Obsolescence - existing capital equipment is re[;ace by new developments in technology; for example, the replacement of the typewriter by the word processor.

Perceived Disadvantages:

• Employees often associate change in technology with unemployment which makes them unhappy
• Employees have to be taught how to use new technology

Benefits:

• New technology can make employees work easier
• New jobs are created to run this technology

Using Computer Hardware and Software:**

Advantages:

• Systems are faster
• Storage us easier and storage costs are lower
• Communication is easier and faster
• Analysis of large amounts of data is possible
• Banking made easier
• The internet increases availability of knowledge
• Workers do not have to be in the workplace
• Meetings can be held remotely
• New technology like ‘click and collect’ has made life easier for consumers

Disadvantages:

• Money needs to be spent on effective training for all involved in new systems
• The public may be resistant to changes.
• System failure or breakdown means whole business is affected
• New technology is costly
• Security of data can lead to hacks

Effects of technological issues on business:

• Marketing - new technology makes it possible to introduce new products to the market
• Financial - use of technology in the business can speed up accounting practices.
• People - new technology on production line could result in reducency
• Operations - can improve productivity and make the business more efficient.