How Digital Technology Has Transformed Business Activities E.G. Operations, Marketing, Accounting, HR.

Introduction

Digital technology is categorized to be the most essential modern change that has thus revolutionized modern businesses (Peppard and Ward, 2016 p.4). Digital technology has not only changed the manner in which business is carried out but the outcome, as well as productivity, has improved. Over the last couple of years this trend that drastically transformed conventional business models while creating notable changes within different business activities like human resource and operations. The utilization of flexible and friendly mobile technology has offered most businesses with extensive options and growth opportunities. This has also allowed the already developed products to grow into higher profits while creating fresh strategies that adhere to innovation for new products creation thus creating a rather diverse product options. The effect of digital technology is evident in all the main aspects of business systems ranging from management, production, Human resource, communication and so on. Digital technology is associated with more benefits to the organizations that have adopted the systems but the success of the operations is not without challenges as different management approaches are needed (Strauss, 2016 p.12). Modern business is required to revolutionize their operations in the quest of catching up with the ever-changing business markets. This is best regarded as the digital transformation which refers to the acceleration of business operations, procedures, capabilities and strategies to fully control the variations and opportunities with respect to digital technologies and the associated effects in a planned and ordered way.

Background of Research

It cannot be argued that indeed digital technologies have brought essential and intense impacts on businesses and the economy in general. Although the transformations are mainly linked to the digital period, it is agreeable that actually, the business world is transitioning from operations that are driven by technical and industrial technology into one that is fueled by digital technology (Nambisan, 2017). Technology is transforming rather fast thus requiring businesses to adjust to the changes in order to attain success through efficiency. Due to the increased competition in the market and the need to meet the ever-changing consumer needs technology has become the only solution for businesses. However, technology is characterized by faster changes when equated to businesses operations but the responses of organizations have been positive which has created notable transformation (Strauss, 2016 p.12). Based on the fact that the business markets are changing every day requiring the adoption of new business operations management, marketing, accounting techniques and so on market leaders have acknowledged that effective operating approaches and approaches must be reflective of the evolving digital technology. Major concerns of modern businesses lie on achieving efficiency in operations and obtaining a reliable human resource for improved and motivating gains. With this, there is a necessity to minimize the operating expenses while heightening shareholder’s gains in general. It is from this context that Digital technology has transformed businesses by ensuring that these goals are achievable for the long run.

Research Objective: To establish the effects of digital technology on business activities with respect to operations, marketing, accounting, and HR.

Literature Review

According to Hanelt et al (2015), business operations in the contemporary society are faced with more complexities thus requiring them to adopt more strategic tactics to overcome the underlying issues. To begin with, competition and the ever-changing demands in the market have forced organizations to depend highly on innovativeness that seeks to develop new and acceptable products. On the other hand, this is aimed at creating differentiation and diversity to offer more selection choices to the consumer which in turn led to improving their experience in general. Technology has actually improved business activities in different forms but communication operations are the most essential. In fact, instant communication through texts and social networking have turned to be the most weighty technology impacts on all areas of businesses. However, communication operations are faster it is evident that it has become more complex. In actual sense, digital technology has permitted business operators to communicate at ease in spite of the locations, time as well as language differences. With this business has become more global in general by permitting the carrying out of business within different locations (Nambisan, 2017 p.1030). This, therefore, means that the operation markets have expanded with larger markets. It is the communication that additionally facilitates individuals to understand consumers need and implement strategies for meeting them within the shortest time frame. Through internet technology, it is easier for individuals to communicate with the consumers which in turn assists in creating more close relations.

Based on Strauss, (2016) communication is one of the most essential business operations and without it, efficiency and productivity might never be achieved. Technology has enabled businesses to run and manage different activities simultaneously by ensuring that the staffs clearly understands what is required from them while maintaining close connections with consumers and shareholders. Digital technology has permitted most businesses to enhance their communication procedures. Through different kinds of technology communication options, organizations can steep their economic surrounding with constant communication. Workers productivity can be improved through the application of digital technology. This is because the use of computing programs provides more opportunities for the staffs to acquire more insights that in turn facilitates creativity. It is through digital technology that human workloads have been decreased which leads to fewer labor expenses. This technology has permitted businesses to attain more extensive markets in the global setting for the provision of better production (Hanelt et al, 2015 p.1315). Human resource monitoring and outsourcing is an additional impact of digital technology. The trend has allowed the outsourcing of different business functions within the domestic and global business settings. Outsourcing is essential as it facilitates the reduction of costs thus concentrating on the completion of distinct business operations. The innovative need requires businesses to focus on not only employing skilled but also creative personnel to bring their ideas to the business for differentiation and sustainability in the competitive surrounding. Technology provides favorable grounds for understanding those areas that are associated with the cheapest form of resources (Matt, Hess and Benlian, 2015 p.342).

