Slide 2:
Technological changes are the changes in range, applications and efficiency of technology available. Information technology is using the technical equipment such as computers. Technological changes have been dramatic and helped businesses run easier, quicker and more efficiently.
Microsoft office :
Microsoft office Word-processing = used in all departments for secretarial tasks. Typing, printing, storing and amending files. Advantages are its very fast and easy to use, documents can be easily amended. Works well with internet and emails. A limitation of adopting this application is that it is so widespread that not adopting this technology would be unusual. PageMaker and publisher programs = specialist publishing programs that create magazine and newspaper pages. Marketing department can produce its promotional material and internal newspapers can be produced. Advantages are it reduces cost for professional publishing firms, professional appearance given to company publications and documents can be amended quickly. However a limitation is the cost of the software and systems and staff training.
Databases and spreadsheet programs:
Databases and spreadsheet programs Databases = used in departments where storing and retrieving of large quantities of data is necessary. Human resources for personal records, marketing for storing details of customers. Operations department for stock handling, electronic ordering of new suppliers. Finance department for recording all transactions advantages is that replaces vast quantities of paper records and retrieves information quickly. 2 sets of data can be linked. The advantages of using databases is that stock control can be effective as well as credit control as up to date records of your debtors are kept. However problems is that a company may have trouble trying to meet the data protection act. Companies that also try and adopt the JIT production method may suffer if any It problems occur. Spreadsheet programs (ms excel in ms office) = financial and management accounts can be updated and amended. Cash flow forecasts and budgets can be updated immediately, income statement and balance sheets can also be drawn up relatively quickly. Advantages to businesses would be that it is very flexible and quick to use and the business would save time, what if scenarios can also be calculated and demonstrated. However a limitation is that it allows centralised control for cost and profit centre accounts. There is a risk of excessive and overbearing centralised control and monitoring. http://www.youtube.com/watch?v=wFp62jDcoFM
CAD and CAM:
CAD and CAM Computer aided design = all design and architectural firms have this programs to make and display designs , designs can be shown in 3d and turned around to show the design from all angles and this speeds up the development of new products. Advantages are it saves on expensive designer salaries as work is now much quicker. The flexibility of design is greater as each customers special requirements can be easily added. However staff who fail to learn this technique are unlikely to be employed for very long. Computer aided manufacturing = these programs are used to operate robotic equipment that replaces many labour intensive production industries. Labour costs are decrease significantly as machines replace many workers, productivity is increased variable cost per unit are reduced so accuracy and efficiency increases as less scope for human error. Flexibility of production is also increased as computers can adapt standard products to meet customer needs, this increases a firms competitive advantage. However cost of redundancies may initially be relatively high, the company would have to frequency update its machinery and cost of keeping it going. The initial cost would also be expensive. There may be problems at the start with the machinery which may delay production. R and D into new and effective processes may be expensive.
Internet /intranet:
Internet /intranet The internet is the world wide web links between computers. Useful for marketing as it allows for promotions online, operations can use it for business to business communications and find out cheapest suppliers. Human resources can use this to communication within the organisation. Intranet allows staff to be internally connected via computers. Advantages are it saves costs as it is cheap and also allows access to a much large potential market. WebPages project a world wide image of the business and can be easily accessed. Online ordering is cheaper, business to business communications can obtain supplies at low costs. Internal communications is also cheaper and quicker than use of telephones. However too may emails may cause logjams within the system. E-retailing has to also be carried out efficiently to reassure customers. http://www.youtube.com/watch?v=FpAgUMUlhw4
Business impact of technological change:
Business impact of technological change Potential benefits to a business = R and D will be exploiting new technologies to come up with new products. Cost savings, especially in operations management. The business will be more efficient and better customer service will be provided as a result. Technology also exploits the new market departments to exploit. However, limitations may be that the current processes and systems in the business may need to be radically changed at any moment in time. Training and possible redundancies would have to be made by the HR department and manage people effectively. Capital costs, training costs and maintenance costs would also be high and have to be taken into account. Some managers may not be so willing to accept change and might not want technology. But strategic choices about technology must also involve the following factors. Attitude and culture of management and workers to technological change, potential gains to customer service. Existing methods used within the company and weigh whether it needs to be changed into technological methods. http://www.youtube.com/watch?v=M_36Qf457GA