Abubakr Abdulfatai: 13 Facts on the Importance of Technology in Business

Have you ever wondered about the importance of technology in business? The answer is pretty simple: technology’s role is to boost growth (productivity), facilitate operations, maintain data flow, help track processes, manage contracts, all with limited manpower.

Generally, technology plays a vital role in business undertakings, irrespective of size and speciality. There are limitless reasons as to why technology is important in business, and they only keep expanding with prospects of future growth.

To limit the scope, these are 13 facts on the importance of technology in business;

Improvement in Business Communication
Technology broadens the extent and efficiency of all forms of both internal and external business communication. Most often, businesses depend on a variety of technological features for communication, including instant messaging, business phones (direct calls), Skype, video conferencing, e-mail, etc. Thus, a breakdown in communication can be very disastrous for businesses. With the advent of modern technology, interactions between businesses, associates and clients are void of breakdowns and obstacles. For instance, in the case of video conferencing, meetings and conferences are essential on a daily basis, for those with multiple office setups and limited employee connections. This explains why a staggering 96% of businesses testify to the fact that video conferencing in particular, and communication in general, boost productivity.

Cybersecurity
It is fair to say cyber attacks are growing at excruciating rates, with long-lasting and drastic effects on businesses. This has given rise to numerous cybersecurity defense systems, emphasizing on the need for businesses to be vigilant and cohere to the best cybersecurity practices. Today, a vast majority of businesses store assets and vital information on endpoints or online clouds, making it absolutely important to protect those assets from hacks by employing cybersecurity technologies. In recent times, about 50% of businesses have experienced security breaches, with only about 14% of them, equipped to properly mitigate these vulnerabilities and security breaches. This explains why most businesses spend as much as $38,000 on an average, to recover from cyber attacks and security breaches.

Demanded by Employees
In the global business world today, the role of technology keeps expanding and this explains why employees often urge their employers to be creative and innovative in providing the latest technology necessary in improving output, efficiency and fulfilling their various job responsibilities hitch free. It is also worth mentioning that technology keeps employees engaged in various ways, including telecommuting, collaborations through file sharing, electronic work scheduling, etc. More so, it is very difficult to compete against businesses that are technologically advanced, which often prompts employees to demand improvements on technology from their employers.

With Technology, There Are No Limitations
Businesses with employees stationed at different locations often have the need for the presence of a constant interactive chain. This is solved by putting in place technological structures that help in the coordination of activities and even employees. Better still, businesses across the world are diverse in needs, which have several limitations. Employing technology in business will not only greatly address these diverse needs, but also ensure there are no limits as to what can be accomplished at any point in time.

Tons of New Resources Exist That Can Improve Your Business
Technology is growing very rapidly, with constant fluctuations in prices and new innovations coming up on a regular basis. If businesses haven’t been regularly searching for new technological features to boost productivity and output, then there is definitely a major cause for concern. For example, companies tend to save time and costs in a bid to improve business communications, relationships and output by introducing and implementing video conferencing technology.

Technology Is Necessary to Succeed
Whether you admit it or not, technology is very vital to success in business. Most often, employees depend on it for the smooth execution of operations. Prospective clients, other companies and even onlookers often evaluate businesses on their use of technology. Thus, in order to maintain client trust, the putting in place of a reliable and fast database must be considered, with premium and highly responsive customer care services. Without technology in business, most companies will certainly fail to achieve their goals.

Optimized Production
Regardless of your industry, primary activities and business size, technology makes it possible for production to be optimized. In some cases, it is absolutely possible for small businesses to compete with larger ones in the domain of operational efficiency. This is often thanks to the use of high-tech tools and equipment. More so, manufacturers persistently seek to upgrade and improve available equipment with the prime motive of competing with the industry leaders on all aspects of production.

In the case of a retail business, technology’s role is significantly effective as it makes selling and servicing processes very efficient. For instance, check out barcode scanning is undeniably faster than punching numbers on cash registers, as it saves time and enables businesses to get important information useful for precise marketing.

Inventory Management
Manufacturers, raw material suppliers, wholesalers, retailers, and B2B (business-to-business) providers usually carry out inventory management actions. These stakeholders often use technology in organizing items in warehouses or storage units. Also, the stock can be pulled quickly by coordinating information on inventory, with the use of the computer. This is because technology makes it possible for inventory processes to be automated. For instance, most retailers employ the use of Vendor Managed Inventory means, where suppliers, upon alerts of stock shortages, automatically provide supplies with no waste of time. Thus, an organized and efficient inventory management helps in minimizing inventory costs while at the same time meeting customer demands.

Financial Record/Book-Keeping
According to the United States Small Business Administration, businesses both small and large often employ state of the art software programs to efficiently manage finance and accounting tasks. These software programs help in synchronizing accounts along with point-of-sale monitors and general book-keeping. With the help of this technology, purchase and sales records are automatically stored in databases. Thus, the use of technology in managing financial records/book-keeping minimizes the occurrence of manual human errors and costs.

Technology Increases the Capacity of Businesses
Technology makes it possible for businesses to reach out to more people in limited timeframes, environments, and circumstances. For example, businesses use a variety of technological means to interrelate and communicate with clients, and other experts in the industry. It helps in hosting monthly webinars (web-based seminars), sending e-newsletters and publishing blogs and news. Better still, it enables related businesses to work together and increases the capacity of businesses to work together through CRM (Customer Relation Management) schemes.

Research Capacity
Businesses that have the technological capacity and ability to carry out research on new opportunities always stay steps ahead of their competition at all times. For businesses to stand the test of time and survive, they must seek, grow, and explore new business opportunities. Today, the internet makes it possible for businesses to virtually travel into newer and more rewarding markets, curbing the risks of opening new factories abroad and spending on executive private jets.

Overall Business Efficiency
Businesses tend to operate efficiently when technology is correctly used. Generally, digitizing documents and files makes their customization very easy. Particularly, contract templates and user agreements. Better still, communication is often contemporary with e-mail and the ability to get documents sent back and forth in course of negotiations. Customers often get information on company websites and use online forms to make necessary inquiries. Also, customer relationship control software records information from clients to follow-up calendars, propensity patterns and buying history. This data eventually makes it possible for businesses to effectively strengthen customer relationships and properly manage prospects.

Technology Saves Time and Money
Most importantly, technology comes in handy as it helps in the performing of regular mundane (day-to-day) tasks, previously carried out manually and strictly by employees. This enables employees to schedule, focus and properly manage time, probably on other productive activities. Technology improves business productivity by saving time and money, reducing employee expenses.

If you ever find yourself wondering why technology is important, the answer is simple: the role of technology in business is to drive growth and improve operations, along with about a hundred other reasons.

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