1. Introduction
The technology sector has been constantly changing and evolving for the past two decades, making it a driving force in the global economy, shifting the way government interacts, businesses operate, and society functions (Acs et al., 2021). The technology sector includes industries that manufacture, design, and distribute electronic devices and services, software development, artificial intelligence and hardware manufacturing. Technology has helped customers and businesses to thrive in the digital world. It has also significantly contributed to the world’s economic growth through revenue generated from computer hardware producers, software developers and businesses using technology to run their business operations, like Dell, Microsoft Corp, Google, Oracle, and Amazon (Javaid et al., 2022). The world is growing independent in technology, and customers and businesses must adapt. The paper will discuss the technology sector and analyse the opportunities and challenges in business.
2. Background of the technology sector
The technology sector has transformed different aspects of life, from entertainment, education, healthcare, security, and production, and it has made work easier for production and manufacturing companies. The opportunities in the technology sector include AI and machine learning, data-driven insights, 5G technology, E-commerce and online services, Internet of Things (IoT) and virtual reality (Javaid et al., 2022). Digitisation of activities has led to the rise of challenges that raise concern in the technology sector that businesses need to be concerned to avoid negative consequences and exploit the opportunities. Some challenges facing the technology sector include Cybersecurity threats, widening skills gap, ethical concerns, maintaining innovation, and regaining trust after they face technical challenges after digitising their services and production (Nobles, 2023). Innovation and demand for automation are the driving forces for the technology sector, and businesses, customers, and the government are trying to accept these changes and ensure they regulate the advancements effectively for the betterment of the world.
3. Technology opportunities for businesses
The technology sector shifted rapidly, especially during the COVID-19 pandemic, when it shifted the general public attention to digital solutions and brought immense demand for digitisation (Ganichev and Koshovets, 2021). It has also shifted the business industry by creating opportunities when implemented well; it increases profitability, productivity and reduced cost. According to Bouncken, Kraus and Roig-Tierno (2019), businesses must embrace and implement technology to help their businesses grow. They can learn more about technology through online learning platforms, networking and conferences, and government initiatives. They can also collaborate with tech companies to know the best integration tool for their business. Below is a breakdown of opportunities from the technology sector and ways businesses can take advantage of them.
3.1 AI and machine learning
Artificial intelligence and machine learning are constantly changing the business landscape. The capacity of AI and ML to automate repetitive processes, boosting efficiency, is the most significant advantage in production (Tyagi et al., 2021). Organisations should take advantage of this because it saves time, increases productivity, and lowers production costs. Businesses should employ AI and ML technologies to create forecasted insights that will assist them in making informed decisions. They should also use AI algorithms for better risk management to spot potential dangers and monitor for fraudulent actions, increasing overall firm security. Businesses should seek these advantages through cloud-based service providers like Google Cloud (Attaran and Woods, 2019). Technology is evolving, and organisations that embrace Artificial intelligence and machine learning will have driven growth and a competitive advantage.
3.2 Data-driven insights
The technology sector offers businesses a data-driven insight into their business environment because data is critical in today’s world (Hannila et al., 2019). The evolution of the InternetInternet and technology has led to an exponential increase in data available to businesses. The advantages of a data-driven approach to businesses include accurate decision-making, as technology provides businesses with reliable and accurate information for decision-making. It also helps businesses improve performance as it helps them identify areas to improve through trends and patterns in areas of strength and weaknesses. Using a data-driven approach also help business stay ahead of the competition because businesses can make faster and more accurate decisions than their competitors. According to Pietilä (2020), businesses should take advantage of these benefits using tools like Tableau; they should also hire data analysts who will interpret the data effectively.
3.3 5G technology
The technology sector has brought the opportunity of 5G technology to businesses, and many organisations are preparing to switch from 4G to improve their network and harness the power of 5G for their business (Bhatt et al., 2023). The 5G not only create a faster radio network but also brings together much technology that has emerged over the years and connects them to global cloud infrastructure, machines and people to create an enhanced solution. Businesses should take advantage of the benefits of 5G, which include enhanced mobile broadband and capacity enhancements since it offers an impressive 20 gigabits per second; this speed will reduce speed frustrations for businesses (Alimi et al., 2021). 5G also provide massive IoT and connectivity because it can support an estimated one million connected devices per 38 miles. The goal of 5G is to promote mobility, low latency, spectrum efficiency and connection density. Businesses should seek these advantages by working with various Internet service providers like Verizon to increase Internet speed.
3.4 E-commerce and online services
E-commerce and online services are opportunities created by the technology sector for businesses by helping them earn more and grow. Through technology, businesses can sell goods and services electronically online because technology has made it more accessible through mobile commerce and electronic funds transfer. E-commerce and online services contribute to a faster buying process and cost reduction since it will save businesses the cost of maintaining their physical stores (Taher, 2021). E-commerce also provides businesses with a broader customer base because it is not geographically limited, and they can sell their goods and services worldwide using the InternetInternet. Businesses should set up online stores and use these opportunities by utilising e-commerce and online services platforms like Shopify and WooCommerce.
