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This article provides information about the challenges faced by the ICT for better application in service economy:
It is very clear that the ongoing development of ICTs in all its forms and applications is driving radical change in our lives, with the constant creation of new products and services, new ways of conducting business, new markets and investment opportunities, new social and cultural expressions and new channels for citizens and government to interact. To maximise the potential benefits of ICT to the economic development, especially the service economy certain things need to be taken into account.
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The essentials needed for the success of the service economy can be analysed. OECD case studies of some international services Firs show that a number of factors are common to their success. These factors are: (i) open markets, (ii) innovation and ICTs (innovation either in terms of processes or products and introducing ICTs and developing applications) and (iii) work organisation and human resources (organisation of work, motivation and skills of workers, and the company culture).
ICTs are particularly important for service sector innovation, as this enables the firms in a variety of services industries to engage in process innovations throughout the value chain, develop new applications, and raise productivity. While service sector has been widely transformed by ICTs, there are certain challenges that have to be tackled with successfully.
The development of efficient, low-cost and broadly diffused networks remain a high priority for the wide spread ICTs application in service sector. This will require continued efforts to improve competitive conditions for telecommunications services. Broadband networks are particularly important, as they will offer new opportunities for many services, including health, education and government.
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It had been seen that privacy and security concerns remain among the key barriers to ICTs use. Hence it is required to develop regulatory frameworks and technological solutions that can enable electronic business and digital delivery of services like health, financial services, tourism, distribution or logistics etc. that foster the culture of security.
ICTs are only a tool for development and these tools can be used for accelerating development. It is clear that for maximum gains to emerge, the development of essential ICTs skills, including software development is necessary. Without such skills, the technologies can neither be maintained nor adapted to local usages, from which greater economic advantages are obtained.
Literacy and education are vital for reaping greatest advantages for the emerging digital/ICT era. The promotion of education and literacy in general and digital literacy in particular, is a challenge facing all countries. Educational differences underlie the different rates of ICTs penetration in different societies. The adoption of ICTs in enterprises is creating two types of skill needs.
The first relates to a variety of foundation skills, such as the ability to learn, to communicate, and to analyse and solve problems, all of which are essential to work environments that rely on rapid innovation, and the interpersonal exchange and creation of knowledge. Also required are the technical skills that related to ICTs itself, the need for which extends well beyond the ICTs sector to the economy as a whole.