Most of us take the astounding technologies available in our daily lives for granted. Things like voice assistants, instant global messaging, and information access are commonplace in business and personal settings.
However, it's wise to step back and recognize just how many positive impacts technology has on operations management. Considering all the ways technology is currently improving your business can help you think more broadly about how further implementation can affect operations.
For example, statistics show that something as simple as consistent access to mobile apps saves small business employees 725 million work hours per year. In addition, GPS technologies help couriers and drivers get to their destinations faster and safer, and they give customers the added satisfaction of tracking delivery progress.
Below are three instances where it's clear that technology has a positive, measurable impact on business.
1. Business Technology Helps Reduce Overall Cost
End-to-end, businesses can now reduce costs in many different areas with the help of AI. For example, due to automation, procurement is less time-consuming and more reliable.
Service delivery is also positively impacted. This includes actual delivery businesses like Uber and Food Rocket, but it affects any business with a service to offer (e.g., amusement parks, hotels and software platforms). Implementing the right technologies allows companies to streamline their offerings and reduce the long-term overhead.
For small businesses especially, every dollar counts. It’s not uncommon for small businesses to go bankrupt because of theft or damage. Affordable tracking technology is like a backup insurance policy for these businesses.
2. Business Technology Accelerates Processes
We tend to think of technology as cutting-edge developments like AI and advanced 3D printing. However, it's important to remember how useful simpler things like online data transfers and instant video chats have revolutionized the way businesses operate.
Businesses can now utilize completely digital onboarding processes. For instance, AI can perform a prescreening check and a recruiter can set up a video interview with potential candidates.
All of the paperwork can be completed and stored digitally, which means every step of hiring can be done with no physical contact. This frees up considerable time and resources, and it also streamlines the entire onboarding experience.
Modern technologies even help with hiring, finding customers and improving the overall business model.
For example, companies can use machine learning to create complex, detailed models that use economic and demographic data to predict the profitability of the business. This helps startups and franchises know how to optimize profit margins and pinpoint the best locations.
3. Business Technology Improves Customer Relationships
Perhaps one of the best things to come from the development of technologies for operations management is the ability to deepen and improve the quality of customer relationships more effectively.
Nothing can replace a human touch when customers are concerned, but technology opens up newer, better avenues for businesses to pursue those meaningful relationships that create satisfied and loyal clientele.
For example, CRMs play a pivotal role in how all customer-facing brands handle client interactions. These technologies allow us to gather essential data about our customers' personal preferences and habits to tailor future experiences to their unique tastes.
Food Rocket does this by curating suggested pantry staples for rapid reorder or prompting a customer to add something we've noticed is a favorite before they complete checkout. Other brands like Amazon and Google aggregate browsing habits and purchase histories to offer relevant ads and notify users of deals they might be interested in.
The Data is Clear: More Technology Implementation is Better For Business
The data paints a clear picture of the relationship between operations management and technology. Customers enjoy improved communication, employees appreciate the efficiency, and management approves of the increased profits.
The future of businesses lies in their ability to integrate technology in new and better ways. From simple technologies like online banking to more advanced AI-driven algorithms, the sheer pervasiveness of useful tech has turned operations management on its head.