There are very few business or should I say companies today that don’t use technology…
What Is The Role Of Technology In Business
Today, technology is very essential to any type of business whether it’s a startup-company or large-corporation. In fact, before technology was integrated into businesses, companies had to hire a lot of employees in order to accomplish different tasks but this has changed due to the introduction of technology into businesses. On the other hand, the benefits of using technology in a business are many and some of them include increased-productivity, easy data-storage, improved sharing of information and automation of different tasks within the company. However, although technology has played a big role in development of most companies today, it still comes with some drawbacks which include; increased unemployment-levels, increased laziness amongst employees and a lot more. So, below are some of the roles of technology in business and I think they will be of great use to the reader.
Positive Roles Of Technology In Business:
- Improves communication within business: with the integration of technology within businesses, there has been a great improvement in communication at workplaces whereby employees can now use different technological-tools and services to communicate easily and faster than never before. For example, today companies enable employees to use phone-calls, E-mail-services, chatting-platforms and a lot more to ensure quick and effective communication at the workplace. In fact, E-mails and chatting-platforms will enable workers to send messages instantly without even interrupting the recipient. On top of that, the integration of technology in business has helped to improve on communication between clients and businesses since information and transactions can be passed through multiple channels instantly.
- Increases efficiency within business: with the use of technology into business, a lot of time is saved-up by simply speeding-up the work-flow process. In fact, technology conjoins work-systems, provides digital-storage and even facilitates for improved networking within a company thus leading to an increase in efficiency by simply allowing employees to accomplish different tasks quickly. On top of that, the use of computer-systems at the workplace facilitates for quick storage, access and correction of information/data with just a click of a button.
- It enables companies to achieve a competitive-advantage in the global-market: technology actually allows companies to gain a competitive-advantage over other businesses in the same industry. In fact, competitive-advantage can be achieved by simply allowing companies to create new-products or services and through expanding the product/service market or customer-base. In fact, today there are many online-tools that enable companies to market their products/service globally and this has actually led to the development of small-scale businesses in the long-run.
- It eliminates mobility (reduces on travel-costs): with the use of technology in business, companies have been able to save a lot of money and time that would have been spent on travelling abroad for business-meetings. In fact, today companies use different advanced-technologies like; video-conferencing, Tele-conferencing and a lot more inorder enable employees to easily interact with company-clients globally. On top of that, even different business can easily interact with each other easily with help of these technological-tools thus leading to development of the world-economy. All in all, technology helps to reduce on travel-costs since businesses and clients can easily set-up virtual-meetings and exchange information without the need of being in the same room. So, technology has enabled businesses to achieve a global-presence at a cheaper cost.
- Improved sales within business: technology actually helps to increase on sales within businesses whereby companies now use different technological-tools to predict outcomes and to increase on production-levels. On top of that, online-marketing services have enabled companies to gain access to the global-market and this actually implies that companies will get more customers thus leading to increased sales in the long-run.
- It enables businesses gain access to new-markets: technology actually helps businesses to gain access to new-markets globally and this helps to increase on sales in the long-run. In fact, today there are a lot of online advertising-tools like google-Adsense and a lot more that enable companies to easily gain access to new-market easily through advertisement-services. So, this has helped small-businesses to compete with large-corporations in the global-market which is actually a great thing because it leads to the development of different start-up companies in the long-run.
- It helps businesses in the decision-making process: technology through the use of the internet and corporate-networks actually provides businesses with a lot of information that can be used or referenced when making certain decisions within a company. In fact, a business that has access to accurate information is most likely to make great decisions and this actually facilitates for a competitive-advantage over other businesses. For example; the commercial-value of information has been proven overt-time by companies like facebook, Google and that why companies need to invest in technology if they really want to develop.
- Technology engages customers: today, businesses use social-media platforms like; facebook to engage customers into company promotions and to get feedback about company services/products. In fact, this has enabled businesses to get to know what really people require from them thus leading to an increase in sales in the long-run. On other hand, there are also other technologies that aid for customer engagement and these include; Client relationship management systems (CRM), website-feedback and a lot more.
- Reduced risk within businesses: the integration of technology into businesses has actually led to a great reduction of risks than in the past. In fact, technology in business helps to mitigate most of the traditional-risks like the ones related to paper-systems, manual-labor and a lot more. However, you should know that using technology in business has its own risks like hacking, information-theft and lot more but these can be avoided if serious security measures put into place.
- Increased productivity within business: with the use of technology in business, companies have been able to increase on their production-levels through the use of automated systems. For example, some manufacturing-companies use robots in the production-process and this actually increases on the productivity-levels but with less-labor, accounting-systems help companies to balance books easily and faster thus enabling employees to work more effectively and the use of computers and automated-machines within offices helps to increase on the productivity of employees.
