6 Technological Factors That Affect Business Productivity

6 Technological Factors That Affect Business Productivity

Technology has changed how a business operates and the way humans work over the past several decades. It has continuously helped businesses become more efficient but also presented some drawbacks. Therefore, those in charge of a business must account for various factors when making operational decisions because these can help or hurt a company’s bottom line. As technology evolves, it creates an impact on business productivity, too.

To explain this further, here are technological factors that affect business productivity and how workers function within an organization.

1. Cloud Computing

One technological factor affecting productivity in a business is cloud computing. Unlike local servers or hard drives, this technology enables users to store data and programs on remote servers connected through the internet.

Because of this, employees are able to share data, which allows them to work on projects together, regardless of their geographical location. This creates a positive impact on the business as it increases collaboration among workers. Cloud computing also provides access to programs at any time, with minimal effort required for their installation, update, and product management

However, not all businesses are comfortable storing data over the internet. For this reason, cloud computing may be a problem for these businesses. Therefore, a company planning to use this technology must carefully consider its advantages as well as disadvantages.

Another way to manage the risks of cloud computing is to ensure the company selects reputable cloud computing providers. Wherever your business is located, be sure to hire only trusted and reliable cloud computing firms in your area. Suppose you’re in Ontario, look for Toronto IT support by Fusion Computing or similar firms to provide you with the right solutions to your crippling IT issues.

2. Social Media

Social media is another technological factor that can affect business productivity. Over the years, social media sites have been a means for businesses to connect to their customers and clients. These platforms have been utilized by these companies to market their products and boost their marketing team’s efficiency.

Aside from that, they also use them as a tool for recruitment. With the help of social media, businesses can find new employees and stay connected with the past ones. Especially for businesses that are expanding, hiring new workers can be a way to improve business productivity.

But while social media does a lot for a business, it could also be a cause for distraction, especially on the part of employees, thus negatively affecting productivity. Sometimes, employees may be tempted to waste too much time on social media. So the management of a business must take the initiative to educate their employees on social media best practices and encourage them to use social media wisely.

3. Internet Of Things

The Internet of Things allows machines to connect to the internet and other devices, completing tasks without human input. For example, a software program may enable another machine to sort packages without any additional help from employees. This can reduce wasted time in specific jobs, which in turn promotes productivity. However, it may also eliminate many positions and job roles.

4. Mobile Technology

With the help of mobile technology, data and programs could be easily accessed from mobile devices, such as smartphones or laptops. Workers can use their own devices for work purposes, allowing them to access information at any time to complete tasks more efficiently.  Many brands even utilize mobile technology for marketing efforts.

But while mobile technology can increase business productivity by broadening the company’s reach and allowing employees to accomplish tasks on the go, it can also decrease productivity. Employees who become too reliant on their smartphones may feel distracted from work responsibilities when their phone isn’t near them or doesn’t have service. This dependency could lead to employees not completing their tasks and missing deadlines.

5. Artificial Intelligence

Artificial intelligence (AI) has increased business productivity by automating time-consuming tasks. For example, AI has streamlined human resource (HR) management for businesses. Thus, HR managers can now use software to scan resumes and look for applicants with relevant job experiences and skills. This, in turn, would allow them to focus their energy on tasks that require the most attention rather than spending time sorting through hundreds of applications.

While AI can be very efficient in many business operations, it also has its limitations, however. AI could erase the ‘human touch’ needed for problem solving and creative thinking. Not only that—AI can’t also handle all business tasks. Hence, it’s essential to recognize which jobs require human skills and those that can be completed using AI.

6. Emerging Technologies

Emerging technologies are discoveries or creations that have the potential to change the business industry. Manufacturing firms, for example, rely on automation for efficiency. As technology progresses, it creates a significant impact on how businesses are run and managed. Emerging technologies can help increase productivity in some areas of operation if the people managing a business can implement them correctly.

However, there are also some negative effects associated with emerging technologies. These include tech disruptions to business operations due to technological failure, resources spent on capitalizing on expensive technology, and the risk of using an unproven product. With the many emerging technologies, every business needs to be responsible to keep up with the advancements to remain competitive in the market without hurting their business operations.


As technology continues to advance, businesses can maximize their productivity by streamlining their practices and adopting new technologies, like cloud computing, social media, IoT, mobile technology, AI, and other emerging technological tools and services like OKR Software which can increase productivity by their goal-setting framework to define and track measurable goals. However, those in charge of a business need to decide which technological factors are most suited for their operations so changes can be made with the company’s best interest in mind.

Did You like the post? Share it now: