The Importance of Technology In Business

A June 23, 2005 news release from the Office of Advocacy, U.S. Small Business Administration, states that home computer owners are slightly more likely to be company owners than non-computer owners. This report shows that computing and technology has become an inseparable ingredient in the business world today.

The Computer Trend – A Brief History

The last two decades have marked an enormous rise in the amount of home computers. To entrepreneurship in several diverse fields, computer owners have regularly taken with it. As a result of the advancement of computers, technology as well as the Internet, new procedures have been developed for processing regular business activities easily. Without the arrival of technology, routine tasks would otherwise have taken and tremendous period of time plus specialization. Certainly, the computer represents the most effective technology development in the past century as it relates to companies nowadays, both large and little. Progress in the field of technology have created a vast amount of business opportunities.

Some Data

In 2003, the U.S. Small Business Administration created a report/survey that confirmed conclusively that more than 75% of small businesses owned computers and had heavily invested in new technology. Let’s try and comprehend what the computers mean to companies and how they lead to improve their productivity.

USE OF COMPUTERS IN COMPANIES

Office Routines: This work comprises, amongst others, inventory managing bookkeeping and electronic mail. The advent of the Internet has also greatly given in bringing down the costs of communication and marketing. The bottom line is, technology has reduced the entire cost of business operations.

The explosion of Internet and e-commerce has opened up a plethora of chances for many kinds of businesses. New management methodologies, such as Six Sigma are simpler to execute as a result of statistical software. Additionally, firms can train their own workers using in house Six Sigma applications programs, and as a consequence, save money on labour costs.

It is now possible to possess many company functions work on autopilot. It has opened up new opportunities for software development businesses and business consultants. Another business fad that’s opened up as a consequence of improving technology is outsourcing. It is now feasible to get a company in America to have its data entry and client service facilities in foreign nations such as the UK.

Essential Components of Small Businesses

It’s difficult to think of a situation today where companies can do without computers and technology. It’s extremely hard to say whether companies depend on computers or computers created business opportunities.

Software Particular To Small Businesses

Certain powerful, yet straightforward applications has come to the rescue of small businesses in reducing their jobs and opening up new stations. Easy applications like spreadsheets and word processing helps them preserve finances, accounts and keep track of correspondence. These applications allow the users to customize other functions and reports to accommodate their specific business.

Drawbacks

Both women and men in company have adapted to new technology. However, the SBA report mentions the typical drop in skill levels of people, that might eventually lead to an overall reduction of income levels. It seems that people get used to technology doing all of the work and often neglect their ability development. It’s up to individual companies to make sure that their workers are still in a position to do critical endeavors with no help of computers, if required.