Jan 3, 2021
The Impact of Technology Diffusion on Business Development
Over the past decades, proceeding the 90s, technology has wildly impacted all aspects of industries and economies.
Introduction
Today, companies find it almost impossible to function without using the cooperation of technology. As most business activities and operations involve technology, technology is vital for its growth and survival in a modern market.
The innovation of these technologies has drastically transformed the fundamentals of business and trade. These creations are deriving both globalization and exaggeration of the value of providing a better service. It continuously challenges companies to simultaneously adapt their business models and corporate culture to stay operational and competitive (Kolaski, 2018).
Reframed Society and Lifestyle
The landscape of business depends on how consumers perceive their products and services. New technologies have resulted in significant alterations in society and lifestyle globally. As the invention of technological innovations reflects human needs and lifestyles, technological creations and communities have become inseparable, making technology an indispensable aspect of business development and design (Kolaski, 2018).
This transformation of how consumers engage with technologies results in how societies are built and developed (Allen, 2019). Companies analyze and adapt to retaliate with these settings to be more productive.
Furthermore, to keep up with competitors, companies have to implement and manage new technologies in a manner that reaches the benchmark of the particular industry, or in a way that keeps the business relevant to the markets it operates in (Michael Fitzgerald, 2013).
Business Opportunities
Companies innovate business models by developing their capability and restructuring business strategies to gain the best results from these new opportunities (Chesbrough, 2010). They commercialize new ideas through their business models.
Moreover, the development of technologies has created solutions and clarifications to many issues of economies and individuals. However, adoption comes with the risk of developing additional new problems and obstacles. The development of new technological tools intends to overcome these new issues. This immediate circle of evolution and advancement has created new business opportunities (Michael Friedewalda, 2011).
New Strategies and Business Model
Applying appropriate business and managerial methodology is essential, with a defined strategy and a bold business model to efficiently implement and use technological instruments. Businesses make structural and functional modifications to use new technologies most effectively. These decisive changes have driven the rest of the companies to use the best tools to keep up with their competitors and customers. Companies with better digital technology management gain more in some of the fundamental objectives: more streamlined business operations, innovative business models, and better customer experience and engagement (Kolaski, 2018).
With technology, businesses’ performance has improved with better internal and external communications, automation of tasks, and business cultural transformations. They produce a better understanding of product modernization and risk management (Suleman, 2019).
Improved Communication
Building an enhancing relationship with the audience and employees is vital for a business’s success and survival. One of the most remarkable effects of technology on business operations is how it simplifies internal and external communication. Via the internet, companies can reach thousands of their customers within seconds. It expedites customers to have a better understanding of business perspectives (Holyoak, 2017).
Technology has made businesses ubiquitous and reachable. To break into new markets and advertise to a broader audience, companies utilize technologies that enable them to saturate the economic market with their messages and promotional materials (Vitez, 2019). Consequently, it might result in receiving more customer feedback through these technological communication methods.
Furthermore, information technology removes internal barriers to better communication by streamlining off data layers between sections and departments (Holyoak, 2017). Additionally, using the right communication tools and social media platforms effectively has enabled businesses to reach their preferred market segments, geographically, and demographically.
Automation and Productivity
Automation is not only about using robotics to perform a task; at its essence, it is the implementation of a system or software to perform a task repetitively and smoothly without the need for human labour (Uzialko, 2019). These technological innovations have been undoubtedly changing how departments and sections, including human resources management and customer service departments, are being operated. It has improved efficiency and reduced costs by saving time and allowing companies to manage tasks effectively (Uzialko, 2019).
Security and Risk
Technological innovation does not assure business success with the implementation of the mechanisms itself. Failure to manage technology risks might result in legal and financial loss, reputational damage, and compliance issues with relevant guidelines (Atyam, 2010). In some cases, these concerns even lead to business disruption.
Furthermore, with the profound ease of transferring data, it is necessary to strengthen the communication routes and secure access to data. It is essential to store confidential and sensitive data with integrity to be less prone to vulnerabilities. In some countries, businesses have legal obligations to protect user information (Business Queensland, 2020).
Conclusion
The impact of technology is a growing factor in business development. How technology transforms people’s lifestyles and the society in which the business operates has influenced how the companies organize their tasks and how they execute their strategies. These frequent changes somewhat push companies to restructure their approaches and business model to stay competitive. The usage of technological innovations has facilitated large corporations and SMEs alike to survive in these competitive markets. It enabled companies to reduce their cost, implement a secure and fast line of communication internally with employees and business associates, and externally with customers and the market audience (Michael Friedewalda, 2011).
However, as technological innovations do not necessarily guarantee that they will achieve the business objectives, companies must adopt appropriate managerial models and proper market research before changing business structure strategies.
The diffusion of technology as a fundamental phenomenon that shapes the foundation of economies has designed the humans’ wants and rights, which impacted how it is expected for a business to act and think.
References
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