Business Technology: Benefits and Drawbacks

Technology Improves Efficiency

Businesses that embrace technology often gain a competitive advantage by improving efficiency. Consider a bakery using technology:

• Pro: Automating the production line and installing temperature sensors and cooling facilities can ensure quality products are delivered on time. Sensors can be programmed to alert operators to temperature changes, saving time and reducing risks.
• Con: Automated systems can reduce the need for manual labor, benefiting the business owner but potentially leading to job losses. Small bakeries unable to afford expensive automated systems and sensors may struggle to compete, potentially leading to business collapse and further job losses.

Technology Increases ROI

Technology can significantly impact a business's Return on Investment (ROI).

• Pro: Technology helps businesses expand production and reach target clients at a reduced cost. For example, a small flower business can use engineered fertilizers for faster growth and the internet for low-budget marketing ($200), targeting interested clients and generating revenue quickly.
• Con: The ability to do more with less technology may reduce the need for manual labor or marketing experts, potentially resulting in job losses.

Supports Shared Information

Technology facilitates shared information within organizations.

• Pro: Technology allows businesses and organizations to create systems, like databases, where all parties can access necessary information anytime. This saves time within the organization and encourages higher employee efficiency.
• Con: Storing information in a database carries a risk of data loss or theft. Hackers or unfaithful employees can exploit vulnerabilities. Even with internal networks, a dishonest employee could transfer data via flash drive, email, CD, or other portable storage and sell it to competitors, potentially damaging the company.