Technology in Production 

The Impact of New Technology in the Primary Sector 

Advances in technology gather pace all the time. All business sectors have enjoyed the benefits of new technology. In the primary sector, the use of tractors, mechanical harvesters, grain-drying machines and automatic feeding systems have helped to raise productivity in agriculture. Technological development in agriculture has significantly reduced the need to employ large numbers of workers on farms. 

Chemicals and Pesticides

Chemicals and pesticides have also helped to increase crop quantities and biological research has developed plants that are less likely to suffer from diseases. Developments in genetically modified (GM) crops, where useful genes are introduced from different living sources into plants, are beginning to have an impact. Initially, GM crops were developed mainly to reduce the harmful effects of pests and diseases. However, the new generation of GM crops aims to increase the nutritional value of plants. Consumers are likely to benefit more directly from this. For example, it may be possible to develop rice with a higher content of iron and vitamins, potatoes with more starch, healthier oils from soybean and canola, and allergen-free nuts. The use of GM crops is well-established in some countries around the world. For example, in the USA, 88 percent of corn, 93 percent of soybean, 94 percent of cotton seed and 75 percent of Hawaiian papaya is genetically modified. 

Drones

Another technological development in agriculture is the application of drones. They can be used to help farmers with water and disease management, and to develop better planting strategies. The use of drones can also provide information about the progress of crops – even in different parts of the same field. 

In the mining industry, new cutting machinery has raised productivity and improved the health and safety of workers. 

The Impact of New Technology in the Secondary Sector 

Production has become more capital-intensive in many industries. This means that more machinery is used in production instead of other resources such as labour. New technology is flexible, sophisticated and highly efficient. Some examples of new technologies in the secondary sector are outlined below. 

ROBOTS 

Robots feature largely in assembly and on production lines. They usually have a mechanical arm that moves according to instructions given by a computer. Robots are used in welding, assembly and in the movement of components on a production line. Robots in manufacturing can be divided into three categories. 

• Material handling robots are usually employed in the transport of goods,parts or stock from one place to another, most often within the same factory or plant. Automated warehouses are an example of this. 
• Processing operations robots generally perform a specific task, such as spot welding or spray painting. These robots are fitted with a specialised tool to perform the programmed task. 
• Assembly line robots usually perform a single task on assembly lines such as fitting a cap on a bottle. Inspection robots are used to check a finished part or product for faults. They may use a range of tools, such as lenses and scanners. 

All manufacturing robots perform repetitive and sometimes dangerous work involving heavy machinery, industrial pollutants, poisonous chemicals or other hazardous materials. They are also accurate, perform at a constant rate and can operate 24/7. Disadvantages are that some staff may lose their jobs, robots can be expensive to introduce and products may have to be standardised. 

COMPUTER AIDED DESIGN (CAD) 

Before products are manufactured they have to be designed. The whole design process has been improved by the introduction of computer aided design (CAD). This allows a business to produce accurate drawings, which can be viewed in 3D and altered cheaply and quickly. Designs can be accurately measured and tested on computers for faults, such as unsuitable dimensions or components. In many cases, CAD also removes the need to build models and prototypes because they can be replaced by 3D computer-generated images. CAD can also identify the best or ‘optimal’ design solutions because it can analyse a range of alternatives.

COMPUTER NUMERICALLY CONTROLLED MACHINES (CMMs) 

Computer numerically controlled machines (CCs) machines can be programmed by computer to carry tasks such as cutting, milling, drilling, welding, sewing and printing. They can produce both uniform and irregular shapes, and cut quickly and accurately. They can also carry out repetitive tasks without human error. This reduces waste and the need for rework. Some CNC machines use instruments and coordinate measuring machines (CMMs). 

These can make simple or complex measurements and check batches or components. They can measure several variables, such as dimensions, weight and temperature. 

COMPUTER AIDED MANUFACTURING (CAM) 

Computer aided manufacture (CAM) involves using computers to control machines to undertake the production of goods. By using CAM, designs can be sent to CAM machines such as laser cutters, 3D printers and milling machines. 

COMPUTER INTEGRATED MANUFACTURING (CIM) 

This involves using computers for the entire production process. 

