Chapter 16- Business Technology

BUSINESS TECHNOLOGY
Business technology (BT) refers to the use of businesses utilizing information technology (IT)
such as computers and telecommunicators to send and store information to optimize their
business process.
Information communication technology (ICT) refers to a wide range of technologies used for
gathering. Storing, retrieving, processing and analysing information.
Types of ICT used in businesses
Productivity tools (traditional)
- Word
- Excel
- Access
- PowerPoint
- Graphic software & adobe photoshop
Accounting
- QuickBooks (e.g. Sage, Peachtree)
- Computer aided design (CAD)
(designing new products on a software)
- Management information system (MIS)
(a system that enables managers to
access data such as sales and stock
levels etc.)
Digital communication technologies
- Internet (used to conduct e-commerce
businesses/emails etc.)
- Mobile (used for phone calls, messages
and data transmission)
Chapter 16- Business Technology

The role of information communication technology (ICT) in businesses

 Improved communication by cell phone, text messages, email etc.
 Storage :keeps records of suppliers and customers on database
 Retrieval: easily find stock levels, customer’s or suppliers information
 Manipulation, transmission and receipt
 Inventory management/ stock control management through the application of
electronic point of sale, electronic data interchange and electronic funds transfer
 Virtual collaboration : zoom or online meetings

Technology and banking

Ways in which technology has influenced banking and commerce:
- Automatic Teller Machines (ATMs) (used for withdrawals)
- Automated Banking Machines (ABMs) which facilitate the deposit cash and cheques,
checking account balances
- Online banking and telebanking (without having to go into a bank to access teller
services) (online banking allows persons to transfer funds, make payments, check
account balances etc.)

E-commerce and E- business

E-commerce is the buying and selling of goods and services online. It focuses on the
outward processes that impact external stakeholders (customers & suppliers).
Processes that impact the external stakeholders include: sales, marketing, order taking,
delivery, customer service, purchasing of raw materials and supplies

E-business contains the E-commerce process but also involves internal businesses processes
such as:
- Servicing customers
- Collaborating with business partners
- Conducting transactions
- Invoicing
- Supply chain management
Chapter 16- Business Technology

Ways in which ICT can improve efficiency of business operations

Ways in which ICT can improve Description

efficiency of business operations
Operations can be carried out much more quickly,
Speed and time for example a customer's order can be transmitted
online and immediately processed for dispatch.
Additionally, payment can be made online
Very large quantities of h formation can be stored
Easier storage on a computer or a storage server and can be
updated easily.
Information can be shared easily and
Improved sharing of information information quickly through the Internet or
website that has open access.
Automation Automation is described as the employment of
machines in a continuous process of operation. It
is characterized by minimal use of labour in the
process. It speeds up manufacturing and
production processes while minimising human
error.

Note:
- Mechanization is the substituting of human labour with machines such as robotics and
computers to produce more efficiently.
- Capital intensive production involves the increase use of more equipment and
machinery than labour
- Labour intensive production is dependent on the extensive use of manual labour

Benefits of technology to business

The improvements outlined above lead to the following benefits for business.
 Develop a relationship with more potential customers.
 Business operations can be streamlined and this will reduce costs (such as through
better use of materials), improve efficiency, maximise profit and minimise waste
(because fewer mistakes are made).
 Businesses can provide better service to customers by providing a more customer-
focused experience.
 Businesses can support better relationships with key partners (such as suppliers and
government agencies).
 Business can better understand customer thoughts and feelings, for example through
online market research and feedback from customers in online comments.
Chapter 16- Business Technology

Unethical use of technology

- Security issues: information stored by a company has the liability of security
breaching such as being “leaked” or “hacked”.

- Privacy issues: Customers' records are usually kept in an electronic format by a

business (for example, a bank will store details of customers' addresses and account
details). Sharing these details without consent is unethical and sometimes illegal.

o Solution: customer’s information should only be able to be viewed by

employees.

- Copyright infringement: A large amount of information stored on the internet is

copyrighted to the individual or business that created the material, ( for example
books, photographs and inventions of all kinds. There is a danger that copyrighted
material will be copied or used without licence.
o Solution: laws are designed to protect intellectual property rights

- Impact on humans: There are a number of negative impacts on people when ICT is
used unethically. For example, fraudsters may try to impersonate someone else online
in order to steal his or her savings, and internet advertising may encourage people to
buy things that they do not need.
o Solutions: create complex difficult to copy company materials

- Distraction: ICT can lead to users wasting lime, for example by browsing the Internet
for non-work purposes during the working day.
o Solution: companies can ban access to certain websites