Digital technology is transforming the world around us. It’s in our phones, homes, and workplaces. For businesses, these tools create exciting new opportunities to grow and succeed. From online stores to social media marketing, digital tools help companies reach more customers, work efficiently, and achieve their goals. Understanding the benefits of digital technology is essential for businesses of all sizes. In this blog, we’ll explore how digital technology helps businesses succeed by looking at three main objectives: economic, environmental, and social. We’ll also dive into a case study of a local bakery that uses digital tools to thrive in a competitive market.
What Are Business Objectives?
Before we look at how digital technology helps businesses, it’s important to define business objectives. Business objectives are the goals that guide a company’s actions and decisions. These objectives give direction and purpose, helping companies focus on success.
Economic Objectives:
These focus on financial performance, such as increasing profits, reducing costs, and growing market share.
Example: A business might set an economic goal to increase profits by 10% over the next year.
Environmental Objectives:
These goals focus on sustainability and reducing environmental impact. Businesses can aim to reduce waste, conserve energy, and use eco-friendly materials.
Example: A company might work toward reducing its carbon footprint by switching to renewable energy sources.
Social Objectives:
These prioritise giving back to the community and promoting ethical practices. Companies can support local charities, ensure fair labor practices, and promote diversity.
- Example: A business might donate a portion of its profits to local schools or charities.
Many businesses strive to balance all three objectives, aiming for a triple bottom line that values people, planet, and profit.
The Role of Information Systems in Business Objective Success
Information systems are vital tools that help businesses reach their goals. These systems collect, store, and process data, providing businesses with the insights they need to make informed decisions.
Customer Relationship Management (CRM) Systems:
CRMs track customer interactions. This helps businesses create personalized marketing campaigns and provide better customer service.
Scenario: A retail store uses a CRM to track customers’ purchasing history, allowing the store to send personalised discounts on their favourite products.
Enterprise Resource Planning (ERP) Systems:
ERPs integrate various business functions, such as finance, inventory, and human resources. This streamlines operations and reduces costs.
Example: A manufacturing company uses an ERP to manage its supply chain, ensuring that the right amount of materials is ordered at the right time.
Data Analytics Tools:
These tools analyse data to uncover trends and patterns. Businesses use this information to optimize pricing, find new market opportunities, and make strategic decisions.
Scenario: A restaurant analyses customer reviews and finds that certain dishes are consistently rated highly. The restaurant then promotes these dishes to increase sales.
By using these information systems, businesses can improve efficiency, reduce risks, and gain a competitive edge in the market.
Case Study: Maria’s Bakery and the Power of Digital Tools
To understand how digital technology works in real life, let’s take a look at Maria’s Bakery. Maria owns a local bakery known for its delicious pastries and commitment to sustainability. When she first opened her business, Maria relied on handwritten orders and manual inventory management. But as her business grew, she needed a more efficient system. She invested in a point-of-sale (POS) system that integrates with her inventory management software.
This digital system has transformed her business. It allows her to track sales, manage inventory in real-time, and generate reports on her bakery’s performance. This technology has helped Maria achieve her economic, environmental, and social goals.
How Maria’s Bakery Uses Technology to Achieve Business Objectives
- Economic Benefits:
Maria’s bakery now runs more efficiently. The POS system tracks sales, helping her adjust inventory based on real-time data. This reduces food waste and saves money. The system also generates detailed sales reports, helping Maria make smart decisions about pricing and product offerings. - Environmental Benefits:
Maria’s Bakery is committed to sustainability. The POS system allows her to go paperless, eliminating the need for paper receipts and order forms. It also tracks energy use, helping her find ways to conserve resources. - Social Impact:
Maria uses her digital system to support her community. She partners with a local food bank, donating unsold pastries at the end of each day. She also tracks customer preferences, offering personalised recommendations to build strong relationships.
The Importance of Digital Technology for Business Growth
Maria’s Bakery is just one example of how digital technology can help businesses achieve success. By using information systems, even small businesses can optimise their operations and make informed decisions. Digital technology helps companies:
- Reach more customers
- Reduce costs and waste
- Create positive impacts in their communities
Whether you’re running a large company or a small business, embracing digital tools is essential for growth and success.
Digital Technology as a Tool for Positive Change
Digital technology is revolutionising the way businesses operate. Information systems help companies achieve economic, environmental, and social objectives. By using the right tools strategically, businesses can create a more sustainable and equitable future. As we’ve seen with Maria’s Bakery, even small businesses can benefit from digital transformation. The digital revolution is here to stay. By embracing its potential, businesses can unlock new opportunities, grow, and make a positive impact on the world.
Key Takeaways:
- Digital tools like CRM and ERP systems help businesses optimise operations.
- Businesses can achieve economic, environmental, and social goals using technology.
- Small businesses like Maria’s Bakery demonstrate the practical benefits of digital transformation.
The content of this article aligns with VCDTCD044 of the Victorian Curriculum.