6.3 Technological influences on business activities Flashcards
What does technology mean in its simplest form?
The use of tools, machines, and science in an industrial context.
How has technology affected businesses in the last 30 years?
Technology has transformed the products consumers demand, the ways products are made, how businesses communicate, and how businesses collect, store, and use information.
What are the key opportunities for businesses from new technology?
New products (e.g., consumer electronics)
New processes (e.g., automation, robotics)
Reduced costs (higher productivity)
Better communications (e.g., social media)
More information for business decision-making.
What are some potential threats to businesses from new technology?
High capital and training costs
Negative workforce relations
System reliability issues
Data protection concerns
Managerial resistance to change
Competition from rivals adopting technology faster.
What is one key way businesses can add value through technology?
Innovation through new technology is one of the most important ways for businesses to add value.
How do management information systems (MIS) benefit businesses?
MIS provide quick, frequent data from all departments, enabling rapid analysis, faster decision-making, and better control over business operations.
What are possible drawbacks of management information systems?
Information overload, making it hard to identify important data.
Centralized power that reduces authority and motivation among teams and middle managers.
What are the stages a business should follow when introducing new technology?
Analyse the potential use of the technology.
Involve employees and managers in the process.
Evaluate different systems and compare costs.
Plan for system introduction and provide extensive training.
Monitor the effectiveness of the system.
Why might some businesses choose not to adopt the latest technology?
Some businesses may thrive without the latest technology due to high costs or because their unique products, like handmade items, don’t benefit from automation.
How does new technology impact business decision-making?
New technology, through IT systems, provides more data, enabling quicker and more informed business decision-making.
