ExpertExternal Influences – Technological Factors
Learning outcomes
- Evaluate how technological advancements force structural business adaptations.
- Identify the impacts of downsizing, delayering, and outsourcing driven by tech.
Technology and Business Structure
Technology doesn't just change what a business sells; it changes how a business is built.
- Downsizing: Reducing the total number of employees because automation (e.g., AI, robotics) can do the work.
- Delayering: Removing levels of middle management. Advanced IT systems allow senior managers to monitor frontline staff directly, making middle managers redundant.
- Outsourcing: Using cloud tech and high-speed internet to hire third-party firms (often abroad) to handle non-core tasks like payroll or IT support.
A company implements a new ERP software that allows the CEO to directly view real-time sales data from all stores. Consequently, the company fires all regional middle managers. This is an example of:
Downsizing vs Delayering
Downsizing means the company is getting smaller overall (fewer staff). Delayering means the company is getting flatter (fewer management levels), but it might still have the same number of frontline workers.
Data Infrastructure
Modern businesses rely on data. Cloud computing allows startups to access massive computing power without buying expensive servers. However, this increases reliance on cybersecurity.
Which of the following is a primary benefit of a business using cloud computing infrastructure?
Exam Focus
Examiners often ask about the human impact of tech. Remember that while tech increases efficiency, it often causes short-term anxiety, resistance to change, and a need for extensive retraining among staff.
A UK-based accounting firm uses a secure internet portal to send basic bookkeeping tasks to a specialized firm in India. This is an example of:
What is a common negative consequence for employees when a company undergoes significant technological delayering?
How does e-commerce typically affect a traditional retailer's barriers to entry?
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ACCA BT — Business & Technology Practice Exam 3
Premium mock exam replication for ACCA Business and Technology (BT). This exam mirrors live computer-based testing parameters, featuring 46 Objective Test Questions (Section A) and 6 Multi-Task Questions (Section B). It covers the complete syllabus: Business Organization, Structure & Governance, Technology & Regulation, Leadership, Personal Effectiveness, and Professional Ethics.