E-Technology in Business Operations

Running head: E-TECHNOLOGY IN BUSINESS OPERATIONS
E-TECHNOLOGY IN BUSINESS OPERATIONS
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E-TECHNOLOGY IN BUSINESS OPERATIONS
Introduction:
Electronic technology has changed the business operations of the modern business
organizations in several ways. Today electronic technology has touched and transformed all
spheres of business organizations like their production, sourcing of raw materials, selling of their
finished products and even capital generation. Technology has enabled business organizations
not only conduct operations and profit in the future but also acquire and maintain data which
they can use for future business generation. However, this electronic technology comes at huge
prices both for the suppliers of e-technology and the companies using the technology. The paper
would divided into two broad divisions, first the changes which e-technology has ushered into
business organizations and second, the steps which supplying companies and using companies
take to tackle e-technological threats.
Analysis:
Electronic technology refers to the technology which is driven by use of electronic
instruments to conduct various operations. The modern business organizations use electronic
technology in several forms to operate in the market. Companies use e-technology in devices as
small as a smart phone to hold conferences as well as in sophisticated manufacturing plants
weighing several tons. This use has changed the business operations in several ways (Vahlne and
Johanson 2017).
The first change which business organizations experienced due to use of technology
is streamlining of their manufacturing activities which enable them to mass produce goods
at affordable prices. The multinational today stream information regarding customer
expectations from their products using online survey and social networking sites. This

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information is then passed on to the apex management and all the departments. The apex
management then use this information in the new product development procedure of the
company. The production department can use this information to place orders for raw materials
to ensure smooth and timely production of finished goods (Bocken et al. 2014). Companies today
install plants which can be receive and process instructions given through computers. This shows
that e-technology has made the manufacturing has made the manufacturing process more
dynamic and simultaneously control them more accurately. Multinational companies can align
their manufacturing process with related activities like inventory control and sourcing of raw
materials, thus reducing wastage, which would not have been possible without e-technology
(Hair et al. 2015).
The next change which use of e-technology has brought about in the organizations is
the ways they maintain their suppliers and source raw materials from them. Today,
companies, especially the multinational companies need to acquire diverse raw materials for
their finished products to cater to their immense customer bases. For example, the companies
producing consumer goods like skin care products have to source diverse raw materials like
coconut from Asia, cocoa from Africa and olive from Europe. This means that the companies
today require to communicate with suppliers based in different to source the diverse categories of
raw materials. Electronic technology driven inventory control systems have allowed the
companies to maintain their stocks of raw materials and also place orders accurately (Yan et al.
2016). The production managers using e-procurement technology can communicate with
suppliers spread in different countries and view their raw materials, their rates and quality
against their own parameters. They can then forward the information to the other related
departments and then place orders after getting approval. One can point out that the power of

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multinational companies to hold a formidable product line containing diverse products is
empirical to their brand value and revenue generation. It is this need to hold high market position
that drives them to hold a long product line and consequently acquire raw materials from the
world to meet their production needs. Electronic technology has made it possible for companies
to communicate with suppliers from different parts of the world and view their products. It has
enabled them to gain participation and support of the related departments and then place the
orders. Thus e-technology has helped companies to ensure that they order appropriate raw
materials of high quality at economic rates. Thus, e-technology has changed the ways companies
source their raw materials and align it with their quality parameters (Picin and Carbonell 2016).
The third area which e-technology has changed is the ways companies, especially the
multinational companies source their capital. Multinational companies in order to carry on
their global business operations require immense capital base. The capital base is also required to
support the e-technology based manufacturing and sourcing of raw materials. Electronic have
changed the ways multinational companies source their capital. It must be note that the largest
companies in the world are public limited companies which have to get listed on stock exchanges
to source capital. For example, Unilever is primarily listed on London Stock Exchange and also
on New York Stock Exchange (Appendix 1). This means that the company can generate capital
from both markets. Electronic technology has revolutionized the capital sourcing of
multinational companies, thus allowing them to generate immense capital from the market
(Salem, et al., 2017). Advancement of informational technology has made it possible for both
individual investors and institutional investors view the details about the companies like share
prices and their dividend paying capacity on variety of platforms like computers, tablets and
smart phones irrespective of locations. This availability of share trading portals across diverse