The Impact of New Technology in the Tertiary Sector 

In the past, the provision of services has been mainly labour intensive. This is because supplying services often requires direct and personal contact with customers. However, new technologies are being rapidly adapted for use in the tertiary sector. Some examples are outlined below. 

Financial

In financial services, such as banking, many transactions can be carried out online. Automatic teller machines (ATMs) have been common for many years and can be used to withdraw cash 24/7. Money can be transferred from one account to another electronically from anywhere with a smartphone reception, even internationally. The development of electronic funds transfer at point of sale (EFTPOS) means that plastic cards and other electronic methods reduce the need for cash. 

Marketing

In marketing, the use of information technology (IT) has made market research easier. The gathering, processing and presentation of market research data are cheaper using IT. Data can also be gathered online. This Is more convenient for consumers and therefore more data is likely to be gathered. 

Advertising

In advertising, television adverts use the latest film technology and special effects to make adverts more exciting and entertaining. The Internet is used to promote products. Many businesses have their own websites where information about products is posted and updated regularly. 

Retail

In retailing, there have been a number of technological developments. EFTPOS is a well-established example. EPOS refers to technologies that record the sale of goods or services to the customer at the point where they are purchased. In stores, goods are likely to be scanned into a machine by cashiers, or increasingly by the consumer themselves in supermarkets. Information from barcodes on packaging is recorded and used to generate a range of information, such as till receipts, stock details and customers’ purchases. EPOS saves time and reduces queues at the checkout. It also improves stock control and automatically orders new stock. The data gathered from customers about their purchases might be used for marketing purposes. 

Leisure

In the leisure industry, technology allows people to travel without a ticket. For example, flights can be booked using the Internet or the telephone and a credit card. A boarding pass can be printed at home. It is also possible to store boarding passes electronically and use a smartphone to board a flight. Bookings for hotels, holidays or the theatre can be made online, which reduces administration costs. 

Administration

The use of IT has helped to reduce administration and communication costs in business. For example, a computer can carry out many routine tasks quickly. These may include customer invoicing or billing. Huge amounts of data can be gathered, processed, edited, stored and accessed using computer databases. A wide range of different information can be sent electronically anywhere in the world instantly.

E-Commerce

e-commerce involves the use of electronic systems to buy and sell products. Most e-commerce takes place online. There are two main types. First, business to consumers (B2C) involves the selling of goods and services by businesses to consumers. Some e-commerce is done entirely electronically. For example, an individual can make a payment, download some music and listen to it on their laptop, MP3 device or smartphone. 

However, a great deal of e-commerce still involves trading in physical goods, such as clothes and consumer durables. This is called e-tailing and involves ordering goods online and taking delivery at home. 

The Cost and Benefits of New Technology 

Balancing the Cost, Productivity, Quality and Flexibility of Technology 

The decision of when or whether to introduce new technology into production is often a difficult one for businesses. The financial cost of purchasing, installing and maintaining technology can be very high. Robots, CNC machinery and other high-tech equipment are often very expensive and businesses often need to borrow or raise funds to make the investment. There is also the human cost to consider. Introducing new technology often means making people redundant; this is also expensive and can disrupt the workforce. Senior management have to be sure that the cost of the technology is lower than the value of the productivity gains. The productivity gains may only be achieved if large quantities of output can be sold. Therefore, a business must be confident about selling much larger quantities. 

Decision makers also have to consider the impact that technology will have on the quality of the product. For example, historically, mass produced products were often seen as lower in quality than those that were handmade. Also, some customers are actually happy to pay higher prices for handmade products. This might be the case in the clothing industry, for example. Another issue is the flexibility of new technology. When production processes are automated, it often means that a business can only produce standardised products. This reduces the choice for customers. 

However, many would argue that most technology is so sophisticated today that quality and flexibility are not compromised. For example, production lines in the motor industry can deliver flexibility. This is because it is possible to produce cars to many different specifications on the same line. To conclude, investing in new technology is risky and businesses have to evaluate the costs, productivity 

gains, the impact on quality and the loss of flexibility (if any) before going ahead.