Role of Technology in Operations – Higher Business Management SQA Revision

Overview of Role of Technology in Operations

Technology in operations refers to the application of modern digital tools, software, and equipment in the management of business processes.
It includes the use of automation, robotics, big data, cloud computing, and other forms of information communication technology (ICT).

Technology enhances operational efficiency by automating repetitive tasks, reducing errors and speeding up processes.
It can streamline communication and collaboration within and between departments, encouraging effective team working.
By utilising data analysis tools, businesses can make informed strategic decisions, improving product quality and customer service.
It helps organisations become more competitive by enabling innovations and new business models.

Enterprise Resource Planning (ERP) systems integrate all the functionalities of a business into a unified platform.
Customer Relationship Management (CRM) software assists in managing customer interactions and improving relationships.
Supply Chain Management (SCM) software to streamline and optimise all supply chain activities.
Manufacturing Execution Systems (MES) to monitor and control production processes.
E-Commerce platforms to expand market reach and simplify transaction processes.

Cost of Implementation: Initial setup, maintenance, and upgrade costs can be expensive.
Training requirement: Existing staff may require training to use new technologies effectively.
Security and Privacy: Businesses are at a higher risk of data breaches and cyber attacks.
Dependence on technology can disrupt operations in case of technical failures.

ERP: Increases company-wide integration but might be expensive and complex to implement.
CRM: Enhances customer satisfaction but requires regular updates and management.
SCM: Improves supply chain coordination but can be difficult to customise.
MES: Helps meet production goals but requires substantial upfront investment.
E-Commerce: Expands market reach but faces stiff competition and requires rigorous online marketing efforts.