Digital Technology and Business Operating Systems

It is often noned that two major(ip) world- wide events be responsible for changes not only to the lives of ordinary people who bump off up the target securities industrys of business line nerves, just excessively to the operations of the utter business themselves. These events are namely The advent of globalized trade and recent proficient advances. Globalization of human activities including trade has hold still fort that business are constantly cosmos exposed to hot environments, new markets with unique and often discerning preferences and on the loop-side, the ever present threat of competition vying for a similar market slice as the said businesses (Kehal & Singh, 2008).It is not surprising therefore, when the need to crystalise a competitive advantage over rivals has been the dominating theme in the board rooms of a legal age of companies with engine room increasingly be seen as key to achieving success in this task (Kehal & Singh, 2008). Dep devastationent on the industry, technology could imply many different things.For companies in the manufacturing sector, technology could mean the acquisition of a new machine that eases the manufacturing task at devote piece for new(prenominal)s desire those in horticulture industry, technology could mean adoption of a new way to inter-crop plants in order to eradicate disease and so improve on yields. tho, digital technologies drive found a mark in a multitude of businesses as they offer various advantages that bowdlerize across the board such(prenominal)(prenominal) as fastening communication and the convalescence of data (Kehal & Singh, 2008).digital technologies refers to what is conventionally refereed to as Information communication technology (Watkins, 2010). This encompasses electronic computers and cogitate mesh establish media such as email and social networking platforms (Watkins, 2010). Digital technologies withal includes any form of networks in an constitution includi ng those restricted to work on within the physical composition, the intranet, and connections between a go with and knocked place(p)side affiliated compositions such as suppliers and distributors termedDigital applied science in Business 2 as the extrenet (Watkins, 2010). To define the operations of a keep go with These refer to the localise musical arrangements, procedures and the information that guides them, that alter an organization to integrate, organize and normalize its primary dishes in order to ful need its set goals (Daft & Marcic, 2008). For integration to be considered optimum, data in the attach tos domain should be chafeible to all touch on in both(prenominal) a clock timely and eased manner (Weil, 2010).On the new(prenominal) tump over, normalization in this context involves the normalisation of an organizations business performancees by getting rid of variations in business procedures among employees and de varyments (Weil, 2010). antithetic al organizations have different hold out systems, with each system suited to the organization in question (Weil, 2010). For instance, Cisco, a network solutions provider has made it realistic for miserable businesses to acquire information communication technology found solutions by developing them and making them available through with(predicate) their partners worldwide.Procter & Gamble on the different hand, has established local marketing arms which are allowed the leeway to strategize on how best they would exploit their immediate markets with other shopping mall answers like human resource wariness and informational technology work modify and convertible by the parent company (Weil, 2010). Though these models differ, that is of importance is not their ostensible schism, but whether the chosen in operation(p) model has a chance at achieving success in the organization ( Watkins, 2010).The success of an run system, is subject on the organizations staff and manag ements uptake of the direct system, their leaveingness to follow it through and whether they are well equipped to make it work for the organization (Watkins, 2010). However, as noted above, the motive for any operating business is to achieve success in the thick of competing interests and changing business environment ( Kehal & Singh, 2008). This need by organizations has lead to wide scale adaptation of new organization forms Digital engineering in Business 3 heavily influenced by digital technologies (Kehal & Singh, 2008).This is beca usance mounting certify suggests that digital technologies enable the core activities in any business operating model, integration and normalization, to take place more than smoothly when compared to any other scheme (Weil, 2010). This paper by use of examples drawn from various industries, elaborates on these points, winning special note of how digital technologies have shaped the operating models of companies, influenced the workings of the human resource aspect of a business, including both the benefits and contends of digital technologies in organizations (Malecki & Moriset, 2008).Starting with the a look at the accomplishes abstruse in the dainty service industry such as the airline industry quite a often the supports to an airline, namely those knotty with maintainance, overhaul and repair of aircraft required to fill in detailed reports of the figure out such as the tools involved and the surplus parts used during maintenance for the airlines documentation purposes( SITA, 2008).This process whitethorn raise out to be tideious and riddled with inefficiencies as it whitethorn involve pickaxe in of similar details like the type of aircraft and the organization owning repeatedly (SITA, 2008). Such tasks rotter be eased by adoption of digital technologies such as the use of Radio Frequency Identification (RFID) hand held readers that would capture information from RFID enabled aircraft parts and simultaneou sly share them with interested parties a commodious the supply chain (SITA, 2008).The automation described above confers the airline company with several competitive advantages such as improvement of relations with suppliers by facilitating their work therefore improving on its business operations (SITA, 2008). with this automated system, it becomes easier for the company to trace the parts used on their planes then giving them the advantage of authenticating their reliability and feel a factor that whitethorn go a long way in vouching for their Digital Technology in Business 4safety record while at the same time, reducing on the operating costs of the airline (SITA, 2008).The centralized data received from the readers whitethorn help in streamlining of the procurement process of the airline leading to a decrease in resource superfluity and in addition gives the airline stability in terms of delivery of their core services, air transport, by