The role of technology in modern business administration

In today’s highly competitive, globalised, ever-changing, and often-volatile business environment, digital transformation is a necessity rather than a luxury.

The last few years, in particular, have witnessed a widespread, cultural shift towards more intelligent, agile, technology-forward approaches in the ways businesses operate. From artificial intelligence (AI), cloud computing, cybersecurity and 5G, to automation, big data, the Internet of Things (IoT) and customer relationship management (CRM) tools, technological advancements have profoundly impacted the business landscape.

Here are three statistics that highlight the importance of technology – as well as its sheer scale and impact – in our modern business world:

• Almost 90% of organisations worldwide had implemented cloud technologies as of 2022 – the highest adoption rate of any emerging technology (Statista)
• 93% of small businesses report using at least one type of technology platform to help run their business – with the average using three (U.S. Chamber of Commerce)
•  Approximately 60% of businesses opted for a hybrid work model post-pandemic (TeamStage).

Individuals with the skills and know-how to harness tech and use it to transform how businesses think, act, and perform will be more likely to stay ahead of the game.

How benefits does technology bring to modern business?

New technologies mean new ways of doing business.

By streamlining business processes, tapping into a wealth of information that enables you to know your customers better, investing in sustainability, pushing for innovation, and reducing expenditure, organisations can significantly increase competitive edge.

Businesses who embrace technology effectively can benefit from a number of critical advancements:

• Greater operational efficiency. Simplifying operational processes, collecting and analysing data on gargantuan scales, automating repetitive tasks, supporting data management – there is no shortage of ways in which businesses rely on technology to optimise their day-to-day – as well as long-term – activities.
• Quicker decision making. Business intelligence (BI) refers to ‘the use of software to combine business data, data mining, data visualisation, data tools and infrastructure, and best practices to help organisations make data-driven decisions.’ And it’s all the rage, with insights from the data analysis supporting tasks such as identifying how to increase profit, compare competitor performance, and discovering issues or problems before they spiral.
• Real-time feedback. Many organisations are reaping the benefits that come from continuous, highly accurate feedback and data intel. For example, live warehouse inventory management systems that monitor stock levels can link up with e-commerce sites, firewalls that monitor and defend against cyberattacks on a 24/7 basis can protect against malicious activity, real-time customer activity, comments and behaviour can provide insights into market trends and how business activities are being received.
• Improved customer experiences. Technology makes delivering highly personalised customer experiences a reality, as well as enabling seamless transactions, supporting multi-channel and multi-platform communication and engagement, and enabling businesses to handle queries and demands more quickly and efficiently.
• Cost-savings. Social media presents a highly cost-effective alternative to more traditional marketing methods, remote working (supported by cloud technologies and video conferencing tools) have enabled many businesses to save on costs associated with commuting and operating premises,
• Enhanced online presence. Businesses must meet customers where they are; increasingly, this means in digital spaces. Technology makes it possible to expedite online transactions, collect data to inform marketing strategies and tactics, communicate with customers in a timely manner, share engaging content, and increase brand awareness and recognition.
• Increased resilience. Technological advancements support diversification, innovation, widened reach, long-term sustainability, and profitability – all of which help businesses to weather adverse or unplanned events and support continuity and adaptability.

What are some examples of technologies improving business performance?

Clearly, technology has global, cross-industry appeal, revolutionising everything from manufacturing to transport to education to healthcare. It can streamline both routine, and non-routine, business activities – with potentially limitless applications and use cases. Let’s look at some practical, real-world examples of how technology is changing the game in different sectors and industries.

In the telecommunications field, AI is responsible for improving the experiences and outcomes for customers and consumers. It supports call management (by filtering and directing different types of queries), it reduces the time spent tracking reasons and decisions behind various actions (such as contract cancellations), and tools such as chatbots and instant messaging platforms enable customers to access support around the clock.

In the transport industry, automated systems are helping air traffic controllers to optimise critical decisions. These systems can advise controllers of optimal solutions in real time, helping to increase performance and maintain safety and accuracy, while not adding to their workloads.

In the healthcare sector, robot-assisted surgery is supporting the roll-out of less-invasive procedures and reduced patient recovery times. AI and machine learning (ML) algorithms are helping with accurate diagnosis, supporting drug development and discovery, designing bespoke treatment plans, enabling remote monitoring by way of wearable tech and apps, and predicting the likelihood of certain diseases and conditions (such as cardiovascular disease).

How will information technology shape business operations and practices in the future?

Among the tech trends set to streamline and disrupt businesses in 2024 and beyond: sustainable technologies, generative AI (GAI), biotechnology, and quantum computing.

• Sustainable technologies – The integration of sustainable tech into our personal and professional lives is set to accelerate, from electric vehicles (EV) to green architecture, as strategies to tackle critical environmental issues rise ever higher on the agenda. Businesses, principles, and processes that support the circular economy will influence market trends, prompting recyclability, resusability, and durability to factor in product and service development at all stages. Global tech companies will continue to intensify and roll-out green initiatives, including Amazon, Apple, and Google.
• Generative AI – Advanced GAI algorithms (such as those used by ChatGPT), will offer greater functionality, accessibility, capability, and scalability – with huge potential consequences for sectors such as financial services, manufacturing, and education. Voice-command software and image recognition is likely to become more prevalent, with GAI further facilitating decision-making, process efficiencies, and human-machine interactions.
• Biotechnology – While implementing biotech has been a focus for multiple industries, it’s having particularly profound impacts in the agricultural and healthcare sectors. This includes developing resilient, sustainable, and diversified crops, as well as gene editing and personalised medicine.
• Quantum computing – Advancements in this area may present solutions to some of the world’s most critical issues (from easing traffic flows in highly congested areas to expanding our knowledge of the solar system), with power and speed that surpasses existing computing tools and platforms.

Learn how to harness technologies and tools to optimise business administration

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