Impact of Technology on Business
Together with the advancement of science and technology, technological innovations grew along with it, resulting to the emergence of new equipment and gadgets. No matter how big or small your company is, technology brings both intangible and tangible benefits to become cost efficient and to meet the growing demands and needs of customers. Technological innovations affect corporate efficiency, culture and relationship among employees, clients, suppliers and customers. The type and quality of technology used affect the security of confidential business information.
Due to the burden brought by administrative tasks, like inventory, bookkeeping and records keeping, both big and small companies rely on computers to do their administrative works. The birth of Internet and online social networking sites tremendously decreased the costs of business operations. It also makes it easier for companies to use the Six Sigma management methodologies. Some firms shifted to outsourcing instead of hiring their own personnel due to the low costs associated with it. Because of the huge impact of technological innovations to companies, it is impossible for them to live with it.
Commonly used high technology equipment:
- Computer printer
- Paper shredder
- Multimedia projector
- Touch screen monitors
- Computer mouse
- Laptop computers
Advantages of Technology to Business:
- Customer Relations. Technology affects the way companies communicate and establish relations with their clients. In a fast moving and business environment, it is vital for them to interact with clients regularly and quickly to gain their trust and to obtain customer loyalty. With the use of Internet and online social networks, firms interact with consumers and answer all their queries about the product. Establishing effective communication with customers not only creates rapport with them, but it also creates strong public image. It allows business enterprises to reduce and to cut carbon dioxide emissions.
- Business Operations. With the use of technological innovations, business owners and entrepreneur understand their cash flow better, how to manage their storage costs well and enables you to save time and money.
- Corporate Culture. Technology lets employees communicate and interact with other employees in other countries. It establishes clique and prevents social tensions from arising.
- Security. Modern security equipment enables companies to protect their financial data, confidential business information and decisions.
- Research Opportunities. It provides a venue to conduct studies to keep themselves ahead of competitors. It allows companies to virtually travel into unknown markets.
- Corporate Reports. With technology, business enterprises communicate effectively with their branch offices to deliver quality financial and operational reports.
- Industrial Productivity. Through the use of business software programs or software packages, it automated traditional manufacturing process, reduces labor costs and enhances manufacturing productivity. It enables companies to increase efficiency and production output.
- Business mobility. Technological innovations improved companies’ sales, services, shorted lead time on receiving and delivering goods and services. Enables them to penetrate multiple markets at least costs.
- Research capacity. It enables them to conduct studies on various companies to gain knowledge on the new trends in the market and way on avoiding them.