Technology is a division of knowledge that deals with applying various techniques, methods, skills, and processes during the production of goods and services in different sectors of the economy. Technological developments in today’s business are realized through specific perspectives such as improved interactions attained by information and communication technology (ICT), effective business-to-business (B2B) decision-making models achieved through artificial intelligence or computer programming, reduced product process time, and enhanced quality in material sourcing. Although the implementation of technological advancement for a business enhances the effectiveness and productivity of operations, the type of technology employed has a higher prospect of propelling a firm into competitiveness.
Effect of Technology on Business
The competitive business environment witnessed in today’s market requires efficiency and effectiveness in organizational operations. Most global businesses seek seamless engagement with suppliers across various industries worldwide (Li, Su, Zhang, & Mao, 2018). Consequently, technology influences modern-day businesses to gain productivity and success within the market while boosting product quality and customer value.
Implementing IT models in business enhances the efficiency and quality of business operations. Moreover, with technological advancement, organizations grow and build a competitive advantage in the industry. For instance, advancement in the fields of information and communication technology (ICT) improves business engagement models, leading to enhanced confidence of suppliers and consumers. To ensure companies develop products that appeal to consumer interests and experience while managing supplier welfare in the market, the application of technology remains a key enabler (Pansari & Kumar, 2017). Therefore, technology is a critical driver of growth in the business sector.
Impact on Employees and Employers
Technological advancement in the workplace has several effects on employees. The workforce has been challenged since the focus of innovations is based on more interdisciplinary fields. Accordingly, the computers used in the workplace are powered by higher levels of artificial intelligence, thereby requiring employees to enhance their knowledge perspectives. Employers are challenged by the technological advancement that requires them to invest in research, training, and development of workers. Samiee, Chabowski, and Hult (2015) posit that business-to-business delivery processes have also taken a technological approach. As the focus of enterprises takes the path of globalization, organizations are shifting their perspective from branches within a country to international franchises managed in several nations.
Furthermore, technological advancement has become the platform driving the change systems to ensure that the current entrepreneurial realignments based on inter-country operations are realized. According to Samiee, Chabowski, and Hult (2015), modern enterprises are becoming technologically perceptive. It is worth noting that the business delivery process trends follow the same designs in the market.
Cost-Cutting Frameworks and Improved Interaction
Technological advancement in the ICT field is changing many corporates’ operations. The overall communication systems have improved through the advent of innovation in ICT. Firstly, IT adoption is improving interactions across the globe. Business executives are currently enabled to conduct global meetings and conferences on various issues on the virtual platform. Efficiency has become a tradition when it comes to aspects of IT. Previously, businesses would make global travels to meet the demand for customers and improve clientele experience. Multinational corporations (MNCs) that manage franchises outside the main companies have been forced to schedule between weekly and monthly business meetings worldwide. Most companies have developed an online presence to address billions of internet users. Through social media networks, the marketing of products has become attainable to the global population by companies that take advantage of it.
Secondly, technology is driving change that realizes cost-cutting measures for many businesses. IT affects organizations through the reduction of operational costs for products and services. Wu, Rosen, Wang, and Schaefer (2015) assert that the cost of implementing technology is relatively high and occasionally leads to redundancy instead of leading organizations to gain a competitive advantage. However, the benefit of globalization to modern business is that it significantly reduces the costs of travel when video conferencing and virtual offices for business executives are utilized. Likewise, organizations have relied on research and development to build their brand identity strategies. Technological advancement creates opportunities for organizations to test the market and seek consumer perspectives through surveys and product evaluations. By posting product prototypes on various social media platforms or company websites, the business gathers reviews to help the marketing and production departments address customers’ needs.
Thirdly, technology is changing the operational paradigms of businesses across the world. Kane, Palmer, Phillips, Kiron, and Buckley (2015) illustrate that the modern systems of supply chain management are being influenced positively by technology. Notably, the focus on such models is based on efficiency and operational cost-cutting measures. Given that majority of manufacturers receive the raw material from various jurisdictions in the world and often purpose to retail their products and services to the same global citizenry, technology has made it possible by building systems to support current needs.
Cloud computing and storage have enabled businesses to involve secure third-party servers to process complex data. The warehousing management systems, inventory management applications, and distribution powered by cloud technology are aspects altering the entire company logistics across the world. Major operations of organizations have been streamlined, including the element of material sourcing, movement of finished products, and methods of data mining from consumers. Technology like cloud systems can now be used to manage operations and attain efficiency (Wu, Rosen, Wang, & Schaefer, 2015). The perspectives would prompt the majority of companies to implement an integrated approach to cut various costs, negotiate for better markets for the products, and improve consumer brand preferences.
Fourthly, technological advancement has led to improving business decision-making through artificial intelligence models. The workplace requires effective information management channels to support information delivery to different users (Kane et al., 2015). To ensure that information is decoded from production units, storage systems, sales, and accounting, artificial intelligence, on the other hand, guarantees that delivery is processed as per the departmental relevance and shared across platforms. It implies that a company can receive relevant data from all its departments early accelerating decision-making.
As it is palpable from the analysis, technology is a critical economic driver of businesses. Most industries have witnessed efficiency and growth by applying technology in their operations. Technology plays a significant role in growth and development. For instance, this technical knowledge has been employed in the employee hiring process, job placement procedures, and business practices in supply value chains. Although the opportunity to adopt technology in the workplace is relatively expensive, the projected gains regarding cost savings, consumer satisfaction, and competitive advantage with rivals supersede initial costs.
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review and Deloitte University Press, 14, 1-25.
Li, L., Su, F., Zhang, W., & Mao, J. Y. (2018). Digital transformation by SME entrepreneurs: A capability perspective. Information Systems Journal, 28(6), 1129-1157.
Pansari, A., & Kumar, V. (2017). Customer engagement: The construct, antecedents, and consequences. Journal of the Academy of Marketing Science, 45(3), 294-311.
Samiee, S., Chabowski, B. R., & Hult, G. T. M. (2015). International relationship marketing: Intellectual foundations and avenues for further research. Journal of International Marketing, 23(4), 1-21.
Wu, D., Rosen, D. W., Wang, L., & Schaefer, D. (2015). Cloud-based design and manufacturing: A new paradigm in digital manufacturing and design innovation. Computer-Aided Design, 59, 1-14.