In the modern business world, technology is more important as compared to the previous decade. It can help businesses automate tasks as well as improve efficiency, and even create and launch new products or services.
Technology can also be a risk for businesses as it can be very hard to implement and maintain. It can also lead to security issues like hacking attempts.
Following are some of the advantages and disadvantages of technology in businesses. Let’s discuss them one by one.
Advantages Of Technology In Business
Technology is now an important part of running a business. It can help with marketing automation and communicating with customers.
There are lots of positive impacts of using technology in businesses which we will discuss in detail below.
1. Activities and automation can be streamlined through technology
Technology simplified many activities and they have been made more efficient.
Lots of people are unaware of the limit to which technology can automate different processes. It is very easy to track data with technology.
As technology does automation, people became more efficient and are able to complete tasks in less time.
The use of technology in the workplace has also improved safety. Working with technology reduces the risk of injury.
2. Communication is made easier through technology
If you are running a business and you want to communicate with your client then it is easy now. You can use skype or other online video calling services to video call with your client. By doing so you can save time and money.
Also, employees within the organization can communicate with each other through online chatting services like skype or Gmail chat.
3. Technology makes hiring easy
Hiring staff for your business is now easier than ever thanks to technology. A skilled person that matches your needs can be found on many websites and social networking sites. Alternatively, you can interview the individual via Skype.
Currently, every brand has built a website that can be accessed by clients and staff. On your website, you can post job announcements if you have a vacancy at your company.
Today’s technology makes it easy to sort out all the CVs of job applicants.
4. Business information can be easily stored using technology
By using technology, businesses can easily store their data, eliminating the need to double or triple-enter details, thus reducing the amount of paperwork and improving efficiency.
You can easily store customer information and contracts in a virtual data warehouse and access them in seconds if needed with the integration of technology within your business, eliminating the need for storage space purchases or rentals.
5. Technology expands market reach
Technologies are helping businesses reach their target markets in new and innovative ways. To remain competitive, businesses need to stay ahead of the curve in a world where technology constantly evolves and changes.
Fortunately, several technologies can be used to widen market reach, each of which has its own advantages.
Disadvantages Of Technology In Business
Like positive impacts, there are negative effects of technology on businesses as well. Let’s discuss that too.
1. Productivity suffers from technology distractions
As technology becomes more accessible, it is easier to become distracted. Policies should be put in place by business leaders to prevent employees from taking advantage of technology at work.
It is common for employees to use their own devices in the workplace, but they may get distracted by personal texts, games, or social media while using them.
The same time-wasting habits can also be found on company computers that have internet access.
While conducting legitimate research for his job, an employee might become distracted and waste an hour doing unnecessary “research.”
During the waiting period for a response, employees can also become distracted by checking email too frequently.
Whenever they are distracted, even briefly, they lose focus and are less productive. Improve employee job satisfaction and productivity by helping them develop good technology habits.
2. Technology increases security concerns
Modern technology makes hacking into proprietary information much easier than stealing paper documents from a business.
Despite increasing communication speed, email systems are also more susceptible to viruses, Trojan horses, and other software problems.
3. Technology is expensive to maintain
Technology keeps improving and this implies that it requires constant and costly upgrades as time goes by. In fact, each technological upgrade requires employee training and this actually reduces the productive time of the company.
So, loss of productivity coupled with high costs of software and hardware implementations will greatly reduce the profitability levels of the company.
Additionally, once a new system upgrade has been made there will be ongoing maintenance fees and even some employees will be struggling to learn how to use these new applications/technologies thus affecting their performance at work.
So, as a company owner, you should know that integrating new technologies into your business is costly and comes with other serious problems.
4. Data loss risks associated with technology
In case the information systems being used in a company breakdown or crush when the system administrator hadn’t made a back-up yet, then the company is most likely to lose its important information about clients and transactions made previously.
So, it’s highly recommended for companies create a backup strategy in order to avoid the risks of losing important data in case something happens to their information systems.
In fact, there are many factors that can lead to technological or system breakdown, and these include; cyber-attacks, viruses, overloading the system, vandalism by employees, and a lot more.
5. Technology can lead to lost productivity
If a computer goes down and that’s where the work is stored, then you suddenly have an employee who is being paid to be non-productive.
There is also a certain level of enhanced responsibility that comes with technology to manage personal time to make sure productivity is maximized. These are issues that can be outside of the control of the business.
Conclusion on Advantages and Disadvantages of Technology in Business
To conclude whether technology is beneficial for businesses or harmful depends on the type of business and the type of technology you use. It also depends on the use of it.
Technology as discussed above can be both good and bad for your business but one must know how to take benefit of it and avoid the disadvantages.
There can never be a one-sided conclusion. Let me know how you feel. Is it good for you or bad?