- Improved security within business: with the use of technology within business, information can be stored more securely than in the old-days. In fact, with technology there is low-risk of losing information because it’s stored in a digital-format and it’s even very hard for unauthorized people penetrate or gain access to sensitive company-information. On top of that, technology enables companies to carryout online-transactions more securely than never before which is actually a great thing.
- Easy access to company-information by employees and clients: with the use of technology in business, employees can easily gain access to company information since it’s always kept digitally on the company-servers. In fact, all the company information can be easily accessed in real-time and this enables employees to work more efficiently than in the past where they hard to look for written documents. On the hand, even clients can easily gain access to some company-information through the use of websites and this helps to improve on relations between companies and clients.
- Increased cost-efficiency within businesses: with the integration of technology within businesses, companies have been able to reduce on transaction-costs, travelling-costs, production-costs, communication-costs and a lot more. for example, today companies use emails, chatting-platforms, telephones, video-conferences for communication-purposes and these are actually very affordable compared to travelling, manufacturing-companies use robots in the production-process and these are actually more effective yet they reduce on manual-labor costs, companies make online-transactions which are very safe and cost-effective.
- It enables businesses to operate for 24hours daily: technology has actually enabled certain businesses around the globe to operate for 24-hours daily through the use of online services. for example; companies that have online stores can operate at any time whereby customers can make orders at any time as long as they gain access to the company-website and goods will even be delivered at the clients door-step, banks use ATMs to provide customers with banking-services at any time of the day or night. This has actually improved on the efficiency of businesses and also improves on business-client relations.
- Creation of new technological-jobs within businesses: today, companies that have integrated technological-systems have actually provided people with new technological-jobs which include; system-analyzers, computer-programmers, hardware/software developers, website designers and a lot more. This has actually helped to improve on the lives of different people but you should also know that technology has led to the destruction of certain jobs which isn’t a great thing.
- Accurate and quick processing of business-information: technology has greatly improved on the way companies process all types of information faster and more accurately. in fact, today businesses use computer-programs like spreadsheets, database-software’s, word-processors and a lot more when processing data and this has actually helped to improve on the productivity-levels of employees within companies. on the other hand, there are also software’s that have been designed to provide several businesses with storage and other services while online and this has greatly led to an improvement in the business-industry today.
- Technology ensures real-time customer-support by businesses: technology has enabled businesses to provide their customers with real-time support through the use of different online-services which include; E-mails, chatting-platforms, phone-calls and a lot more. In fact the key to business-success is customer-satisfaction and this can only be achieved by using a real-time customer-support system. On the other hand, companies need to know customer, trends, needs, behaviors and satisfaction-levels inorder to determine the right products/services to provide to customers. Additionally, the internet has enabled companies to access a lot of customers in real-time without even hiring any sales-personnel. Lastly, companies now use customer-relationship-management systems (CRM) to store and analyze customer-data inorder to determine customer-behaviors and needs.
Negative Roles Of Technology In Business:
- Security-issues: although technology can be great for businesses, it actually comes along with several security issues like information-theft, hacker-attacks, viruses, Trojans and a lot more. In fact, some online companies have been severely attacked by hackers in the recent years and this has actually affected their public-image. On top of that, a company can easily lose its data if it’s attacked by viruses or Trojans and the only way to avoid this is by companies putting in place a network-security team which is actually expensive.
- It can cause distractions/disruptions within businesses: technology can actually create serious distractions within a company if not used properly. For example; system-failures can cease work-production, emails and instant-messaging alerts coupled with phone-calls can cause interruptions at the workplace. In fact, according to research it will take someone about 5-8 minutes to return to a creative state after receiving a message-alert or phone-call.
- Technology is expensive to implement into business: having cutting-edge integrated into a business is a bit expensive because there are several initial purchasing-costs coupled with ongoing maintenance, update and training expenses. In fact, technological-equipment is very expensive and some start-up companies may not afford some technologies which isn’t a great thing.
- Reduced job-opportunities within businesses (unemployment): although technology helps to make business-operations more efficient and effective, it has actually led to a rise in unemployment-levels since most tasks are now automated and no-longer require manual-labor. In fact, today computers and software’s can perform multiple jobs effectively that human-labor thus leading to reduction in the number of employees needed by a company.
- Loss of interpersonal communicating-skills: technology through the use of cell-phones, emails and chatting-platforms has actually replaced face-to-face communication amongst employees in the same company or between clients and companies. In fact, interpersonal-communication is very essential when in terms of building business-relationships and that’s why it’s recommended to companies not to over-rely on electronic-methods of communication when making business with serious clients.
Conclusion: technology has actually played a huge role in businesses today in a positive and negative way but the good thing is that the positive-roles of technology in business outweigh the negative-roles. So, businesses are highly recommended to integrate technological-advancements into their systems inorder to achieve a competitive advantage in the gradually changing global-economy. However, there should also be measures put in place to guide employees on how to use certain technologies in a company inorder to achieve optimum productivity.