4.

Technology as a Competitive Advantage

- Impact on Business Strategy:

- Discuss how technology creates competitive advantages by reducing costs, increasing

flexibility, speed of operation, and delivery.

- Highlight examples such as improved operations, customer service, and the creation of new
industries (e.g., e-commerce).

Technology is common thing in society which was made to respond human requirements, day by
day technology started entry many fields in our life. Business is one of these fields, it is not only
play a pivotal role in economy, but also it is a competitive factor in business strategy owing to
the benefit brings in many aspects.

1. Reducing cost

Decrease manufacture cost is one of these benefits. Nowaday, many countries in the world have
to face with rising labour cost and difficulty hiring workers, which cause many negative effects
to company’s profit and severely damage manufacture process. However, all of the above
difficulties would be solved by technology, it can do the work of many people in a period time. It
greatly contribute to producting process thereby increasing the company’s profit significantly.

Evidences: VinFast automobile and electric motorbike manufacturing complex is built on a 335-
hectare land area in Dinh Vu Industrial Park, Cat Hai District, Hai Phong City

Since 2013, Vinamilk has started bringing automatic production systems with robots to its milk
factory in Binh Duong. Here, robots operate the processes themselves, from raw materials,
processing to packaging of the final product without needing human help.

 Cloud Computing: Shifting to cloud infrastructure reduces the need for physical servers
and maintenance costs. It also allows businesses to pay for only what they use, leading to
cost efficiencies.
 Data Analytics: Utilizing big data and analytics helps companies optimize their supply
chains and inventory management, reducing waste and excess costs.

Increasing Flexibility

Flexibility in business operations and strategy is crucial for adapting to market changes.
Technology facilitates this through:

 Agile Development: Software development methodologies like Agile allow for rapid
iteration and responsiveness to market needs.
  Remote Work: Technology enables remote work, allowing companies to access a global
talent pool and reduce overhead costs associated with physical office spaces.
 Scalable Solutions: Cloud-based solutions allow businesses to scale their operations up
or down based on demand, providing flexibility in resource management.

3. Speed of Operation and Delivery

Speed is a critical factor in gaining a competitive edge. Technology enhances this by:

 E-commerce Platforms: These platforms enable businesses to reach customers instantly,

providing a seamless purchasing experience.
 Logistics and Supply Chain Management: Advanced logistics technology, such as
real-time tracking and automated warehousing, ensures faster delivery times.
 Customer Relationship Management (CRM): CRM systems allow businesses to
respond quickly to customer inquiries and issues, improving overall service speed.

4. Improved Operations

Technology streamlines and improves business operations, leading to enhanced productivity and
efficiency:

 Enterprise Resource Planning (ERP): ERP systems integrate various business

processes, providing a unified view and improving coordination across departments.
 IoT (Internet of Things): IoT devices can monitor and optimize manufacturing
processes in real-time, reducing downtime and improving efficiency.
 Artificial Intelligence (AI): AI can optimize operations through predictive maintenance,
demand forecasting, and personalized customer interactions.

5. Enhanced Customer Service

Technology enhances customer service, leading to better customer retention and satisfaction:

 Chatbots and AI Assistants: These tools provide instant responses to customer queries,
improving the overall customer experience.
 Personalization: Data analytics allows for personalized marketing and product
recommendations, leading to more satisfied customers.
 Omni-channel Support: Technology enables businesses to offer support across various
channels (e.g., social media, email, phone), ensuring consistent customer service.

6. Creation of New Industries

Technology has led to the emergence of entirely new industries, driving innovation and growth:

 E-commerce: Online shopping platforms like Amazon and Alibaba have revolutionized
retail, creating a global marketplace accessible to everyone.
  Fintech: Financial technology companies have disrupted traditional banking by offering
innovative solutions like digital wallets, online lending, and blockchain-based
transactions.
 Telehealth: Advances in telecommunication technology have given rise to telehealth
services, providing remote healthcare solutions.

Examples

 Amazon: Amazon’s use of technology in logistics, AI-driven recommendations, and

cloud services (AWS) has made it a leader in e-commerce and cloud computing.
 Tesla: Tesla’s innovation in electric vehicles and autonomous driving technology has
disrupted the automotive industry.
 Netflix: By leveraging data analytics and streaming technology, Netflix transformed the
entertainment industry, moving from DVD rentals to a leading streaming service.

4. having technology bring for us many potential benefits in production process. Do you
know that when the steam engine machine was invented, it marked the first revolution
industry in the world. No one to use horses to move on the street, the volume of production
process was radical increase in high level as hard-workings in buiding site and factories will
be taken place by machines. It can do work of many people in a short time and reducing cost
in production processes, which can have many investors maximize thorough their profit in
manufacture. Nowaday, the more technology is developed, the more competitive market is
changed. Business strategy is also change by ulities which technology bring about.

Automation (improve product process, enhance customer services, increase flexibility)

Creation new industry:

 E-commerce: online shopping platforms like Amazon and Alibaba have

revolutionized retail, creating a global marketplace accessible to everyone.

 Fintech: Financial technology companies have disrupted traditional banking by

offering innovative solutions like digital wallets, online lending, and blockchain-
based transactions.
 Telehealth: Advances in telecommunication technology have given rise to telehealth
services, providing remote healthcare solutions.
8.

