Technology plays a very big role in determining how we do business, and new technology has emerged as a prime component for moving business forward. New technology creates efficiencies in the business world in terms of customer satisfaction and higher levels of innovation and profitability. To remain competitive in business, it is necessary to stay abreast of technological advancements.
Increased Profits
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The bottom line in business is profit; new technology produces profit by improving a company's performance. In order to be successful in a changing business environment, companies need to implement new technology to replace obsolete methods of operation. Staying competitive in a fiercely aggressive market is difficult, when new methods are not brought into play, to improve productivity and increase profit. One example of the new replacing the old is the use of Enterprise Resource Planning (ERP). This is integrated software that unites all departments within an organization, eliminating the need for several small, different systems. ERP effectively manages the performance of important business aspects, such as product planning. Working off a single integrated database is more efficient than having each department work on its own. Information is recorded, processed, monitored and reported, providing a flexible database that integrates all the departments. ERP does not exactly replace the computer in a department; it is the implementation of system upgrades to enhance performance to more productive levels.
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Improved Quality Of Work
The implementation of new technology has the advantage of improving the quality of work through the use of simpler methods of operation. A good example of improved work quality is the use of robots to perform production tasks, such as welding and spray painting. Technological advancements have led to the replacement of old technology with a new family of programmable robots. This new technology now allows robots to work on the assembly line, performing assembly tasks at great speeds and efficiencies. The logic behind using robots that have displaced the human element is improved quality of work at a faster output rate.
High Investment Costs
Implementation of new technology often involves high upfront costs. While the cost of hiring new workers is cheaper in the short term, the financial outlay needed to purchase new technology is often beyond a company's means. This makes it harder for companies that cannot afford the technology to stay in business. Employees work first and get paid later. With technology, the company has to make the initial investment before it can realize any production advantages.
Unemployment
In an economy where every job is a much needed one, new technology may make some employees obsolete. New technology is capable of allowing one worker to produce the results of three. While productivity and efficiency are increased, certain jobs become redundant and lead to unemployment. When new technology is implemented and paid for, it becomes cheaper to maintain the technology rather than pay for labor. For new technology to be implemented successfully, some amount of job redundancy is required.