Financial impacts of changing technology on business case study : Hyflo Southern Africa (PTY) LTD

Abstract

The era kno"n as the Industrial Revolution was a period in which fundamental changes occurred in agriculture, textile and metal manufacture, transportation, the social structure and economic policies. The large number of unskilled people provided cheap labour and was used as easy replaceable tools. Employees have since become companies' most expensive '''assets''. The Internet was originally designed for military applications. The US military wanted a network that could withstand a terrorist attack and stilI work if important communication areas had been destroyed. The Internet, also known as the giant network of networks, has become a major catalyst for electronic business. The Internet caused the shape of companies to change and the way they conduct business. For example the Intemet enabled companies to be run from home and changed the old companies' structures. Sending data via a network is a lot faster and less expensive than making a telephone call or sending a messenger. Businesses have become more dependent on the Internet to generate revenue. E-commerce refers to the buying and selling of goods and services on the Internet and reduces the cost of doing business. The down side is that companies are also more exposed to inherent security risks. New technology with old methods of working is also no longer feasible. Many clerical tasks disappear and both the job functions of staff and the supervisory functions and procedures change. Information technology (IT) is increasing productivity, and thus, for a given output, a smaller number of people are employed. Increasing numbers of workers are retrenched when still in mid-career because labour is a most expensive commodity. The reduction in overheads and improved response of modem administrative systems increase the opportunities for organisations of all sizes to compete on an international level.