Technological Impact on Labour

- Different Perspectives on Job Content:

- Pessimistic View: Technology as a deskilling agent leading to job cuts and increased
management control.

- Optimistic View I: Technology creating new job opportunities and boosting productivity.

- Optimistic View II: Upskilling and creation of more satisfying jobs, eliminating unpleasant
tasks.

Pessimistic:

- Abusing Ai cause to deskill agent and make people become lazy

- Job Cuts: Automation and artificial intelligence (AI) can replace human labor,
leading to job losses. This has been observed in manufacturing with the advent of
robotics, and more recently, in white-collar jobs with AI systems capable of
performing tasks traditionally done by humans.

Optimistic View I: Technology Creating New Job Opportunities and Boosting Productivity

Key Points:

 New Job Creation: The fintech sector has created new roles such as blockchain
developers, data scientists, cybersecurity experts, and compliance specialists.
 Productivity Boost: Fintech solutions streamline processes, reduce transaction times,
and improve accuracy, which can significantly boost productivity in the financial sector.
 Economic Growth: The efficiency and innovation brought by fintech can contribute to
economic growth, which can create further job opportunities.

Examples:

 The rise of mobile payment platforms has created new job roles in app development,
customer support, and digital marketing.
 Peer-to-peer lending platforms require teams for operations, risk assessment, and
customer service, creating jobs in new financial services.

Optimistic View II: Upskilling and Creation of More Satisfying Jobs

Key Points:

 Upskilling: Technology necessitates the acquisition of new skills, encouraging

continuous learning and development. This can lead to more intellectually stimulating
and rewarding careers.
 Elimination of Unpleasant Tasks: Automation can take over mundane and repetitive
tasks, allowing workers to focus on more creative and satisfying aspects of their jobs.
 Enhanced Job Satisfaction: With technology handling routine tasks, workers may
experience greater job satisfaction and engagement.

Examples:

 In healthcare, AI can handle administrative tasks, allowing doctors and nurses to spend
more time with patients.
 In education, digital tools can manage grading and administrative work, giving teachers
more time to focus on teaching and interacting with students.

Analysis

The impact of technology on labor is multifaceted and context-dependent. While the pessimistic
view highlights legitimate concerns about job displacement and deskilling, the optimistic
perspectives underscore the potential for technology to create new opportunities and enhance job
satisfaction.

Factors Influencing the Impact:

 Industry: Different industries experience technological impact in varying degrees. For

instance, manufacturing is more susceptible to automation than the creative arts.
 Skill Level: The impact can also depend on the existing skill levels of the workforce.
Higher-skilled workers may find it easier to adapt and benefit from new technologies.
 Policy and Regulation: Government policies and regulations can influence how
technology impacts labor. Support for education and retraining programs can mitigate the
negative effects of technological disruption.

9. Structural Changes and Employment Trends

- Global and Organizational Changes:

- Discuss the eradication of middle management, centralization of services, and the shift to
working from home (WFH).

- Highlight the polarization of the labour market with high-skilled jobs growing and low-skilled
jobs declining
Global and Organizational Changes

The landscape of work is undergoing significant transformations driven by both global trends
and organizational shifts. These changes are redefining how businesses operate and how
employees engage with their work.

Eradication of Middle Management:

 Streamlining Operations: Advances in technology have enabled organizations to

streamline operations, often leading to the reduction or elimination of middle
management layers. Automated systems and sophisticated software can now handle many
of the tasks traditionally managed by middle managers, such as performance tracking,
reporting, and basic decision-making.
 Efficiency and Agility: This reduction aims to increase efficiency and agility, allowing
companies to respond more swiftly to market changes and customer demands. However,
it also means that fewer managerial positions are available, impacting career progression
paths for employees.

Centralization of Services:

 Cost Savings and Standardization: Many organizations are centralizing services such
as IT, HR, and finance into shared service centers. This centralization can lead to
significant cost savings and ensure consistent service quality across the organization.
 Impact on Local Jobs: While centralization can bring about efficiencies, it often results
in the consolidation of roles and the reduction of local jobs. Employees may need to
adapt by relocating or transitioning into new roles within the centralized structure.

Shift to Working from Home (WFH):

 Flexibility and Productivity: The COVID-19 pandemic accelerated the shift to remote
work, demonstrating that many tasks can be effectively performed from home. This shift
has provided employees with greater flexibility and work-life balance, potentially
increasing productivity and job satisfaction.
 New Challenges: However, working from home also presents challenges such as
maintaining team cohesion, managing remote workers, and ensuring cybersecurity.
Organizations must develop robust remote work policies and support systems to address
these issues.

Polarization of the Labour Market:

 Growth of High-Skilled Jobs: There is a noticeable growth in high-skilled jobs,

particularly in fields such as technology, data analysis, and advanced manufacturing.
These roles often require specialized education and training, and they offer higher wages
and better job security.
 Decline of Low-Skilled Jobs: Conversely, low-skilled jobs are declining due to
automation and outsourcing. Routine tasks in sectors like manufacturing, retail, and
administrative support are increasingly being performed by machines or outsourced to
regions with lower labor costs.
 Widening Skills Gap: This polarization leads to a widening skills gap in the labor
market. Workers in declining low-skilled roles may struggle to find new employment
opportunities unless they can upskill or reskill to meet the demands of emerging high-
skilled positions.