ROLE OF IT IN SERVICE SECTOR : 1 INSTITUTE OF BUSINESS MANAGEMENT, KANPUR ROLE OF IT IN SERVICE SECTOR GROUP MEMBERS:
SHIV PRAKASH SAHU
SHALABH SHARMA Slide 2: 2 ROLE OF IT IN SERVICE SECTOR INDUSTRY COMPUTER PROJECT
ON GROUP 11 IT IS A COMBINATION OF TELECOMMUNICATIONS & COMPUTING TO OBTAIN , PROCESS, STORE, TRANSMIT AN OUTPUT INFORMATION IN THE FORM OF VOICE , PICTURES OR TEXT. THIS INCLUDE THE FOLLOWING:i) SOFTWARE APPLICATIONS & OPERATING SYSTEMS.ii) WEB- BASED INFORMATIONS & APPLICATIONS SUCH AS DISTANCE LEARNING.iii) TELEPHONES & MEANS OF TELECOMMUNICATIONS.iv) VEDIO EQUIPMENTS & MULTIMEDIA PRODUCTS.v) WORLD WIDE WEB.vi) ELECTRONIC DEVICES SUCH AS PHOTOCOPIERS. : 3 WHAT IS INFORMATION TECHNOLOGY IT IS A COMBINATION OF TELECOMMUNICATIONS & COMPUTING TO OBTAIN , PROCESS, STORE, TRANSMIT AN OUTPUT INFORMATION IN THE FORM OF VOICE , PICTURES OR TEXT. THIS INCLUDE THE FOLLOWING:i) SOFTWARE APPLICATIONS & OPERATING SYSTEMS.ii) WEB- BASED INFORMATIONS & APPLICATIONS SUCH AS DISTANCE LEARNING.iii) TELEPHONES & MEANS OF TELECOMMUNICATIONS.iv) VEDIO EQUIPMENTS & MULTIMEDIA PRODUCTS.v) WORLD WIDE WEB.vi) ELECTRONIC DEVICES SUCH AS PHOTOCOPIERS. IT CAN ATLEAST DO 3 THINGS:
IT CAN PROCESS RAW DATA INTO USEFUL INFORMATION.
ii) IT CAN RECYCLE PROCESSED INFORMATION & USE IT AS DATA IN ANOTHER PROCESSING STEP.
iii) IT CAN PACKAGE INFORMATION IN A NEW FORM SO ITS EASIER TO UNDERSTAND, MORE ATTRACTIVE, OR MORE USEFUL. PRESENT SCENARIO OF IT IN INDIA : 4 PRESENT SCENARIO OF IT IN INDIA OUR SOCIETY IS BEING RESHAPED BY RAPID ADVANCE IN IT , COMPUTERS, TELECOMMUNICATION NETWORKS & OTHER DIGITAL SYSTEMS THAT HAVE VASTLY INCREASED OUR CAPACITY TO KNOW, ACHIEVE & COLLABORATE. THESE TECHNOLOGIES ALLOW PEOPLE TO TRANSMIT INFORMATION QUICKLY & WIDELY, LINKING DISTANT PLACES & TO CREATE COMMUNITIES THAT JUST A DECADE AGO WERE UNIMAGINABLE. TODAY ONE CAN BUY A MUSICAL GREETING CARD WITH A SILICON CHIP THAT IS 100 TIMES FASTER THAN ENIAC. THIS EXTRAORDINARY PACE OF IT EVOLUTION IS BRINGING PEOPLE & CULTURES TOGETHER & CREATING NEW SOCIAL DYNAMICS IN THE PROCESS. THE RAPID EVOLUTION OF DIGITAL TECHNOLOGIES IS CREATING NOT ONLY NEW OPPORTUNITIES FOR THE SOCIETY BUT ALSO CHALLENGES. ENTIRE INDUSTRIES HAVE BEEN RESTRUCTURED TO BETTER ALIGN THEMSELVES WITH THE REALTIES OF DIGITAL AGE. ROLE OF INFORMATION TECHNOLOGY : 5 ROLE OF INFORMATION TECHNOLOGY IT PLAYS A VITAL ROLE IN TODAY’S GLOBAL ECONOMY IT HAS MADE A SIGNIFICANT IMPACT IN RESEARCH & DEVELOPMENT. THE RESEARCH IS BEING CARRIED OUT IN NETWORKING, COMPUTING, DATA REPRESENTATION & MANY OTHER AREAS FOR EXPLORING THE EXISTING METHODOLIGIES.
