Internet is simply a global system comprising of interconnected computer networks which uses a set of protocols suite known as TCP/ IP (transmission control protocol / Internet protocol) to aid in linking several devices worldwide. It is a major component in the field of Information Communication Technology. The World is growing very fast in terms of technology and almost all activities carried out utilize ICT in one way or another. Internet has greatly influenced the business environment globally (Adwin, 2014). It has been used to influence activities in various sectors for instance; health, transport and most importantly in the corporate business environment. This paper examines how the use of internet has impacted the business environment in Oman. With references to an organization in this country, the discussion will also highlight how ICT has impacted the marketing strategy and other business activities of the organization. The paper then ends with a set of recommendations on possible strategies which could be implemented to enhance improvements in this area (Argenti and Beck, 2005).
In every country that has embraced internet use in managing operations, there is always a distinct alteration in the business growth. In most cases the growth is positive but it is a point worth noting that the use of internet equally has its fair share of challenges. The nature of these impacts differs as one moves from one country to another and from one firm or organization to another (Argyris and Schön, 2006). Looking at Middle East countries, the positive growth in the business environment is tremendous. Among the countries in the United Arab Emirates who have since digitized and adopted internet use, Oman embraced it from 1997. This progress has greatly influenced the business sector in all phases beginning from production to sales.
Taking Oman as our example of the countries in the Middle East, we can critically look at the role of Internet in its business environment. Since 1997, having adopted ICT, Oman has gone miles and greatly improved in its technological infrastructure and capacity both within the private and government sectors (Ashrafi, 2008). Internet usage in particular has grown rapidly among the members of the public. This has helped in the facilitation of efficiency and ensuring services are brought closer to the Oman citizens. The business environment growth, through economic diversification has been attained because the government has embraced the e-government programs which are fundamental in establishing an efficient administration .The fixed Internet demand grows annually and currently it is at over 50% in the overall household penetration. This means that most of the household possess the mobile phones and internet televisions which makes streaming of videos both possible and accessible. This gives room for easier advertisements and exploration of marketing opportunities for company products especially by the large organizations in the country (Balkundi, and Harrison, 2006).
The digital Oman strategy developed in 2003 helped in the improvement of human resources and also strengthening the e-government. It focused on developing society and human capital, promotion of ICT industry development, enhancing e-government and e-services, uplifting national infrastructure, promoting government standards as well as the regulations. When the ICT industry is developed, the government improves on its economy as it aims at encouraging multinational technological companies. E-services connect the Oman government to numerous government agencies which as a result strengthens online payment systems and communication. The strategy has also helped the Oman government a great deal in promotions and awareness. It has ensured increased understanding of the public to the services that the government offers (Beer and Spector, 2000).
Some of the negative impacts of the Internet is that in Oman the banking, Telecom and government sectors are the top users of ICT. Since the SMEs are the majority, it is important for them to be offered ICT services freely. This is a challenge as getting the required skills and financing is not so easy (Birdi, 2005). However, by the government fully adopting technology in cloud computing and communication, it experiences a number of advantages. Administration is more efficient through streaming process; there is improved exchange and storage of information storage, service delivery and improved accountability to citizens. Currently the Oman government is working on a platform to improve sharing of information through middleware which involves connecting operations systems and applications.
The government regulations reforms also aim at allowing e-signatures to be used on legal documents. This means that invoices, cheques, bank statements, can be signed online giving easy time for both buyers and sellers especially the ones that need to travel or even the international markets (Bossidy and Charan, 2002). Additionally, Smart phones have rapidly increased Internet usage in Oman as accessibility is highly improved. More than 200 government portals are already linked with the eGovernment portal. It’s easier to do most things like the visa online application. Most businessmen that require one to travel outside or into Oman have enjoyed this improvement to a great extent. There is also online payment of bills like the electricity and water bills. The development of these services has improved partnerships with a number of both local and international business partners (Bovey and Hede, 2001).
By 2015, the Oman government in collaboration with Finland’s Valimo launched mobile ID. This allows the option for an electronically implanted e-ID card. The card is accessed through the smartphones and the holders can sign any legal documents and have access to official services just through the phones. The passport was also introduced by the Sultanate in 2015 and it is highly sophisticated as it stores personal information including digital fingerprints as well as photographs (Denning, 2005). This has easened the border control process efficiently especially when it is used together with the E-ID.
