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Topics: Information Technology on the

organizational processes.

How Does Technology Influence Business?

Information technology is a transformative force in the business environment. Companies
can implement computers, servers, intranets, software applications and programs or
Internet websites into their daily business operations. Rapidly evolving technological
changes can have significant influence on businesses. Technology rapidly changes as
companies produce new product developments on a continual basis. Businesses
implement this technology to create significant effects in operations.
Technology has had a tremendous impact upon the global business environment.
Communication, transportation and production efficiency are various areas of business
which have been enhanced by the development and improvement of technology. As
continual enhancements are made, the world continues to "grow smaller" and businesses
have further reach than ever.
From the invention of the cotton gin to the introduction of email, technology has
revolutionized businesses across the world. Every business has benefited in some way
from technological advances. Thanks to technology, businesses can be run more
efficiently, lower their costs and, in the case of manufacturing, work sites can become a
lot safer.
History: The Industrial Revolution in Europe allowed technology to be widely
implemented across the manufacturing industry. Inventions such as the cotton gin were
used to increase productivity, and mills used machines to manufacture cloth from cotton.
These mills also had a direct effect on the transportation system of the local area, as
better canals and railways were then built for the movement of materials to and from the
mills. The use of railways and canals helped the factories increase their output and
consequently their profits.
20th Century: One of the most prominent advances in manufacturing technology was the
assembly line method introduced by Henry Ford in his factories in the 1910s and 1920s.
Ford's techniques were so successful that, by 1927, 15 million Model T cars had been
sold. The advent of cars also benefited other businesses, such as gas stations and
motels.
The ideas behind mass production allowed technology to become widely available at
affordable prices. This allowed entertainment-based businesses, such as movie theaters
and radio stations, to expand because more people had access to radios and enough
disposable income to spend on movies.

I.T. Influences
Computers: The most important technological development to impact the global
business environment is the world of computers. There are various programs which help
maintain records of inventories and shipments. Email allows for instantaneous
communication almost anywhere in the world. Besides its speed, email is easily
forwarded and retained. The communication in the global business environment is
improved with the use of email. The impact of computers on the global business
environment is wide-ranging and also includes the Internet, which is a useful tool for
international companies. By using the Internet, companies across the world can perform
research and learn more about partners and suppliers.
Conference Calls and Video Conferencing: Conference calls allow people in multiple
locations to be involved in the same conversation. Video conferencing provides the same
service, but with the added benefit of all parties being able to actually see each other.
Both of these forms of communication have a definite impact on the global business
environment. With either form of technology, a parent company in Norway can have a
conversation with a raw material supplier in Brazil and a manufacturing plant in Taiwan.
This improves communication on a global scale and enables all parties to understand
specific plans and agreements.
Manufacturing Technology: Increased efficiency of manufacturing plants has a certain
impact on the global business environment. By having the capacity to produce materials
and products more quickly and efficiently, a company is able to produce quantities needed
to supply global demand. Robotic technologies and factory lines have enhanced the
speed at which materials and products are manufactured. For a company to be a player
in the global business field, it must be able to keep up with demand.
Shipment Tracking: Corporations now have the ability to track shipments virtually
anywhere across the world. Global Positioning Systems (GPS) allow accurate tracking.
The implication of this technology on the global business environment is the ability to let
customers know exactly where their shipments are at any given time. This technology
creates secure relationships within the global business field.
Tools and Technology: With the arrival of the information age it is nearly impossible to
find a business without a digital component. Paper filing systems are being transferred to
electronic databases capable of retrieving information on customers within seconds.
Accounting is now recorded on computer software platforms designed to enable
businesses to both analyze and track their records. All of this has replaced the old pen
and paper utilized in businesses of the past.

Business & I.T.: A Shrinking World:

Technology allows national and international commerce to become reality. Businesses
now sell worldwide instead of being caged into a local consumer base. Transactions are
now completed with the push of a button, and emails allow customers to communicate
quickly and efficiently with businesses. Cellphones and broadband adapters allow
salespeople to communicate and conduct sales remotely and conveniently. All of this has
changed within the past century.
Benefits in Manufacturing: Today, technology has greatly benefited the manufacturing
industry. Increased automation and the introduction of robots on the assembly line have
allowed heavy goods such as cars to be created quickly and efficiently. Advances in
technology have also allowed construction sites and factories to become safer. Inventions
such as first aid kits and hard hats for construction have helped to minimize workplace
accidents and deaths. The increase in automated manufacturing has also created
secondary businesses that build and maintain the robots used in manufacturing. Another
example is businesses that supply farms with machines designed to do work formerly
carried out by humans, such as milking machines for cows.
Benefits in Offices: The increased use of personal computers has revolutionized office
work. Specialized computer programs can work to make all aspects of office life run more
smoothly. Programs allow a company to keep track of its income and expenditure, and
office suite applications makes drafting memos and presentations simpler. The increased
use of email has had a direct impact on office life. A company can increase efficiency by
sending documents quickly over an in office network. Email also allows for quick
communication among departments or branches of a business.
Benefits in Retail: Technological advances have had an impact on retail businesses.
Mass production allows retailers to buy products such as MP3 players and DVDs cheaply
because of lower manufacturing costs. They can then increase the prices before selling
them to the consumer, thus increasing their profit margin. The Internet has allowed
retailers to reach new audiences. Technology also increases the efficiency of in store
businesses. Supermarkets, for example, make heavy use of the electronic point of sale,
or EPoS, system. This allows a supermarket to keep track of its inventory as well as curb
shoplifting. By scanning the product at the checkout, the item is removed from the store's
inventory and the price of that product is added to the customer's bill. This allows for
increased accuracy of inventory.
Improvements: Business owners and managers can use technology to increase the
effectiveness and efficiency of their operations, which often results in an increase in
production output. This occurs because employees can complete more tasks and
activities while cutting back on wasted resources.
Potential: Technology allows companies to reach consumers in new economic markets,
whether regional, national or international. Smaller businesses can also compete with
larger organizations using carefully marketed Internet operations. Internet sales websites
can operate 24/7, allowing companies a continual reach to consumers.

Environmental Influence on Business

The natural environment has influenced business in a variety of ways for hundreds of
years. Our awareness of its impact on the way we do business has only grown in recent
decades, and now environmental influence has captured the attention of companies
worldwide. Consumers also expect businesses to address environmental influence on
how products and services are delivered, and to work with the natural environment
instead of slowly destroying it.
The natural environment influences business in many different ways. The power of sun
and wind to create energy has spawned an entirely new industry. Rising sea levels force
companies to change the geographical locations where they conduct their business.
Natural disasters temporarily affect the ability of companies to distribute products to
retailers; for example, hurricanes and tornadoes prevent trucks and trains from carrying
products into certain locations.
Businesses that ignore or underestimate environmental influence will eventually fail. For
example, migrating fish spawning environments affect the fishing industry and all of the
restaurants and other businesses that depend on fishermen. If the fishing industry doesn't
adapt to changing environmental conditions, fishermen will no longer be able to catch
fish. Similarly, farmers who continue to grow crops without responding to soil erosion or
changing climate conditions will have a detrimental effect on their own business as well
as all companies that depend on the agricultural industry for survival
Technology
As more and more businesses rely on technology, according to the tech firm Business
Resource Software, technology plays an increasing role in the general environment.
Technological abilities like conference calls and webcasts can reduce the expenses
associated with employee travel, and advances in computing can affect productivity within
the company. The Internet is also a major portion of the general environment, as it
expands the company's reach, makes new tools available via download and helps shape
marketing through targeted ads. Technology plays such a significant role in the general
business environment that some organizations exist almost entirely on the World Wide
Web.

Resources
The availability of resources is a component of both the general and specific business
environments. Common resources like labor, water and electricity affect the general
business environment, as many organizations choose not to operate in areas or markets
where these resources are scarce or unusually expensive. Resources that serve as
factors of production, or components necessary for the business to produce its products,
can shape and affect the organization's specific environment; a sudden shortage of
copper, for example, would alter the operations of a company that makes conductive
wiring.

CONCLUSIONS
Considerations
Many companies implement information technology management functions to ensure that
their computers and other technological equipment remain current. Technology quickly
becomes outdated, which can be of some detriment to companies. Failing to upgrade
technology can actually increase operating costs more than purchasing and implementing
new equipment.

Facts
The transfer of information is a significant impact of information technology in business.
Companies gather information from both internal and external sources with more
efficiently than in previous years. Email is now a common form of business
communication that results in near-instant messages that deliver important information.
Features
Retail is a primary area transformed by the use of information technology. Companies
now operate websites that allow customers to shop for goods and services 24/7.
Businesses can start their operations using only an online format, transitioning into a
traditional brick-and-mortar location at a later time.

Effects
Companies implementing technology into their operations can have both positive and
negative effects. Companies can improve sales through websites and lower operating
costs using ecommerce strategies, but this can also result in employee layoffs and fewer
customer service opportunities.

Increasing Efficiency
Technologies such as cloud computing, social networking and wireless applications allow
companies to streamline operations. Cloud computing allows businesses to move to a
more efficient information technology (IT) model. Businesses save money on IT, energy
and real estate costs due to the centralization of data on servers. Social networking
increases customer rapport, allowing for potentially greater profits and increasing
customer loyalty.