THE MAJOR AREAS IMPACTED BY THE ADVENT OF IT INCLUDE BUSINESS, MEDIA, EDUCATION & SO FORTH. Slide 6: 6 INFORMATION TECHNOLOGY IN BUSINESS IT PLAYS AN IMPORTANT ROLE IN BUSINESS ENVIRONMENT AS EVERY ORGANISATION ADOPTS IT IN SOME FORM OR THE OTHER TO PERFORM THE TASKS IN EFFECTIVE MANNER. IT CONTRIBUTES TOWARDS NEW & EFFECTIVE WAYS OF PROCESSING BUSINESS TRANSACTIONS, INTEGRATING BUSINESS PROCESSES, TRANSFERRING PAYMENTS, & DELIVERING SERVICES ELECTRONICALLY.
IT INCLUDES BUYING & SELLING OVER THE INTERNET, ELECTRONIC FUND TRANSFERS, SMART CARDS, DIGITAL CASH & ALL OTHER WAYS OF DOING BUSINESS OVER DIGITAL NETWORKS.
IT HAS EFFECTED BUSINESS IN FOLLOWING WAYS:
iii) COST BENEFITS
iv) MARKETING INFORMATION TECHNOLOGY IN MANUFACTURINGCORPORATES ARE DEVELOPING A MANUFACTURING SOCIETY TO PROVIDE MANUFACTURERS,DISTRIBUTORS AND RESEARCHERS WITH STRUCTURED METHODS AND PRACTICES FOR IMPLEMENTING TECHNOLOGIES IN MANUFACTURING ENVIRONMENTS. USING IT ,SIMULATION SYSTEMS HAVE BEEN DEVELOPED,WHICH ENABLE MANUFACTURERS TO VIRTUALLY PREPARE PROTO TYPE PLANT LAYOUTS,OPTIMISE RAW MATERIAL USAGE,AND ASSESS ERGONOMIC FACTORS PRIOR TO INVESTING IN PLANT REDESIGNS OR NEW FACTORIES .RESEARCHERS ARE DEVELOPING NATURAL LANGUAGE INTERFACES THAT CAN HELP SIMULATE HUMAN TASKS IN A MANUFACTURING OPERATIONS ENVIRONMENT. : 7 INFORMATION TECHNOLOGY IN MANUFACTURINGCORPORATES ARE DEVELOPING A MANUFACTURING SOCIETY TO PROVIDE MANUFACTURERS,DISTRIBUTORS AND RESEARCHERS WITH STRUCTURED METHODS AND PRACTICES FOR IMPLEMENTING TECHNOLOGIES IN MANUFACTURING ENVIRONMENTS. USING IT ,SIMULATION SYSTEMS HAVE BEEN DEVELOPED,WHICH ENABLE MANUFACTURERS TO VIRTUALLY PREPARE PROTO TYPE PLANT LAYOUTS,OPTIMISE RAW MATERIAL USAGE,AND ASSESS ERGONOMIC FACTORS PRIOR TO INVESTING IN PLANT REDESIGNS OR NEW FACTORIES .RESEARCHERS ARE DEVELOPING NATURAL LANGUAGE INTERFACES THAT CAN HELP SIMULATE HUMAN TASKS IN A MANUFACTURING OPERATIONS ENVIRONMENT. THERE IS A GREAT REQUIREMENT TO AUTOMATE SERVICES SUCH AS BOOKING OF RAILWAY TICKETS & PAYMENT OF ELECTRICITY BILL. IT SECTOR HAS BECOME A BOON FOR PUBLIC SECTOR COMPANIES BY HELPING THEM TO INCREASE THEIR OUTPUT & EFFICIENCY.IT HAS ENABLED THE COMPANIES TO HAVE A GREATER QUALITY CONTROL SO THAT THEY ARE ABLE TO MEET THE LAID STANDARDS. THIS HAS BEEN POSSIBLE AS IT HAS BEEN ABLE TO:i) MINIMIZE DUPLICATION & SHARING OF SCARCE RESOURCES.ii) PROMOTE & INSURE THAT IT SOLUTIONS ARE COST EFFECTIVE, EFFICIENT & BUSINESS DRIVEN.iii) PROMOTE TRANSPERANCY & ACCOUNTABILITY IN THE PUBLIC SERVICE BY FACILITATING THE AVAILABILITY, ACCESSIBILITY & SHARING OF INFORMATION. : 8 INFORMATION TECHNOLOGY IN PUBLIC SECTOR