Oman Data Park (ODP) for instance, is an organization at the forefront in improving Oman’s domestic ICT sector. It highly favors export oriented services. Its core agenda is do tap into the huge and growing global cloud industry and also the companies trend seeking for local termination and data storage. This platform has enabled clients to organize applications without incurring the costs and also without being hampered by the complexity associated with managing their own hardware, software and hosting capabilities. It has offered full support to the facilities required for web applications and services through Internet (Imielinski and Korth, 2006). ODP has improved the services offered to customers by servicing in house resources and pointing solutions from various vendors. There is increased customer loyalty and competitive advantage from the clients. This is because companies must face and overcome the challenge of innovation through various researches. There is great awareness created in case of a new product or service in the market which increases the product performance in the market areas.
Internet use has largely improved the business environment in Oman, for instance, entrepreneurship is highly encouraged by ITA especially from the young citizens. ITA launched Solid Foundations) programs in 2013. Its main objective is to give a foundation for the new homegrown SMEs (Gichoya, 2006). Mainly it provides technical and business for startup companies in preparation to the market setups. This is achieved through strengthening synergies and encouraging the SMEs partnerships. As a result there is an ICT cluster formation. Coaching and monitoring, accountancy, business management, legal services and clients’ needs assessment are among services available under Sas. programs. It has resulted into a number of companies being established. These include; the Fanadeq Omal, a hotel booking service, Areeb Business Solutions, DALTA and AMJ Tech which is an application developer. In summary, Internet has greatly improved the business environment in Oman. It has ensured growth of local SMEs, it has brought closer services to the locals and made communication easier. It has enabled investment from international clients, formation of partnerships with the Oman firms, and thus an overall positive economic growth of the Oman as a whole (Preece, 2003).
The Oman Airport management company in collaboration with BEUMER group is a company which deals with the provision of automated high speed airport baggage handling systems. Almost all the operations in the company ate ICT oriented. The system involves different stages for instance the baggage goes through from check in gate, through the departure gate and on board of the flight. These services include security screenings, sorting, storage, and transportation. Different service desk at the Oman airports have ICT integrated facilities. The call center has phones and computers and the case is similar to the situation in the contact and help desks too whose activities are mostly ICT oriented (Poslad, 2009).
In addition to using ICT on most of its operations, the company has also utilized the existence of technology to enhance its marketing strateges. For instance, looking at the flight schedule management, the OAM has its live flight information online and provides the real times for arrivals and departures. In addition to informing the clients about the flight schedules, the company also uses this platform to market its new products and services as well as notifying the members of the public on changes in fares with an aim of increasing the market base. This makes it easier for customers to plan their journey at the comfort of their residential places. By The Company is also using ICT to enhance its marketing strategies by ensuring customer loyalty through the provision of efficient services aided by technological approaches. For instance, there is also an application for receiving flight updates directly into a mobile phone at regular time intervals. This has easened the passengers’ time management as businessmen from other nations can simply get flight details they require at their convenience (Rowley and Barker, 2005).
Managing the baggage reconciliation is also ICT aided. This is the process of making sure that passengers board the same flights in which their baggage is checked in. This is a security strategy which helps in minimizing passenger apprehensions related to possible terror threats. The service enables retrieval of the baggage checked in yet the owner by the time of departure is not yet on board. It ensures that the baggage count and the passenger count matches for any given flight. To effectively achieve this, the department works hand in hand with a number of devices and software (Rai, 2012). The printers are used to print the container labels with the information matching the owner, wireless scanners are used to scan the bag tags in the baggage hall and search for bar code or license plate.
For convenience to the clients, the company uses the master clock which is also used in the BRS to synchronize time and date from the GPS. For effective maintenance, the BRS also requires an anti-virus to update its software. This strategy has highly improved baggage safety and security at the airports managed by the Oman airports management company. By enabling documents to be signed online, payment through cheques has greatly improved too (Rhoton, 2001). The mobile identity cards which the Oman government launched in collaboration with Finland’s Valimo contain all the information required for identification at the airport. This is even accessible through the passengers’ Smart phone. It promotes the effectiveness of the company. Such efficient services play a crucial role in helping the company retain its client base since the well treatment attracts the customers for return services. The satisfaction also implies the clients are able to recommend others to embrace the company’s services which are another effective marketing strategy.
There is also the use of fire detection alarms and systems at the airports managed by this company through technological platforms. These include devices such as smoke detectors, heat detectors, and carbon monoxide detectors and tamper switches detectors. The system must meet a set of required standards for it to be allowed for installation at the airport. This has made the Oman airport management company to earn trust of its customers as they feel safe and protected in case of emergency (Reza, 2004). It has also the supervisory control and data acquisitions system, computerized maintenance management system, information display system, management information system to pass information to the staff, and Aldo the land traffic management system. All these systems are ICT based and therefore very effective when handled with qualified personnel. It makes management and supervision not only easier but also efficient. Information is also relayed to the targeted audience at the correct time. This is with the help of the public address systems available at different stages. With the easy flow of information, the company is able to easily spread its marketing ideas to the target audience. The good communication networks ensure a faster flow of information which in turn allows the company to increase the awareness about its products and services to the public.
Effective ICT incorporation has created trust among clients as they know that to a greater percentage their safety is guaranteed by the management company. Communication is also effective as the Oman airports have put in place communication network services, unified telecommunication systems and the server firms. These helps to respond to customers questions, give responses and directions (Schnake, 2007). Oman receives numerous tourists from all over the world and if their safety is guaranteed then their inflow is also mandatory thus resulting into the country’s economic growth stemming from good marketing. All these ICT devices and software have made the company to market its services both locally and internationally and also improve on the effectiveness of its daily operations.
By accepting and availing the eGovernment services, so many activities and transactions at the airport are made easier. These activities are linked such that they enhance both the normal business operations as well as the execution of the marketing ideas. For instance, the air tickets can now be booked online which is the very avenue where the company advertises its packages. Additionally, the bills can be payed using debit or credit cards and check-ins also done online by use of smart phones or computers at the passenger’s comfort without necessarily going to the airport. The ePassports which includes the digital fingerprints and photograph are beneficial to the company (Talukder and Yavagal, 2006). The ePassports and visas are accessible online as the Oman government allowed it and validated them too. The use of the eID for identification is also a contributing factor to the growth of the company.
4.1 At a country’s level
The government ought to encourage each sector to embrace the use of ICT in their operations. Oman being a developing country, the government has sufficiently invested in the infrastructure development but now faces challenge of implementing the eGovernment effectively. This is because some countries partnering with it in trade have not yet implemented the eGovernment services like the ePassport and the eID. Also online signing of legal documents is still a problem as bit all countries have validated it.
There is the issue of untrained personnel and the public at large. The ICT services despite being available some citizens and personnel still don’t know how to effectively utilize them because of lack of skills. The government needs to emphasize in training the public on ICT usage.
The government also needs to put into consideration the United Nations basic factors and other agencies benchmarking findings for proper implementation. Before increasing a systems implementation rate, it is recommended for the government to study the public acceptance rate first.
The company needs to ensure that all its personnel undergo a rigorous ICT training on all the equipment available. Additionally, the company needs to have a manual back up for the customers traveling to or from countries that are not yet fully into the ICT development program. The company should have assigned individuals fully knowledgeable to help in guiding the customers who might not be conversant with the services. A friendly customer care personnel. Lastly, the company ought to enhance the link between its operations and the marketing strategies. This would enable to the management to not only achieve its objectives in retaining clients but also expand its client base by attracting more customers by using ICT in marketing. 5.
5. Conclusion
Internet has played a major role in the development of the business environment in Oman over the past two decades. The use of ICT has impacted positively on the marketing strategies and operations of various organizations. The Oman government has availed several improvements like increasing the rate of the broadband Internet and penetration. It has ensured Internet is available at a subsidized cost and it’s accessibility to almost every household through smart phones. The launching and implementation of the eGovernment services has made business transactions easily and conveniently accessible. The ePassports and eIDs are much more effective in business transactions. Oman government just increased its transactions rate by validating online signatures on official documents.
Generally, communication between buyers and sellers has gone up due to the availability of technology. Emails, Instagram and Facebook are all ICT platforms used by the Oman citizens to communicate. For a successful business then communication is vital. Because of ICT integration there is reduced paper work in the business industry and time wastage is also minimized. Efficiency is also greatly improved. Security threats in businesses like airports and markets are also minimized. All Countries need to fully embrace the ICT integration for a higher business and economic growth.
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