Discuss how an organisation's competitive advantage can be enhanced Essay

Discuss how an organisation's competitive advantage can be enhanced with the introduction of new technology - Essay Example If according to the analysis the expected revenue is more than the technology’s cost then only the company should plan to take the decision of installing the machine. There are several benefits of implementing technology; some of them are discussed as follows: Technology helps reduce cost One of the most renowned company, Procter & Gamble makes use of latest technology to reduce its inventory cost. This company makes efficient use of computer technology to keep track of the amount of products or items that its retailers currently hold in stock so that it can immediately get restocked when required. Makes Distribution Easier Right coordination between distribution channels is not very easy but with the introduction of new technologies, this task has been made easier for the organizations. Just-in-time system helps in better planning of item delivery and can reduce cost of storage. Thus, implementing technology in the distribution process and doing extensive research and intelle ctual planning can help improve delivery time and give organization an opportunity of further growing their business worldwide. Increased Revenue As mentioned earlier, implementation of technology also results in increased revenue. Lets take an example of a very popular automobile company â€Å"Ford†. Ford today is considered to be a technology driven brand. According to the vice president of Ford, Derrick Kuzak, every product sold has added to increased revenue. He further stated that average revenue per vehicle has increased up to fourteen percent from the year 2008 to the year 2009. This increase was due to the implementation of latest technology, â€Å"Sync in-car communication system† in the vehicle. This system provides car drivers a hands free facility to control their cell phones and media systems. Derrick Kuzak stated â€Å"Technology has contributed majorly in enhancing our brand and further expanding our business† Makes Communication Easier Advancemen t in technology also makes communication easier and faster. Through the introduction of new cell phones like blackberry, easy communication between employees through email and blackberry messenger has been made possible. Blackberry service notifies the employees about any new email that comes in their inbox and allows easy exchange or transfer of files and images, providing them with an opportunity, to perform their job sitting home. Various Technologies presently being used in Organizations Majority organizations implement Transaction Processing Systems. This system helps produce data, based on daily operations happening in the company. It produces data regarding inflow and outflow of materials, sales, credit and deposits etc. In simple words, this system provides an answer to all the queries that operational managers might have on daily basis. Another most useful system that is being used world-wide is the Management Information System (MIS). This is a technology that is useful fo r producing reports containing information useful for middle level managers to do short - term assessments. There are several other useful technologies or systems that help companies gain competitive