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Impact of Technology on Business Essay

1. introduction.

Technology has brought about one of the most significant and prevalent changes in the business environment. It's very rare to find a business that does not have technologies enabling them to perform their daily activities. Technology has enabled many companies to enhance their business practices by making it easier to produce, store, transmit, and exchange various forms of information. Technology has helped the business to become more efficient and create new or different marketable products. This has further increased customer servicing, simplified accounting, production, and inventory processes, increased employee productivity, and integrated sales and customer delivery processes. The four main types of technology that greatly help business are communication, manufacturing, service, and e-commerce. Acquiring the accurate technology has the power to make or break a business. Often times, companies will find that while they can save money by purchasing lower-grade equipment, it can have a significantly negative impact on their ability to conduct business. A cheaper and less efficient piece of equipment may result in time loss, a drop in productivity, or unexpected expenses such as repair or replacement costs. Businesses that fail to invest in the proper technology will often find themselves losing customers to competitors who have technology that enables them to provide better customer service or a better quality product.

1.1 Definition of Technology

Technology has never been static. Today, new technologies are constantly arriving, and the rate of change has only been increasing. Computers are not the only technology. Technology is all means employed to help individuals or organizations in doing work. The word technology comes from the Greek word techne, which means art and craft. It can be safely said that the use of technology results in higher efficiency and productivity. It has become part of our daily lives. Today, most people in the industrialized nations, and an increasing number in other countries, are familiar with technology and believe that it controls their lives. Our possessive search for more technology is a race without a finishing line. This persistent race is the reason for improvement and innovation. The advance of technology has led to impressive developments. At the same time, it has also made the global environment more competitive. Technology may be defined as something that aids in the accomplishment of a task or an objective through the provision of necessary implements. When this definition is taken into context, we can say that technology has improved the global environment. This does not only mean better gadgets providing entertainment, but an environment that has become more conducive towards economic activity. Technology has enabled people and organizations to make easy communication with each other, even if they are in different countries. This easy communication has led to increased collaboration between firms. Technology has also increased the mobility of people and goods and provided an infrastructure to make the work and life of people more comfortable. These changes have occurred due to the improvement in older technologies and the introduction of new technologies. Thus, technology has made the market environment more competitive through the provision of consumers with high quality and innovative products. All these changes are a result of economic activity by various individuals and organizations trying to earn higher profits. Technology has provided them with a means to try to accomplish the task of earning profits more effectively and efficiently. In conclusion, technology has become an inherent part of our everyday lives, including our working lives. Technology is relevant in today’s competitive global environment as it is tailored towards the achievement of the task with the least amount of time and higher productivity. Earning higher profits by providing innovative and high-quality products is the very task of individuals and organizations involved in economic activity. Technology is crucial towards the accomplishment of this task, and thus the global environment has witnessed many effective changes due to the prevalent technologies.

1.2 Importance of Technology in Business

Technology has really altered business. No industries have been left untouched by the onset of technology. From farming to aerospace, business in its present form would be unrecognizable to people a few years ago. The business technology exists in all types of businesses. It does not matter whether you own a sweet shop on a corner of a street or a multinational company, you cannot escape from business technology. The advent of technology has also enabled the automation of business. For example, in the 20th century, the quickest and most efficient way to transport something was to employ a person to take it. With the onset of IT, that is all set to change. Alternative methods of transport such as railways and cars that are capable of transporting goods quicker are very likely to replace the human. In the future, we may even see the transportation of goods becoming automated. An example of how technology has impacted business is in a supermarket. Computers have really changed the way we monitor and control stock. In the past, a person would have to go through each item on a shelf counting that there was the right amount of stock and then ordering more of the product. Now, this process can be entirely automated using computer software. The current stock level can be deducted from the stock on the shelves and an order automatically made to restock that product. This is just a common example of the countless ways that IT has changed the way we do business.

