Digital Technology Impact on Business: An Evaluation

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QUESTIONS AND ANSEWERS

1. Suggest how an organization can evaluate the impact of digital technology on its
business. Is it a fad or does it have a significant impact?
The advent of digital technology has been potent in the business environment and every
organization has been availing the benefits of digital technology in the business. The
organization could effectively evaluate the impact of digital technology on their business
through analysing the improvement in the communication process, improvement in
employee productivity, enlargement of the consumer base, reduction in operating costs,
securing sensitive information, collaboration and outsourcing. It is determined that the key
functional areas of the organization are improved to a huge extent due to the application of
digital technology.
The concept of digital technology is significant for the business and it possesses a substantial
impact on the performance of the organization (Pagani and Pardo, 2017). The organizations
must effectively work on adapting digital technology for their business operations to attain
enhancement in different areas. It would result in immense growth and success for the
organization.
2. Similar benefits and barriers exist for the adoption of sell-side e-commerce for both B2B
and B2C organizations. Discuss.
The sell-side e-commerce has attained substantial popularity in the business environment.
Sell-side e-commerce is known as the transaction which is carried to sell a product to both
customer and organizations. It is considered suitable for the operations in B2B and B2C
organizations in gaining substantial benefits (Laudon and Traver, 2016). The effectiveness of
sell-side e-commerce could be effectively assessed through the understanding of benefits
and barriers for B2B and B2C organizations.
BENEFITS
 Reduces need for inventory storage
 Quick availability of products
 Reduction in the order processing overhead
 Diverse products range
 Effective communication

BARRIERS
 Security risks
 Lack of trust
 Time-consuming nature
 Quality evaluation
 Lack of personal services
 Cost of use
 Poor connection speed
It could be determined that there are significant benefits and barriers of sell-side e-
commerce such that the utilization of this facility would be fruitful at a certain extent. The
effective consideration of the barriers would help avail substantial benefits in the business
environment.

REFERENCES
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.
Pagani, M. and Pardo, C., 2017. The impact of digital technology on relationships in a
business network. Industrial Marketing Management, 67, pp.185-192.