UNIT 7: TECHNOLOGY IN BUSINESSES
Key Unit Competence: To be aware of how new technologies can affect business activities.
Analyze the Photos below and answer the questions that follow.
Questions.
a) Looking at picture 1,2,3and 4, explain the advantages and disadvantages of using the above techniques in the production of goods and services.
b) Which production technique is suitable for your school business club? Give reasons to justify your answer?
7.1 Meaning of technology
1. a) You wish to start up a feasible business in your community. Which type of technology will you use in your business and why?
b) How would you define the term technology as used in business?
2. Distinguish intermediate technology from capital intensive and labor-intensive technologies.
Technology
refers to methods, systems, and devices which are the result of scientific knowledge being used for practical purposes. Technology is changing fast. Technology is human knowledge which involves tools, materials, and systems. Many businesses are using technology to stay competitive; they create new products and services using technology, and they also use technology to deliver those products and services to their customers on time and within budget. Technology in business allows organizations to improve both the performance and overall effectiveness of products, systems and services, which, in turn, enables businesses to expand quickly and efficiently. Another role of technology in business is to provide security to a business.
Examples of some tools, systems or devices used by technology in business.
· Desktop Computers and Laptops.
· Software and Productivity Tools.
· Networking of Computers and Printers.
Telephone and VoiceMail Systems.
In Rwanda there are different technologies used to improve the services such as
-Tap and Go: This is One of the biggest technologies that has changed the face of public transport. It’s a smart transport system that enables passengers to board public buses without using hard cash but rather smart cards.
- Zipline’s drone technology: this is a global race for commercial drone deliveries of small packages. In Rwanda it is used to transport blood to remote areas where access to roads is impassable.
- Irembo: The burden of walking long distances to seek some government services has consistently been removed. There are large numbers of people who do not have to necessarily travel to apply for a marriage certificate, land transfer, drivers’ related services, birth certificate, criminal record clearance certificate, and other services. These few examples show how technology in business comes to enable businesses to expand quickly and efficiently.
Types of technology.Intermediate technology is one that fits into the level of development of the host country. It is neither too simple nor advanced. For instance, the use of ox-ploughs, solar cookers etc.
Capital-intensive technology is the production method/ technique where more machines are used than labor. It is also called labor saving technology because we save more labor to use machines. Its common in industries, factories, mining etc.
Labor Intensive Technology is the production method /technique where more labor is used than machines. It is also called capital saving technology meaning we save capital and use more labor. It's commonly used in hotels, restaurants etc.
1. Justify why the government of Rwanda is encouraging businesses to use capital intensive technology.
2. Refer to your school and describe how technology has helped in the efficiency of the school for both students and the school itself.
7.2. Importance of technology in business.
Debate “The use of technology in business has done more good than harm”
Technology is an essential tool in the day today business operations; no matter the size of the business, technology has both tangible and intangible benefits.
These include the following:
1. The use of ICT through internet helps entrepreneurs to carry out market research. This helps it to grow and acquire more opportunities across the globe, hence widening the market. by use of E-commerce sites like eBay, Amazon, Jumia, etc.
2. Technology helps to increase productivity of the labor through collaborating with each other hence speeding up the work.
3. It helps to keep track of records with the use of the accounting software.
4. Technology can be used for security purposes thus reducing threats of losing financial data and vandalism to unknown persons. For example, by using passwords on computers.
5. Technology improves the efficiency of businesses. The use of mobile phones, printers and E-commence which eases the work in business.
6. ICT enables easy access to funds through the use of ATM cards, such as debit cards, credit cards, and electronic money transfer etc.
7. It also enables better decision making as entrepreneurs can get information at the right time.
8. Technology helps businesses grow with the use of artificial intelligence. This gives the business a competitive edge over other businesses.
9. Advanced technology helps to produce better quality products that may fetch a lot of money for the enterprise thus increasing customer satisfaction.
10. Technology helps to perform complicated tasks with ease and faster. For example, use of computerized accounting software like quick books, sage and pastel helps in accounting with ease.
11. ICT helps firms to monitor the buying habits of their customers and be able to stock the right products in the right quantities at the right time. Speed Governors help to keep track drivers from over speeding hence reducing the number of accidents.
12. Computers can perform a lot of work in the shortest time possible which would require a lot of time if done manually. Examples include preparation of control accounts, financial statements and preparing payrolls etc.
13. Technology also helps to cut down costs. For example, the costs incurred while transporting and delivery of goods can all be done using computers and the internet.
Carry out research and identify the various technologies that are being used in businesses be it in your school or other business enterprises. Suggest their importance in terms of communication, management, accounting and transport.
7.3 Technological tools used in business
Observe the pictures below and explain the importance or uses of each machine, equipment or technology as used in business.
Figure 7.4: Most common technologies used in business.
From the above pictures, you realize that businesses use various technological tools, depending on the type of business, and department. The table below shows the common tools used in business departments.
1) Describe how new technologies affect business activities either in groups or in pairs.
2) Depending on the purpose of the application activity, choose an appropriate method to assess learners’ findings, answers, or responses. Depending on the performance or results, you may decide to give remedial or extension activities.
Use available resources like the internet, textbooks, magazines, resource persons among others to research, choose the appropriate technology that would improve the performance (Quality, quantity and efficiency of work) of the projects your business club is running or plan to run at the college, in terms of.
a. Business registration
b. Production of Goods and services
c. Packaging and branding
d. Marketinge. Selling of the products and / services. And explain why you have chosen that particular type of technology and how you will acquire it.
1) Case study
Mugiraneza has a peanut butter making business. Last week she announced the purchase of new equipment and modern technology that would make a radical change in the production process. The investment would make some employees lose their jobs. Mugiraneza explained to them but there was no doubt, it was in the best interests of the company in general. Employees were not consulted because it would slow down the process and Mugiraneza felt that it was the best decision to make. In the long run, the modern technology and equipment should increase the businesses’ competitiveness and produce quality products and in large quantities. The working practices would obviously be changed, and employees would have to learn new skills of using them. The employees were promised to be trained, although it was not a guarantee to employ all of them if they fail to adapt successfully. After the announcement, the employees were so furious and considered taking industrial action. Hearing the rumors of a possibility to strike, Mugiraneza admitted that the issue was not handled very well but would not reconsider the decision.
Questions:
a) What factors may have made Mugiraneza decide to invest in modern technology?
b) Do you think the employees were right in taking industrial action? Give reasons for your arguments.
c) Analyze the factors that Mugiraneza might have taken into account before acquiring the modern technology.
d) Mugiraneza admitted that the issue was not well handled. In your opinion, how should she have handled it? 2. Peter produces flowers and sells them both in the local and international markets. He plans to use e-commerce in his business.
(i) Mention any 3 e-shops he can contact for advice.
(ii) How can peter find other e-shops to sell his products on the international market? iii) Explain the merits and demerits of using e-commerce in a business like that of Peter.
(iii)Write a letter to Peter advising him on how to use e-commerce for the success of his business. 3. Many people think that the key to better performance is good management rather than more technology. As an entrepreneurship student, critically assess this view.