2. Technological Advancements in Business

• 2.1 Automation and Efficiency • 2.2 Enhanced Communication and Collaboration • 2.3 Data Analysis and Decision Making • 2.4 Streamlined Operations and Supply Chain Technology has drastically changed the business environment. Companies are able to access more markets, as consumers are becoming increasingly knowledgeable and demanding, and various technologies are facilitating the development of new products and services. Furthermore, the advent of the global marketplace has increased the competition among businesses. For consumers, the increasing pace of life has led to less free time available and the problem of information overload. For these reasons, companies are under pressure to improve the efficiency and effectiveness of their operations. Developments in information technology have enabled a move towards automation, where the basic aim is to streamline and control the processes within the organization in the most effective and efficient manner. This has been particularly relevant in the manufacturing industry, where globalization has led to increased competition from offshore companies, which carry the advantages of lower costs and access to resources not available domestically. This was the case with David Brown Automotive, which was faced with the problem of effectively controlling its resources in the development of a luxury sports car. In their efforts to reduce costs, they identified that the most efficient manner of realizing design improvements would be to integrate the key stages of development into a virtual process. This involved using technology called V5, which provided 3D design and simulation capabilities. An additional benefit of this was the automation of virtual presentation material to aid the communication process both internally and with investors. Automation has not just affected manufacturing, but also the way in which company back office operations are being handled. An example is the notion of automated office systems, which use a combination of software and hardware to enable easier management of office tasks and facilitate the exchange of office information. Email and the intranet are included within this and have significantly changed the manner in which information is communicated.

2.1 Automation and Efficiency

Technological advancements in business have ranged from computers to software to the internet in recent years. The result of these advancements has varied; it has largely increased the efficiency and productivity of the workplace. Many great tools have been employed in a variety of ways to extend efficiency and effectiveness in corporate America. However, while these advancements offer greater potential for corporate quickness and proficiency, it comes at a price. That price is job security for those whose jobs are replaced by machines. One of the most widely employed tools of technological efficiency is the use of a customer relationship management (CRM) system. This is a type of software that was first introduced in the early 90s. The general idea of this software is to aid in service and customer satisfaction, and to use customer data to find new sales opportunities. This is a highly effective tool for businesses of all types and has proven to be very successful. Another specific tool is the use of barcodes and scanners. While this is really an old development, it is seeing new potential. The ability to scan items into a computer and generate detailed reports is very effective, and new RFID technology is only going to increase this. This presents a great opportunity to automate inventory and ordering systems.

2.2 Enhanced Communication and Collaboration

Communication and collaboration are two major factors that result in the overall success of any organization. Technology has brought advancements at an infinite speed and made the world a small place in terms of connectivity. With the advent of mobile technology, operatives involved with business can remain in touch with the office and their clients, and may complete essential tasks even when they are not physically present. Technologies such as electronic data interchange and electronic funds transfer have been the base of preserving inter-organizational linkages that enable organizations to collaborate on joint projects. The internet has revolutionized the way in which collaboration occurs with the emergence of cloud-based technology and other forms of software as a service. People are able to collaborate virtually through shared storage and computing. This has helped organizations cut costs and unburden their workforce by providing them with flexible hours to work from home. The success of this is most recently evident in the era of Covid. The most recent technology that has impacted communication and collaboration is the rise of Artificial Intelligence and Machine Learning. AI has transcended the boundaries of human labor and machines are now able to perform tasks that would normally require human intelligence. This is an emerging trend particularly within customer service as AI chatbots have become more intelligent and are able to provide human-like responses to customer queries. With the incorporation of machine learning, these chatbots are learning from the interactions and becoming smarter over time, reducing the need for human workers in this area. Though automation through AI was once thought to be a threat to human employment, space is being made for roles to supervise AI and machine learning initiatives and technology itself is being used to aid the recruitment of employees, most evident in the rise of LinkedIn and online recruitment platforms.

2.3 Data Analysis and Decision Making

Analyzing and making decisions is an important task in running a business organization, whether small or large. Decision making is an important part of problem solving, and it is unlikely that a solution will be found without making a decision. The process of decision making involves making a selection from among various alternatives. Decisions can be made through either an algorithm or simply a stated pattern, but most of the time it involves using logical reasoning based on the available information. In the last two decades, increasingly powerful computers, with the help of specific programming, have been able to partially automate the decision making process. There are two types of decisions that can be applied in any kind of business organization: structured and unstructured. A structured decision can be defined as one in which all the decision making stages and the alternative solutions are well defined. For this type of decision, it is suitable to use an operating system in which the machine can compare the decisions with the actual output. Meanwhile, for unstructured decisions, the decision maker will have to rely on their intuition or previous experience. Data analysis techniques can be used to automate a portion of unstructured decisions and provide information for unstructured decision makers, thus helping them increase the quality of their decisions.

