Essay Sample on Technology Failure in Business

Introduction

Technology failure refers to multiple errors that usually occur in the body or some parts of a machine. These technology failures can cause temporary loss of data or some features of the expected information, especially in business. This paper focuses on the environmental factors, organizational governance, business factors, and technology factors that contribute to technology failure.

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Environmental Factors

Environmental factors are both external and internal factors that affect the progress of business in an environment. These factors are changes in weather, the existence of some renewable products, and the workplace's efficiency, including environment-related policies (Cui et al. 2019). When there is a low supply of Non-renewable products in the market, it leads to an increase in prices, which affects the business in the industries. Advancement in technology is another factor that causes business in an organization. There is a need to employ modern technology for the production of goods and services. Therefore, low technological advancements can lead to pollution of the environment, and low production of goods, including a lack of transparency of business activities due to insufficient knowledge and skills in information technology networks.

Influence from Non-governmental organizations and policies in the business environment is also associated with business failure. Non-governmental organizations, through social media platforms, advertise their products to provide relief by eradicating poverty levels in low-income countries to influence business institutions and policies. With the target governments, non-governmental organizations, and multinational business enterprises create competitive environments for Small business enterprises causing less or no economic profits. Weak standards of governance in an organization cause low accessibility of capital and low economic growth.

Organizational Governance

Organizational governance refers to the process and rules to be followed to run a company. In business sectors, the board of directors is in charge of the day-to-day activities and the business's management. All employees are, therefore, controlled by the board of directors. Lack of organizational governance causes an overall decrease in business value, making it difficult to achieve business goals (Bouazza, Ardjouman, & Abada, 2015). There have been a lot of complaints about poor corporate governance in most business sectors.

Currently, most institutions grow tremendously due to technology, even if there are no adequate coping mechanisms within society. Wrong entry of data or information electronically can cause errors after a certain period due to its complexity. Effective communication with stakeholders, shareholders, suppliers, and communities, including employees from the business location, cannot be achieved. With the introduction of technology, most people involved in the communication chain do not have time to go through the annual reports due to their large volumes.

Business Factors

Some factors are associated with technology failure in business sectors, which include insufficient money, lack of experience, poor inventory management, and rapid growth, among other factors. Therefore, Small business organizations are the most affected by modern technology due to insufficient funds as the most driving force to start and manage the business. It is not easy to understand the market and the customers’ needs in modern society because business operators lack knowledge of their customer’s preferences and tastes. Due to a lack of expertise in customer needs, business operators may not get the expected profits, leading to low growth and business development. Some business technology operators do not understand how to pass information about their products. As a result, the target audience or customers may find the products irrelevant.

Technology has led to poor management of business activities, were controlling, planning, organizing, including communication, have been made difficult. Due to the government's multiple actions, communication with the clients may not be apparent, making it challenging to determine their stand-in products and services (Wu, Straub, & Liang, 2015). With technology, business operators may not know when to say No to customers due to a lack of physical contact. Lack of physical connections causes low delivery of products without follow-ups, which reduces overall cash flow and profitability.

Technology Factors

Technology factors refer to how new equipment and skills affect business. Rapid Advancement of knowledge and technology skills cause risks in business developments, mostly to small business enterprises. Automation of several unskilled information into the system has led to the migration of the human workforce to machines, thereby reducing products' production costs (Luftman, Lyytinen, & Zvi, 2017). The increase in job automation has led to distributors' low values, and manufacturers, including extensive market stores like supermarkets.

The presence of internet connectivity to connect to customers leads to business failure because some communities cannot communicate electronically with business providers. Therefore, accessing information about the products may be futile if telephone service providers give irrelevant information leading to less business. Computers' ability to create random numbers causes multiple entries of similar information, which require a lot of time to execute. Some methods in computers tend to measure results that are unpredictable to users, which renders them unsuitable for business activities. Generators of random numbers produce unexpected results due to insecure applications. Without an expert in technology, a lack of knowledge to determine true and false random numbers may not be achieved, leading to unexpected production of information from the business (Palacios-Marqués, Soto-Acosta, & Merigó, 2015). Computer calculations' speed and power can be slow due to a lot of entries into the system, causing low production of the desired outcome.

Implementing machines fitted with modern technological engines plays a vital role in the production and processing of goods. However, these engines are also faced with challenges, which lead to low production of goods and services. In mining industries, inefficient machines cause low production volumes, resulting in short market supply and customer loss. Insufficient supply of fuel affects the movement of devices used in the production processes, causing defaults in the expected results. These machines cannot perform any tasks as expected, which causes more loopholes in technology. Countries with more fuel production have more advantages in locomotive machines since there is a faster supply of energy for movements, unlike other states that require the importation of that fuel to be used.

Conclusion

Technology failure refers to multiple errors that usually occur in the body or some parts of a machine. These technology failures can cause temporary loss of data or some features of the expected information, especially in business. Implementing machines fitted with modern technological engines plays a vital role in the production and processing of goods. However, these engines are also faced with challenges, which lead to low production of goods and services. In mining industries, inefficient machines cause low production volumes, resulting in short market supply and loss of customers.

References

Bouazza, A. B., Ardjouman, D., & Abada, O. (2015). Establishing the factors affecting the growth of small and medium-sized enterprises in Algeria. American International Journal of Social Science, 4(2), 101-115. http://www.aijssnet.com/journals/Vol_4_No_2_April_2015/11.pdf

Cui, L., Chan, H. K., Zhou, Y., Dai, J., & Lim, J. J. (2019). Exploring critical factors of green business failure based on the Grey-Decision Making Trial and Evaluation Laboratory (DEMATEL). Journal of Business Research, 98, 450-461. https://www.sciencedirect.com/science/article/abs/pii/S0148296318301590

Luftman, J., Lyytinen, K., & Zvi, T. B. (2017). Enhancing the measurement of information technology (IT) business alignment and its influence on company performance. Journal of Information Technology, 32(1), 26-46. https://journals.sagepub.com/doi/abs/10.1057/jit.2015.23

Palacios-Marqués, D., Soto-Acosta, P., & Merigó, J. M. (2015). Analyzing the effects of technological, organizational, and competition factors on Web knowledge exchange in SMEs. Telematics and Informatics, 32(1), 23-32. https://www.sciencedirect.com/science/article/abs/pii/S0736585314000495

Wu, S. P. J., Straub, D. W., & Liang, T. P. (2015). How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched business and IT managers survey. MIS Quarterly, 39(2), 497-518. https://dl.acm.org/doi/abs/10.25300/MISQ/2015/39.2.10