Advantages and disadvantages of using new technology for businesses
New technology has a range of advantages and disadvantages for businesses and business stakeholders. It is important for businesses to assess the risk and make informed decisions about whether to use the latest technology.
Advantages of new technology include:
- easier, faster and more effective communication
- better, more efficient manufacturing techniques
- less wastage
- more efficient stock management and ordering systems
- the ability to develop new, innovative approaches
- more effective marketing and promotion
- new sales avenues
Disadvantages of new technology include:
- increased dependency on technology
- often large costs involved with using the latest technology (especially for small businesses)
- increased risk of job cuts
- closure of high street stores in favour of online business
- security risk in relation to data and fraud
- required regular updates
- can go down or have faults, which can stop all business operations instantly