ensuring that flight nominatecell ations imputable to delays in maintenance or unnecessary unscheduled maintenance problems do not disrupt operations leading to flight delays and piece of asscellations ( SITA, 2008).However, such centralized systems of data collection whitethorn pose some challenges to those involved. For instance, the ownership of the data may turn out to be a point of friction among the parties as the shared personality of collection and storage of the data may lead to challenges in the access and security of the data (SITA, 2008). In addition, for such a system to operate efficaciously, the participation of a wide group of corporations is necessary (SITA, 2008).This may be a challenge for the corporations as issues such as who will finance the initial part of the adoption of digital technology may acquire while later on as alluded above, disputes over the ownership of this system may arise while during operation, the costs involved in maintaining the digital technology may be problematic in t erms of who will bear the burden of the cost especially if the problem is arising from one end of the system leading to problems at the nether end (SITA, 2008). Digital technologies also offer ways in which employee productivity dissolve be better thus improving on the outcome of the corporation.Several areas in which digital technology deal be of use in the development of meshwork found employee induction platforms which will enable the company introduce new employees into the company operating culture in a more engaging and synergetic manner (Murphy, 2003). The costs involved in such a stake also tend to be less blue-priced in the long run as the initial resources, human resource and capital, needed to set up the program can be minimized and even ultimately eliminated once the system had been set up Digital Technology in Business 5without any losses in quality of the process (Murphy, 2003)Training process that is critical in human resource development and management in a corporation can also be assisted by use of digital materials such as compact disks (CD). This not only provides a format of presenting the information in a easier to get word media forms such as videos and graphic illustrations, it also provides a reference depository library to the employee who in need and at will can reference endorse to aspects of the training program (Murphy, 2003).Use of such media such as CD and internet will allow training of employees who are based in areas other than where the actual training is occurring especially in corporations with branches in far flung markets as is the case I the globalized economy (Murphy, 2003). The employee also benefits from the opportunity of going through the training at their own pace and time , therefore improving on the likelihood of uptake of the information (Murphy, 2003). The other area where digital technologies offer advantages to corporations is in the area of employee incentives (Murphy, 2003).Through the platform of the internet, a company can offer employees opportunities of enrolling into affiliate programs earning them income, or they could be privy to discounts and offers from third company suppliers who deal with their employers (Murphy, 2003). for instance special mortgage rates may be offered to employees of a certain company via the mortgaging subsidiary of the bank that their employers use to discharge their business operations (Murphy, 2003).These strategies may go along way mot only in motivating employees but also in change the company retain its talented and trained employees by ensuring their their loyally to the company thus reducing on a companys recruitment and training blossom (Murphy, 2003). The benefits of digital technology enables a company reorganize its marketing strategy in order for exploit their niche as effectively as practicable (Rust & Espinoza, 2006).This is made Digital Technology in Business 6possible by the room afforded in matters of gauging client pre ference, dislikes and other characteristics during the process of market segmentation (Rust & Espinoza, 2006). Through portals like social media and internet based surveys a company may gain useful insights about their consumers as these digital technologies offer a cost effective, non intrusive and consumer friendly manner of interaction therefore bridging the gap between a companys management and its the customers (Rust & Espinoza, 2006).These benefits expiration over as they contribute to customer loyalty making the customer feel that their opinion is valued and by providing them with the rare opportunity of be involved in the development of their favorite product or service ( Rust & Espinoza, 2006). Quality control management is a critical part of a companys operations as it provides the means by which a company can keep the promises exhaulted by its brand to the market (Malecki, & Moriset, 2008).failure in the quality management system may lead to not only costly changes in the brand image, but also to enormous costs involved in product recalls and in brushes with regulatory authorities (Malecki, & Moriset, 2008). Many problems in the quality control management occur when there are variations in the execution of processes or in the material used in producing a good or service (Malecki, & Moriset, 2008).The use of digital technologies may harbor a company from such eventualities by periodically and automatically analyze the take process for deviations in the norm and alerting the management of possible shortfalls in the system (Malecki, & Moriset, 2008). Digital technology based quality authorisation systems are more reliable as they are not dependent on human schedules and shielded from human borne errors during production (Malecki, & Moriset, 2008). Internet based systems also allow fro the survey of the intricate details of different aspects of the production process even for companies that have outsourcedDigital Technology in Business 7 product ion either as a whole or in bits across geographically dispersed areas (Malecki, & Moriset, 2008). An example of this is in the manufacture of airplanes by the Boeing and airbus whose different parts are assembled in different regions of the world. The reporting is also made easier especially in the event of a breach in the quality of the product, with the source of error pinpointed and dealt with saving on costs and time ( Malecki, & Moriset, 2008). Recently, a new form of trade has arisen where transactions in both goods and services are carried out via the internet (Burgess, 2002).The producer of the good may be on one end of the world while the consumer may be at the other (Burgess, 2002). Digital technologies provide for ways in which the buyer and marketer can meet irrespective of the distances and time zones involved (Burgess, 2002). The seller benefits by finding a market fir their goods while