technology Capital Investment

1.2 Adapting with Technological Advances

	The implications of such a trend entail a wider telecommunication base where the flow of information is quicker and easier.
	Adopting the most appropriate IS and putting it to the best use enhance communication modes.
	This is evident especially as there is a massive growth rate of e-commerce and e-trading activities.
	Markets are more volatile and market structures are more dynamic.
	This is particularly true in financial services such as banking.
	The rapid changes in technology make management information systems more important to business.
	New technology are emerging such as Cloud Computing where comprehensive business services are provided through the Internet.
	Companies are becoming more dependent on online applications to introduce their services to clients including Mobile Apps.
	Business-to-Business (B2B) applications are becoming vital in managing and coordinating the relationship between companies and their suppliers.