2.4 Streamlined Operations and Supply Chain

Companies are continually searching for ways to cut costs and increase revenues. One way to do this is to implement solutions that help them streamline their traditional way of doing business. When you hear the term "streamlined operations," you might think of some complex system put in place to make an operation run smoothly. In many cases, you may be right. But the simple definition of streamlined operations is finding the best and most efficient way to complete a task and then acting on it. Operations are known as the processes used to produce a product or service. All companies have operations. Even a bank has operations when you go in to make a deposit, a series of tasks is performed to get money into your account. With technology, companies often implement automated systems that run their operations with minimal human interaction. This has both positive and negative effects on employment, but it does make the operational side of business far more efficient. This technology may be in the form of software to automate a process or it may be in the form of a machine. Enfield and Haris note that many executives consider supply chain management as a critical element of company strategy. A successful supply chain strategy has many potential benefits. It can support entering new markets, increase revenues, and create a competitive advantage. No longer is the supply chain seen simply as a way to cut costs. The growth of online B2B e-commerce and B2C has increased demand for an effective and efficient supply chain in many industries, none more so than courier services. The emergence of M-commerce is a further extension of this. Mobile sales platforms are now allowing people to conduct business anywhere. This may be seen as a small increment on traditional e-commerce, but it demands further supply chain integration to ensure delivery of the product. Step forward technology. There are so many tools available to facilitate improved supply chain management that it would be impossible to list them all. Some simple examples are software providing visibility of inventory levels and automatic re-ordering, demand forecasting systems, and automated guided vehicles to move products around a warehouse. These are all proven methods to cut costs and increase efficiency.

3. Challenges and Opportunities

The continual development in technology creates both challenges and opportunities for businesses. There are several ways a company can struggle with technology change, the first being the cost. For small businesses, this can be a tightrope between success and failure. The company owners must weigh the disparity between gaining a competitive edge in technology and the cost of doing so. Investopedia put up a good point, in order for a small company to grab market share, the company must move ahead of the competition, rather than following the standard "tried and true" methodology. Usually, this will require an innovative shift to gain an upper hand. In this technology-dominated era, that innovative shift will very well be based on technology. Now, granted a lot of technology is rather efficient and cost-effective, but there are cases where the most technologically advanced product will not pay off in the end. Owners must also consider the rate of technology change in their respective markets. An industry painlessly applied to technology in production, so to speak, will be more amenable for future advancement. While an industry revolving around an outdated method of implementation will have a harder time justifying new technology. Technology change is very volatile and adopting the most recent, comprehensive strategy may also require hiring an IT consultant, another risky proposition for a small business. The pace at which technology moves makes it difficult for businesses to keep up. An option a small business may take is to delay technology change and stave off upgrades and the like. In some cases, this may work, but in order to maintain a competitive edge, a company will require to upend the old method and innovate into new technology. The internal process which a company must take in this situation is an analysis of the pros and cons of the cost vs the possible advancements. The company owners may make a decision at current to keep the old technology, or they may decide that it's best to cut losses and raise capital for a full overhaul.

3.1 Cybersecurity and Data Privacy

This area, in a way, is a direct response to the technological improvements that have preceded it. The advancement of technology has brought with it a growing trend of computer hackers and information thieves to develop new ways of breaching security, whether to steal or destroy information, or to interrupt business operations. Numerous US-based companies, such as those in the Silicon Valley region, have had their software source code stolen with the intent of replicating their software at a lower price. In other domains, confidential information has been sifted out in an attempt to blackmail companies into disclosing strategic information or risk its release to the public. The most common form of security breach, however, is the interruption of the information flow between sender and receiver, such as that through email or on a cloud-based server. Interruption can involve anything from simple interception and reading of emails to altering the content of information with the intent of disinformation. It is widely recommended that companies coming under any of these aforementioned categories seek to consult information security professionals and consider the implementation of more advanced encryption technologies. Failure of these security measures can bring disastrous consequences and consequently result in a loss of consumer trust in the company's capability to protect their information. It has also bestowed upon a new area of business, one might call "Information Security," with a focus on preventing and rectifying the aforementioned security breaches. This, however, can be considered an indirect opportunity derived from the necessity of tightening information security.