Marketing is the central drive of business and most standards regarding the operations that were created many years back are still applicable in the present. Marketing revolves around promotion and the creation of both awareness and familiarity of business operations and their products (Westerman, Bonnet and McAfee, 2014 p.21). Without effective marketing, it is apparent that the targeted consumers will not be aware of business provisions and this makes it difficult for increasing sales. Promotion is a means of increasing products sales and creating better relations which is rather common in the business world. Marketing is very dependent on technology and different technologies modes hold differing effects on marketing capacity. Marketing is particularly cheap due to technology which has provided more platforms for promotion with little to zero charges. Most businesses regardless of their sizes have created online platforms that facilitate online marketing in a faster mode. For social media platforms, the employees can connect directly with the consumers to understand their experiences with the offered products and their needs which helps in developing more strategic plans for addressing each of them. These platforms are effective based on the extensive numbers of users that they accommodate and the fact that they reach the targeted populace within the shortest time period. Technology permits businesses to systematize labor-intensive operations and procedural data with ease (Mithas, Tafti and Mitchell, 2013 p.17). While in business, digital technology is mainly applied via computing devices, server storages, and systemic arrangements, the internet is the foremost advancement which has thus facilitated fresh communication strategies that are utilized for processing financial and operational data.

Westerman, Bonnet, and McAfee, (2014) notes that E-business has been a major effect on digital technology on contemporary businesses. Online business has transformed traditional business operations in general. A fundamental characteristic of e-business lies in the communication competence and information transferring while using the internet. Most organizations mainly utilize internet communication approaches that enable communication and data sharing amongst administrators and staffs through platforms such as mail and video conferencing. In addition, most firms have also created different business websites that permit customers to fully evaluate information regarding the corporation and its goods in order to make better decisions. The sites additionally offer them with the channels for connecting directly with the firms. The internet has created means for businesses to establish fresher strategies for decreasing the operating expenses and saving production resources. This is because most businesses normally apply business software’s that seek to track differing business activities while regulating and assessing the effectiveness and competence of all departments. These aspects assist administrators in evaluating details and settling for more informed choices that regard business operations. The supply network is also enhanced due to constant and increased information movement (Matt, Hess and Benlian, 2015 p.340). Most businesses operating within the conventional environment were not able to conduct sales in any direct ways while interacting with their consumers a trend that has been changed entirely by technology advancement.

Nambisan et al (2017) hold that it is universally assumed that digital technology is the real solution to all business problems. However, it is worth noting that it requires constant maintenance to ensure that the competitors do not apply the new technology in gaining competitive positioning. There is the cost that is associated with this adoption but this does not imply that the technology is not essential but it requires to be maintained constantly. Digital technology has made HR management simpler since it facilitates successful information storing and sharing. Since performance evaluation is one of the operations that is needed for higher productivity and employee’s motivation (Mithas, Tafti and Mitchell, 2013 p.22). This implies that data is to be stored and shared among administrators to enable the implementation of more enhanced strategies for increasing production and encouraging better performance following innovativeness. On the other hand communication especially on the social networking platforms including mobile technology creates better means to interact, share information, cooperate and build better associations globally. Information storing and sharing is facilitated by the ability of technology to support multiple tasks such as information filling and research which helps in the integration of operations such as marketing and operations management. Production has increased compared to that of traditional businesses since technologies such as data analytics and artificial intelligence are supporting product expansion and innovation (El Sawy and Pereira 2013 p.12).

Based on Hess et al (2016) marketing branding has also been transformed by technology as the promotions are aimed at communicating the innovative nature of products. As information about products increases, there is an increasing power shift given that consumers have gained more authority over their products choices. Basically, most individuals do not believe that digital technology is applicable to business operations such as accounting. One of the primary use is the improvement of operating intelligence is via the utilization of data analysis. For instance, within the retailing business, the existence of data analytics digital technology that is driven by accounting information permits managers in reviewing the existing sales and progress that seeks to address the existing issues regarding operations (Trainor et al, 2014 p.1204). Through technology systems, finance auditors can modify the existing sets in the quest of allowing enhanced communications and operations to be carried forward.

According to Matt, Hess, and Benlian, (2015) operation management is also affected by digital technology by generating effectiveness and competence of different processes. In this context, data analytics generate a number of openings that seek to improve operations in general. On the other hand, the use of different technologies such as artificial intelligence can create more value for researching and development activities without affecting production. Cloud computing has generated the most intense in the manner in which most IT systems operate. HRM is affected both by the HR operations and people monitoring within an organization. The functioning of HR is mainly impacted by modifications that occur within the management procedures based on the rise of information digitalization and operations (El Sawy and Pereira 2013 p.13). Newer technologies are additionally generating modifications in regard to the manner in which talents and skills among employees are managed. This implies that organizations have to reevaluate their job requirements in the quest of addressing the existing creativity gaps within. With the rise of more positions due to technology the management is then pressured to develop fresher strategies that seek to address issues that are related to compensation and performance (Mithas, Tafti and Mitchell, 2013 p.26). An additional consideration revolves around legal matters that incorporate confidentiality, intellectual violation, safety issues, and distractions. Employees must be educated on the use of the technology not be exposing themselves to threats, violate ownership of data or lose privacy.

