IMPACT OF TECHNOLOGY

IMPACT OF TECHNOLOGY

1. Technology means the use of tools, machines and science in industry. Techonological change is affecting all businesses.

2. KEY TERMS

   • Information technology: The use of electronic technology to gather, store, process, and communicate information.
   • Computer-aided design: using computers and IT (Information Technology) when designing products.
   • Computer-aided manufacturing: The use of computers and computer-controlled machinery to speed up the production process and make it more flexible.
   • Internet: The worldwide web of communication links between computers.

3. The use of technology to develop new products is part of the research and development function of businesses

4. IMPACT ON OBJECTIVES AND STRATEGIES

   • Costs
     • - Capital costs. - Labour training costs. -Redundancy costs.
     • The use of technology may achieve higher profits in the future.
   • Labour relations
     • They can be damaged if technological change is not explained and presented to workers in a positive way.
     • If there is an effective communication and participation of staff, introducing technology in the right way can improve industrial relations.
   • Management
     • Recognising the need for change and managing the technological change process require a great deal of management skill.

5. IMPACT OF APPLICATIONS OF TECHNOLOGY ON BUSINESS

   • Spreadsheet programs
     • Applications
       • Update... - Financial and management accounting records. - Cash-flow forecasts and budgets.
       • Income statements and balance sheets can be drawn up
       • Input changes in expected performance to the spreadsheet.
     • Impact
       • ‘What if’ scenarios in budgeting and sales forecasting can be demonstrated.
       • Flexibility and speed.
   • Computer-aided design (CAD)
     • Applications
       • Make and display designs. Designs can be shown in 3-D and ‘turned around’ to show effect from all angles.
     • Impact
       • Saves on expensive designer salaries.
       • More flexibility of design as each customer’s special requirements can be easily added.
   • Computer-aided manufacturing (CAM)
     • Applications
       • Operate robotic equipment that replaces many labour- intensive production systems.
       • Used in operations management in manufacturing businesses.
     • Impact
       • Labour costs are reduced.
       • Productivity is increased.
       • Accuracy is improved.
       • Flexibility of production is increased.
   • Internet/Intranet
     • Applications
       • Promote to a large market and take orders online.
       • Business-to- business communication via the internet is used to search the market for the cheapest suppliers.
       • Human resources uses these systems for communicating within the organisation.
       • Intranets allow all staff to be internally connected via computers.
     • Impact
       • Cost savings.
       • Access to a much larger potential market.
       • Web pages project a worldwide image of the business.
       • Internal communication is quicker than traditional methods.

6. Andrea Uribe Cano 9C

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