How2Day: Hi-Tech Business Strategies

Advancement in computer networking technology is just one example of how hi-tech strategies can improve businesses. B2M Productions/Polka Dot/Getty Images
Since the industrial revolution, technology has had a tremendous impact on the business world. Making processes more efficient and error-proof, bringing the voice of the customer more easily to product and service providers and enhancing communication between varying levels and branches of businesses are just a few examples of how technology has changed the game for many businesses and for the global economy in general. Many companies are born, thrive and die as a result of new, disruptive technologies. Therefore, it is important for any business manager to have a high level understanding of hi-tech business strategies.

Inventory management is the process by which an organization keeps track of and directs the flow of inventory throughout its production and distribution processes. Inventory management is also sometimes used to track shipments from suppliers. Inventory represents a huge cost to many businesses and is a drain on cash flows because it represents money that has gone out in the form of purchases and production wages but has not come back in the form of sale. Additionally, inventory must be housed and maintained while it sits in a warehouse, and this represents an additional cost. Many sophisticated technologies now exist to improve inventory management. For example, radio frequency identification or RFID involves using a radio chip which sends information to a receiver, which can be hand-held. The radio signal can typically broadcast to about a 5 foot radius.

Mass customization was once essentially an oxymoron. Businesses were forced to make the choice between low-cost, mass-produced goods and customized goods, which, while fetching a higher cost took more time and resources to produce. Recent business models have allowed companies to take advantage of efficient customization methods such as customizing a product at the end of the production process by, for example, having identical products be colored at the very last minute or have add-ons incorporated at the last minute. Moving customization to the end of the process allows businesses to sync their production decisions to market research as close to real time as possible.

Market research is a key element in driving sales forecasts and finding the voice of the customer when designing new products and services. Traditional methods of conducting market research has involved surveys and focus groups, which often involve in-person contact requiring a relatively high ratio of researchers to research subjects. By conducting surveys online or tracking sales in real time through automated inventory management, businesses can more efficiently monitor consumer behavior and draw from a larger pool of information, making the results more statistically accurate.

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