“The Internet and IT developments can have a disruptive effect on organizations and businesses.” The internet can be defined as a medium used to chat, connect, share and most importantly extract and contribute information. IT developments can be associated with software and hardware, programmes and technological advancements. There are many positive and negative effects which influence businesses, organizations and schools. Due to the inevitable of fast and evolving technology, all aspects of life are required to adapt and adjust accordingly. Technological change refers to the changes in production techniques and production equipment. It could be a change in the machinery used to make a product or the computers to design a product. In business, the use of telecommunications and social networks allow them to broadcast their messages to potential clients faster, cheaper and more efficiently. The downside is the competition of other businesses also trying to better themselves. Therefore, businesses are constantly competing to gain the competitive advantage. Competitive advantage is one of the six major objectives businesses use information systems for. “Businesses today use information systems to achieve six major objectives: operational excellence; new products, services, and business models; customer/supplier intimacy; improved decision making; competitive advantage; and day-to-day survival.” The disruptive technology on organizations is seen as the replacement or displacement of an already established system of technology. The effect this has could either be an advantage or disadvantage. IMPACT ON BUSINESSES
Positives: As mentioned in the introduction, the use of the internet in businesses allows them to purchase, increase sales, market and solicit customer feedback. The internet allows for businesses to become more exposed to foreign trade and foreign markets for the most cost effective suppliers therefore improving competitive advantage. Technology advancements and developed programmes including the internet have made marketing for businesses and clients a whole lot more accessible. Businesses are now able to appeal to a larger audience as the world turns to technology and the internet. Advertising space is now found everywhere with the likes of social networks and web pages. This enables better sales as a larger audience is able to see what you as a business has to offer and at what cost. Customer feedback can be obtained as so many people now have access to email. The use of email allows for a one-on-one interaction between the business and clients. Email is also extremely cost effective, efficient and reliable. Messages and adverts can be sent and received instantly enabling feedback to also be immediate and instant. E-business has now become extremely progressive around the world, it allows for businesses to work with digital technology. Suppliers and other entities are able to co ordinate themselves in order to execute a firm’s business processes by means of the internet. E-commerce or electronic commerce is much like the conventional commerce where there is an exchange of goods and services. However, the only difference is these processes are all done via the internet. This saves the consumer time, added expenses and personal wellbeing considering safety issues, and the convenience of avoiding shopping centres, facing people in the 21st century.
Technological advancements have forced changes in all managerial functions of business. This has led to an increased responsibility on managers themselves for organizational outcomes. This has resulted to an added emphasis on planning, decision making and controlling and co ordination respectively. Most managers in the 21st Century rely on computer based resources and computer based management science techniques, this demands higher intellectual capabilities of modern managers.
There are various different aspects of business and management that...
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