business theme 2 - business operations and technology

technology used in business operations

• computer aided programs

• supply chain management

• 3d printing

• e-commerce

impacts of technology on operations

• speeds up production process

• keeps business in touch with customers

• lowers production costs

• ensures fewer mistakes and defects

• can involve costly initial investment

• can become obsolete

• requires employee training

economies of scale

average costs of production fall as the volume of production increases

this is an advantage that businesses gain as they grow in size

productivity

output per worker, measures how much each worker produces over a period of time

increasing productivity by increasing output or lowering the costs of production while maintaining output

factors affecting choice of technology

• productivity

• cost

• flexibility

• quality

factors influencing the use of technology

technology can have an impact on each of these factors and they all need to be balanced