We have all seen how the technological advances change the world around us by the day. They have change the way we live, the way we communicate with others, the way we organize our lives. And they are rapidly changing the way the businesses work.
The introduction of new technology has led to not just changes in the existing businesses, but also to the creation and development of whole new fields like outsourcing. By making ideas more easily shareable than ever it has become simple to find like-minded people and create a startup together. This, combined with the power on the Internet has led to the creation of giants like Facebook, but has also allowed small business like WhatsApp to grow immensely over the course of a few years.
Technology has affected the business in many ways, both directly and indirectly. On one hand, it has become easier for business to find new talent and build a lasting relationship with their customers with the power of social networks. On the other hand, it has become easier for customers to find a new company that can give them more value for their money, which has forced big companies to try and find new ways to satisfy their customers.
One of the biggest changes we have seen in the recent years has been the development and popularizing of “loyalty programs”. While they look innocent and like a small change, programs like Tesco Clubcard or Wizzair’s Wizzclub have greatly affected the way people spend their money. By becoming a part of the club you are not only accepting the rewards it gives, but you are accepting the responsibility to keep giving your money to this company and not any other. The loyalty programs have also enabled companies to collect big data about their customers – what is the demographic, how much do people spend on average, what are their habits. By finding an answer to all these questions, a company can greatly improve the service it provides, which leads to more people joining the program, which leads to more data and so on.
Technical advances have been affecting the business world ever since the invention of the steam engine. However, it has only been in the recent decades, with the invention of the Internet that we have seen a skyrocket of the impact technology has on every industry. No one can imagine building a company nowadays without having an IT department, or at least and IT guy. In the foreseeable future technology will keep increasing its impact on every area of our lives and on every area of our businesses.