Impacts of Modern Technology on Organisations

Infrastructure is the physical and organisational structures and facilities an organisation needs to operate. It includes buildings, networks, devices and systems.

Modern technology can improve infrastructure, but managers must compare the benefits with the drawbacks before investing. You should not assume new technology always makes things better: it can add setup costs, training needs and ongoing maintenance.

What modern technology adds

The infrastructure required by modern technology includes:

• communication technologies — tools that let people communicate and share information
• devices — the equipment staff use
• local or web-based platforms — software installed on the organisation's own equipment or used online

It is more than a purchase

Introducing modern technology is not just buying equipment. An organisation must:

1. train staff so they can use the new technology confidently
2. implement and test it before it is used for real work
3. maintain it so it keeps working and stays secure
4. pay running costs, such as subscriptions, support and energy

For example, a community sports club might replace a paper sign-in sheet with a tablet-based sign-in system. The benefit is that coaches can see who has arrived straight away. The drawbacks include buying tablets, training volunteers, testing the system and paying for a monthly support plan. Organisers should weigh these up before going ahead, because modern technology does not always improve infrastructure; it can also add cost and complexity.

Communication technologies are the tools an organisation uses to send messages and share files electronically, such as voice calls, video meetings and messaging systems. They reduce paperwork and speed up communication because information and files can be accessed electronically. A project team can put a budget file in a shared folder; everyone sees the latest version straight away instead of printing and posting copies.

The same tools can be intrusive. If a staff messaging group is used for quick updates, messages can arrive in the evening or at weekends, and some staff feel they must read and reply straight away. That makes it hard to switch off from work, so the organisation can see lower morale and productivity as well as a poorer work-life balance for its staff. Providing communication devices also creates setup costs, such as buying headsets, screens or licences, and ongoing costs, such as contracts and maintenance. A small charity might pay to install a video unit in a meeting room, then pay each month for broadband and software support.

Different infrastructure needs

Basic audio methods need less specialist equipment, but they lack visual cues and do not let you share files during the call. Video methods allow visual communication and file sharing, but they need reliable internet, suitable devices and the technical ability to use the software.

Comparing methods

When choosing, compare methods by cost, reliability, infrastructure requirements, ability to share information and technical skill needed. Both options need their benefits and drawbacks weighed up before you recommend one.

Local platforms are software systems installed on and run by an organisation's own devices. The programs and data sit on its computers, so nothing travels across the internet, which can make them respond quickly. The catch is that staff can only reach them at work, and each device needs enough storage and processing power to run the software properly.

Web-based platforms are used online through a browser. The heavy work happens on remote servers, so a device needs very little local storage or processing power, and you can log in from anywhere with a connection. The trade-off is speed: a weak connection or a rush of users can make pages slow or unresponsive.

Comparing the two

A small hotel could keep its booking program on the reception computer, so check-in stays instant even when the internet drops. A web-based booking service lets guests reserve rooms from anywhere, but slows down when the Wi-Fi is weak.

What each demands from infrastructure

Choosing a platform places demands on the organisation's infrastructure. Web-based tools need a reliable internet connection, enough bandwidth for everyone using them at once, and servers that cope at busy times. Local tools need device storage, memory and processor power. Each suits different work.

When infrastructure fails

The infrastructure has to be there when it is needed. An outage, a dropped connection or too many users can stop messages getting through, halt sales and lock people out of data. Organisations may keep a contingency plan, such as a backup system or a way of working offline, so essential tasks carry on, especially where a service runs around the clock or staff work away from the premises.

24/7 access means an online system or service is available at any time of day or night. A website that takes orders while the office is closed lets an organisation keep trading after the counter shuts, sell at any time and reduce some premises costs, such as fewer staffed opening hours or a smaller sales area. Because anyone with internet access can visit, it also reaches customers who are too far away to visit in person.

Data, maintenance and security

Because every visit and order can be recorded, 24/7 access builds a detailed record of what customers look at and buy. The organisation can use this to target its advertising and to plan stock and support, for example by adding web-chat staff when orders usually rise. However, the system must be maintained constantly: updates, fault fixes and backups cannot wait for opening hours. It must also be secured constantly, because customer data and payments are at risk around the clock.

Drawbacks to weigh up

• A technical failure can stop every order at once, whereas a problem with one shop till affects only that branch.
• Competition is greater: a customer can compare another website in seconds.
• Some customers want face-to-face help before they buy, which a website cannot give, so relationships have to be built online through clear information, quick replies and reviews.

Selling online and analytics

An online shop can take a birthday-gift order at 11 p.m. that would be missed if the only option were a counter with set hours. Extra orders from a wider audience raise sales and income; profit is income minus costs, so it rises once those orders more than cover the website's running costs. Website analytics records data about visits and purchases. An organisation can use it to choose what to sell, when to sell it and where customers are based. For example, a shop selling knitting wool might find that most orders come from one region on Sunday evenings, so it stocks up and advertises at that time.

Dispersed data means that several full copies of the data are held, each one stored at a different location. For example, a small chain of three climbing centres keeps a complete copy of its booking records at each centre, and the copies are kept up to date so that every centre gives the same, current picture. If a fire damages one centre's computer room, another centre still has the full records, so the organisation can carry on serving customers. This supports disaster recovery: getting systems and data working again after a failure.

Distributed data is different: the data is split into parts, and each part is stored in a separate location, so no single location holds the whole record. The parts are brought back together only when someone needs the whole record. For example, a youth charity might split each young person's record into three parts held in three regional offices. To view the full record, the system reassembles the parts. This can improve security because an unauthorised user would need access to every location, not just one, to get the complete data.

Comparing the two

Both methods depend on available infrastructure: working network links, devices and systems to reach the copies or to gather the parts together. If one location is offline, access can fail. Also, every extra location is another place that must be protected, so more locations increase the number of points that must be secured.

Remote working means staff do their job away from the organisation's premises, using technology such as a laptop, a web-based platform and an internet connection to reach the organisation's systems. The work still belongs to the employer; only the location changes.

Benefits to the organisation

If fewer people need desks, an organisation can give up part of its building — a small agency might hand back the top floor of its office and keep two rooms for the days when people do come in — so its rent and energy bills fall, and the saving comes back every month. It can also recruit from a wider pool of skills: a publisher in Sheffield can take on a specialist proofreader who lives two hundred miles away, choosing the best applicant rather than the nearest one. Staff who are mildly unwell can work from home instead of taking the day off, so sickness absence falls, and many find they have fewer interruptions, so productivity rises and profit follows. Staff spread across time zones also keep work moving round the clock: a support team in Manchester can hand open tickets to colleagues in Auckland at the end of the British day, so customers get answers overnight instead of waiting until morning.

Drawbacks

Everything depends on reliable devices, internet and collaboration platforms. If the platform goes down or an employee's broadband drops out, the work stops. Data accessed outside the premises creates security risks: a laptop left on a train or a home network with weak passwords can expose customer records, so organisations protect data using encryption, multi-factor login and clear rules about what may be stored locally. Managing staff is harder too, because a manager cannot see who is struggling and misunderstandings take longer to clear up. Collaboration — staff working together, not just working remotely — suffers when colleagues are in different locations or time zones, when suitable tools have not been provided, or when staff have never been trained to use them.