Question

In the "technology age" how can technology generate problems for a firm?

Answer 1

The way, technology generates problems for firms are:

· Small errors create huge ripple effects.

While storing data in spreadsheets and after that, using formulas on the data stored in those spreadsheets are very risky. Since, one small error in any single value stored can give the resultant output substantially wrong. And the final value of the company’s income and profit statement might be wrong. And checking such huge chunks of data stored in cloud is a very hefty task.

· Issues in integration

As the technology gets updated every time with passing day, some updated device might not integrate well with the other non-updated device. And this might result in loss of time.

· Backup and disaster recovery challenges

Often there are instance when there is sudden disruption in power supply or by mistake some employee deletes a file, at that time the disaster occurred due to loss of data is very costly.

· Roots cause aren’t uncovered or addressed.

When IT departments or providers have a process for tracking issues, they’re able to analyze the data and identify trends. When they dig into the trends, sometimes they find that an issue is a symptom of a greater problem, which in turn wastes a lot of time in issue solving.

· Security risks

Hackers are becoming more sophisticated and small businesses are being targeted now more than ever before. If the trade secrets, confidential communication, customer information, and HR records that are stored on your company’s computers falls in wrong hands then the whole organization will be in predicament.

· Frustrated employees due to slow server speed

Interacting with technology is a huge part of your employees’ day. Using slow, outdated systems with frequent problems makes it much more difficult for them to be happy and productive, ultimately decreasing their output.