Impact of Digital Technology on Organisations

Impact of Digital Technology on Organisations

Impact of Digital Technology on Communication within Organisations

  • Speed and Efficiency: Digital technology enables instantaneous communication, enhancing efficiency in sharing information and decision making.
  • Collaboration and Sharing: Tools like cloud storage and collaborative software make it easier for team members to share documents and work together.
  • Remote Working: With the advent of digital technology, remote communication and working have become possible, expanding the scope of work and productivity.

Impact on Business Processes and Productivity

  • Automation: Routine and mundane tasks can be automated, saving significant man hours and increasing productivity.
  • Accuracy: Digital technologies reduce the chances of human error, ensuring higher level of accuracy in tasks carried out.
  • Data Management: Digital technology has revolutionised data management with quick access, easy storage and effective retrieval systems.

Impact on Customer Relationships and Market Reach

  • Customer Relationship Management (CRM): Digital technologies have enhanced CRM systems, making it easier to monitor customer experiences, preferences and provide personalised services.
  • Social Media Marketing: Digital platforms extend the reach of organisations to a global audience, offering wider market possibilities.
  • Online Services: Customer services have become more accessible and efficient with the implementation of online services including automated responses, chatbots, etc.

Implications for Workforce Skills and Training

  • Skill Upgrade: Digital technology necessitates regular skill upgrades, with employees needing to stay abreast of changing technologies.
  • Online Learning: Training and development have become more versatile with digital platforms, allowing for flexible learning opportunities.
  • Tech Savviness: The reliance on digital technology dictates a baseline tech savviness as a key competency for all employees.

Impact on Cybersecurity and Data Privacy

  • Security Threats: With increasing digitisation, the threat of cyber-attacks, data theft, and breaches grow more significant.
  • Data Protection Regulation: Digital technology mandates strict adherence to data protection laws and cyber security policies, safeguarding individual and company data.
  • Role of IT Department: With the escalating need for cybersecurity measures and data privacy, the role of the IT department has become central to organisational functioning.