Technology is a large concept and it refers to the breakthrough in science that allowed automated solutions. Even if for any business the most important thing about the technology is increased productivity, there are other areas where technology impacts positively on the business.
Small businesses can compete with larger businesses since the technology helped them to be agile and swift as larger organization. A small business is also capable to conform to the changes faster compared to larger business. In the past, without e-mail, the only way to communicate with another person was to send a postal mail. In case the client was far, the communication was taking longer. With information technology, it is now faster to send and to receive the information. This can save time and it offers the chance to make decision faster.
Technology reduces the need of triple or double entry system and it reduces the use of large files for storage. Customers and contracts information may be stored on the virtual data storage and it is easily accessed in few minutes. This reduces the cost of having to rent or to purchase storage facilities.
Information can be shared quickly from different resources to different people. Marketing is accomplished by only posting an ad on the internet and it reaches buyers on the internet through using the social networking site. Workers can improve their skills by learning online and this means that there is no need for small business to hire training team.
Some functions can be automated which in the past required experienced workers. An example is bookkeeping which can be done by any person in the business but before it needed accountants with degrees. Sales function can be automated through the contact management website and this helps the business owner to focus more on the strategy and to cut down the labor expenses. With technology, the owner of the business can evaluate faster the area where the business is doing good or where it is not doing well.