Using Technology

Technology is a general term given to the use of digital or mechanical devices in any aspect of a business’ operations.

Technology is continually evolving (driven by businesses seeking to sell their technological innovations to other businesses). Advantages are gained by businesses that use the latest technology.

Firms with the latest technology are able to produce output at a faster rate (efficiency) and to a higher degree of quality (less defects, waste, expenses). 

This reduces expense for a firm, maximising profitability.

Additionally, new technology enables a firm to create different product ideas. This grants them a further edge in the market by producing output that is not offered by competitors. Technology is expensive, but gives an edge to firms.