Changing the Way We Conduct Business - Coursework Example

Evolution of technology: Changing the way we conduct business Claim: The advancement of technology today is greatly affecting the business world and how industries conduct business. Argument 1: The Internet and computers are great tools that companies use to expand their business throughout different areas Internet Allows Communication Technology has helped organizations improve their businesses and expand operations in different areas. First, through the help of technology, communication in businesses has improved. It should be noted that communication is essential for the growth and development of business organization and that effective and efficient communication will facilitate the success of organizations. Hard evidence Many people have used technology for communication in the business world. According to American Technology Research, about 300,000 business people use Skype as their main means of communication in the year 2007. 27% of women who owned businesses invested in technology and communication software for the later 6 months in the year 2006. Technology has led to expanded businesses. For instance, in the year 2010 over $2 billion market was created in North America and Western Europe through the use of mobile IM. The number of smartphones sold in the first halt of the year 2006 was four times the number sold the previous year (Entrepreneur Media, Inc, 2014). The use of emails dropped by 28 per cent in the year between 2009 and 2010 while at the same time, the use of social media increased by 43% (BrioGroup, 2010). Analysis of the hard evidence From the above description, it can be observed that the use of technology in businesses has improved significantly especially in the 21st century. Many people have been communicating through technology to create business. The increase in the number of people using technology as a means of communication is an indication that it is profitable and it has improved their businesses. It is also evident that social media has gained popularity as a means of communication. Inference It can be concluded that using technology as a means of communication has become common to many business organizations and that it is an effective way of improving business operations. It is for this reason that many business owners have resorted to investing in technology. Tracking a product overseas Hard evidence It is possible and easier to track products anywhere in the world through the help of technology. This has facilitated the growth of international business as the rate of imports and exports has increased significantly. Through the help of technology such as RFID, one is able to track goods anywhere. The graph below shows the difference between amounts exported in the year 2012 when using technology and when not using technology in different industries in New Zealand. (Source: Manson, 2013) Analysis of the hard evidence When technology is used, it is easier to track goods through the help of the various technologies. This is among the reasons why the number of exports is high when technology is used. Wholesale trade is the one that needs to track its stock more and due to its use of technology, it is able to export more. Inference; organizations need to embrace technology as a means of tracking their goods. This will facilitate inventory management as well as reduce loss of goods in transit. Online shopping Hard evidence Many organizations are now selling their products online as it has proved to be more efficient and convenience for customers and at the same time reduces the operation costs for businesses hence they are able to make higher profits. Among the organizations that do online sales include Amazon.com, E-bay, Wal-Mart and Tesco among others. In the month of November, online shopping rose by a record £10.1 billion (Butler, 2013). Analysis of the hard evidence Many customers are avoiding the high street shopping in many regions in the world. For instance in the UK, the number of visits to the high streets decreased by 2.9% (Butler, 2013). It indicates the revolution that is taking place in business and that most customer and organizations are turning to that direction. Inference Organizations need to turn to online shopping as this will be the next level of competition. They are able to get more customers and hence make more profits as online shopping is more convenience for customers. Argument 2: Upgrade in technology is causing a rise in many industries such as the petroleum industry, automotive industry, and medical industry. Petroleum industry The performance of petroleum industry has been among the beneficiaries of technology as this has increased the efficiency of oil extraction. Fore instance BP introduced a new technology that is expected to increase oil extraction. It is estimated to increase the number of barrels by 42 million at the Clair Ridge alone (Macdonald, 2012). According to the US Geological Survey, the old technology in the 1990s could only deliver about 151 million barrels in the