9.4 Digital technology

Question 1

What is E-commerce

Answer 1

Example of digital technology
- allows the business to use online platforms to sell goods and services through the internet

Question 2

What is data mining

Answer 2

Example of digital technology
- allows a business to gather data and use this to look for trends and patterns

Question 3

What is big data

Answer 3

Example of digital technology
- allows businesses to collect and combine data from many different sources

Question 4

What is enterprise resource planning (ERP)

Answer 4

It is a digital technology
- allows the use of central software to control many different activities of the business including stock management, sales data and production systems

Question 5

Advantages of using digital technology

Answer 5

• access to new opportunities e.g selling products internationally through e-commerce
• access to data which can be used to improve and target marketing activities

Question 6

What is the impact digital technology has on HR

Answer 6

Requires training so that staff can use new systems

Question 7

What is the impact that digital technology has on finance

Answer 7

Requires significant investment

Question 8

What is the impact that digital technology has on marketing

Answer 8

Allows marketing to access and analyse new sources of data and research

Question 9

What is the impact that digital technology has on operations

Answer 9

Provides increased quantities of data about production processes which can allow operations to improve their systems

Question 10

Advantage of e-commerce

Answer 10

Access to customers internationally, increasing sales volume and revenue

Question 11

Disadvantage of e-commerce

Answer 11

Less suitable for some businesses - selling products which customers like to see, try to feel before purchasing

Question 12

Advantage of big data

Answer 12

Access to large amounts of data about many aspects of their business and environment

Question 13

Disadvantage of big data

Answer 13

Many challenges for businesses in terms of legal requirements about data storage, processing and transfer

Question 14

Advantage of data mining

Answer 14

Recommendations to be made to customers about items likely to be purchased, increasing sales volume and revenue

Question 15

Disadvantage of data mining

Answer 15

Many challenges for businesses in terms of legal requirements about data storage, processing and transfer

Question 16

Advantage of ERP

Answer 16

Supports the standardisation of information across the business which supports accurate decision making

Question 17

Disadvantage of ERP

Answer 17

Implementing and using ERP software can be expensive and require specialist skills and knowledge