Chapter 21- Impact of Technology

Question 1

ICT

Answer 1

Information and Communications Technology:

Refers to the use of technology to send, receive, store, analyse, gather and communicate information.

Question 2

Digital Technology

Answer 2

Refers to the use of digital resources like computers, tablets and smartphones to create, store, manage and share information.

Question 3

Uses of Technology

Answer 3

• to communicate with customers, businesses and staff
• to train staff
• to design and produce products/ services
• to conduct market research
• to promote and sell products/ services online
• to prepare budgets and accounts

Question 4

Give 5 examples of technologies used by a business

Answer 4

1. Spreadsheets
2. Databases
3. Social Media
4. Word Processing
5. Video Conferencing

Question 5

Benefits (Staff)

Answer 5

• job vacancies and applications can be viewed and completed online
• email can be used to communicate
• training can be completed online

Question 6

Benefits (Marketing)

Answer 6

• field research gathered and analysed quickly
• desk research easier and quicker
• products/ services can be sold and promoted around the world

Question 7

Benefits (Production)

Answer 7

• suppliers researched and contacted online (best price for materials)
• digital machines used to produce goods and services

Question 8

Benefits (Finanace)

Answer 8

• accounts and budgets prepared with spreadsheets

- graphs and charts created for financial information

Question 9

Benefits (Administration)

Answer 9

• customer info easily stored on databases
• decision making faster due to ease of communication
• letters and receipts easily written with word processing packages

Question 10

Costs may increase because…

Answer 10

1. New technology (e.g. computers) costs a lot of money
2. Greater hacking risk so expensive security packages needed
3. Design, maintenance and address of website all cost
4. Expensive to repair

Question 11

Costs may decrease because…

Answer 11

1. Staff needed may reduce
2. Emails to customers,businesses and staff are quicker and cheaper than letters
3. Video conferencing decreases travel expenses

Question 12

Opportunities

Answer 12

1. Increased sales due to mass production
2. Allows business to identify its target market
3. Improved customer service (social media and online forums)

Question 13

Threats

Answer 13

1. Risk of technology failing
2. Increased risk of hacking
3. Increased chance of business’ reputation being questioned online