impact of digital technology on the functional areas Flashcards
what are the3 ways digitla tech affects finance
better trakcing of cashflow
improved finanical analysis (ratios)
electronic funds transfer
explain better trackig of cashflow
particulary useful for monitoruing debtors and creditors - ensuring everythin ispaif on time
if not can employ SOF to rectify and prevent issues w liquidity
help to keep bs operating
explain imporved financial analysis(ratios)
helpful as you can use software to calculate htem
reduces chance of error +saves time
this helps dm be more accurate
managers are able to just look at figures
alllows finacne to use time on other stuff as this was an oc
explain electronic funds transfer
reduces the OC of holding cash e.g coffe shop in london
can stop taking cash
as may have to sepdn 30mins everyfays counting cash , baggin it takin it to bank
with digital tech reduces opp cost and can use time for suttin else
expllain 4 impacts of digital tech on functional areas
impact on all areas of mkting , product - place - price - promo
reduced costs of mkt research
expand size of the business target market
lowers BTE
EXPLAIN IMPACT ON ALL AREAS OF MKTIN
product - digitalise diff products this lowers costs as dont actually have to make tit
allows customers to access gloablly
price - reduce price as got lower overheads as may move online + means a business can engage in dynamic pricing to max revs(e.g airline can reduce flight price closer to time) - can mean more demand if elastic higher profit margins if inelastic
promotion - can be far more targetted s digitla tech allows for more efficnet mkting efforts as bs can set ads to be targetted exactly to their target market - measn spend less but target more of your market
place - SM over the last decade as online shopping become present people dont go more often so reducing number of stores
explain reduced costs of mkt reseah
its easier can just email customers after theyve stayed at a hotel instead of printing flyers and questionnaires and conducting physical focus groups - can be done online
then you can use software to analyse and put into grpahs and charts which makes it faster too and easier to understand
explain expand size of target mkt beenfit
website measn you can acces global customers rather than being confined to a town
mean increased mktng efforts increases ize of target market
meaning a busienss can grow increase output and get EOS
explain beenfit of reduces barreir to entry
this can be negative as cheaper for bs to set up , more competition
now you only need laptop and somewher to store you products and you can satrt a busienss which most peope have a home
what are the impcts of operations
increased communication with suppliers means better inventory managment
increasd ability to automate production process
opportunities for mass customisation
explain increased comm with suppliers lead to bettter inventor managment
good as business got right amount of stock to match demand
computers can e used to talk to each otehr order supplies and rm come through
makes business seem reliable (meet an operational objective)
increases customers satisfaction as the business aways have what peope want when they need it
also good for increased nd unexpectes spike sin demand - which marketing can rpedict with data mining and analysing previous trendds
explain increased ability to automate production process
can reduce labour cots by making them redundant (however this is costly(in the short term)
increased efficieny as well as hgiher quality as less likelt to make mistakes
less defects - less cusomer disatisfaction and removes the chance of a fault product making all your product protfolio look poor
what dies increased aility to automate production process depend on
role of laobur and % of labour used in opps
high intiial costs to automate - costly depends on finance
takes time to install so may halt prod and may see it takes time to reap beenfts
explain ops for mass customisatino
increased profits by chrginn premium price
althought hres a cost of adding customised elenent but this is overome with the hgier price
for example apple offering after making product engravement for personalisation
explain ops for mass customisation - what have studies shown
personalisation can iincrease custoemr satisfaction by up to 20% +
if a bs provides something that suits customers individuality
have better relationship with business
repeat purchaisn g
increase brand loyalty
reduce ped and increase £ which increase rev you know the drill