Bakken. New technologies by the year 2008 increased this figure to 3 billion – 4.3 billion barrels. By 2011, further improved technology helped the company recover 24 billion barrels which was arguably the largest oil discovery in the world in 40 years (MacRae, 2011). Inferences It is evident that the new technologies have a very significant influence in petroleum extraction and hence has led to improvement of business in this industry. Therefore, it is worth for petroleum companies to invest in the new technology. Automotive Industry Technology has also been embraced in the automotive industries. Automotive industries are now producing cars that are highly innovative. The cars produced through the help of new technologies are able to attain high speeds as compared to those produced in the old technologies. They new technology cars have an automatic gear lever while those in the old technologies use manual gear levers. Cars in the 1970s and 1980s had a very poor economy according to a survey by Royal Commission on Environmental Pollution. A research by the Australian Bureau of Statistics indicated that in the year 2010, the average usage for passenger vehicles was below 12 liters per 100 kilometers covered (Public Transport Users Association Inc, 2010). Inference Automotive industries are able to make vehicles that can meet the various consumer needs through the use of technology. They are able to produce low consumption cars which are favorable for low income earners and also high consumers for high income earners. In addition, high speed cars can be manufactured with the help of technology. This has increased customer satisfaction and hence profitability of organizations. Counter Argument: Technology causes lower employment, and dangerous creations come with it Nuclear power plants Productivity has increased with the increased development in technology. Companies have been looking for means of production that are less defective to the environment and nuclear power has often been used thanks to technology development. Too much money is spent on nuclear energy. This is money that can be enough to invest in cheaper sources of energy and expand business. It is less worth investing in nuclear energy as this is not economical considering there are other cheaper options which are also environmentally friendly. It will decrease profitability and hence organizations will not be able to hire more employees and will also not be able to expand operations and hence cannot create new job opportunities. Advertising and Marketing Advertisement and marketing has reached new heights as technology has enabled marketers to create technological adverts. It has also enabled online marketing which has increased the efficiency of marketing. However, due to the fact that technology can help marketers make adverts look more attractive and convincing, people have often been influenced to lose their sense of reality and spend money on items they could otherwise not have bought. It has led to increased impulse buying, money which could be used for more productive purposes. Unemployment Technology has led to increased unemployment as machines have replaced human beings in some jobs. This is a disadvantage in that increased rate of unemployment normally has a detrimental effect to the economy of a country. As a result of technology, over 800 million people are either underemployed or they are not employed at all (Rifkin, n.d.). Reference List BrioGroup (2010), how technology has changed the way we communicate, Brio Group, Retrieved online on May 9, 2014 from < http://www.briogroup.com.au/about/about-us/latest-news/how-technology-has-changed-the-way-we-communicate.html> Butler S, (2013), online and upward: UK internet shopping hits record high, the Guardian, Retrieved online on May 9, 2014 from < http://www.theguardian.com/business/2013/dec/17/online-internet-shopping-high-street-record> Entrepreneur Media, Inc (2014), Business Technology Statistics, Entrepreneur, Retrieved online on May 9, 2014 from < http://www.entrepreneur.com/article/81966> Macdonald K, (2012), BP unveils new technology to boost oil production, BBC, Retrieved online on May 9, 2014 from < http://www.bbc.com/news/uk-scotland-north-east-orkney-shetland-19497064> MacRae M, (2011), New Technologies Open Vast Oil Reserves, ASME.org, Retrieved online on May 9, 2014 from < https://www.asme.org/engineering-topics/articles/energy/new-technologies-open-vast-oil-reserves> Manson D, (2013), Strong connection between ICT and business-growth activities, Statistics New Zealand, Retrieved online on May 9, 2014 from < http://www.stats.govt.nz/browse_for_stats/businesses/business_growth_and_innovation/ict-use-business-characteristics.aspx> Public Transport Users Association Inc, (2010), Common Urban Myths about Transport, Public Transport Users Association, retrieved online on May 9, 2014 from < http://www.ptua.org.au/myths/efficient.shtml > Rifkin J, (n.d.) New Technology and the End of Jobs, Retrieved online on May 9, 2014 from < http://www.converge.org.nz/pirm/nutech.htm> Read More