Impact of Technology

Question 1

What is Information and Communications Technology (ICT)?

Answer 1

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

Question 2

What is digital technology?

Answer 2

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

Question 3

Name six uses of technology in a business.

Answer 3

1. To communicate with customers, other businesses and staff.
2. To train staff.
3. To design and produce products and services.
4. To conduct market research
5. To promote and sell their products online.
6. To prepare budgets and accounts.

Question 4

Name 9 common technologies used by a business.

Answer 4

1. Word Processing e.g. Google Docs, Microsoft Word
2. Spreadsheets e.g. Google Sheets, Microsoft Excel
3. Databases
4. Email
5. Internet
6. Wi-Fi
7. Video Conferencing
8. Social Media
9. Apps

Question 5

What are the benefits of digital technolgies in a business for staff?

Answer 5

Job vacancies and applications can be viewed and completed online.
Email can be used to communicate with staff
Training of staff can be completed online.

Question 6

What are the benefits of digital technolgies in a business for Market Research and Marketing?

Answer 6

Field Research can be gathered and analysed quickly.
Desk Research is made easier and quicker.
Products/ services can be sold online around the world.

Question 7

What are the benefits of digital technolgies in a business for Production?

Answer 7

Suppliers can be researched and contacted online ensuring businesses get the best price for materials.
Digital machines can be used to produce goods & services.

Question 8

What are the benefits of digital technolgies in a business for finance?

Answer 8

Accounts and budgets can be prepared using spreadsheets.

Graphs and charts can be created to show financial information.

Question 9

What are the benefits of digital technolgies in a business for administration?

Answer 9

Customer information can be easily stored on databases.
Decision making is much faster due to ease of communication.
Letters and reports can be easily written using word processing packages.

Question 10

Explain four ways technology can increase the costs of the business.

Answer 10

1. Businesses pay a lot of money for new technologies like laptops, tablets and databases.
2. Businesses are more at risk of being hacked and therefore must pay for expensive security packages.
3. Businesses must pay for the design and maintenance of a website. They must also pay for the website address.
4. Businesses may have to pay large sums of money to repair their technology if it breaks.

Question 11

Explain three reasons technology decreases the costs of a business.

Answer 11

1. New technologies can reduce the number of staff needed in a business.
2. Emails can be sent out to customers and staff more quickly and cheaply than letters.
3. Using Video Conferencing (e.g. Skype) means that businesses do not have to pay for their staff to travel to a certain location. It can be done from their office.

Question 12

What are the opportunities of digital technology?

Answer 12

1. Increased sales due to mass production.
2. Allows a business to identify their target market.
3. Improved customer service through social media and online forums.

Question 13

What are the threats of digital technology?

Answer 13

1. Risk of technology failing.
2. Increased risk of hacking.
3. Increased chance of business reputation being questioned based on online comments from customers.