Assessing Greater Use of Digital Technology Flashcards
What 4 digital technologies are there?
E-commerce
Enterprise Resource Planning (ERP)
Big Data
Data Mining
What is e-commerce?
E commerce refers to commercial transactions conducted electronically on the internet.
What are the benefits of e-commerce?
Access to markets worldwide, 24 hours a day
Relatively cheap start-up costs compared to high-street
Greater access to suppliers and greater ease of comparing prices
What are the negatives of e-commerce?
Customers inability to use and touch the products
Having to wait for delivery
Delivery costs
Worries about how to return products
Worries about the use of data and the security of buying online
What is enterprise resource planning?
ERP is a software application that enables a business to effectively manage its activities, including inventory, manufacture, marketing, sales, etc.
Helps aid decision making
What is data mining?
Data mining is an analytical process that aims to analyse data in order to identify patterns and relationships between variables
What are the benefits of ERP?
- Productivity and efficiency of the business improved
- Improves flexibility of the business and response time, due to better coordination
What does an effective ERP system require?
- Investment in systems and technological infrastructure
- Training of staff
- Planning to ensure the requirements of the ERP system are fully thought through
What are the challenges of digital technology?
Leadership
Culture change
The rate of change
What are the pressures to adopt digital technology?
The need to keep up with the market & competitors
The need to keep costs down
