New technologies bring a series of advantages that reach all areas of the company, from internal and external communication to production methods and chains, raw material supply, etc. We tell you all about the advantages and disadvantages of technology in companies.
Advantages of technology in companies.
Complete visualization of the state of production processes.
Among the advantages and disadvantages of technology in companies, we are going to focus on the advantages. Thanks to new technologies, companies are able to optimize all their production processes to the millimeter; through alerts and monitoring systems, it will be possible to know the exact status of a certain process, as well as the existence of incidents, delays, and losses in productivity.
All this data can be analyzed to detect errors or points for improvement to make the production chain more agile and efficient in terms of time and resources. This is the best way for a company to gain competitiveness in a highly competitive scenario, where product differentiation and internal operations are critical.
Cost optimization when purchasing raw materials and optimizing raw material consumption
In the current context of inflation, optimizing the consumption of companies can mean a decisive improvement in competitiveness with respect to other companies in the sector. Thanks to technology, we will be able to know the consumption of raw materials in the production chain, as well as detect wastage, points in the workflow where the material is wasted or wasted.
All this is achieved thanks to a monitoring system in which the arrival of raw materials and their consumption during the production process is entered and recorded, justifying consumption at all times. The computer system is responsible for detecting leaks or data that are not in accordance with the company’s actual consumption and, thanks to this, it will be possible to detect processes in the production chain in which this failure is occurring.
Streamlining procurement with predictive data.
Technology, through the collection and analysis of data, will make it possible to generate predictive models of material consumption in the production stage. Thanks to this, it will be possible to have absolute control of the available stock and to foresee the need to acquire new materials just in time so that there is no breakage of stock.
These predictive models are more effective as we have more data, both internal (from the company) and external (from the environment: suppliers, prices, availability, arrival times, etc.).
Tracking customer buying behavior
New technologies allow us to obtain data from our customers. This data can be used to introduce improvements in the product (thanks to the feedback that our customers give us), as well as to establish the appropriate times for sales and promotions according to the demand and the interest generated by our product.
Knowing the customer’s purchasing behavior will enable us to make significant improvements in all the interfaces of our company’s systems with which the customer interacts, from the website to purchasing methods or mobile applications.
Technology in companies brings them closer to sustainability
In the times in which we live, sustainability is a key element for the survival of a company. Day by day, consumers are becoming more responsible and critical of how companies behave towards the environment, as they consider it a social responsibility. There is a growing trend to reuse products, extend their useful life and generate less and less waste.
The incorporation of energy generation systems through natural sources such as sunlight allows companies to drastically reduce their carbon footprint. It is also useful to use electronic systems that help to consume fewer energy resources, such as consumption detectors and low-consumption electronic equipment.
New technologies improve corporate image
Companies that adopt new technologies are perceived as highly competitive and strong enough to face the challenges of the future. In fact, FutureBrand, McCann Worldgroup’s strategic consulting firm, conducted a study comparing the level of strength of various brands in terms of their receptiveness to adopting new tools and technologies in production, sales, and communication with customers.
The study concluded that the most far-sighted and ambitious companies favored the use of new technologies throughout their structure.
Increased possibilities and growth opportunities for the company.
Whether as a result of competitiveness through increased productivity and cost optimization or by opening new sales and communication channels with new customers, technology can be a key element in the expansion and achievement of objectives for a company. Whether or not a company is focused on technology, the use of these tools can mean a significant increase in the company’s profits.
An example of this would be a company that optimizes production costs and also expands its sales channels with an online store, through all kinds of marketplaces, or by offering a sales app with added value (for example, augmented reality for its products).
Disadvantages of Technology in companies.
As everything that in principle can be advantageous and a panacea, it can also have a counterpart, so there are advantages and disadvantages of technology in companies. We explain what are some negative points of adopting new technologies in the company.
Dehumanization of the company
The hyper-adoption of technological systems in the conversion channels of the company can be detrimental since it produces a dehumanization that creates distrust in many users. How many times have we had to make a query or complaint and have been attended to by a robot on the phone? This example is a situation that creates a disconnection between the customer and the company, and in the worst case, anger and frustration.
The automation of communication processes in the company can also weaken the link between workers and the organization, so it should be used only in cases of general communications and group character, always offering a more personal communication alternative and bidirectional character, in which the worker can expose their doubts, recommendations, and points of view.
Dependency links are generated.
The incorporation of technologies in the production environment usually gives rise to new relationships with suppliers. These technology suppliers are highly technical and specialized companies that will also offer support
In the case of open platforms, there may be several suppliers that provide support, which means that although there is dependence on the technology itself, there is no dependence on a supplier that sets the prices.
Technology is capable of optimizing technological processes and sales and logistics channels to an unsuspected extent. This millimetric optimization will mean that, in the event of a service failure in a technology used, there will be very significant disruptions in the structure of the company.