The Impact of Technological Change on Business Activity

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Technological Change on Business Activity
Technological Change on Business Activity

Technological advances have completely changed the way we do business. Now, thanks to the influence of technology, companies are gaining new competitive advantages. So, you can automate regular processes in your enterprise, add cloud and mobile services, and improve business communication at all levels.

Organizations make extensive use of big data, as well as artificial intelligence and machine learning, according to the Statista website. These technologies enable organizations to explore new avenues of research and stay ahead of the competition in innovation. They can also help meet customer needs, for example, in the form of chatbots.

Impact on operating costs

For small business owners, technology can significantly reduce the cost of doing business. So the software allows a firm to automate back office functions such as record keeping, bookkeeping, and payroll. Mobile technology allows home offices and field representatives to interact in real time. For example, field representatives can use mobile apps to record their daily expenses as they occur and automatically sync with accounting software in the office.

Administration

The administration has become much easier thanks to technology and software. The administration used word processing packages, email distribution, databases, and phone systems. It dramatically simplifies activities such as writing emails and managing large amounts of information.

Communication

Communication in the workplace has become faster and more efficient. It may include day-to-day business communication between colleagues, clients, and other stakeholders. It has become much easier with email, text messages, phone calls, social media, and websites.

Increasing employee productivity

Small businesses can increase the productivity of their employees through the use of technology. Business owners can implement business technologies to reduce the amount of human labor in business functions. It will enable small businesses to avoid paying labor costs and employee benefits.

The expansion of the customer base

Technology allows small businesses to enter new economic markets. Instead of just selling consumer goods or services in the local market, small businesses can expand into national and even international markets. 

Inventory control

Inventory management just got a whole lot easier with online methods. Businesses today use sophisticated programs to manage inventory levels, order inventory, and inform customers of available stock. Companies can track inventory availability and create automatic reorder systems when needed.

Using e-commerce and mobile commerce to sell goods and services

E-commerce is the buying and selling of goods and services on the Internet. It includes any business-to-business transactions using the Internet, usually through a website. Mobile commerce is the buying and selling of goods and services online through a mobile device. According to Forbes, mobile commerce will increase 68% by 2022 as more people shop using their phones. It means that your business simply must use mobile services to remain competitive.

Remote work environment

Technological advances have also helped shift jobs from physical to digital. Since society has been exposed to the pandemic, we have had to quickly devise ways to keep working and be effective outside our usual workplace. With the help of technology, processes and workspaces are becoming remote and digitized. The use of technology has greatly influenced the work culture in business organizations. Most businesses are transitioning to a remote or hybrid work culture that gives professionals the flexibility to work.

Now people can work from anywhere and conduct business from anywhere.

Conclusion

We’ve looked at a few examples of how technology impacts businesses. In practice, every business and every company finds ways of combining digital moments to achieve the best result for itself. At the same time, many understand that there are certain disadvantages to the immediate impact of technology on business. For example:

  • increased dependence on technology
  • often high costs associated with using the latest technology (especially for small businesses)
  • closure of large stores in favor of online business
  • security risk regarding data and fraud

However, undoubtedly the benefits are more significant. We all understand that technological progress has already occurred and is impossible to stop. So you need to tame and learn how to interact with it as effectively as possible. By the way, a business analysis service can help you with this, which you can order from professionals in your field for your business. The main thing is not to be afraid of technology; your business will benefit.

Author’s bio: Anastasiia Lastovetska is a technology writer at MLSDev, a software development company that builds web & mobile app solutions from scratch. She researches the area of technology to create great content about app development, UX/UI design, tech & business consulting.