3.9 DIGITAL TECHNOLOGY (4 types)

Question 1

E-COMMERCE

Answer 1

Digital commercial transactions between businesses, businesses and customers and between customers.
Has evolved to M-commerce (apps-mobiles)

Question 2

Strengths of e-commerce

Answer 2

+ Increase sales- access larger target market.
+ Cost efficient.

Question 3

Weaknesses of e-commerce

Answer 3

• Lower barriers to entry due to increased competition.
• Only suitable for certain products i.e can’t ‘try before you buy’.

Question 4

BIG DATA

Answer 4

Large volume of data that can be assessed due to technological advancements.
Easily stored info i.e on ‘the cloud’
Collect such data from customer transactions giving insight into trends, lifestyles, demographics. Social media- collect info from cookies - customer interests on websites can target adverts. Apps collect info on customers.
VOLUME
VELOCITY- as internet grows amount of data from each user quickly scales
VARIETY- diversity- extensions among files in databases of individuals
VERACITY- trustworthy, accurate data, reliable, technology makes able to work with big data

Question 5

Strengths of Big data

Answer 5

+ Useful to track consumer behaviour, how they interact with websites allows personalised marketing to be achieved.
+ Improve decision making.

Question 6

DATA MINING

Answer 6

Turning large amounts of data (Big data) into useful info. i.e trends & patterns.
Knowledge discovery within databases.

Question 7

Strengths of Data mining

Answer 7

+ Useful in market analysis & management- Cash flow analysis, resource planning etc…
+ Make marketing decisions, if one customer buys one product, likely to buy another.

Question 8

ENTERPRISE RESOURCE PLANNING (ERP)

Answer 8

Business management IT systems.
Manage & integrate important parts of business- SHARED DATA.
Eliminates duplication which existed before ERP via integrating all functions & processes, increasing accuracy.
1) Automate processes- customer orders, stock levels (increases efficiency).
2) Integrate core processes across functional areas; HR- manage recruitment & selection, pay roll, training etc… Finance- manage cash flow

Question 9

Strengths of ERP

Answer 9

+ Automation increases efficiency
+ Better manage resources, track orders easily, increase customer satisfaction.
+ Increased communication as managers have insight over all functional areas.

Question 10

Weaknesses of ERP

Answer 10

• Takes time
• High cost
• Needs to be adapted to organisation
• Requires dedicated & trained staff

Question 11

Impacts of digital technology on functional areas: Finance

Answer 11

Financial analysis and monitoring is quicker and easier.

Question 12

Impacts of digital technology on functional areas: Marketing

Answer 12

Digital technologies opened up new markets enabling more targeted promotions, reduces marketing costs through e.g E-commerce, Social media.

Question 13

Impacts of digital technology on functional areas: HR

Answer 13

Digital technology has enabled more flexible, multi-skilled workforces who work under better conditions & are more closely monitored.
Risk of recruitment & training costs, industrial relations.

Question 14

Impacts of digital technology on functional areas: Operations management

Answer 14

Digital technology enabled greater automation of production, increasing efficiency in inventory control- lowering costs, increasing quality & flexibility, decreasing waste.