Technology helps businesses in a number of ways that generally center on doing things bigger, better or faster than you could without technology. Different industries and companies rely on technology in different ways, but some benefits of technology in business include improved communication, optimized production, inventory management and financial record-keeping.
TL;DR (Too Long; Didn’t Read)
Improved business communication, more efficient production, easier inventory management and easier record-keeping are all signs of the importance of the technological environment in business.
Improved Business Communication
The importance of technology in society and business can be seen in how technology expands the reach and efficiency of many forms of internal and external communication.
Field sales representatives and technicians, for instance, no longer have to return to an office to receive assignments. Instead, they take calls or mobile messages while in the field, alerting them to the next scheduled appointment. Business representatives traveling for work can stay connected to the office and colleagues, and email enables mass distribution of messages to people across geographical boundaries.
Externally, technology enhances opportunities for marketing communication. Social media, email, mobile phones and chat features allow companies swifter and more interactive communication platforms relative to traditional, one-way media options.
However, do note that using technology for communication is not the only solution and can be problematic for a business if a certain type of interaction would be better facilitated face to face. A funeral director would not want to rely on impersonal text messages for example, as the personal touch is critical during this difficult time in their clients’ lives.
Production Benefits of Technology in Business
No matter what your industry, business size or primary activities, technology allows opportunities to optimize production beyond what you could produce without it. Small companies can often compete with larger firms in operational efficiency, thanks to access to high-tech equipment and tools. Manufacturers constantly look to upgrade equipment to compete with industry leaders on production efficiency.
In a retail business, technology makes the process of selling to and servicing customers much more efficient as well. Scanning barcodes at a checkout is faster than finger-punching numbers in a cash register. Also, as items get scanned, companies capture important data for precise marketing and inventory management.
Facilitated Inventory Management
Raw materials suppliers, manufacturers, wholesalers, retails and B2B providers all have inventory management processes. Technology is used to organize items systematically in a warehouse or storage room. Matching computer information to inventory storage spaces helps associates pull stock as quickly as possible. Companies can quickly compare inventory when it comes in the door to order sizes on the computer screen.
Many inventory processes are automated. Retailers, for instance, often use vendor managed inventory approaches where suppliers automatically send replenishment when alerted that stock is low at a store. Organized, efficient inventory control helps minimize inventory costs while meeting customer demand.
Easier Financial Record-Keeping
Companies small and large use advanced software programs to manage accounting and finance tasks. In fact, companies often use programs that sync accounting with point-of-sale terminals and bookkeeping programs, such that each purchase or sale transaction is automatically captured in an accounting platform. Using technology to manage financial record-keeping minimizes manual processes, reduces costs and helps protect against human error.
About the Author
Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.