the buyer benefits by having the leeway to window shop through out the internet s earching for their ideal product at the ideal price without the con game of dealing with salesmen (Burgess, 2002).In addition the direct contact between the buyer and seller enables for customization of the process to suit either party (Burgess, 2002). This is especially advantageous for gnomish businesses who lack the machinery, resource and human investment needed to carry out an effective marketing campaign as tumescent corporations (Burgess, 2002). Quite effectively backed by a single personal computer attached onto the internet and a a one-man-army sales team an entrepreneur can achieve their business goals (Burgess, 2002).This trade termed as e-commerce, has enabled individuals like authors sell their services even without an established local network of suppliers and distributors (Burgess, 2002). Large corporations are also increasingly joining this bandwagon by providing portals like e- shops on their websites where special offers of their products can be dupeed, purcha sed and ordered right to the customers doorstep (Burgess, 2002).By use of sophisticated but easily accessible forms of Digital Technology in Business 8forms of digital technologies the process of market segmentation described above are at the reach of entrepreneurs who otherwise would not have been able to exploit such advantages (Burgess, 2002). The small business owner is able to make up for his reject employee base and human resource pool by automating a majority of their business processes such as the installation of electronic tax shew teller machines may ease the process of filling for tax returns (Burgess, 2002).The operations of small businesses may also be expanded by collaborationism with partners following research on the internet without the huge costs involved in expansion such as the hiring of extra staff, the payment for new business premises and the sometimes bureaucratic processes involved in see local regulatory standards and licensing issues (Burgess, 2002).T hrough digital technologies, owners of small businesses are offered tools by which they can advertise their businesses effectively but with minimal costs such as the use of promotional CD for a musician or a recording company, simple to use software that enable the design of spirit catching and effective banners, posters and fliers and through the setting up of a website where redundant information about the companys services is accessible to the market ( Burgess, 2002).Despite these advantages of the use of digital technologies in business operations, the process in usually fraught by many difficulties as alluded in some of the examples above. Some of the challenges are secondhand to inadequate knowledge on the scope by which digital technologies can affect the operations of a company thus leading to the victimize choice made in the technology that would be of use to the organization ( Andriole, 2008).It should be remembered at this juncture that the key notion about operating systems is that they have to be well designed to suit the business they are intended for, thus borrowing examples from other companies is encouraged but it should not be done in a cut- and- paste manner ( Andriole, 2008). For instance, Digital Technology in Business 9 a server, which is a computer with high processing capability, would be more suitable fore a small company with few employees while a single personal computer may suffice for a single proprietorship.Conversely a larger organization with several departments and more employees, would benefit more from several interconnected severs ( Andriole, 2008). However other challenges to digital technology arise from the human aspect of the process (Andriole, 2008). Sometimes employees, through their unions, may resist the adoption of digital technology influenced operating systems due to fears arising about the likelihood of loss of employment and income via automation of processes (Daft & Marcic, 2008).In a large manufacturing p lant, the quality of goods produced may be checked by a string of employees stationed along the conveyor belts, automation of this process by use of specialized robots run by sophisticated computers, may require a large group of people jobless. This may hinder the newly instituted operating system to problems (Daft,& Marcic, 2008).The challenges of operating in digital technology may arise from difficulties in operating in the new environment due to inadequacy in skills and expertise to utilize the the digital l technology (Murphy, 2003). This is a problem as the new technology instead of complimenting the employees and mangement, it serves to softened down the working of the organization as both groups may view digital technology as a stumbling block thus preferring to trim or under utilize it by doing things the old way (Murphy, 2003).This scenario is more pronounced in situations where the technology being introduced has been imported and is new to the business environment of the company (Murphy, 2003). This is because of the lack of adequate local support to strike the process of adoption by providing technical support (Murphy, 2003). The main challenge with digital technologies, lies in the costs involved in setting up and maintaining them (Andriole, 2008). The machinery involved may be costly especially for smallDigital Technology in Business 10 businesses and very large corporations, software to run computers is also costly and the maintenance of such systems often requires specialized manpower which may come at a premium (Andriole, 2008). When this is coupled with the rapid evolutionary tendency of digital technologies which render recently developed technologies as obsolete, it is easy to see why cost is frequently mentioned as a major stumbling block (Andriole, 2008).In some situations, there might be the need of hiring additional staff just to maintain the system, training staff to know how to use the system every time the system is upgraded an d this may turn into a demoralizing process (Andriole, 2008) .. In conclusion, this essay has highlighted the influence of digital technologies on the operations of organizations be they be simple small businesses or large multinationals dealing in several products and services (Malecki & Moriset, 2008).The challenges though apparent can be overcome by understanding digital technologies and keeping the goals and objectives of the organization in mind as the solution appears to lie in crafting an operating system that is in tandem with the organizations goals and vision (Daft & Marcic, 2008). The management of an organization should desists from taking a one-size-fits -all approach and should also consider the impact that their employees may have on the success of the digital technologies in thee organizations operations (Kehal & Singh, 2005).