Chapter 13: Technology - Notes

Social Media

• Online interactions for communication and sharing.

• Platforms: Facebook, Twitter, LinkedIn, etc.

• Powerful marketing channel.

• Single post = thousands of impressions.

South African Internet User Statistics (2024)

• Internet users: 45.34 million at the start of 2024.

• Internet penetration: 74.7%.

• Social media users: 26.00 million in January 2024, which is 42.8% of the total population.

• Active cellular mobile connections: 118.6 million in early 2024.

E-commerce Trends

E-commerce in South Africa

• The e-commerce industry is growing exponentially.

• A major driver is the increasing internet user rate.

• In 2022, nearly 80% of South Africans used the internet; projected to grow by 10 percentage points by 2027.

• Approximately 27 million e-commerce users in South Africa in 2022; forecast to increase to 37.9 million by 2027.

Defining Technology

• Technology is any device or object that uses science to solve problems or complete tasks.

• Can be simple (e.g., a mirror) or complex (e.g., a cell phone).

Technology in Business

• Information Technology (IT): Equipment and techniques for managing and processing information.

• Information: Processed data that is meaningful and useful for specific purposes.

• Data: Raw, unorganized facts that can be moved and stored.

• Database: An electronic filing system for collecting and organizing data and information.

Benefits of Technology in Business

• Competitive Advantage

• Organized operations

• Speedy operations

• Creativity

• Mobility

• Faster growth

Transformation of Business and Managerial Decision-Making Through IT

• Automation and Efficiency: Automate repetitive tasks, increasing efficiency and productivity.

• Globalization and Market Reach: Reach customers and markets worldwide, facilitating global trade and expanding opportunities.

• Innovation and New Business Models: Enable the development of new products, services, and business models, including AI, blockchain, and IoT.

• Competitive Advantage and Differentiation: Differentiate through innovative products, superior customer experiences, or operational efficiencies.

Business Case Study: Domino’s Pizza

• Context: Domino’s Pizza is a large international pizza chain operating in over 83 countries.

• In 2007, the stock price was 32.25, a rise from 14.70 in 2004.

• Challenge: In 2008, Domino’s experienced a decline, with the stock price dropping to 5.95 in October.

• The challenge was a drop in demand and decrease in popularity.

• Domino’s needed to transform its service delivery and bring more value to customers.

• Solution: Domino’s Anyware enables clients to order via various channels (Smart TV, Facebook Messenger, Alexa, and Twitter).

Risks of Technology

• Cybersecurity and Risk Management: Businesses face threats like data breaches, malware, and phishing attacks.

• Implementing robust cybersecurity measures protects sensitive data and maintains business continuity.

• Regulatory Compliance and Governance: Technology assists in complying with data privacy laws, financial regulations, and industry-specific requirements.

Positive Effects of Technology on the Environment

• Renewable Energy: Solar, wind, and hydroelectric power decreasing greenhouse gas emissions.

• Energy Efficiency: Reducing energy consumption and minimizing environmental impact.

• Environmental Monitoring: Better understanding and management of ecosystems and natural resources.

• Waste Management: Recycling, waste-to-energy processes, and advanced waste treatment methods reduce landfill waste and mitigate pollution.

• Precision Agriculture: GPS-guided equipment, drones, and sensors optimise resource use, reducing chemical inputs.

• Conservation: Mapping habitats, tracking endangered species, and managing protected areas more effectively.

Negative Effects of Technology on the Environment

• Pollution: Industrial processes, transportation, and energy production result in air, water, and soil pollution.

• Resource Depletion: Extraction and consumption of natural resources for technology products lead to habitat destruction and deforestation.

• Electronic Waste: High turnover of electronic devices results in e-waste containing hazardous materials and pollutants.

• Climate Change: Technology's reliance on fossil fuels contributes to greenhouse gas emissions.

• Digital Pollution: Increasing energy consumption of data centres and the carbon footprint of internet infrastructure.

• Loss of Biodiversity: Habitat destruction disrupts ecosystems.

Green Tech

• Technology is vital in promoting sustainability and reducing environmental impact.

• Includes renewable energy solutions, eco-friendly manufacturing, and digital initiatives to minimise paper usage and carbon footprint.

Effect of Technology on Society

• Communication and Connectivity: Globalization, instant communication (email, Teams).

• Education: Online learning, digital resources (e.g., e-textbooks).

• Work and Employment: Remote work, automation, Gig Economy (e.g., Uber, Airbnb).

• Healthcare: Medical advancements, telemedicine.

• Entertainment and Leisure: Streaming services, gaming.

• Social Interaction and Relationships: Online dating, social media.

Technology Challenges Impacting Business

• Budget Constraints: Balancing innovative solutions with financial constraints.

• Impact of cloud technology on operating expenses.

• Stakeholder Retention: Significant upfront investments in infrastructure, software, and training are required.

• Skilled Personnel are essential for maximising value from technology investments.

Artificial Intelligence (AI)

• Original intent was to build a neural network resembling a brain.

• AI enables computers and machines to simulate human intelligence and problem-solving.

• Examples: Google search, spam filtering, Netflix recommendations, Facebook feeds.

• The Turing Test is a benchmark for machine intelligence.

• Collective learning: AI systems learn collectively from diverse sources.

Rate of AI Integration

• Hardware: Rapid development of integrated circuits supporting AI algorithms.

• Complex chip designs have more than 50 billion transistors on a 5-nanometer chip.

• Customer Adoption: Reaching 50 million users took the telephone 75 years, the internet 4 years, and Facebook 2 years. ChatGPT took only 2 months to reach 100 million users.

AI and Consumers

• AI is integrated into core products and services “behind-the-scenes.”

• Consumers feel rather than see the effect of AI.

• Consumers expect products to “do” things, not just “be” things.

• Example: Maps have evolved from paper products to AI-enhanced services providing real-time traffic updates.

• Consumer experience will entail a degree of trust in AI-enhanced products and companies.

AI Concerns

• Concerns:

  • Biases in data can cause AI to learn incorrect patterns (AI hallucinations).

  • Issues of responsibility, ownership, privacy, and value distribution.

  • Ethical dilemma between understanding AI and performance improvements.

• Consumers may trust AI models too quickly without understanding how they function.

Addressing AI Concerns

• Regulations are needed.

• Healthy skepticism of AI outputs is necessary.

• Trust AI outputs as you would a Wikipedia page.

• Consumer control will be essential.

• Example: Google “incognito mode” and “clear search history”.