Since the Industrial Revolution in the 1800’s, technology has played an important role in developing business and generating growth. New technology introduced more efficient methods of manufacturing and distributing products during the 1900’s. Toward the end of the 1900’s, the Internet changed the way in which business is conducted again. There are many ways technology has impacted and driven the way companies conduct business.
All companies with physical inventory are looking to reduce costs and increase efficiency. Through the use of technology and continuous improvement practices, raw materials, components and finished gods are measured and managed more accurately. To reach such efficiency, companies utilize tracking and tracing systems that monitor and record usage in real-time resulting in more accurate inventory control when compared to a manual system that requires cycle counting.
Automated tracking systems also track the total amount of material use during each manufacturing stage. The systematic technology can ten deduct that usage amount from inventory levels. This allows manufacturers to precisely track inventory levels and order only the exact amount need. According to IT company Sinu, Inc, this “eliminates the cost of holding extra stock, freeing up capital to be used elsewhere and reduces operating expenses.”
Ecommerce companies conduct the majority of their business across the Internet. Such companies sell products to consumers via website or sell their products to other companies online. This form of business and distribution would not be available without the Internet. Ecommerce has become so popular that most companies have developed a new business strategy around the online marketplace.
Companies that sell software and other digital products barely use tangible technology to ship and sell their products. Consumers can simply buy, download, install and immediately use the product without the need for waiting on a shipment. This is much more efficient when compared to driving to the store to make a purchase.
Technology has also helped it develop entirely new industries and launched companies with their strategies and business models centered on a specific technology. For example, when the steam engine was invented, it created an entirely new form of transportation which led to the travel industry. Similarly, the assembly line manufacturing process led to the auto industry.
The modern invention of social media websites have been integrated into the people’s daily lives. As a result, many successful companies have emerged during the process. As this trend in technology continues to build on previous technological efficiencies thus sparking business growth, new companies will be created to specifically utilize new technology to make profit.
Technology has also adjusted the way businesses allocate and use their resources. Many firms focus more on the technology resources than the human resources. Machines work much more accurately and efficiently than people and are much more reliable because they do not need vacation time or get sick. In many instances, machines are capable of completing the work of several employees presenting a cost savings from the gain efficiency.
For instance, ATM’s have replaced human bankers and customers can book airline travel, car rentals and hotels online versus talking to a human. Such sites also allow for comparison, thus saving a significant amount of time for having to call each airline, hotel or car rental company and track the price of each service.
Technology has significantly improved the speed by which companies are conducting business. When the railway industry grew during the 1800’s, companies could ship products quicker and more efficiently to locations much further away. Then, as the airlines developed, companies were able to more efficiently ship products around the world without the need for lengthy ocean vessel travel.
The Internet has also significantly sped up business. Companies are now able to conduct meetings using video conferencing technology across the Internet instead of taking the time and spending the money to travel. Employees are able to transfer documents and ideas within a matter of seconds through email. Using technology to increase the speed of information allows organizations to create and implement much more efficient business strategies.