THERE IS A GREAT REQUIREMENT TO AUTOMATE SERVICES SUCH AS BOOKING OF RAILWAY TICKETS & PAYMENT OF ELECTRICITY BILL. IT SECTOR HAS BECOME A BOON FOR PUBLIC SECTOR COMPANIES BY HELPING THEM TO INCREASE THEIR OUTPUT & EFFICIENCY.IT HAS ENABLED THE COMPANIES TO HAVE A GREATER QUALITY CONTROL SO THAT THEY ARE ABLE TO MEET THE LAID STANDARDS. THIS HAS BEEN POSSIBLE AS IT HAS BEEN ABLE TO:i) MINIMIZE DUPLICATION & SHARING OF SCARCE RESOURCES.ii) PROMOTE & INSURE THAT IT SOLUTIONS ARE COST EFFECTIVE, EFFICIENT & BUSINESS DRIVEN.iii) PROMOTE TRANSPERANCY & ACCOUNTABILITY IN THE PUBLIC SERVICE BY FACILITATING THE AVAILABILITY, ACCESSIBILITY & SHARING OF INFORMATION. INFORMATION TECHNOLOGY IN DEFENCE SERVICES : 9 INFORMATION TECHNOLOGY IN DEFENCE SERVICES TO HELP THE MILIATRY IMPROVE READINESS & RESPONSE.
MORE FLEXIBLE, TIMELY & DEPENDABLE ACCESS TO INFORMATION IS NEEDED.
IT CAPABILITY ALLOWS MILITARY PERSONNEL TO LITERALLY CONVERSE WITH COMPUTERS TO CREATE , ACCESS & MANAGE INFORMATION & SOLVE PROBLEMS.
IT HELPS TO GAIN RELEVANT INFORMATION IN AN ORGANISED & INTEGRATED MANNER THAT IS READILY USEABLE BY MILITARY PERSONNEL.
FOR E.G. PILOTLESS WARPLANES HAVE BEEN DEVELOPED TO COMBAT ENEMIES AT THE TIME OF WAR. THIS HAS BEEN POSSIBLE BY GATHERING INFORMATION & CONVERTING IT INTO
TECHNOLOGY THROUGH MEANS OF R&D. INFORMATION TECHNOLOGY IN MEDIA : 10 INFORMATION TECHNOLOGY IN MEDIA SOME EXAMPLES OF IT USED IN MEDIA INCLUDE AUDIO VISUAL EQUIPMENTS LIKE TELEVISION, RADIO, VCR, VIDEO CAMERAS & COMPUTERS.
THE MEDIA CAN BE BROADLY CLASSIFIED INTO 2 CATEGORIES:
PRINT MEDIA: IT IS THE MOST WIDE SPREAD OF THE MEDIA TECHNOLOGY. IT REMAINS THE MOST WIDELY ADOPTED, PORTABLE, FLEXIBLE & ECONOMICAL MEDIA. THR PRESENCE OF IT HAS GREATLY ENHANCED PRINT MEDIAS EFFECTIVENESS, MAKING IT AN IMPORTANT SOURCE OF INFORMATION FOR E.G.
AN EVENT OCCURRING IN THE REMOTEST AREAS OF THE WORLD CON BE EASILY COVERED WITH THE HELP OF SATELLITE LINKS.
ELECTRONIC MEDIA: ELECTRONIC MEDIA SUCH AS TELEVISION & RADIO ARE MUCH AHEAD AS COMPARED TO THE OTHER TYPES OF MEDIA. MULTIMEDIA APPLICATIONS ( SOUNDS, VIDEOS & IMAGES ) ARE INCREASINGLY BEEN USED AS PART OF GLOBAL REVELOUTION IN ELECTRONIC MEDIA.INTERNET ALSO FORMS THE PART OF THIS MEDIA. INFORMATION TECHNOLOGY IN EDUCATION : 11 INFORMATION TECHNOLOGY IN EDUCATION THE EMERGING TECHNOLOGIES AFFECTED THE WAY OF LEARNING AND THE WAY OF PROCESSES(LIKE TRANSACTION) ARE CARRIED OUT.THE PRESENT EDUCTION SYSYEM IS FACING SUBSTAINSTIAL PRESSURE TO PREPARE THE STUDENT TO LEARN,LIVE AND WORK IN THE DIGITAL AGE.IT HAS HELPED LEARNERS TO DEVELOP PROBLEM SOLVING,ANALYTICAL & REASEARCH SKILLS.
