There has been phenomenal advancing in business technology and all the various big and small operations have become streamlined through adoption of the right technology. With the advancement in mobile technology and cloud computing business interactions and information streaming has greatly improved. Globally, economies are losing out on millions of dollars due to loss in productivity.
Productivity and Technology
MIT’s research on this subject aptly titled PROFIT – PROductivity from Information Technology, looks at the role played by information technology in improving productivity in public and private enterprises. They have determined that in order to enhance productivity with technology three important points must be considered –
- Determine strategic applications
- Intelligently select technologies
- Incorporate appropriate changes in organizational structure
Their research shows that despite the adoption of technology, white collar employees spend a lot of time finding information from valid sources and combining them. Some information is gathered from different computers or devices, papers and other media, which adds to the overhead costs.
Managing Costs and Technology
For Small and Medium-sized Enterprises (SMEs), in order to produce goods at lower costs, they will first have to cut down the input costs, which includes, time, raw material and labor. Adopting digital technology will eliminate the need for extra labor and the entire process will speed up so production time is also cut down.
Productivity impact through technology adoption
- Lower inventory holding costs
- Shorter production lead times
- Fewer delays in delivery
- Faster quotes
- New opportunities for learning for employees
- Accurate product design
- More impactful marketing strategy
- Better assessment of business environment
- Improved customer service and overall experience
- Greater data accuracy and easy assessment
- Better business relations with vendors, stakeholders and partners
Areas for Technological Intervention
Technology can be leveraged strategically to identify new business opportunities and enhance value. There are diverse areas within the business operations where technology can make a huge difference in streamlining processes. For instance, inventory management and supply chain management software can be adopted to create a streamlined distribution network and create new cross-product markets.
Productivity in organizational administration and employees can also be measured and improved by using information technology. For instance, ER software is used to measure productivity within the organization. Technically, improvements and changes in data gathering, quality analysis and integration can aid productivity.
Summary:
Technology has brought about many improvements in business practices including greater levels of transparency, efficiency and faster decision-making process.
