unit 9 Flashcards
what can digital technologies help a business with
can help a business grow.
what’s an example of digital technologies helping a business
by offering free Wifi Starbucks has met the needs for new working practices, attracted more customers & opened more branches leading to growth
what can digital technologies lead to
- Improved performance (higher profit margin leading to growth)
- Satisfying customers needs (higher demand & sales leading to growth)
how can digital technologies Improvement leading to growth
Operational performance
Marketing performance
what are the examples of operational performance
Enterprise Resource Planning (EPR)
what are the examples of marketing performance
E-commerce
Big data & data mining
what is EPR (Enterprise Resource Planning)
its a software that manages data to coordinate the activities of all departments (functions)
what does EPR do and what does it result in
eliminates waste, saves costs & improves performance leading to growth
what is big data and what can it be used for
its the vaste volume of information collected by businesses. This data can be analysed & used to inform decision making
what is data mining and what it is used for
Data mining is the process of analysing data from different sources & summarising it into useful information, including discovery of patterns, correlations or trends
what are the drawbacks of digital technology
- High Initial Costs
- Job Insecurity / demotivation
- Security of Data
- Profit Margin Pressures
- New Competitors
- Pressure to Continually Innovate
how is high initial costs a drawbacks of digital technology
- Cost of purchasing technology
- Redundancy costs for some employees
- Ongoing maintenance and repair
how is Job Insecurity / demotivation a drawbacks of digital technology
- Replace labour intensive to capital intensive
- Remaining employees fear further change
- Lower productivity levels
how is Security of Data a drawbacks of digital technology
- Need to protect sensitive customer/supplier data
- Threat of fines for breath of data protection law
- Vulnerability to cyber-crime e.g. Sony data hack.
how is Profit Margin Pressures a drawbacks of digital technology
- Ease of price comparison for consumers
- Downward pressure on prices
- Easier for customers to switch / lower brand loyalty