ELECTRONIC LEARNING:- STUDENTS AND TEACHERS BOTH GAIN CONSIDERIABLE BENEFIT BY UTILIZING E-LEARNING TOOLS.E-LEARNING INCLUDES COMPUTER BASED TRAINING(CBT) & WEB BASED TRAINING(WBT)
CBT IS THE TRAINING WHERE A COMPUTER PROGRAM PROVIDES MOTIVATION AND FEEDBACK IN PLACE OF A LIVE INSTRUCTOR.IT CAN BE DELIVERED THROUGH CD-ROM, LAN OR INTERNET.
WBT IS THE TRAINING,WHICH DELIVERS EDUCATIONAL CONTENT THROUGH A WEB BROWSER OVER THE PUBLIC INTERNET, OR A PRIVATE INTRACT.
VIRTUAL CLASSROOM:-THIS CONCEPT INTRACTIVITY INVLOVES A STUDENT WITH SOFTWARE WITH REACTS AND INTRESTS ,UNLIKE A BOOK.WITH THE HELP OF VIRTUAL LEARNING, STUDENTS CAN;
SEARCH THE DATABASE FOR THEIR VIEWS AND OF OTHER STUDENTS.
LISTEN TO PRE-RECORDED AUDIO COMMENTS TO ENHANCE KNOWLEDGE.
CONVERSE ABOUT THE SUBJECT OR RELATED MATTERS WITH THE TEACHER AND OTHER STUDENTS THROUGH E-MAIL AND DISCUSSION GROUPS.
USE APPROPRIATE RESOURCES TO SEEK, ACCESS AND APPLY KNOWLEDGE.
THROUGH VIRTUAL CALSSROOMS STUDENTS CAN GET ONLINE EDUCATION FROM REMOTE PLACES INFORMATION TECHNOLOGY IN TRANSPORTATION : 12 INFORMATION TECHNOLOGY IN TRANSPORTATION IN INDIA WITH THE ISSUE OF COMPUTERISED RAILWAY TICKETS,THE ERRORS HAVE BEEN MINIMIZED A PASSENGER CAN BOOK THE TRAIN TICKET FROM ANY PART OF THE COUNTRY.
THE CINEMA THEATRES IN ORDER TO AVOID QUEUES AN UNNECCESSARY RUSH FOLLOW THE SYSTEM OF ONLINE TICKET BOOKING SO THAT THROUGH THE INTERNET ANY ONE CAN BOOK TICKETS AT THEIR CONVENIENT PLACES
THE APPLICATION OF IT IN THE TWO MOST IMPORTANT TRANSPORT NAMELY RAILWAYS AND AIR TRANSPORT ARE FOLLOWING:
IT HAS BEEN USED EXTENSIVELY IN THE AREA OF RAILWAY TRANSPORT BY THE DEVELOPED NATIONS ONLY
IT HAS LED TO THE DEVELOPMENT OF COMPUTERISED WAGONS,LOCOMOTIVES AND TRAIN REPORTING SYSTEMS THAT TRACKS CARGO AND WAGONS THROUGHOUT THEIR MOVEMENT WHICH HAS ENHANCED THE EFFICIENCY AND SPEED OF FREIGHT OPREATIONS ENABLING RAILWAYS TO PLAN THE MOVEMENT OF WAGONS MUCH MORE EFFECTIVELY
IT HAS ALSO IMPROVED CONSIDERABLY SHORT TERM TRAIN PLANNING
RAILWAYS CAN NOW PUBLISH AUTOMATED TIME-TABLE GIVING DETAILS OF TRAINS OPERATING BETWEEN DIFFERENT STATIONS,TRAIN TIMINGS ETC.
THE BUSINESS VALUES OF IT APPLICATION IN AIRPORT IS IN THE FORM OF COST CUTTING,INCREASED OPERATIONAL EFFICIENCY AND ENHANCED SECURITY AMONG THE BENEFITS THAT IT OFFERS.
THE CONCEPT OF E-TICKET ALSO BENEFICIAL FOR BOTH THE CUSTOMERS AND THE CARRIER.
WIRELESS COMMUNICATION CAN ENABLE AIRPORTS PROCESSES TO BE EFFECTIVE EARLIER IN THE TRAVEL CHAIN WITHOUT ANY PHYSICAL SERVICE DESK.
