Technological Change

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POSITIVE IMPACTS OF TECHNOLOGY FOR BUSINESSES AND CONSUMERS

LOWER COSTS OF PRODUCTION New technology means firms can produce goods/services more quickly and efficiently lowering average unit costs. Technology can reduce the number of workers hence the decrease in wage costs. This can reduce a firms costs and increase levels of profit. This cost saving can be passed onto consumers in the form of lowering prices

IMPROVED QUALITY Can result in improved customer service as they benefit from quicker service or being able to shop at their own convenience eg online/via phone. Technology used in manufacturing can also be more precise and accurate than human labour resulting in high and consistent quality

REDUCE WASTE Reduced the amount of time wasted as it means fewer raw materials are needed as there is less wastage due to human error

IMPROVED PRODUCTIVITY Technology means more can be produced with less resources and therefore increases productivity of a business meaning they should be able to increase their profitability

WIDER CHOICE OF PRODUCTS As technology has improved it has meant that consumers can benefit from accessing better technology and possibly improved standard of living. Consumers are more likely to repurchase goods to have the latest version of technology (advantageous to the business).

NEGATIVE IMPACTS OF TECHNOLOGY FOR BUSINESSES AND CONSUMERS

RESISTANCE TO CHANGE New technology can bring this from various stakeholder groups. Including employees who think technology will replace their jobs or don't have the skills to operate the technology. Also sometimes customers dislike new technology

COSTLY TO IMPLEMENT Can be costly to purchase and as its always changing and improving it means businesses spend a lot of money regularly updating and buying new technology so they aren't left behind their competition

INCREASE IN NEED FOR R+D As technology changes rapidly products become out of date quicker meaning businesses must invest more into R+D in order ro launch new ideas

CONSUMER EXPECTATIONS ARE QUICKLY RISING Must continuously bring out new products/services in order to meet customer demand, for consumers this means they need to spend more money in order to keep up with the changes in technology