Technology is the application of physical device and knowledge to the environment to change or control. Modern technology has led to a revolution in the business sector and the world’s economy. Technology has helped the business to scale to greater heights though it has also led to the downfall of other business.
Some of the effects that technology has on business are discussed below.
Technology has helped to decrease the cost of running a business. It helps to automate some of the functions in the office such as accounting and record keeping.
Helps improve communication, which can easily be done through e-mails, websites, and apps. This can also enable the business to get feedback easily from their consumers.
It will help increase the productivity of employees through training that helps to improve their skills. Computer programs and software helps the employee to process more information this will reduce the amount of time and labor spent in a particular activity. This helps the business to take care of more work with fewer employees and will improve the operation rate of the business. Modern Technology also helps to improve the business product. Online customer service reduces the investment made in this area without compromising the customer attendance.
Technologies speed up the rate of operation of a business, through the use of email the communication is faster or use of airplane which has made transportation easier and faster. It has helped during sales and distributing goods faster than before.
Globalization and Interdependence
Technology has enabled the business to communicate and deliver their good and services with ease and faster. This has, in turn, led to them conducting business with client and suppliers all over the world. Business can now find an investor from any part of the world by conducting business conferences through internet videos which are enabled by the easily accessible information from across the globe. It helps business to outsource business function such as technical support from another business, which will eventually reduce the cost and focus on the business function they carry out best. Outsourcing happens in business that has the lesser manpower and other facilities. It allows for wider access to a wider market rather than focusing on the local market alone. Through a business website, the consumer can access and purchase the goods and services offered by the business. The website can help expand the business market through running adverts or web banners for new consumers who might visit the website.
It has also raised sets of business risk. There may be a lack of personnel who are not conversant with the new technology like the use of a particular software which will lead to a decrease in employee’s productivity, and this might affect the customer’s experience. The use of online databases can make the business susceptible to cyber-attacks. Cyber-attacks can be avoided through deception technology. Deception technology creates several decoys that are similar to the actual databases, and when the attacker tries to intrude it, he will unknowingly give himself away.
Technology has promoted business by expanding their market reach, and it has also created a desire in a consumer who looks for new products. Technology has also enabled the business to create and develop a new product to satisfy the consumer’s needs.