Technology

Impact on business

Jan 08 Essay Q• With reference to organisations,

markets or industries that you know, to what extent do you think that the internet is a threat rather than an opportunity for business? (40 marks)

• You need to consider the impact on Supply as well as Demand factors…

You have 5 mins…What would your essay plan

be?

Syllabus aims• The Relationship between Businesses and the

Technological Environment

• assessing the effects of technological change

• evaluating the response of businesses to technological change.

• The impact of technological change should be considered in terms of a range of issues including:

• marketing opportunities, • the culture of the business• and the processes and systems used within the

business

What technological changes have their been?

– Intranet– Internet– Social Networking– CAD/CAM– Robotics– Handheld computers– Software packages e.g. DTP, spreadsheets,

databases etc– EPOS– Loyalty cards– Mobile technology– ????

Who are the largest on line businesses?

Threats of Technology• Which businesses have been threatened

by technology?

• Books• Music• Film • Travel agents• Estate agents• Newspapers• Charities….

• Bar codes!

Dangers of being on line!

Latest technology…• Its always changing…

Marketing opportunities…

Viral marketing• http://www.blogstorm.co.uk/the-top

-10-viral-marketing-campaigns-of-all-time/

• So many to choose from… it has to be….

• What are the benefits of viral marketing?

Cadbury’s – king of viral?

What benefits have Cadbury’s gained from

these marketing campaigns?

Technology USP…• Which companies generate

revenue from continual updating technology?

• Software• Mobiles• TVs• MP3

Culture of business

How would technology effect…

What is culture?

• How employees are recruited

• The way that visitors and guests are looked after

• How the working space is organised

• The degree of delegation & individual responsibility

• How contracts are negotiated and agreed

• The personality and style of the sales force

• The responsiveness of communication

• The methods used for communication

• How staff call each other

How culture might be demonstrated

Can you give examples of

how technology will have changed

these areas?

Look at the following slides

How will these new apps affect culture?

Business apps

Business apps

Business apps

Business apps

Handy’s Four Classes of Culture

Power Role

Task Person

What does

each of these mean?

Power culture

•Control radiates from the centre

•Concentrates power among a few

•Few rules and little bureaucracy

•Swift decisions are possible

Role culture

•People have clearly delegated authorities within a highly defined structure

•Hierarchical bureaucracy•Power derives from a person's position

•Little scope exists for expert power

Power

Task culture

•Teams are formed to solve particular problems

•Power derives from expertise as long as a team requires expertise

•No single power source

•Matrix organisation

•Team may develop own objectives (a risk)

Functional Depts

Proj

ect T

eam

s

Person culture

•People believe themselves to be superior to the business

•Business full of people with similar training, background & expertise

•Common in firms of professionals – e.g. accountants & lawyers

•Power lies in each group of individuals

Processes and systems used within the business

How has technology helped?

• http://news.bbc.co.uk/1/hi/uk/8409337.stm

• EPOS – tills!

• http://www.youtube.com/watch?v=Vv5GQ6c_ls8

• Textile industry

Homework…

Reminder of HWKTextbook p 315 Walmart Case

study

Further reading• http://www.businessweek.com/

technology/