GIS (GEOGRAPHICAL INFORMATION SYSTEM) ADDS VALUE & OFFER CONSIDERABLE COST BENEFITS.
DECISION SUPPORT SYSTEM (DSS) ARE ESSENTIAL TOOLS OF AIRPORT MANAGEMENT. INFORMATION TECHNOLOGY IN BANKING IN FINANCIAL SECTOR : 13 INFORMATION TECHNOLOGY IN BANKING IN FINANCIAL SECTOR TREMENDOUS IMPROVEMENT HAS TAKEN PLACE IN THE INDIAN BANKING SECTOR BECAUSE OF THE IT REVOLUTION. ALL THE PRIVATE & FOREIGN BANKS HAVE GONE FOR 100% COMPUTERIZATION.
WITH THE HELP OF COMPUTERIZATION THE TRANSACTION TAKE PLACE AT A FASTER RATE & THE WATING TIME OF A CUSTOMER IN A QUEUE IS GETTING MINIMIZED.
THE COST INCURRED ON INFRASTRUCTURE, FURNITURE & EMPLOYEES HAS GOT DECREASED BECAUSE OF APPLICATION OF IT.
IN THE FINANCIAL SECTOR, OTHER SERVICES SUCH AS INSURANCE, LEASING COMPANIES, MORTGAGE COMPANIES, INVESTMENT CONSISTENCY, STOCK EXCHANGES, SHARE REGISTERY & CUSTODIAL SERVICES LIKE DEPOSITARIES PROCESS LARGE VOLUME OF DATA.
THE BANKING & INSURANCE COMPANIES USE THE IT TO KEEP TRACK OF THEIR CUSTOMERS, TRANSACTIONS & FINANCIAL NEEDS.
STOCK MARKET USE IT FOR ON LINE TRADING WITH THE HELP OF COMPUTER BASED TERMINALS CONNECTED TO ‘TRADING SERVERS’.
INVESTMENT CONSULTANCY SERVICES USE COMPUTER BASED SYSTEMS FOR ANALYSIS OF FINANCIAL POSITIONS, INVESTMENT OPPURTUNITIES AVAILABLE TO THEIR CUSTOMERS.
IT IS CHANGING THE VERY CONCEPT OF CASH & CREDIT THROUGHT THE WORLD. THE FOLLOWING TECHNOLOGICAL ADVANCEMENTS HAVE TAKEN PLACE IN WORLD OF BUSINESS PAYMENTS:
ELECTRONIC FUNDS TRANSFER (EFT) : IT COVERS A WIDE RANGE OF TRANSACTION SERVICES SUCH AS
i) banking services
ii) funds transfer between accounts at the same bank or at different banks.
iii) stock brokerage, services like placement of orders of stocks.
iv) retail ATM services.
v) business transactions involving funds transfer between investment & overdraft arrangements
ADVANTAGES OF EFT
IMMEDIATE & OVERNIGHT TRANSFER OF FUNDS.
ONLINE CREDIT AUTHORIZATION.
REDUCED NEED FOR CUSTOMERS TO CARRY CASH OR CHEQUE. Slide 14: 14 Automated Teller Machines (ATM)
ATMs, though operational in the country for quite some time, are expected to make a big head-way in India. It has been estimated that there are around 400,000 ATMs worldwide out of which 1,00,000 are located in Japan alone. The latest generation networked ATMs allow the user to perform upto 150 kinds of transactions ranging from simple cash withdrawals and deposits, to fund transfer to trading in stocks to buying mutual funds to something mundane like payment of electricity bills, booking air-tickets and making hotel reservations.
ATMs are synonymous with credit cards; 578 million credit cards issued worldwide were involved in a transaction of US $ 1092 billion by June, 1993. India is poised to become one of the world's largest credit and users by 2012 AD.
Multimedia technology has been quite effective in bringing the banking services to the door-step of its customers. The customer activated terminal (CAT) or Kiosk is an interactive multimedia display unit, housed in a small enclosure, typically consisting of a computer workstation, monitor, video disk player and a card reader. It allows the customers to browse through information and use the available banking services at their own speed. Some banks are thinking of establishing 'virtual' branches where a customer can walk through the door, explore services by touching parts of the screen and at any time call up a member of the bank staff by video conferencing. While the banks do not need to invest heavily in real estate for setting up such a branch, the customer gets the benefit of 'one-stop banking' at a convenient location. Slide 15: 15 Electronic Funds Transfer at Point of Sale (EFTPOS)
While travellers' cheques meant 'pay-now-buy-later' and credit cards had 'buy-now-pay-later' advantages, EFTPOS or debit cards signify 'buy-now-pay-now' but without cash transaction. The user presents his ATM card when he buys goods and the EFTPOS system immediately debits his bank account.
