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Digital technology has become a transformative strategic force in business. From automation and e-commerce to big data and artificial intelligence, technology is reshaping how firms create value, compete, and manage their operations. This lesson examines the key digital technologies, the pressures driving their adoption, and their impact on a firm's functional areas.
Automation involves using machines, software, or robots to perform tasks previously done by humans. Automation can range from simple mechanisation (conveyor belts) to sophisticated artificial intelligence systems.
| Type | Explanation | Example |
|---|---|---|
| Industrial automation | Robots performing manufacturing tasks | BMW's Oxford Mini plant uses over 1,000 robots for welding, painting, and assembly |
| Process automation (RPA) | Software "bots" performing repetitive office tasks — data entry, invoice processing, customer queries | HMRC uses RPA to process tax returns, reducing manual processing time by 80% |
| AI-driven automation | Machine learning systems that can make decisions, predict outcomes, and learn from data | Ocado's automated warehouses use AI-driven robots to pick and pack grocery orders |
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