Essay Sample on the Topic: How Technology Affects Business

Technology is one of the significant experiences which businesses have acquired over the years. It goes beyond the size of the business with some of its importance noted as both tangible and intangible. Some of the changes experienced by the businesses can be argued to either be based on the internal and external environments. There are businesses which can go to the extent of leveraging the changing technology as a way of improving the products or the processes involved in the creation of new products which will lead to the expansion of markets and realization of business profits. The paper is, therefore, premised on a discussion on how technology has affected business both positively and negatively.

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Positive Effects

Productivity

Some of the positive ways in which technology has led to business improvement include productivity. Productivity involves the development of worker's skills, product improvement, and process improvement which in most events are technologically aligned and has brought immense impact in the manner in which businesses operate globally. The exact size of improvement may not be estimated considering that technological growth is something which is still on-going and likely to change as time goes by. Another important area within the point of productivity is the technological communication methodologies. Such includes the emails which have made communication faster and easier hence increasing the productivity of both the workers and those charged with managerial duties within the organization or the business. Online customers also have service platforms where there are support teams who communicate with clients and answer the most needed urgent and disturbing questions. The next positive impact of technology is on globalization and interdependence.

Globalization and Interdependence

Technology has made companies communicate and facilitate the transfer of resources on a global scale, something which has enabled businesses to conduct business with the global web of both the suppliers and clients. Technology in business operate like the internet video conferencing and have instant access to economic data from almost all parts across the globe, something which makes it more convenient to improve the global operation of the business. The improvement is equally aligned to the interdependence and integration through matters improvements in communication, logistics, and transportation.

Technology also reduces the cost of doing business

The reduction in cost may be argued based on technology allowing businesses to reduce the number of employees. For example, the amount of work which can be done by ten people may easily be done in a faster and efficient manner with one machine. The cost will, therefore, be reduced based on the money which would have been used in paying ten employees getting used in the maintenance of the machine, something which may also be less costly. The other method on how technology reduces the cost of operation in business is inclined to the improvement of efficiency. As efficiency continues to improve, the expenses which would have been incurred also continue to drastically go down hence making it easier for one to start a business and acquire profit. A good example is an online store which has a lower overhead cost than a traditional mortar and traditional bricks hence giving companies the opportunity of reducing on price and attracting more clients thus attracting more clients and maintaining the profitability of the business. Other online market centers like the eBay can also assist an individual to sell most of the products online hence reducing on costs which would have been used to pay people conducting sales or marketing.

Negative Effects

Competition

It is notable that the technology not only impacts the business positively but also have negative impacts as will be noted in the subsequent discussion. One of the negative impacts is on the creation of competition both on the employees and resources. Competition comes into picture due to the reduced overhead costs, something which offers online retailers or businesses the chance of providing a wide range of products and services to the employees at prices which are competitive to other traditional businesses. The competition may lead to a situation of "show-rooming." Show-rooming is a situation where customers can easily browse through the products and services placed on the shelves of the traditional stores and identify them with the intent of acquiring information after which make plans of purchasing them online at a cheaper cost.

Impersonation

Even though technology has made communication easier and efficient for most businesses, it may also create chances of impersonation considering the lack of face-to-face communication. Potential customers who are cautious may, therefore, find it difficult to purchase because of fear of dealing with a different person who may end up receiving payments and failing to deliver the most needed products.

Security

Technology may also pose serious risks to the business in terms of security. The situation mostly applies to businesses which are conducted online where there exist possible technical glitches and malicious hackers who may expose sensitive business' information. Such include passwords, addresses, data, personal information of the clients or even bank accounts to mention but a few.

Conclusion

Even though technology has improved the manner in which businesses operate, they also have negative impacts which should be considered before venturing into a business. Such include competitions, impersonation, and security to mention but a few.