Impact of Digital Technology
Business: AQA A Level (2023 Specification), topic 9.4.2
Impact of Digital Technology
Digital technology can impact business areas in different ways.
Advantages of using digital technology
- Digital technologies give businesses access to new opportunities such as selling products internationally through e-commerce.
- Digital technologies give businesses access to data which can be used to improve and target marketing activities.
Impact on HR
- Digital technologies can require training so that staff can use new systems, and this affects human resources.
Impact on finance
- Digital technologies can require significant investment, and this affects finance.
Impact on marketing
- Digital technologies can allow marketing to access and analyse new sources of data and research.
- Tools like those provided by Salesforce.com can modernise the sales process.
Impact on operations
- Digital technologies can provide increased quantities of data about production processes which can allow operations to improve their systems.
- Messaging businesses like Slack can modernise operations and communications within a business.
Value of Digital Technology
Whilst digital technology can offer businesses opportunities, it can also create threats as customers, for example, increasingly use social media to make complaints and to share concerns.
The advantages and disadvantages of e-commerce
- E-commerce allows businesses to access customers internationally therefore increasing sales volume and revenue.
- E-commerce is less suitable for some businesses, such as those businesses selling products which customers like to see, try or feel before purchasing.
The advantages and disadvantages of big data
- Big data allows businesses to access large amounts of data about many aspects of their business and environment.
- Big data provides many challenges for businesses in terms of the legal requirements around data storage, processing and transfer.
The advantages and disadvantages of data mining
- Data mining allows recommendations to be made to customers about items likely to be purchased and can therefore increase sales volume and revenue.
- Data mining provides many challenges for businesses in terms of the legal requirements around data storage, processing and transfer.
The advantages and disadvantages of ERP
- ERP supports the standardisation of information across the business which supports accurate decision making.
- Implementing and using ERP software can be expensive and require specialist skills and knowledge.
Test yourself on Impact of Digital Technology
Which of these are common digital tools that help businesses with their marketing?
It allows businesses to access large amounts of data about many aspects of their business and environment.
Which of the following technologies is this an advantage of?