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CH5 Technology Affecting Business & Finance E1B Technology in the…
CH5 Technology Affecting Business & Finance
E1B Technology in the Digital World
The 4th Industrial Revolution
Can be generalised as a rapid & major change in an economy. The pace of technological change & innovation that is influencing we trade, work, travel & live our lives continues to accelerate.
Analysts & experts predict the rate of this change will increase, driving another fundamental shift in society & the global economy now termed 4th Revolution.
Industrial revolutions through the years
1st Industrial revolution
- 18th /19th century saw a shift from rural and agricultural life to urban.
2nd Industrial revolution
- 1870-1914 already industrialised societies driven by coal, steam power, iron & textiles transformed by advancements in electricity, petroleum & steel industries. Saw growth of fast corporations & wave of globalisation.
3rd Industrial Revolution
- Originating in the 1980s known as the digit revolution. Saw a move from mechanical & analogue tech to digital tech. Developments & improvements in communication, computers & intro of the internet were key drivers.
Cloud computing
Storing, managing & processing data over the internet rather than on local servers. Step up from WAN. 2 Main types
Public Cloud - Hosted by 3rd Party company. Specialist companies sell their cloud computing services to any one over public internet.
Private Cloud - Services provided over a private infrastructure, typically for use of a single org. Usually managed internally.
Big Data
Data set so large & varied they are beyond the capability of traditional data processing
Key Features captured using 4V
Sources of Big data come in 2 forms:
1. Structured data
- deliberately produced & collected for specific purpose & therefore exhibits clear structure. Much of what a business produces would be classed as structured.
2. Unstructured data
- Captured passively without a clear purpose. Social Media posts & likes are examples. Format highly variable & non-standard.
Principle of structured & unstructured data
Human- sourced
- Billions of data points produced every day from social media, texts, web browsing, emails etc.
Machine Generated
- Smart Tech & IOT is a growing source of data. Sensors built in all aspect of modern tech with ability to log & upload constantly.
Processed Data
- Traditional data, held on database of business & orgs recordings, customer transactions & company assets.
Open Data
- Publicly available data stemming from sources such as Gov, public sector & national stat agencies.
Data Analytics
Process of collecting, organising & analysing large sets of data (big data) to discover patterns & other info which an org can use to make future decisions.
3 step process
Benefits of effective use of data analysis
Business Consultant & McKinsey summarised benefits as:
Fresh Insight & Understanding
- Discover new trends & patterns through intelligent data. This can enhance & provide new insight.
Performance Improvement
- Smarter data can improve mgmt info which in turn enables performance to be improved through better analysis & deeper understanding of key drivers of success.
Market Segmentation & custimisation
- Data analytics can enable more detailed segmentation within a market. It can be combined with ability to customise to satisfy segment better.
Better decision making
- Enables better/faster decisions to fix problems & realise opportunities quicker.
Innovation
- More data enables a better understanding of what consumers actually want allowing it to be refined to suit.
Risk Mgmt
- Vital to effective running of org. Give a deeper understanding of business & wider environment.
Process Automation
Traditional PA
Saw machines carrying out a simple repetitive task, replacing a job that would have been done by hand. This type of automation everywhere & driven industrilisation through ability to produce higher volumes of product with less problems.
Modern PA
Refers to technology-enabled customisation of complete business processes which were previously beyond limit of technology.
Tech developments like big data, IOT & data analytics generate info to support AI & machine learning.
Job risks
Report from PWC predict by 2030 30% of jobs in UK could be lost due to robotic automation
Artificial Intelligence (AI)
An area of computer science that emphasises the creation of intelligent machines that work & react like humans.
Kaplan & Haenlein describe AI as a systems ability to correctly interpret external data, to learn from such data & use those learning to achieve specific goals/task. Some of the more advanced activities/skills AI can now master are:
Voice recognition
Panning
Learning
Problem solving
Machine Learning
This is a subset of AI based around the idea that we should just be able t give machines access to data to learn themselves.
Machine learning algorithms detect patterns & learn how to make predictions/recommendations.
Algorithms then adapt to new data & experiences to improve function overtime.
Data Visualisation
Allows large volumes of data to be displayed in a visually pleasing & accessible way. Tools of today's market leaders are Tableau & Qlik which go far beyond excel. Creation dashboards to display live KPI's are very common.
An effective data visualisation tool should display these 5 features:
Decision making abaility
Effective infrastructure - Output reliant upon sufficient qty/quality of data.
Intergration Capability
Prompt understanding & insight of data - Live data vital
Real time collaboration - Users must interact with each other & the data.
Blockchain
Described as a decentralised, distributed & public digital ledger that is used record transactions across many computers. It was originally created for Bitcoin but further uses have been identified.
Alternatively described by BOE as a technology that allows people who do not know each other to trust a shared record of events.
Main benefits
Security - Provides an effective control mechanism aimed at addressing such cyber security risks.
Decentralised.
Transparency
Traceability & completeness
Reduced fraud risk
Internet of Things (IOT)
This describes a network of smart devices with inbuilt software & connectivity to the internet allowing them to constantly monitor & exchange data.
Common devises currently connected as part of IT include:
Door bell & security
Plant & machinery - Sensors built into machines & business assets which provides data to facilitate better utilisation & control. Things like maintenance requirements can be spotted earlier & planned into schedule.
Home appliances
Transport & infrastructure
Cars
Wearable tech
Mobile Technology
Code-Division multiple access (CDMA) technology underpins our modern mobile devices such as smartphones/tablets.
This plus the emergence of the internet has transformed many aspects of modern life. Today this technology support/fuel many of the technologies discussed & are fueling big changes in consumer activities.
It can present considerable challenges/threats as well as opportunities.
Industries and activities which are significantly impacted are:
Newspapers
Advertising
Music
Banking
Socialising
TV/Film
3D Printing
This allows complex parts/components to be produced cheaper, faster & in a customisable manner.
Advantages of 3D printing
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