7. Make up your own sentences using the words and word combination given below.

To be split in, modernization programme, to retain the business, to run the business in tandem, cross-subsidising of divisions, to extract savings from business, to one’s credit, to recapture market share, to restrain prices, to end anachronistic market dominance, to liberise, to reduce operating costs, to lift margins, to offset competition, holding company.

8. In groups discuss the following questions.

1. What are the trends occurring in business today that make the knowledge of computers and communications technology more important?

2. What is artificial intelligence and how is it related to expert systems? What are the benefits of expert systems?

3. What is the difference between computer software and computer hardware?

4. Could the cooperation needed among telecommunications firms worldwide lead to more cooperation in other issues such as world health care and worldwide exchanges of technical information?

5. What affect will the growth of robots have on workers and managers?

6. What are the major tasks that have been assigned to computers in industry?

9. In groups discuss the following.

You walk into one of the new, large shopping malls. Maybe it is as big as the mile-long mall in Canada with 57 entrances. You dread the idea of going from store to store on a busy Saturday shopping for gifts for the holidays. Suddenly you notice something new in the centre. It is a kiosk with a video screen inside. It looks like a giant video game. It is called an Electronistore.

Curious, you step inside and sit down. On the screen appears a hostess who welcomes you and asks whether or not you’ve used the service before. You say “No” by pressing a button, and step-by-step instructions appear.

You decide to explore the household appliances listing to see what’s available. A subcategory of microwave ovens appears in the list. You ask for that list and see prices and product descriptions. If you want more details, you push the “details” button and get answers to questions such as whether or not the oven has a browning element.

Fascinated by the possibilities, you push buttons for other categories such as stereo equipment, shoes, and so on. If you see what you want for yourself and for gifts, you can insert your credit card and place an order. There is no salesperson and no standing in line.

The company that makes the Electronistore (Donnelley) expected sales of $17 billion. The Electronistore has several advantages:

• It allows for quick and easy comparison shopping.

• It provides in-depth product information.

• Merchandise can be demonstrated.

• Some 500 different items can be displayed.

• Shoppers enjoy using the service.

Electronistores are just the beginning of interactive electronic shopping, however. You still have to go to the kiosk and wait if others are using it. What if you could call up all the information desired on your TV screen interactive cable TV? Then you could do all of your shopping at home. Your computer would be the equivalent of a giant catalogue capable of demonstrating products and taking your order.

Decision Questions

1. Which system seems to have the greater potential for success: electronic kiosks in stores or interactive TV in the home?

2. What kinds of services (not goods) could be sold over interactive TV systems?

3. Many people (especially those over 45) say that there is no need for a home computer. “What do you use them for, anyhow?” they say. Discuss the future of interactive TV and its uses for obtaining the latest news, banking, shopping, and more. Brainstorm all the possibilities to get a view of the future.

FINANCIAL TIMES OCTOBER 29 2004