Advantages & Disadvantages of Technology in Your Business
Wednesday, June 15th, 2011In today’s society, technology is a necessary component of business yet many businesses are hesitant to take on the additional expense. As technology progresses, older systems need updating. Implementing new technology within a business, offers many great opportunities for your company to develop a distinct advantage in a highly competitive market. Many businesses have recognized this potential and are integrating the latest technologies into the workplace with a strategic mindset.
To utilize technology to its fullest potential, upgrading can be viewed as an excellent chance to increase your competitive advantage. Several of the more traditional business models are changing with the integration of technology and your company can creatively make use of upgrades, to achieve success from the benefits digital innovation offers.
Advantages New Technology Offers:
Waste Reduction-leads to lower costs and higher profitability.
Reduced Workforce- fewer positions may be required, when previous tasks performed by personnel become automated. If the existing number of employees is minimal already, attrition may be the next step.
Increased Profitability-due to increased efficiencies, which reduces expenditures, new technology allows jobs to be completed quicker and more accurately, to allow a steady cash flow.
Increased Productivity-among team members coupled with the introduction and implementation of new technology, creates additional efficiencies and overall production.
Higher Income-the greater the business profits, the greater opportunities there are for employees to increase their income, via bonuses or raises.
Improved Communications-allows information to be sent, received and responded to instantaneously, whether through e-mail, computer networks and cell phone use. Long distance communication of documents and information can be passed along much more rapidly. Remote based employees have immediate access to staff from cell phones, web cams, video conferencing and laptop use.
Competitive Advantage-allows a business to reduce product/service costs, while increasing profit levels, without compromising customer service.
Disadvantages of New Technology:
Management’s Decision-to upgrade with new technology can be extremely difficult. Do you buy now or wait for the next technological advance? The decision to do so can and usually is an expensive one. What’s more, the integration of and training required among the workforce, is a whole other task in its self.
Regular Maintenance-of new technology will be required to keep efficiencies flowing. More importantly, questions that must be answered in advance are, if the machinery on a production line breaks down, will this cease all production? What alternatives are available that can be immediately implemented, if this occurs?
Costs-will be reduced if integrated properly and therefore, the decision is whether or not the extra capital is available to purchase the new technology.
Additional Time-will be required for training and if you have to reorganize the workplace to accommodate the new technology. This is an important decision that must be taken into consideration, if your business works within tight deadlines. Furthermore, any IT issues that occur will need to be resolved quickly, to ensure the transition is as seamless as possible.
Abuse-of the technology made available to employees on their job can be excessive and very costly to a company, i.e. constant instant messaging, personal use of social media, non-work related emailing, inappropriate use of information on the web.
The key to deciding whether or not to upgrade your business with new technology lies in your ability to fully understand the culture of your workplace. This is an important aspect of managing any workplace. The culture of your organization is critical in hiring and retaining effective employees. Culture involves how workers feel about the organization and how they feel about their jobs. Create an environment that’s aligned with the company’s overall objectives and mission. A culture where employees not only trust their leaders, but are willing to follow them, even when they’re uncertain about change.




