technology Flashcards
PEST factors
what is technological change ?
the continued invention and innovation of products and processes and the spreading of this change throughout society
how do businesses create a competitive advantage ?
businesses that are pro-active will be early adopters of new technologies and seek to exploit their benefits
what are UK firms like regarding new technology ?
they have historically been slow to adapt to new working practices and technologies
UK stakeholders tend to view them more as threats (job losses) rather than opportunities
this has proved to be harmful to competitiveness in foreign markets
what is automation ?
a machine or system that accomplishes (partially or fully) a function that was previously carried out (partially or fully) by a human operator
benefits of automation ?
- reduce costs for : manufacturers, distributors, supermarkets ect.
- improved productivity
- faster production
- shorter lead times
- lower labour costs
- improved quality
negatives of automation ?
- not positive for job agencies
- reduced flexibility
- damage to reputation
- job insecurity fears
- job losses
- redundancies
- high cost of investment
examples of automation ?
banking ATMs, remote central heating control, self-check out tills, smart utility meters, warehousing and stock control
positives of new technology ?
faster manufacturing - get products to the market quicker, improved employee productivity, increase leisure time for employees
improved decision making - more data and information available, employees make fewer mistakes, customer needs are met more often
lower costs (medium-long-term) - less errors, greater efficiency and less reworking
negatives of new technology ?
high initial costs - cost of purchasing technology, redundancy costs for some employees, ongoing maintenance and repair
security of data - need to protect sensitive customer/supplier data, expensive firewall and data security software, vulnerability to cyber-crime
job insecurity/cultural change - replace human labour with capital, lower productivity levels, remaining employees fear further change
what are other communication methods ?
instant messaging, email, mobile technologies, video conferencing
benefits of communications : customers
the significant growth in global connectivity, provides an even larger market for firms who already use the internet to connect with their customers
negatives of communications : customers
less interest in traditional communication methods
- labour intensive customer services are being replaced with more impersonal automated systems
- traditional paper-based advertising is less common as electronic media offers more flexibility and personalisation
technology and life cycles ?
changes in new technology have meant that the lifecycle for many products are now shorter
new products are being developed far faster to replace old ‘outdated’ technology
- example : mobile phone market
3D printing
they are able to produce three dimensional solid objects of almost any shape by building up layers of material
has applications for many areas : medical transplants, engineering, housing
has transformed prototype designs, bringing down the cost of design and the time taken to generate them
- providing firms with a flexible, more cost-effective form of manufacturing
business location
- other factors
bank call centre operations have been able to be relocated to cheaper locations/countries such as india
the internet allows for global connectivity
has made operations more fluid