3.5 Internet of Things (IoT)
Businesses should take advantage of the opportunity of the Internet of Things created by the technology sector to replace outdated manual asset tracking systems by implementing automated sensors (Mashayekhy et al., 2022). Businesses are encouraged to connect to the InternetInternet and integrate with a centralised system, enabling real-time monitoring of valuable business assets. IoT benefits businesses through optimal asset utilisation, insightful data sensors, enhanced customer service, increased productivity, workplace safety and reduced cost of production. Businesses need to explore the advantages of IoT by using IoT platforms like IBM Watson IoT and Microsoft Azure IoT.
3.6 Virtual reality
Virtual reality is also an opportunity created by the technology sector for businesses to collaborate and conduct business. Businesses should embrace virtual reality because it allows partners, stakeholders, and employees to experience a real-world environment in real-time (Kandasamy et al., 2022). Businesses can use virtual reality to boost production and improve safety processes. Businesses get the capacity to design customised training programs, and product presentations, enhance sales, and improve customer service. Businesses should pursue these services by developing virtual reality applications using Unreal Engine and ARkit.
4. Technology challenges and their impact on business
The technology sector has offered great opportunities for businesses to grow and innovate. Despite all these opportunities, technology faces challenges that businesses must consider and implement strategic measures to mitigate. The key challenges facing the technology sector include.
4.1 Cybersecurity threats
Cybersecurity has grown in importance in the technology sector for various reasons. Data has evolved into the most significant business component, used to make informed decisions and gain market information. Data breaches and incidents are becoming more common because of cyber-attacks aimed at exploiting weaknesses in enterprises, such as phishing efforts, data breaches, ransomware attacks, and Denial of service (DoS) attacks, which disrupt business operations and compromise personal information (Saeed et al., 2023). Technology businesses are launching cybersecurity activities to maintain company continuity and supply chain safety.
4.2 Widening technical skills gaps
Technology’s prospects for businesses are only helpful to those businesses that understand how to exploit and manage these opportunities. Technology requires talented, imaginative, and creative IT personnel, and businesses are voicing a gap between required and available skill sets (Singh Dubey, Paul and Tewari, 2021). Businesses must employ the proper individuals for their IT staff and maximise their tools before utilising innovation and emerging technology. Businesses that lack the necessary skills are vulnerable to cyber-attacks and irresponsible usage of technological equipment. Approximately 80% of firms indicate an IT skills gap affects staff productivity and security.
4.3 Ethical concerns
As businesses continue to embrace technology, they need to consider the ethical implications of technology and the consequences of not considering ethical issues. The ethical concerns businesses need to watch out for include misuse of personal data. Businesses use customers’ data obtained from e-commerce sites to do market research, which raises ethical concerns since some customers consider it a breach of their rights to privacy (Böhm et al., 2022). Such concerns affect an online business since customers fear sharing personal details, especially when needed for online business transactions. Ethical concerns damage customer’s trust and business reputation.
4.4 Maintaining innovation
Innovation is the driving force for businesses to gain competitive advantage and survival; however, continuous technological advancements make it challenging to maintain innovation (Ramdani et al., 2020). Businesses need help to create an innovation culture because it requires fundamental shifts in their approach to work due to resistance to changes, lack of resources, fear of failure and inadequate metrics to measure and maintain innovation success. Organisations that fail to maintain innovation have difficulty staying ahead of the competition and attracting customers.
4.5 Regaining Business trust
Cyberattacks and misinformation in recent years have spread distrust of the technical sector. When businesses face privacy scandals, failures, misinformation and delays, they blame it on technology. According to Tajpour et al. 92022), businesses need to understand that technical challenges do not come from technology; access to information merely perpetuates them. Businesses need help to rebuild their trust in technology when they face technical challenges, and it might take time to convince them that technology is not the problem. They might lose their customers to competitors due to low production and poor customer experience.
5. Conclusion
The technology sector has contributed many advanced processes in the business sector, and as technology continues to advance, its role in businesses continues to grow. Businesses across numerous industries seek ways to improve their workforce, boost the bottom line and build brand recognition through digital promotions, data and automated business operations. Collaboration among enterprises, governments, and society is essential for managing technical challenges and seizing the opportunities given by the technology sector. The technology sector can lead the way in designing a future where businesses use AI and machine learning, data-driven insights, 5G technology, e-commerce and online service and the Internet of Things to stay ahead of the market and improve customer experience. Businesses also need to look out for the technical sector’s challenges to ensure they do not affect their businesses by tackling cybersecurity threats and ethical concerns and seeking ways of reducing the widening skills gap, maintaining innovation and regaining customers’ trust. Businesses must collaborate to realise the full potential of the technology sector, ensuring a sustainable and prosperous future for everybody.
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