Digital Technologies
Digital Technologies Defined
Digital technologies are computer-based tools that process or use digital information to make
something work.
They rely on digital information, which is data created and transferred between computers
and other devices.
Most technology uses a 'built-in' computer that allows it to function.
Types of Technology Used in Business
Digital technology is used in a wide variety of functions within organizations:
Communication
Organizations communicate with employees, customers, suppliers, government agencies,
and financial institutions. Common forms include:
Telephone networks: Mobile and landline phones.
Websites: For online marketing, advertising, and sales.
Video conference calls: Allow interaction over the internet.
Emails: For internal and external messaging.
Social Media: Platforms like Facebook, Twitter, YouTube, Snapchat, LinkedIn, Instagram,
and WhatsApp.
Accounting and Finance
The accounting and financial function is now largely electronic, including:
Online payments and receipts.
Payroll management: Recording income and deductions and paying wages electronically.
Preparation of budgets and accounts.
Online banking and tax (e.g., [Link], [Link]).
Design and Production
Technology plays a significant role in product design and production:
Sourcing materials online.
Using Computer-Aided Design (CAD) and Computer-Aided Manufacture (CAM) to design
and prototype products.
Using machinery and technology for production.
Administration
The administrative function relies heavily on technology:
Photocopiers, printers, and scanners.
Lifts, escalators, alarms, intercoms, and CCTV.
Internet/Wi-Fi.
Remote log-in and support.
Sales and Marketing
Organizations use digital technology to promote and sell products/services globally:
Internet: Websites, Facebook, Instagram, and Twitter for advertising, sales, and customer
service.
Electronic Point of Sale (EPOS): Manages stock, prices (via barcodes), payments (debit/
credit cards), and loyalty programs.
Technology Terms
Communication
Communication Applications (apps): Software applications on mobile devices or laptops,
often produced by businesses for customer use.
Broadband: A network that allows information to be transferred quickly between devices.
Information and Communication Technology (ICT): Technologies facilitating communication.
Software: Instructions, programs, and information used by a computer to perform tasks.
Touch screen: A screen you can interact with through touch.
Podcasts: Audio recordings shared online.
Video conferencing technology: Apps for remote visual communication (e.g., Zoom, Teams,
Google Hangouts).
Web cam: A camera attached to or built into a device.
Wi-Fi: Technology for wireless internet connection.
Design and Production
CAD: Computer-Aided Design; software for creating designs for buildings and products.
CAM: Computer-Aided Manufacture; using computers to operate machines and production
systems.
Desktop publishing (DTP): Software for creating brochures, magazines, flyers, and posters.
Finance and Accounting
E-commerce: Using digital technology to make purchases and do business online.
M-commerce: Buying and selling goods/services using mobile devices.
Spreadsheets: Software for financial and mathematical tables and reports (e.g., Excel, Google
Sheets).
Databases: Large systems for storing information, often customer data.
Sales and Marketing
Social media platforms: Sites and apps for creating and sharing content (e.g., Facebook,
Instagram, Twitter, TikTok).
Search engines: Programs for finding information online (e.g., Google).
Websites: Used by companies to promote their brand and sell goods and services.
Web analytics: Technology to gather information about website usage.
Security
Firewall: Security software blocking unauthorized access to information.
Viruses: Files designed to damage information; anti-virus software protects against them.
Cloud Computing
The cloud is a network of computers (servers) on the internet used to store, manage, and
process data.
Cloud providers (e.g., Google) offer free storage and charge for additional storage.
Benefits of Cloud Computing
Saves Cost: Reduces hardware and electricity costs.
Easy Access: Data is quickly and efficiently accessible.
Secure: Service is secure and regularly upgraded.
Backed up: Data is backed up to multiple sites, minimizing data loss.
Rewards and Costs of Technology
Rewards of Technology
Improved staff efficiency.
Reduced costs due to fewer staff requirements.
Quicker and more effective decision-making due to readily available information.
Protection of confidential information using digital tools.
Access to a global market through the internet.
Costs of Technology
Financial costs:
Technology becomes obsolete quickly.
Staff training costs.
Service and support contracts.
Software upgrades and license renewals.
Website hosting and support fees.
Business disruption if technology breaks down.
Security threats (viruses, hackers, cybercrime) require investment in anti-virus software and
firewalls.