Electronic Data Interchange (EDI)
EDI typically denotes paperless financial transactions across the locations. EDI is fast becoming the norm for inter-company transactions and also for procurement of boughtout items from the suppliers. The companies can now operate their bank accounts through corporate banking terminals in their own offices which are linked to the bank computers. Companies can thus carry out transactions like transferring funds, managing its cash flow, opening letters of credit,etc.
without any paper work. Singapore has established trade-net to facilitate electronic submission of trade documents by traders to various Govt. agencies and the response of these agencies to the sender. It has reduced document processing time from one day to 15-30 minutes and the estimated saving are of the order of $ 1 billion annually.
The 'Processor' type smart cards with in-built integrated circuits (ICs) or micro-chips offer a wide range of transactional opportunities even from remote areas. The smart cards are extensively being used for employee 'clocking in', withdrawing cash from ATM, using pay-phones, payment of various bills, etc. Slide 16: 16 CREDIT & DEBIT CARDS. Slide 17: 17 Slide 18: 18 Slide 19: 19 Slide 20: 20 Information Technology & Services Sector : Key Issues
While the technological possibilities of IT may be unlimited, their applications and adoption in INdia need a conscious approach towards business process reengineering of existing practices and procedures to take the fullest advantage of IT. Continuous training and skill upgradation of human resources assume critical importance towards absorption of new technologies.
The elimination of manual records, the introduction of electronic fund transfer, ATMs, etc. raise the important issue of security and integrity of data. This includes issues relating to confidentiality of information, preventing data corruption and prevention of fraud. Appropriate technologies for encryption of data for secured transaction, regular and multiple backups, extensive use of passwords and other forms of authorization would need to be adopted.
For paperless and electronic financial transactions in India, a host of legal aspects need to be looked into. As in case of EFT, a cheque is not required to be presented physically for making payment as per the current practice. Also the legal liabilities of banks and customers in case of loss of ATM cards, ATM frauds, etc. are not quite understood in the present system. The adoption of new technologies would warrant a thorough review of the system towards changed legal stipulations.
Finally, the most important aspect of costs involved and benefits expected need a closer scrutiny. Expenditure on IT has always not been in tune with the returns envisaged. The American example of spending US $ 100 billion on IT applications in financial services during 1970-80 has been a pointer. With 100 per cent more expenditure on IT per worker, it increased productivity by only 0.7 per cent per year. Hence, proper implementation programme and technology management aspects assume much importance.
This article attempts to touch upon the emerging IT applications in a few select services sectors. The TIFAC study covers in details the IT aspects in diverse sectors like marketing, logistics and distribution, technical and management consultancy to even in the Government administration.
The services sector covers a vast range of occupations involving comparatively little capital investment leading to gainful employment and has a very good potential for export revenues. The sector calls for continued induction and infusion of knowledge-based technologies with cutting edge applications of information technology. With the highly skilled manpower and excellent entrepreneurship qualities, India can truly emerge as a 'global player' in the services sector. Slide 21: 21 Future Scenario for India
Television would forge ahead with its domineering role in mass media relegating the print media much behind. With more and more channels getting available coupled with strong emergence of cable networks for localized programmes, TV would pave the way for multi-million rupees entertainment, advertisement and allied business. While rural sector would account for nearly 50 per cent of TV ownership, it is predicted that not more than two-thirds of all the households across the country would own a TV by 2020. TV (including satellite and cable transmission) would account for 40 per cent of advertisement outlays in 2020 against 22 per cent at the current level.
Online electronic newspapers may become a reality in India with the advances in telecom services but such dramatic changes are unlikely for at least another five years. Steep rise in input costs, declining advertisement support (anticipated to reduce by 20 per cent) and shortage of trained manpower would pose major threats to the newspaper industry.
Multimedia technology enabling simultaneous exhchange of voice, text and data would prove to be a major medium of advertisement. Spending on advertisement is expected to be around 5 per cent by 2000 and to reach 12-15 per cent by 2020 AD. Ultimately the market would see an increase from Rs. 350 million to Rs. 120-150 billion by 2020. Around 50-75 million household are expected to be potential users of multimedia by 2020. Slide 22: 22