Technological influence on business activity - EduqasAdvantages and disadvantages of new technology
The speed at which technology advances is getting faster. Businesses need to be aware of the technology that is available to them, and how it might influence their sales, costs and marketing.
Advantages and disadvantages of using new technology for businesses
New technology has a range of advantages and disadvantages for businesses and business stakeholders. It is important for businesses to assess the risk and make informed decisions about whether to use the latest technology.
Advantages of new technology include:
easier, faster and more effective communication
better, more efficient manufacturing techniques
less wastage
more efficient stock management and ordering systems
the ability to develop new, innovative approaches
more effective marketing and promotion
new sales avenues
Disadvantages of new technology include:
increased dependency on technology
often large costs involved with using the latest technology (especially for small businesses)
increased risk of job cuts
closure of high street stores in favour of online business
security risk in relation to data and fraud
required regular updates
can go down or have faults, which can stop all business operations instantly