Financial impacts of changing technology on business case study : Hyflo Southern Africa (PTY) LTD
The era known as the Industrial Revolution was a period in which fundamental changes occurred in agriculture, textile and metal manufacture, transportation, the social structure and economic policies. The large number of unskilled people provided cheap labour and was used as easy replaceable tools. Employees have since become companies' most expensive '''assets''.The Internet was originally designed for military applications. The US military wanted a network that could withstand a terrorist attack and stilI work if important communication areas had been destroyed. The Internet, also known as the giant network of networks, has become a major catalyst for electronic business. The Internet caused the shape of companies to change and the way they conduct business. For example the Intemet enabled companies to be run from home and changed the old companies' structures. Sending data via a network is a lot faster and less expensive than making a telephone call or sending a messenger. Businesses have become more dependent on the Internet to generate revenue. E-commerce refers to the buying and selling of goods and services on the Internet and reduces the cost of doing business. The down side is that companies are also more exposed to inherent security risks.New technology with old methods of working is also no longer feasible. Many clerical tasks disappear and both the job functions of staff and the supervisory functions and procedures change. Information technology (IT) is increasing productivity, and thus, for a given output, a smaller number of people are employed. Increasing numbers of workers are retrenched when still in mid-career because labour is a most expensive commodity. The reduction in overheads and improved response of modem administrative systems increase the opportunities for organisations of all sizes to compete on an international level. One should also consider that companies may jeopardise their chances of competing internationally by under-investing in information technology (IT).Integrated Services Digital Network (ISDN) is a digital dial-up, end-to-end connection service that provides voice, video, data or text facilities simultaneously and offers customers the flexibility and convenience necessary for successful communications and thus business transactions. Asymmetric Digital Subscriber Line (ADSL) technology works over the existing copper telephone lines to carry voice, data and video infonnation. It has a much higher transmission capability than ISDN. Local Area Network (LAN) is a communications network that is restricted to a small geographical area, usually within a building or on a campus. Alternatively a Wide Area Network (WAN) spans over a large geographical distance.The purpose of this thesis is to investigate and determine the impact of changing IT on the company Hyflo SA (Pty) Ltd. To gather appropriate infonnation about this particular company, two questionnaires where given to the members of the top management of the Paarden Eiland branch. The first questionnaire was designed to be answered by the managing director. This questionnaire has a separate section D, which asks financial questions that only the managing director will have relevant answers for. The second questionnaire was compiled to be answered by the department heads. The questionnaires used "easy to understand" tenninology in order to minimise any misinterpretations. The questions were structured in such a way, to facilitate easy answering, by simply ticking the correct answer. The last section of the questionnaire dealt with the fmancial aspects of the company.The foundations of Hyflo, one of the largest privately owned hydraulic engineering concerns in South Africa, were laid in 1954 when its founder, Mr. Ludwig Schwabe, foresaw the vital role hydraulics and pneumatics would play in the future industrial development and advancement of South Africa. The management staff of Hyflo thinks that their work is highly dependent on computers and that the Internet is used mostly for research. The company's website is mainly used to display the contact infonnation of the company. E-mails and cell phones are very vital communication tools in the company. Of all the communication equipment, expenditure on computers and networks fonned the biggest utilisation of the turnover each year. Changing technology does have an impact on all departments of this company.
Year of publication: |
2005-01-01
|
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Authors: | De Wet, Pierre |
Publisher: |
Digital Knowledge |
Subject: | Information technology | South Africa | Finance | Business Administration |
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