Impact of Technological Change

Question 1

Impacts on businesses

Answer 1

-Cost involved in having to frequently
change and maintain machines.
-Increase productivity – more can be
produced with less resources and as a
result more profit can be made.
-New technology often results in time being saved and fewer materials being used, e.g.printing machines that waste less paper reduce waste.
-Improving the working environment
– safer working environment in
manufacturing modern equipment has
made work easier and more tolerable.
-Technology leads to reduction in staffing needs – cost savings to businesses but leading to unemployment for members of
staff.
-Need for re-training as new skills are
required.
-Reduced employment levels as a result of technological change leading to lower costs.
-Easier to order - 24 hour shopping.
More rapid delivery of goods.

Question 2

Impacts on Customers

Answer 2

-Rapid technological change and innovation has given customers wider choice of products, e.g. in terms of computer games,phones, cameras and possibly higher standard of living.
-Much of the technological change has
occurred in ICT resulting in improved
speed of communications.
-Existing products become obsolete more quickly.