Business
In the last 20 years, new technologies have revolutionized the global economy in ways few people could ever have foreseen. With the increases in efficiency have come better standards for workers, enhanced customer service and improved internal business systems. More importantly, however, is the fact that technological advances have increased profits for businesses in almost every industry.
Here are just four of the hundreds of ways technology is increasing business profits.
Data-Driven Upselling
With the rise of online retail sites, businesses have gained more insight into customer behavior than was ever possible in a physical store environment. As a result, online sales platforms have been able to perfect upselling techniques based on past customer behavior. This has led to higher overall cart prices and more unit sales, driving higher profits for the businesses that have taken such an evidence-based approach to their online sales techniques. This phenomenon is part of the broader field of data analytics in business. More data has given businesses insights into marketing, delivery and customer experience that have helped to reduce the cost of customer acquisition. These systems also benefit customers, who are given more direct access to products and services that are relevant to their needs while still getting the best possible experience.Related articles
More Efficient Business Management
Even in businesses which are not suitable for a strong online presence, technological advancements have made internal business systems more efficient and therefore more cost-effective. A good example of this is ERP software for the construction industry. By using an enterprise resource planning software, construction material manufacturers or distributors can manage their business systems to coordinate delivery and manufacturing services. Even in such physical-world businesses, technology has a large role to play.More Cost-Effective Manufacturing
Though it is sometimes ignored, the profitability of the manufacturing industry has benefited enormously from recent technological advances. Increased automation and manufacturing systems that waste less material have driven down the costs of production, leading to greater profits. As more technologies develop along these lines, profits are likely to continue rising. Entirely new manufacturing methods, such as 3D printing, have also reduced the startup costs for new manufacturing enterprises, making it easier than ever before for new competition to break into the market. 3D printing, sometimes known as additive manufacturing, has democratized the manufacturing and design market more than at any time in the past. Because it wastes almost no material in the manufacturing process, it has also allowed businesses that take advantage of it to cut the cost of excess or unused material down to almost nothing.
Access to Virtual Teams
Perhaps the single most important change that has happened in the business world with the rise of new technologies is the fact that geographic barriers have been almost totally removed from the equation. Today, teams of people from multiple regions can work together effectively using only digital communication. This gives employers access to a wider pool of potential talent, allowing them to choose only the best candidates for a given position. In turn, this results in an optimized team that is able to produce the greatest potential value. By relieving themselves of the burden of having to either hire only from a local area or having to pay high relocation costs for non-local workers, modern businesses can make themselves more efficient, leading to higher profits in the end. Wherever you look in the world of business, technology is being used to make enterprises more efficient and more profitable. Though this leads to higher profits for producers, it also benefits consumers by enhancing the customer experience and lowering the barriers for new competition to arise within the marketplace.
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