Impact Of Technologies In The Business

For several years now, we have been working hard on two particular and very beneficial topics for both companies and countries: productivity and competitiveness. The first one indicates how to do things most efficiently and effectively possible, and the second one tries to measure if doing the first one, we can compete for the clients in the market.

Computer technology is one of the most useful tools for improving productivity and competitiveness in companies. They offer the possibility of being much more efficient in the use of resources while allowing much greater flexibility and agility to meet increasingly changing customer requirements.

It is demonstrated that information and communication technologies influence productivity by contributing in the following areas:

Costs reduction

Increase in Sales

Improvements in profitability

Improvement in the satisfaction and loyalty of customers and suppliers

Make organizational structures more efficient

Facilitate staff training

Improve communication within the company

Improve communication with suppliers, government and other partners

This is just a short list. The impact of the use of ICT has even been measured by the World Bank, generating relative differences between companies that do not use ICT and those that do. The differences favor companies that use ICT more than three percentage points in sales increase and more than five percentage points in productivity improvement.

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Know your Business Model First To achieve the best impact of Information Technology

To achieve the best impact of technologies in your business, it is essential to have clearly defined your business. Otherwise, it would be to invest time and money in technologies that had less impact. The business model is composed of three concrete elements.

The first element of the business model involves being very clear and understanding what is sold, what is offered and why money is earned. The company that manufactures Rolex watches is evident that what it provides is prestige or status, through a jewel (its product), and makes money by a reasonably wide margin between the cost of production and the sale price. A Rolex cannot be sold to whoever is looking for a watch with the sole purpose of knowing the time. The same must be clear to your company: what it sells (product/service, the item that is included in the invoice), what it offers (the value the customer receives when buying what you sell), and how he makes money

The second important element in the business model is customer knowledge. This knowledge covers a series of specific questions to be able to know what the client is, how the market is covered, what attracts the client and what makes it come back. This knowledge allows defining clear advertising strategies, prices, channels, service and other essential components of the client’s experience, achieving effectiveness and productivity in their attention.

The last element verifies the way in which what is sold is obtained or produced. Here you define supply chains, contacts with suppliers or internal production processes.

These three elements could be said to be as important as the mission and vision of the company, and sometimes I would say that they are more critical at the moment of identifying the application of technology to generate productivity and competitiveness. What is the model of your business?

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