CA

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”.