Chapter 9Technology’s Impact on Business

Why it’s Important Knowing how technology has influenced

business sheds light on new and future industries.

The Cyber Age Michael Furdyk and his partners sold

MyDesktop.com for more than 1 million Their website began for just fun as a help line to

explain how the internet works What’s unusual about this is Furdyk is only 17 years

old and has not graduated from high school 8% of all teens, about 1.6 ,million in the U.S. are

making at least some money on the internet

Technology’s Influence on Business Thomas Edison said his greatest discovery

was discovering what people could use. His inventions included the light bulb,

phonograph, and the movie camera These made power, music, and film industries

possible. Technology refers to the tools and machines

people have invented to make life easier.

Technology’s Influence on Business Inventions like the radio and the television

entertain and inform us The telegraph and then the telephone made it

easier to communicate with each other. Trains, cars, and airplanes made it easier to

get around Perhaps the most common technology staple

used in businesses today is the computer.

Technology’s Influence on Business Computers electronically store thousands of

files, which save time, labor, and office space. Every business uses computers to help with

the day to day operations Arby’s, McDonalds, DQ

Technology in the Past Even the simplest invention, like the plow,

had a huge impact on business. Before the plow was invented, people had to

dig in the earth with their hands. Because of the plow, more corn could be

planted which meant more corn could be produced.

Technology in the Past Increased corn production meant hiring more

people to harvest the corn, selling more corn in the market, and building a corn-selling business.

Since the invention of the plow, countless new inventions have changed the way we live, work, and do business.

Technology in the Past Steam engines, blast furnaces, and boilers

provide way to greater power and made factories possible

The automobile made it possible to transport goods faster

Modern Technology In the past 50 years, electronics

revolutionized business and society. Today, the economies of many countries

such as Japan and Taiwan are based on manufacturing electronics

There is a never-ending demand to make electronic goods smaller, faster, cheaper, and more powerful.

Modern Technology Around 1945 a computer took up an entire room and could

barely do a math problem Now a microchip stores billions of bits of information The computer created a boom in nearly all business

industries.

E-Workforce A desk jockey with dry, red eyes is sitting in

front of a computer at work. Other workers in the office are in from of

computers wearing eyestrain eyeglasses Down a few more cubicle rows another

worker rubs the back of her neck This is a portrait of today’s electronic

workforce or e-workforce

E-Workforce E-workforce is when people work with

computers while doing business. According to the Bureau of Labor Statistics

more than 70 million people use computers daily.

Employment Technology created a boom in many

industries. It created new markets for product like

printers, fax machines, video games, cellular phones, and modems

New products are constantly being invented, developed, and manufactured by various companies

Employment Innovation means more jobs and more people

learning new skills. Technology makes people work easier and

faster. Technology’s speed saves time and creates

new jobs.

Digital Workflow Placing hard copies of documents on a digital

platform, like CD-ROMs or a database, has had a great influence on the efficient use of time.

People have access to a broad range of information more quickly than ever before.

By switching information to a digital format, there is less paper involved

Digital Workflow A digital workflow links all the steps in a

process, like publishing, electronically. For example, digital workflow has greatly

influenced the publishing and printing industry

Authors editors, marketing, manufacturing, and archiving can work together in a seamless electronic pace

New Jobs One fraction of the high-tech industry is the

internet The Internet has created a demand for new

jobs such as software writers, online writers, and Web page designers.

Companies are now able to post job opportunities on their home page or an internet job service careerbuilder & monster

Virtual Business The ease of doing business online has created a

boom in new business or start-ups This type of business is called a virtual business. Vocational schools, universities, colleges, and

community centers offer technology training or degrees for people interested in expanding their job skills.

Technology skills will make you very attractive to an employer.

E-Commerce Electronic commerce, or e-commerce, has

made it possible for businesses to directly reach customers anywhere in the world.

Everyone hooked up to the internet is a potential customer. This only hasn’t changed the way products are sold, it has changed the way all business activities are conducted

E-tail and e-ticket are two examples of e-commerce.

E-Tail E-tail is electronic retail. An e-tail business sells products over the

Internet. The main activity of e-commerce is buying

and selling goods and services Any company can go online to sell any

product.

E-Tail JCPenney, a major department store, sells

products in stores, by mail, and online. This type of company is called a multi-

channel retailer A multi-channel retailer uses several means

to sell products.

E-Tail Businesses often call their stores and

warehouses bricks-and-mortar, referring to building materials.

Businesses that also use the Internet are called clicks-and-mortar operations.

E-Tail E-commerce makes it easier to send catalogs

of e-tailers’ products to consumers This is especially useful for companies that

do a lot of mail-order business. Putting catalogs on the Internet rather than

shipping them by mail saves a lot of money in printing and mailing costs.

E-Tail E-tail is an advantage to the consumer in two

major ways: Convenience

You can shop at home without going to the store The internet is never closed

Choices The number of companies selling products online

gives you more choices and lets you compare prices

E-Tail E-tail is a disadvantage to the consumer in

four major ways: Buying power

It’s easy to overspend. If you’re not careful you can order things by mistake

Other Charges Since most products bought online are delivered by

mail, you have to pay shipping charges

E-Tail Immediacy

While shopping online is convenient, you still have to wait for most products to be delivered

Relying on observation It’s hard to know for sure whether you like a sofa

unless you sit down and try it. The same can be said for clothes.

Online buying requires you to rely on pictures and description instead of actually touching things yourself

E-Ticket With more than 70 million people signed onto

the internet the U.S alone, businesses are finding that customers want to buy services online as well goods

Using their computers, people can now purchase e-tickets, or electronic tickets.

E-tickets are available for concerts, museums, movies, and amusement parks

E-Ticket Some people find purchasing an

e-ticket is easier and cheaper than visiting an actual ticket agency.

For example a travel agency my charge you $25. fee for handling your airline ticket

If you buy a ticket from an online virtual business travel agency you may only be charged $1

E-Ticket Expedia, Hotels, Priceline, Orbitz On the other hand if you airline ticket gets

lost in the system you might be required to buy another one.