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Chapter 9Technology’s Impact on Business pp. 126-139
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Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:
1.1. ExplainExplain how technology influenced business industries.
2.2. DescribeDescribe three aspects of the e-workforce.
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Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:
3.3. ListList specific examples of e-commerce.
4.4. Analyze Analyze the advantages and disadvantages of e-commerce.
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Why It’s ImportantWhy It’s Important
Knowing how technology has influenced business sheds light on new and future industries.
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Key WordsKey Words
e-workforcedigital workflowstart-upse-commercee-tailmulti-channel retailer
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Key WordsKey Words
bricks-and-mortar clicks-and-mortare-ticket
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Technology’s Influence Technology’s Influence on Business on Business
Technology refers to the tools and machines people have invented to make life easier.
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Technology’s Influence Technology’s Influence on Business on Business
Perhaps the most common technology staple used in businesses today is the computer.
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Technology in the Past 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.
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Technology in the Past Technology in the Past Because of the plow, more corn could be planted which meant more corn could be produced.
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Technology in the Past 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.
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Technology in the Past Technology in the Past Since the invention of the plow, countless new inventions have changed the way we live, work, and do business.
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Modern Technology Modern Technology In the past 50 years, electronics revolutionized business and society.
There is a never-ending demand to make electronic goods smaller, faster, cheaper, and more powerful.
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Modern Technology Modern Technology Computers can store thousands of files electronically, saving time and office space.
The computer created a boom in nearly all business industries.
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Figure9.1 TWENTIETH CENTURY’S TOP TECHNOLOGISTS
Technological inventions greatly affect your daily life. These percentages represent people’s opinions about who technologically influenced the twentieth century and beyond.Which three inventors do you think you’re influenced by every day?
Source: Opinions Research for CNET and Techies.com; voters could choose up to three
John Logie Baird (mechanical TV) 23%
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Fast Review
1. Explain how the plow changed business.
2. How does the computer help businesses?
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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.
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Employment Employment Technology makes people work easier and faster.
Technology’s speed saves time and creates new jobs.
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Digital Workflow 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.
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Digital Workflow Digital Workflow By switching information to a digital format, there is less paper involved.
A digital workflow links all the steps in a process, like publishing, electronically.
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Technology Centers Technology Centers The high-tech industry can be found in practically any city, but it is heavily populated in various technology centers, like California’s Silicon Valley.
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New Jobs New Jobs The Internet has created a demand for new jobs such as software writers, online writers, and Web page designers.
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Fast Review
1. How has the computer created demands for related products?
2. Name an industry that manages a digital workflow?
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Virtual Business Virtual Business The ease of doing business online has created a boom in new businesses, or start-ups.
This type of business is called a virtual business.
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Virtual Business Virtual Business Vocational schools, universities, colleges, and community centers offer technical training or degrees for people interested in expanding their technology skills.
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Virtual Business Virtual Business Technology skills will make you very attractive to an employer.
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E-Commerce E-Commerce Electronic commerce, or e-commerce, has made it possible for businesses to directly reach customers anywhere in the world.
The main activity of e-commerce is buying and selling goods and services.
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E-Tail E-Tail E-tail is electronic retail.
An e-tail business sells products over the Internet.
Any company can go online to sell any product.
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Figure9.2 WHAT CONSUMERS BUY ONLINE: TOP PURCHASES
People shop on the Internet for these top five types of purchases.
What do you think are reasons for buying these products online?
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E-Tail E-Tail A multi-channel retailer uses several means to sell products.
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E-Tail 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.
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Graphic OrganizerBricks-and-ClicksBricks-and-Clicks
Graphic OrganizerGraphic Organizer
BRICKS-AND-MORTAR CLICKS-AND-MORTAR
RETAIL
E-TAIL
C O N S U M E R SC O N S U M E R S
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E-Tail E-Tail Putting catalogs on the Internet rather than shipping them by mail saves a lot of money in printing and mailing costs.
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E-Tail E-Tail E-tail is an advantage to the consumer in two major ways:
• Convenience• Choice
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E-Tail E-Tail E-tail is a disadvantage to the consumer in four major ways:• Buying power (overspending)• Other charges (shipping)• Immediacy (waiting for product)• Relying on observation (not being
able to see products directly)
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E-Ticket E-Ticket Using their computers, people can now purchase e-tickets, or electronic tickets.
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E-Ticket E-Ticket Some people find purchasing an e-ticket is easier and cheaper than visiting an actual ticket agency.
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Fast Review
1. How does e-commerce differ from e-workforce?
2. What is a multi-channel retailer?
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Why is it important to take chances in business, particularly when launching a Web site?
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Name two things that can make an online company successful.
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How can a Web site contribute to increased sales?
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What have been your experiences with online shopping?
End of Chapter 9Technology’s Impact on Business
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