Definitions and Concepts of ITC

Definitions and Concepts of ITC


1.World Wide Web (WWW or the Web): a multimedia protocol which uses the Internet to enable the near instant distribution of media-rich documents (e.g., textual data, graphics, pictures, video, sounds) and to revolutionise the interactivity between computer users and servers.

2.Internet: the network of all networks. Nyheim, McFadden, and Connolly (2005) defined the Internet as a network which links multiple networks and users around the globe and a network that no one owns outright. The terms, the Web and the Internet, have often been used interchangeably; however, the Web is part of the Internet as a communication tool on the Internet (Nyheim et al., 2005). Additionally, the terms, the Internet and ICTs, are often utilized in parallel; however, rigorously speaking, the Internet is part of ICTs. Intranet: a corporate or government network that uses Internet tools, such as Web browsers and Internet protocols (Turban et al., 2008). Intranets are “closed,” “secured” or “fire walled” networks within organisations to harness the needs of internal business users, by using a single controlled, user-friendly interface to support all company data handling and processes.

3.Extranet:  a network that uses the Internet to link multiple intranets (Turban et al., 2008). Increasingly enterprises need to formulate close partnerships with other members of the value-chain for the production of goods and services. As a result, extranets utilise the same principle and computer networks to enhance the interactivity and transparency between organisations and their trusted partners. This facilitates the linking and sharing of data and processes between organisations to maximise the effectiveness of the entire network.

4.Information and communication technologies (ICTs): ICTs include not only the hardware and software required but also the groupware, netware and the intellectual capacity (humanware) to develop, program and maintain equipment (Buhalis, 2003) (Figure 1). Synergies emerging from the use of these systems effectively mean that information is widely available and accessible through a variety of media and locations. In addition, users can use mobile devices such as portable computers, mobile phones as well as digital television and self serviced terminals/ kiosks to interact and perform several functions. This convergence of ICTs effectively integrates the entire range of hardware, software, groupware, netware and humanware and blurs the
boundaries between equipment and software (Werthner & Klein, 1999).

According to Buhalis (2003), ICTs include “the entire range of electronic tools, which facilitate the operational and strategic management of organisations by enabling them to manage their information, functions and processes as well as to communicate interactively with their stakeholders for achieving their mission and objectives.” Thus, ICTs emerge as an integrated system of networked equipment and software, which enables effective data processing and communication for organisational benefit towards transforming organisations to e-businesses.
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 Hardware: Physical equipment such as mechanical, magnetic, electrical, electronic or optical devices (as opposed to computer programmes or method of use).
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Software: Prewritten detailed instructions that control the operation of a computer system or of an electronic device. Software co-ordinates the work of hardware components in an information system. Software may incorporate standard software such as operating systems or applications, software processes, artificial intelligence and intelligent agents, and user interfaces.
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Telecommunications: The transmission of signals over long distances, including not only data communications but also the transmission of images and voices using radio, television, telephony and other communication technologies.

Netware: Equipment and software required to develop and support a network or an interconnected system of computers, terminals and communication channels and devices.

Groupware: communication tools, such as email, voice mail, fax, videoconferencing that foster electronic communication and collaboration among groups.

 “Humanware”: the intellect required for the development, programming, maintenance and operation of technological development. Humanware incorporates the knowledge and expertise pool of the society
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Fig. 1


5. Electronic commerce (e-commerce) and electronic business (e-business): E-commerce is defined as the process of buying, selling, or exchanging products, services, or information via computer networks, including the Internet (Turban et al., 2008). In this review, the terms are used interchangeably. E-business includes not only buying and selling of goods and services,but also servicing customers, collaborating with business partners, conducting e-learning, and conducting electronic transactions within an organization (Turban et al., 2008).

6.Electronic tourism (e-tourism): the application of ICTs on the tourism industry (Buhalis, 2003). Buhalis (2003) suggests that e-tourism reflects the digitisation of all processes and value chains in the tourism, travel, hospitality and catering industries. At the tactical level, it includes e-commerce and applies ICTs for aximising the efficiency and effectiveness of the tourism organisation. At the strategic level, e-tourism revolutionises all business processes, the entire value chain as well as the strategic relationships of tourism organisations with all their stakeholders. E-tourism determines the competitiveness of the organisation by taking advantage of intranets for reorganising internal processes, extranets for developing transactions with trusted partners and the Internet for interacting with all its stakeholders and customers. The e-tourism concept includes all business functions (i.e., e-commerce, e-marketing, e-finance and e-accounting, eHRM, e-procurement, eR&D, e-production) as well as e-strategy, e-planning and e-management for all sectors of the tourism industry, including tourism, travel, transport, leisure, hospitality, principals, intermediaries and public sector organisations. Hence, e-tourism bundles together three distinctive disciplines: business management, information systems and management, and tourism.
7.Computer reservation system (CRS): a database which enables a tourism organisation to manage its inventory and make it accessible to its partners. Principals utilise CRSs to manage their inventory and distribute their capacity as well as to manage the drastic expansion of global tourism. CRSs often charge competitive commission rates while enabling flexible pricing and capacity alterations, to adjust supply to demand fluctuations. Airlines pioneered this technology, although hotel chains and tour operators followed by developing centralised reservation systems. CRSs can be characterised as the “circulation system” of the tourism product.

8.Global distribution systems (GDSs): Since the mid 1980s, airline CRSs developed into GDSs by
gradually expanding their geographical coverage as well as by integrating both horizontally, with other airline systems, and vertically by incorporating the entire range of principals, such as accommodation, car rentals, train and ferry ticketing, entertainment and other provisions. In the early 1990s, GDSs emerged as the major driver of ICTs, as well as the backbone of the tourism industry and the single most important facilitator of ICTs globalisation (Sheldon, 1993). In essence, GDSs matured from their original development as airline CRSs to travel supermarkets. Since the late 1990s GDSs have emerged as business in their own right, specialising in travel distribution. SABRE, GALILEO, AMADEUS and WORLDSPAN are currently the strongest GDSs in the marketplace.

9.Intermediaries: Intermediaries (brokers) play an important role in commerce by providing value-added activities and services to buyers and sellers (Turban et al., 2008). The most well-known intermediaries in the physical world are wholesalers and retailers. Traditionally, intermediaries of the travel industry have been outbound and inbound travel agencies and tour operators (Egger & Buhalis, 2008). However, the Internet restructured the entire touristic value chain, forcing the existing intermediaries to take up the new medium and to develop corresponding business models (Egger & Buhalis, 2008). Intermediaries in the cyber-world refer
to organizations/companies that facilitate transactions between buyers and sellers and receive a percentage of the transaction’s value (Turban et al., 2008). Expedia, a system developed by Microsoft, has had a very rapid growth, demonstrating that the new major e-mediaries constitute not only a stronger competition but are also able to displace many companies with years of experiences in tourism, such as American Express and Rosenbluth Travel (Buhalis, 2003).

10.Infomediaries: an electronic intermediary that provides and/or controls information flow in cyberspace, often aggregating information and selling it to others (Turban et al., 2008). The most well-known infomediaries in the tourism industry are TripAdvisor and HolidayCheck which successfully implement a Web 2.0 approach and integrate the users as producers of trusted content (Egger & Buhalis, 2008). Metamediaries like travel meta-search engines (TSEs) appear between suppliers and consumers to aggregate and filter out relevant and pertinent information from the wealth of material (Egger & Buhalis, 2008). TSEs like Sidestep, Mobissimo
and Kayak enable customers to compare offers and prices by carrying out live queries to suppliers, consolidators and online agencies and presenting the results transparently.