Business and Technology · Communicating in business

Role of IT in Business Communication for ACCA BT

Updated 11 October 2026 · Fact-checked

IT lets organisations send, share and store information faster, cheaper and across distance. Email, intranets, extranets, video conferencing and social media each suit different audiences. The risks are information overload, weak security, loss of confidentiality, reduced personal contact and reputational damage. In the exam, match the tool to the audience and name the risk.

Understand Information Technology in Business Communication

Business communication is the passing of information between people so that it is understood and acted on. IT has changed the speed, cost, reach and record-keeping of that process. A message that once took days by post now arrives in seconds.

The main tools are:
- Email: written messages to one person or many, with attachments. It is fast, cheap and leaves a record. It can be misread because tone is lost, and it can overload people.
- Intranet: a private network that only an organisation's own staff can use. It holds policies, forms, news and shared documents.
- Extranet: an extension of the intranet that gives selected outsiders, such as suppliers, customers or auditors, limited access. The internet is open to everyone.
- Video conferencing: live audio and video between people in different places.
- Social media: public or semi-public platforms used for marketing, customer service, recruitment and staff engagement.

The key difference between intranet and extranet is who can get in. Intranet means internal users only. Extranet means internal users plus approved external parties. Both are protected by logins.

Video conferencing saves travel cost and time and lets teams meet quickly. Its disadvantages are technical failures, set-up cost, time-zone problems, less body language and weaker relationship building. Security is also a concern if the meeting link is shared widely.

Social media lets a business reach many people cheaply and get fast customer feedback. It also lets bad news spread fast. Staff may post confidential information or damaging comments, and the business loses control of the message.

All these tools raise confidentiality risks. Information can be sent to the wrong person, intercepted, hacked, forwarded, or left on an unlocked device. Organisations manage this with passwords, encryption, access rights, staff training and clear policies on IT and social media use.

Key formulas to remember

Intranet: Intranet = private network for internal staff only; Used for policies, forms, news and shared files.
Extranet: Extranet = intranet + controlled access for approved outsiders; Typical users are suppliers, customers and auditors.
Choosing a tool: Tool choice = audience + urgency + sensitivity + need for a record; Use this to justify which method suits a scenario.
Main risk areas: Risks = overload, security, confidentiality, misunderstanding, reputation; A useful checklist for any disadvantages question.

How to solve Information Technology in Business Communication questions

Use this method for any question on IT in business communication.

1Read the question and identify the tool: email, intranet, extranet, video conferencing or social media.
2Identify who the audience is: staff only, selected outsiders or the public.
3Decide if the question asks for advantages, disadvantages, differences or the best tool.
4Link each point to the scenario: speed, cost, reach, record, security, confidentiality or reputation.
5For a choice question, test each option against audience and sensitivity before picking.
6Check wording such as 'most likely' or 'best' and select the exact number of responses asked for.

Quickest way: Audience and risk shortcut

When to use it: Use this for one-mark and two-mark objective test questions where time is short.

Ask: who needs access? Staff only means intranet. Selected outsiders means extranet. Everyone means internet or social media.
Ask: is it live? Live with visuals means video conferencing.
Ask: is it sensitive? If yes, expect confidentiality or security to be the key risk.
Remove options that overstate, such as 'removes all risk' or 'replaces all face-to-face contact'.
Pick the option that fits the audience best.

Common mistakes in Information Technology in Business Communication

Treating intranet and extranet as the same thing.
Both are private and need logins, so they look alike.
Fix: Ask who has access. Intranet is internal users only. Extranet adds approved outsiders.
Saying the intranet is open to the public.
Students confuse it with the internet or a public website.
Fix: Remember intranet means 'inside'. It is restricted to the organisation's own staff.
Listing only advantages of a tool.
Technology feels positive, so risks are forgotten.
Fix: Always give both sides: speed and cost benefits, then security, overload and loss of personal contact.
Ignoring confidentiality in social media questions.
Students focus on marketing reach.
Fix: Mention staff posting confidential or damaging content and loss of control over the message.
Claiming video conferencing removes the need for all meetings.
Students overstate cost savings.
Fix: Say it reduces some travel but may weaken relationships and depends on reliable technology.
Choosing email for urgent live discussion.
Email is the most familiar tool.
Fix: Match urgency and interaction: live discussion suits video conferencing or phone, not email.

Worked examples

Example 1

A company wants its suppliers to view purchase orders and delivery schedules online but must stop them seeing internal HR policies. Which system is most suitable: intranet, extranet or public website?

Show the solution

The audience is selected outsiders, namely suppliers.
The information is private, so it should not be on a public website.
An intranet is for internal staff only, so suppliers would not normally have access.
An extranet gives approved outsiders limited access, and access rights can exclude HR policies.

Answer: An extranet is most suitable.

Example 2

A multinational uses video conferencing for its monthly management meeting between offices in several countries. Explain one advantage and two disadvantages.

Show the solution

Advantage: managers do not need to travel, which saves cost and time and lets meetings happen at short notice.
Disadvantage 1: technical failures or poor connections can disrupt the meeting and waste time.
Disadvantage 2: body language and informal contact are reduced, which can weaken relationships and understanding.
Other possible points are time-zone problems and security of the meeting link.

Answer: Advantage: saves travel cost and time. Disadvantages: reliance on technology that may fail, and reduced personal contact and body language.

Exam tips

Learn the intranet versus extranet distinction by access: staff only versus staff plus approved outsiders.
In scenario questions, underline the audience and the sensitivity of the information before choosing a tool.
For multiple response questions, select exactly the number asked and avoid absolute statements.
Always link IT communication risks to confidentiality, security and reputation.
In number or short-answer style tasks, give concise points: one tool, one benefit, one risk.

Practice questions from Communicating in business

Information Technology in Business Communication in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Information Technology in Business Communication: frequently asked questions

What is the role of IT in business communication?

IT makes communication faster, cheaper and wider in reach, and helps store records. It supports email, intranets, extranets, video conferencing and social media. It also creates risks such as security breaches and information overload.

What is the difference between an intranet and an extranet?

An intranet is a private network for an organisation's own staff. An extranet extends controlled access to selected outsiders such as suppliers or customers. Both normally require logins.

What are the advantages and disadvantages of video conferencing?

Advantages include lower travel cost, saved time and quick meetings across locations. Disadvantages include technical problems, set-up cost, time-zone issues, reduced body language and possible security concerns.

How does social media affect business communication?

It gives cheap, fast access to customers and quick feedback. It also lets negative comments spread quickly, and staff may disclose confidential information. Businesses use policies and monitoring to manage this.