Lesson I: Trends and Impact of Technologies in Business Flashcards
Enumerate the six (6) Impacts of Technological Changes on Business Activity
- Impact on Operating Costs
- Securing Sensitive Information
- Improved Communication Processes
- Increased Employee Productivity
- Broaden Customer Bases
- Collaboration and Outsourcing
Explain “Impact on Operating Costs” as a impact
Small business owners can use technology to reduce business costs. Basic enterprise software enables a firm to automate back office functions, such as record keeping, accounting and payroll. Mobile tech allows home offices and field reps to interact in real time. For example, field reps can use mobile apps to record their daily expenses as they incur them and have them sync automatically with accounting software back at the office.
Explain “Securing Sensitive Information” as an impact
Business owners can also use technology to create secure environments for maintaining sensitive business or consumer information. Many types of business technology or software programs are user-friendly and allow business owners with only minor backgrounds in information technology to make the most of their tools and features.
Explain “Improved Communication Processes” as an impact
Business technology helps small businesses improve their communication processes. Emails, texting, websites and apps, for example, facilitate improved communication with consumers. Using several types of information technology communication methods enable companies to saturate the economic market with their message. Companies may also receive more consumer feedback through these electronic communication methods
Explain “Increased Employee Productivity” as an impact
Small businesses can increase their employees’ productivity through the use of technology. Computer programs and business software usually allow employees to process more information than manual methods. Business owners can also implement business technology to reduce the amount of human labor in business functions. This allows small businesses to avoid paying labor costs along with employee benefits.
Explain “Broaden Customer Bases” as an impact
Technology allows small businesses to reach new economic markets. Rather than just selling consumer goods or services in the local market, small businesses can reach regional, national and international markets.
Explain “Collaboration and Outsourcing” as an impact
Business technology allows companies to outsource business functions to other businesses in the national and international business environment. Outsourcing can help companies lower costs and focus on completing the business function they do best. Technical support and customer service are two common function companies outsource.
Small business owners may consider outsourcing some operations if they do not have the proper facilities or available manpower. Outsourcing technology also allows businesses to outsource function to the least expensive areas possible, including foreign countries.
Enumerate the four (4) Business Benefits of IT
- Benefits to Communication
- Improved Workplace Efficiency
- Competitve Advantage over Rivals
- Cost Reduction and Economic Efficiencies
Explain “Benefits to Communication” as a benefit
Rapid communications can help increase productivity, allow for better business decision-making and ease a company’s expansion into new territories or countries. These electronically based communication systems are used to disseminate routine and critical business information in a quick and efficient manner.
Explain “Improved Workplace Efficiency” as a benefit
Streamlined work flow systems, shared storage and collaborative work spaces can increase efficiency in a business and allow employees to process a greater level of work in a shorter period of time. Information technology systems can be used to automate routine tasks, to make data analysis easier and to store data in a manner that can easily be retrieved for future use.
Explain “Competitive Advantage over Rivals” as a benefit
Adoption of information technology resources allows companies to maintain a competitive advantage over their rivals. Companies using a first-movers strategy can use information technology to create new products, distance their products from the existing market or enhance their customer services. Companies that follow a low-cost product strategy can look to information technology solutions to reduce their costs through increased productivity and reduced need for employee overhead. Businesses can also build-in information technology to their products that makes it difficult for customers to switch platforms or products.
Explain “Cost Reduction and Economic Efficiencies” as a benefit
Companies can harness information technology resources to lower their costs. Using IT infrastructure, redundant tasks can be centralized at one location. For example, a large company could centralize their payroll function at one location to lower employee costs.
Explain “Privacy concerns” as a disadvantage
The digital age has raised significant privacy concerns. With the collection and storage of vast amounts of personal data, there is an increased risk of unauthorized access, data breaches, identity theft, and surveillance. Individuals may feel a loss of control over their personal information.
What is Information Technology?
Information technology, also known as IT, is a comprehensive term that includes all types of technology used to exchange, store, use or create information. Commonly used information technology equipment includes computers, servers, peripheral devices, Internet connectivity equipment and phone systems. From basic computer terminals to IP-based telephony systems, information technology is an integral part of most modern business operations.
Explain “Health Implications” as a disadvantage
Extended screen time and sedentary lifestyles associated with technology usage can lead to various health problems. Eye strain, sleep disturbances, musculoskeletal disorders, and obesity are just a few of the adverse health effects attributed to excessive technology use.
Enumerate the six (6) Disadvantages of Technologies
- Privacy Concerns
- Health Implications
- Social Disconnect
- Addiction
- Job Displacement
- Ethical Dilemmas
Explain “ Social Disconnect” as a disadvantage
Paradoxically, while technology promises enhanced connectivity, it can also contribute to a sense of social disconnection. Spending excessive time on digital platforms may replace face-to-face interactions, impacting the development of meaningful relationships and reducing empathy and emotional intelligence.
Explain “Addiction” as a disadvantage
People have started to rely more on Internet technology in their daily lives in a 21st-century society. Humans have been addicted to digital devices and devices like cell phones, laptops, video games, computers, etc., which has made us increasingly sluggish.
Explain “Job Displacement” as a disadvantage
Technological advancements, such as automation and artificial intelligence, have the potential to replace human workers in certain industries. This can lead to job displacement and unemployment, particularly for those in manual or repetitive jobs that can be automated. It’s a reduction in demand due to technological advancements.
Explain “Ethical Dilemmas” as a disadvantage
As technology advances, ethical dilemmas arise. Issues such as data privacy, algorithmic biases, and the development of autonomous weapons raise questions about the responsible and ethical use of technology.