According to Trainor et al (2014) as business activities are becoming digitally transformed and fresher technologies are gaining full integration into every industry it is essential for businesses to adopt the transition to meet the needs. Inevitably, the rising competition is encouraging the ever-growing demand for costs management and controlled operations. It is these technologies that are creating cost-saving options and resource outsourcing opportunities with solutions that best support higher competence, performance and productivity that in turn transforms all operations (Fitzgerald et al, 2014 p.1). Conventionally one of the major issues that businesses were facing revolved around the fact that although the objectives for all operations were clear regarding human resources, accounting and management the ability to create efficiency was low. However, it is courtesy of technology that more alternatives have been created for companies via which they can fully reassign their efforts towards vital procedures and functions to be achieved thus rising efficiency and goods. Operations having being developed more adequately means that there are better collaboration and participation among teams due to the willingness to be part of the changes within the organization and beyond (Fitzgerald et al, 2014 p.1). Capitalization on the networking platforms has been essential for the involved companies in generating feedbacks.

Research Analysis

The research gathered information through the use of primary and secondary research. In that, primary data was acquired from qualitative interviews and quantitative online surveys that sought to provide direct and reliable information. These methods were mainly selected based on their convenience, reliability, affordability, and ability to generate maximum information in regard to the subject (Hussein, 2015). On the other hand, a review of literature was mainly acquired from secondary sources which included journals and books. This helped in generating adequate information for a comparative analysis of data acquired from primary research. Content analysis was utilized in the analysis of primary data.

Technology affects all aspects of life and business operations are not an exception. Technology has the ability to improve a business or abolishing in based on its application. Communication, marketing accounting, and HR management are some of the business activities that have been transformed more by digital technology. Based on the conducted research it is evident from both primary and secondary investigation that communication is one of the most affected aspects of business. In that digital technology has created more opportunities for sharing information and integrating directly with those that are involved in business. For instance, most businesses rely on social networking platforms to connect with their consumers and accessing feedbacks that are utilized for improving products and operations (Trainor et al, 2014). Technology has made communication more fast and effective in communicating the involved needs in general.

Digital technology mainly facilitates marketing and networking operations. Traditionally running effective supply chains was rather difficult based on the complexity of handling unpredictable changes and consistent operations which is not the case today. More companies are focused on the generation of capital higher capital under minimal expenses which they are able to achieve based on the use of technology. In that, Digital technology has created different marketing and promotion platforms ranging from the social media sites to instant messaging. With this company are not only able to communicate with their respective consumers but also maintain connections with suppliers, distributors, and others. Creating awareness and familiarity of products that are related to the company is easier because postings can be made on consistent basis while receiving comments from the consumers (Fitzgerald et al, 2014 p.1). Operations have eased given that the management is only responsible for regulating the flow of products as well as communication. These activities are not only effective but cost friendly since minimal expenses are incorporated.

Human resource drives the business and thus proper management is necessary. HR has thus been transformed by technology with the need to nurture talents and develop skills. Technology has brought with it innovation a thing that every company must own in order to differentiate itself from others and acquire a competitive positioning. HR managers are now focused on the development of programs and strategies to cater to employee’s needs and exposing them to better training and skills development (Nambisan, 2017). This occurs in order to enable them to be creative so that they can bring their ideas to the business for the development of new products. In other words efficiency and increased production are some of the benefits that digital technology has brought by improving operations and supporting effective marketing, accounting, and HRM operations. Communication has played part in creating better grounds for business success and improved performance.

Recommendations

Business operations in the contemporary society are not only complex but also demanding. Businesses must, therefore, evolve their strategies in order to successfully meet the increasing changes and secure their markets. Technology is evolving rather rapidly. In the past few years, the impacts of digital technology on business has remained evident to most. In order, for the positive transformation to be achieved by companies in regard to digital technology, businesses must be ready to adopt more strategic approaches. To begin with, one of the strategies that businesses should utilize is to ensure that they utilize the latest technologies. Employees should also be trained enough in regard to using these technologies. This helps in increasing operating efficiency and increasing productivity. Setting priorities also help in ensuring that the goals are achieved adequately. Communication and promotion should be the main priorities for digital technology given that when communication is effective operations run better leading to high productivity and performance.

Conclusion

In summing up, it is evident that digital technology has brought undeniable transformations to the business. Companies are required to evolve with technology in order to acquire the associated benefits. All the aspects of business have thus been transformed thus leading to higher economic gains. Marketing and communication activities alongside human resource are the most affected. Given that they are an integral part of business and success cannot be achieved if they are not controlled businesses are now focused on better achievement of improved communication and promotion. Technology platforms have created easier and more cost-effective means of communication and creating awareness among consumers thus improving productivity and business performance.

 

 

References

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