Technological Change (AQA A Level Business): Flashcards
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Define technological change.
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Cards in this collection (28)
Define technological change.
Technological change is the introduction of new tools, systems, processes or digital innovations that alter how businesses produce goods, deliver services and interact with customers.
True or False?
Technological change always happens gradually.
False.
Technological change can be gradual, such as steady improvements in software, or disruptive, such as the rapid rise of generative artificial intelligence (AI).
Define cloud computing.
Cloud computing is the delivery of computing services, such as storage and processing power, over the internet rather than through locally owned hardware.
New technology can reduce costs by automating ________ tasks, reducing the need for manual labour.
New technology can reduce costs by automating repetitive tasks, reducing the need for manual labour.
How can businesses use data and AI to improve sales and customer loyalty?
Businesses can use data and AI to personalise products, pricing and marketing to individual customers.
How can new technology create new markets for a business?
New technology can open up entirely new products, services or markets that were not previously possible, such as online-only businesses.
True or False?
A business that relies more heavily on technology and data becomes more vulnerable to cyber-attacks.
True.
Greater reliance on technology and data makes a business more vulnerable to cyber-attacks, which can be extremely costly and damaging.
Why can the cost of new technology be a threat to a business?
New technology can be very expensive to buy, install and maintain. It can also quickly become outdated, requiring further investment.
Businesses that are slow to adopt new technology risk falling behind faster-moving _________.
Businesses that are slow to adopt new technology risk falling behind faster-moving competitors.
How can automating tasks previously done by people harm a business?
Automation can lead to job losses, which can damage staff morale and the business's reputation.
How can generative AI benefit the marketing function?
Generative AI can cut the time and cost of producing adverts, not just targeting them.
How can AI help to protect the finance function of a business?
Businesses can use AI to detect and prevent fraud in real time.
What concern does using AI in recruitment raise for human resources?
AI can speed up recruitment and reduce its cost, but it raises questions about fairness and bias.
True or False?
Introducing new automated systems into operations always improves efficiency straight away.
False.
New systems can cause short-term disruption while staff and processes adjust, even if they improve speed and accuracy later.
Define disruptive technology.
Disruptive technology is any new technology that fundamentally changes how an industry operates.
Disruptive technology often makes existing products, services or business models ______ faster than businesses can adapt.
Disruptive technology often makes existing products, services or business models obsolete faster than businesses can adapt.
How can disruptive technology affect competitive advantage?
Competitive advantage can shift rapidly from established, well-resourced businesses to smaller, more agile ones.
What is the main risk disruptive technology poses for employees?
Employees face the risk of job displacement in roles that can be automated, so retraining becomes essential.
True or False?
Regulation and law often lag behind disruptive technology.
True.
Laws are often slow to catch up with new technology, which creates legal uncertainty for businesses operating in new areas.
Define innovator's dilemma.
The innovator's dilemma is the challenge faced by successful, established businesses that risk being overtaken by disruptive innovation because they focus on improving existing products rather than pursuing new ones.
How do many large businesses respond to disruptive start-ups?
Many large businesses respond by buying smaller disruptive start-ups rather than competing with them directly.
Why is disruptive technology high risk and high reward for investors?
Investors in an early, successful disruptor can see extraordinary returns. Shareholders in a slower-moving business can see falling profits and share price.
Define digital technologies.
Digital technologies are those based on computerised or internet-connected systems used to communicate, process information and carry out transactions.
True or False?
Digital technologies usually change faster than disruptive technologies.
False.
Digital technologies tend to change more gradually. They usually form the everyday infrastructure most businesses rely on, rather than suddenly overturning an entire industry.
How can digital technologies help a small business grow its customer base?
Websites, apps and social media let businesses of any size reach customers well beyond their local area, often at very low cost.
Why does reliance on digital systems increase risk for a business?
Reliance on digital systems significantly increases exposure to cyber-attacks and system failures.
Some customers, particularly older or less confident users, can be ______ as services move online.
Some customers, particularly older or less confident users, can be excluded as services move online.
What must suppliers do when a business introduces digital ordering and stock systems?
Suppliers must invest in compatible systems themselves so they can receive and process orders digitally.
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