What are the negative and postive effects of adopting new technology by a firm? Just give the answer in points form.This is a business studies question
There are many positive effects of adopting new technology. You can use this in marketing your product, claiming the advantages of being cutting edge. You can improve your products and your processes, and perhaps slash labor costs. The most profound advantage? You may be able to do completely new things, such as enter a new market.
There are many negative effects as well. The simplest is if you adopt the wrong technology—if you go beta in a VHS world. Then you've wasted money and may have run your company into the ground. The new technology may not work with existing systems, you may not have the trained personnel to use it, and, quite simply, it costs money and takes time to learn.
If there is a specific type of technology you are referring to, I can be more specific in my answers!
Positives: Reduce costs in the long run and improve output-technology can offer larger amounts of higher quality output at reduced costs to a firm (fewer employees needed=reduced salary expense)
Increase sales-technology can reduce costs to you, and you can reduce price to consumers=higher sales
Improved networking-newer technology can improve customer information management; your relationships can be strengthened, and you can monitor customer behavior more accurately (like the shoppers' cards you see at grocery stores, etc)
Negatives:Ethics-better technology can reduce need for skilled labor (ex: machinery can reduce workload and therefore reduce need for employees) Huge issue right now in the US Compatibility-if you upgrade to a newer software, your customers or partners may not be able to see documents
Short term costs-new technology can be very expensive to purchase and learn. If employees are very knowledgeable in current technology and not open to change, this could result in high training costs or hiring new employees who are open to learning new things.
Privacy/Hackers-moving to computerized and networking technology opens up the doors to hackers - firewalls and security measures are not always fool-proof. Also, human error can lead to leaks in information (such as if an employee loses a jump drive with sensitive information)