3.2 Workforce Adaptation and Training

Due to the rapidly changing adoption of technology in business, the workforce affected by the changes can face a significant challenge in their current roles. Technology has the power to displace many jobs over time as computers become smarter, thus changing the way companies are structured and how work is organized. However, technology opens the doors to greater innovation and investment in those who are able to build, maintain, and re-engineer the new systems. In order for jobs to survive the wave of computerization, they must adapt and stay current with the trend of technology. For some, this will mean an increase in skill requirement. For others, a complete shift in career. Historically, technology in the workplace has advanced with little or no structured training. Traditional advancement was on the job, developing techniques and methods with co-workers and learning through trial and error. For some, this unstructured path has been successful, but the same can't be said for all. The re-engineer of systems can often mean deconstruction and reconstruction more than once as learning improves and errors are realized. It's much less expensive to experiment and fail on paper than in a real system. Today's IT systems represent a complex network requiring an advanced level of knowledge. Failure to understand the intricate workings of a system can be disastrous. This is where structured training is the key to job survival. A modern system may not need a dedicated IT specialist to build it, but it will need one to ensure it's done right. He who can't make the transition will have to find alternate employment in an economy no longer demanding his now outdated skills.

3.3 Market Expansion and Globalization

Technological innovation has transformed the way people conduct business. In the past, business was limited to simply the area of a company's physical location. Business was conducted face to face or over the phone. Most clients could only have information on a particular company from the company itself. With technology, businesses can now reach a global market. Companies can conduct business in real time, sharing documents, video conferencing and much more due to technology and the internet. The internet has made it possible for people working in sales to make a sales call overseas via an internet phone and then meet face to face using a video conference add-on such as Skype. With the rise of technology, the global marketplace has become a reality. The globalization of the marketplace is reflected in the way consumers have changed in making purchases over the years. Market globalization has altered the way people make buying decisions and the criteria that they use to make these decisions. With the rise of technology, consumers are able to research a product or service and often times check the credibility of the company online. This can often be done through research with web services, looking for online reviews or surfing the companies' website. This is a huge shift from the past, where consumers were limited to word of mouth or information provided by the company. The globalization of the marketplace and the ability of consumers to research products has created a fierce market for all companies to have their product be the main product that consumers choose to purchase. Technology has made this market global, and the increased competition has necessitated a rise in the spending on sales and marketing. In turn, technologies have also opened new sales channels, now many companies are being to do business over the net or through B2B or B2C e-commerce, these methods often require a significantly lower cost and higher efficiency; this can also be a way to enter new foreign markets.

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Importance of Technology

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Published: Mar 19, 2024

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Technology Strategy for Business Success Essay

Introduction.

The realm of technology strategy is constantly shifting and unpredictable, making it a complex and uncertain field to navigate. The constantly evolving technology landscape can make it challenging for businesses to analyze and predict the future, as new markets and technologies can arise with unexpected consequences. Despite these challenges, there is a better approach to success in technology strategy than simply “launching and hoping” for the best outcome.

One of the key takeaways from this week’s reading on Technology Strategy is the success stories of companies like Genentech, Amazon, Microsoft, Google, and Facebook. They were able to navigate these challenges through a combination of strategic thinking effectively and calculated risk-taking (Yin, 2015). These companies were able to identify and seize opportunities, remove technical risk at a low cost, and determine a convincing utilization for their technology. They are convincing utilization of their technology. They also chose their commercialisation strategies based on the strength of intellectual property rights and the power of compliments and entered markets where their value statement was powerful, and competition was weak.

To be successful in technology-based competition, innovators must be able to ask and answer principle questions: Why would someone buy from us, and how to make it profitable? To achieve this, they need to create a compelling value proposition, retain their ownership of limited resources, and effectively handle the ongoing changes in negotiating power, competitive benefits, and the dynamic nature of suppliers, customers, competitors, and complementing factors. They also need to understand the power of the networks’ impact on their markets, assess the cost of change and economies of scale, and be able to take advantage of the pioneers and win the rules war (Yin, 2015). Once they succeed in the industry, innovators need to be one step ahead and position themselves to voice the next wave of change. It includes the ability to analyze potential threats related to innovative technologies and industry convergence and to be ready to adapt and adapt the strategy according to needs.

In conclusion, while technology strategy can be a challenging and uncertain field, the key takeaways from the success stories of companies like Genentech, Amazon, Microsoft, Google, and Facebook show that it is possible to navigate these challenges and achieve success. Innovators can establish a robust value proposition, retain a small ownership stake in resources, and skillfully navigate the constantly changing terrain of negotiating power and competitive edge by employing strategic, cautious, and adaptable approaches.

Yin P. L. (2015). Strategy reading: Technology strategy. Harvard Business Publishing, 1-44.

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