Explain the management of technology. And also, Advantages and disadvantages, effects and affects.
Management of Technology is a set of management disciplines that allows organizations to manage their technological fundamentals to create competitive advantage through planning, organizing, staffing, implementing and monitoring/evaluation. Advantages of Management of Technology:
Waste Reduction-leads to lower costs and higher profitability. The availability of vast amounts of data. Reduced Workforce- fewer positions may be required, when previous tasks performed by personnel become automated.
Increased Profitability- it allows jobs to be completed quicker and more accurately, to allow a steady cash flow.
Increased Productivity- it creates additional efficiencies and overall production.
Higher Income-the greater the business profits, the greater opportunities there are for employees to increase their income, via bonuses or raises.
Improved Communications-allows information to be sent, received and responded to instantaneously, whether through e-mail, computer networks and cell phone use.
Competitive Advantage-allows a business to reduce product/service costs, while increasing profit levels, without compromising customer service. Disadvantages of Management of Technology:
Management’s Decision-to upgrade with new technology can be extremely difficult.
Regular Maintenance-of new technology will be required to keep efficiencies flowing.
Costs-will be reduced if integrated properly and therefore, the decision is whether or not the extra capital is available to purchase the new technology.
Additional Time-will be required for training and if you have to reorganize the workplace to accommodate the new technology.
Abuse-of the technology made available to employees on their job can be excessive and very costly to a company. Effects of Management of Technology: Cut of production costs Introduction of innovations in products and services Growth promotion Development of alliances Lock in customers and suppliers Creation of switching costs and raise in barriers to entry.Affects of Management of Technology: Knowledge workers will be able to replace clerical workers as the new mainstream of manpower resources. Relying heavily on environmental knowledge.Focusing on solutions rather than problems