Technology comes out as a broad term, which relates to the means by which individuals and business entities adapt to the environment, controlling of the operations, and transformation of the environment. Technology is a component of two categories: products and processes. Technological products relate to the consumer consumption components. On the other hand, technological processes focus on making, as well as improving products and services at the disposal of the consumers. Similarly, technological change refers to the advancement in making products or development of the processes in the form of incremental or radical perspectives.
The incremental change relates to the evolutionary technological advancements where organizations and individuals focus on changing, modifying, refining, and improving the product or process. Conversely, radical change is a revolutionary technological change concentrating on designing new processes and products (Rosemann and Jan 108). Technology seems to play a critical role in determining perceptions of the consumers and business entities in the course of transacting on the available products and services at the end of the fiscal period. The objective of this research paper is to examine the technological factors affecting the operation of the business entity.
Technological factors refer to influences, which have diverse implications on how an organization or business entity operates related to the equipment within the operational environment. Increased reliance on the equipment continues to make technological factors essential in the pursuit of success of the business organizations or corporations. Technological advancements have been essential in the course of generating diverse benefits and advantages regarding the operations of the business entities in the market and industry of operation. Categorically, technological innovations have the potentiality of improving productivity, as well as efficiency in the operations of the business entities.
In such instances, business entities or corporations have the ability and platform to reduce the costs of operations while improving the existing profit margins in pursuit of competitive advantage and sustainability. From this perspective, technology tends to improve the competitiveness of the business against other operators within the industry of operation. Innovation in the technological processes can enable business entities and corporations to make more products, thus, increasing the volume of production or manufacturing in agreement with the growing demands and expectations of the consumers in the market and industry of transaction. Technology tends to permeate the development of new products and markets, thus, enormous influence in the economic growth. These illustrations indicate the influence and importance of the technological factors in the operations of the business entity.
Technological Infrastructures
Technological infrastructures are essential aspects determining the operations or IT structure of the organization. Infrastructures include software and hardware, networks, IT, and facilities, which are valuable in the development, testing, delivering, monitoring, controlling, and executing diverse technological services within an organization. These factors are essential in the course of determining the technological operations of an organization in pursuit of competitive advantage in the market and industry of operation. These factors are essential in determining the mode of communication, as well as delivery of products and services through effective monitoring and delivery of commodities to satisfy the needs of the consumers (Safko 72).
Moreover, these factors are critical in determining accessibility to information by the employees or workforce seeking to reduce the cost of operation while improving efficiency in the delivery of quality services at the end of each operational period. In such instances, business entities have the ability to incorporate these technological factors to improve the level of communication, as well as monitoring operations in pursuit of competitive advantage. Technological infrastructures are also ideal for the evaluation of the performance of the organizations (Schmidt and Jared 64). In such cases, the factors contribute towards the identification of the issues affecting the organization, thus, the platform for the elimination of such issues to improve the quality of products and services at the disposal of the consumers.
E-commerce Factors
E-commerce factors are technological elements, which are essential in enabling business organizations and corporations to transact activities such as sales and communications on the internet platforms such as websites. These factors are critical in determining the level of profits and revenues at the end of each fiscal period through affecting or influencing transactions by the organizations. These factors have been essential in the course of transforming the mode and level of interactions between the consumers and business practitioners in the maximization of the profit levels while reducing the costs of operations (Gefen 728). For instance, e-commerce enables business entities to offer flexible services and products in agreement with the demands and expectations of the business entities. Besides, e-commerce enables business entities to reduce the costs of running physical firms since consumers can access the available products and services at one shop on the internet platforms. Similarly, business entities have the ability and potentiality to maximize their market coverage on the internet platform in the digital era. From this perspective, e-commerce technological factors are valuable in enabling business entities to integrate cost-effective business model in addressing the demands and expectations of the consumers within the market and industry of operation.
Social Media Factors
Social media incorporates social networking sites such as Google, Facebook, Twitter, YouTube, and LinkedIn platforms. In the modern context, social media platforms are vital components in the operations of the business entities seeking to maximize profits and revenues. Social media affects the operations of the business entities through the transformation of the marketing approach, as well as communication between business operators and target audiences. For instance, business entities have the tendency to execute market research through polls on the internet platforms or social networking sites. These aspects are valuable in the course of enabling organizations to collect useful information regarding the perceptions of the consumers in the market and industry of operation.
Similarly, it is possible for the organizations to use social networking sites as technological advancements or factors in the course of examination the perceptions of the consumers regarding their products and services in the market. The approach is valuable in the course of reducing the costs of operation while enabling business operations to achieve improved efficiency in the delivery of quality services and products at the end of each financial period (Safko 76). Such social media sites are also essential in generating platforms for the organizations to expand their market coverage by targeting the online consumers, as well as the offline target audiences. Social media sites are critical factors enabling effective and quality, as well as quantity marketing under the influence of cost-effective business models.
Innovation Factors
These are technological factors, which contribute to the improvement of the quality of products or designs, as well as efficiency in the transfer of the products and services to the consumers. Innovation is one of the core competencies of the contemporary societies seeking to pursue or achieve competitive advantage and sustainability. Such technological factors are valuable in the course of aiding elimination of competition through utilization of unique business models to satisfy the needs and wants of the consumers. Innovation is also ideal towards the reduction of the cost of operations. Innovation determines the level of profits or revenues depending on the volume of investment an organization decides to integrate into the development and delivery of quality products and services in agreement with the needs and wants of the consumers.
Automation Factors
Technology plays a critical role in the course of automating operations of the business corporations or organizations. For instance, technological factors tend to determine the mode of payment, as well as placement of orders for the products and services of the consumers. Automation of these operations is essential in enabling business institutions to increase the volume of production while reducing the costs of operation. The level of efficiency and effectiveness are valuable in promoting the competitiveness of the business entities in highly competitive markets. Moreover, automation of these operations improves the level of interaction or communication between consumers and the service providers seeking to maximize their profit levels.
Data Protection/Privacy Issues
In spite of the benefits of these technological factors, there privacy issues, which associate with the role of technology in transforming the operations of the business corporations. There is increased threat on the private data belonging to the consumers, as well as business entities. In the course of overcoming these issues, it is critical for the organizations to adopt and incorporate comprehensive data protection mechanisms to reduce the vulnerability of the networks (Howell 20). These mechanisms will enhance protection for personal or sensitive information, which might be in the hands of malicious hackers, thus, deterioration of the image and reputation of the firm in question.
Works Cited
Gefen, David. "E-commerce: the role of familiarity and trust." Omega 28.6 (2000): 725-737.
Howell, David. "Building better data protection with SIEM." Computer Fraud & Security 2015.8 (2015): 19-20.
Rosemann, Michael, and Jan vom Brocke. "The six core elements of business process management." Handbook on Business Process Management 1. Springer Berlin Heidelberg, 2015. 105-122.
Safko, Lon. The social media bible: Tactics, tools, and strategies for business success. John Wiley & Sons, 2010.
Schmidt, Eric, and Jared Cohen. The new digital age: Reshaping the future of people, nations and business. Hachette UK, 2013.
