In order for a business to increase their profits they often try and make their businesses run more efficiently to avoid waste!
One way to do this is with the increased use of technology which is often able to speed up a variety of processes.
Basically efficient production will occur when a business is able to produce its goods or services using the minimum amount of resources at its disposal. Therefore, a business’s efficiency increases when it manages to increase its output without increasing its resource use.
In recent years efficiency has generally increased because of the rise of technology in production, such as machinery used for manufacturing which would have previously been done by a human.
Using technology in the production process can hold a number of advantages. It can really help to improve (wait you’ve guessed it) the efficiency of the production process, whilst also reducing business costs in the long run.
This is because, even though technology may be expensive to buy at first, it reduces labour costs over time. This is primarily through using machinery instead of employees, which reduces costs associated with wages, training and recruitment.
Furthermore, a lot of technology used for production is relatively cheap anyway. Costs are also reduced as much technology can work for 24 hours a day, unlike a human employee.
In addition, using technology can also help a business to sell its products more efficiently. This is mainly by selling and advertising products online, which is often cheaper than paying for traditional forms of advertising.
So in summary, technology has really helped improve efficiency, if that wasn’t already clear!