Technology and Efficiency (AQA A Level Business): Revision Note

Using technology to improve efficiency

• New technologies such as robots, artificial‑intelligence (AI) software and networked sensors can help a business to produce more, make it faster, improve quality and waste less

Ways technology can be used to improve efficiency

Benefits of using technology to improve efficiency

• Cuts production time

  • Machines and software work fast and around the clock, so more units can be made per hour

• Lowers long‑run costs

  • After the upfront cost to install and ensure technology is work effectively, robots, AI systems and sensors reduce wage bills, energy use and material waste

• Gives consistent quality

  • Automated checks catch errors instantly, so fewer faulty items reach customers

• Improves safety

  • Robots handle heavy lifting or dangerous tasks, reducing injuries

• Provides information

  • Real-time data show managers exactly where to tweak processes to save even more time and resources

Drawbacks of using technology to improve efficiency

• High upfront expense

  • Buying robots, sensors and software, as well as paying for staff training, requires a lot of capital before savings appear

• Risk of technical failures

  • If an automated system crashes or a key part breaks, the whole production line can stop

• Skills gap

  • Employees need new digital or engineering skills

    • Recruiting or retraining existing workers takes time and money

• Job‑security worries 

  • Workers may resist automation if they fear it will lead to their redundancy, hurting morale

• Cybersecurity threats

  • Connected machines and data must be protected from hacking and data loss