Technology Enhances the Chances of Success in a Business
Technology has revolutionized several industries, including business. Today, technological advancements such as fast internet speeds, smart devices, and Big Data have changed how firms operate. Technology enhances the chances of business success by enabling businesses to gather, disseminate, and process information quickly.
Technology makes businesses more successful by allowing companies to leverage information more rapidly. Zara, a leading fashion brand, spent heavily on information technology which allowed it to improve its distribution system significantly (Roll n.p.). Zara’s technology-driven distribution system enables it to have seamless information exchange across its stores and its headquarters, which helps it to keep up with the latest trends. Additionally, technology is crucial in aiding businesses to become more productive at lesser cost by reducing the time from product conception until it gets to the market (Wilburn and Wilburn 23). The adoption of technology-enabled Zara to considerably minimize lead times and to respond to shifting market trends quicker. Hence, technology helps businesses to become more profitable by developing an efficient distribution system which caters to customers’ needs and keeps up with the latest trends.
Apart from making firms more successful by allowing them to leverage information more quickly, technology also enables firms to tap into the e-commerce market. In 2010, Zara ventured into the e-commerce space by setting up its first online shop that was available in only a few countries (Roll n.p.). However, a few years later, Zara’s online business has extended across Europe and now accounts for approximately 10% of its global sales. The move by Zara to enter the e-commerce market was informed by its well-designed information technology system that allows it to gather data on the latest trends. When the e-commerce market was booming, Zara already had the right information to join the market and reach out to a broader reach of customers. Therefore, technology helps a business to become better by offering them a more extensive range of the market through e-commerce.
In conclusion, technology enhances the chances of business success by enabling businesses to gather, disseminate, and process information quickly. Zara is an example of a company that benefitted from heavily investing in information technology. Technology also allows firms to take advantage of the e-commerce market to reach more clients.
Roll, Martin. “The Secret of Zara’s Success: A Culture of Customer Co-creation.” Martin Roll:Business and Brand Strategist, Mar. 2018, martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-culture-of-customer-co-creation/.
Wilburn, Kathleen M., and H. R. Wilburn. “The Impact of Technology on Business and Society.” Global Journal of Business Research, vol. 12, no. 1, 2018, pp. 23-29.