New technologies provide a series of advantages that reach all areas of business, from internal and external communication to production chains and supply of raw materials. At the same time, technological progress has several disadvantages that all business people should take into account.
In this guide, you will learn about the positive and negative impacts of technology on business.
Positive impacts of technology on business
Full visualization of the state of production processes
Thanks to new technologies, companies are capable of optimizing all their production processes to the millimeter. Through alert and monitoring systems, it is possible to know the exact status of a certain process, as well as the existence of incidents, delays, and losses in productivity. All this data can be analyzed to detect errors or points for improvement to make the production chain more agile and efficient in terms of time spent and resources. It is the best way for a company to gain competitiveness in a highly competitive scenario, where differentiation at the product level and internal operation are critical.
Optimization in raw material procurement and consumption
In the current context of inflation, optimizing the processes of raw material procurement and consumption can mean a very decisive improvement in the competitiveness of companies in the sector.
Thanks to technology, it is possible to know raw material consumption in the production chain, as well as detect losses in the workflow. All this is achieved thanks to a monitoring system in which the arrival of raw material and its consumption during the production process are entered and recorded.
Computer systems are in charge of detecting leaks or data that are not consistent with the company’s actual consumption. And, thanks to this, it is possible to detect processes in the production chain where failures take place.
Streamlining provisioning with predictive data
Technology, through the collection and analysis of data, allows the generation of predictive models of material consumption in the production stage. Thanks to this, it is possible to have absolute control of the available stock and anticipate the need to acquire new materials just in time so that there is no stockout.
Growth of business
Technology provides many opportunities for business growth. All it takes is just a few clicks and you have plenty of information thanks to Google. Social media and different types of marketing are the most important examples.
Many websites can help you grow your business. If you need to find investors and prospects, it is possible on Leadar.
Tracking customer buying behavior
New technologies allow businesses to obtain data from their customers. Thanks to the feedback that customers give about the product, this data can be used to introduce improvements in the product, as well as to establish the appropriate time for sales and promotions according to the demand and the interest generated.
Knowing your customers’ purchasing behavior can help you make significant improvements in all the interfaces of your company’s systems with which your clients interact, from the web page to purchasing methods or mobile applications.
Sustainability is a key element of any company’s improvement. Day by day consumers get more responsible and critical of how companies behave with the environment since people consider it a social responsibility. The trend of reusing products is spreading. More and more people demand that companies produce less waste.
The incorporation of energy generation systems through natural sources such as sunlight allows enterprises to drastically reduce their carbon footprint. It is also useful to use electronic systems that help consume fewer energy resources, such as low-consumption electronic equipment.
Companies that adopt new technologies are perceived as very competitive and strong enough to face the challenges of the future. In a recent study, they compared the level of strength of various brands against the receptiveness of adopting new tools and technologies in the field of production, sales, and communication with consumers. The study concluded that the companies with the greatest vision of the future opted for the use of implementing innovative technologies throughout their structure.
Disadvantages of technology in business
Everything has its advantages and disadvantages. Technology is no exception. Let’s take a look at the negative points of adopting new technologies in business.
The hyper-adoption of technological systems in the company’s conversion channels can be detrimental since it produces dehumanization that results in distrust.
How many times did you have to make a query or claim and a robot has answered the phone? This example assumes a situation that creates a gap between the client and the company.
The automation of communication processes in the company can also weaken the link between workers and the organization, which is why it should only be used in cases of general and group communications, always offering a more personal and two-way communication alternative, in which the worker can present their doubts, recommendations, and points of view.
Dependency ties are generated
The incorporation of technologies in the productive field usually gives rise to new relationships with suppliers.
In the case of custom developments, it is most likely that the initial provider (from whom the platform or technology was acquired) is the only one capable of offering maintenance.
This generates a very strong dependency on this provider for the company. Enterprises should carefully consider the contribution that this technology offers compared to the costs of implementation and maintenance.
The use of technology requires training
With the implementation of new technologies into the workflow, the necessary training of employees who are going to use these technologies should be provided.
The plan should detail the capabilities of the technology, how it improves a certain process of the company, how it should be used, and what dangers it entails or how workers can detect a malfunction.
The training plan is key since all technology entails some intrinsic risks derived from its operation or the data that it processes and stores.