Significant Effect on Business Management Functions (Essay Sample)

Significant Effect on Business Management Functions

Advances in technology in recent years have had a significant effect on business management functions. Stakeholders have adopted the use of technology to improve efficiency and maximize revenue. Technological functions include, computer added design, management information systems, artificial intelligence, electronic data interchange, enterprise resource planning, robotic process automation, and internet of things.
Computer Added Design/Manufacturing (CAD/CAM)
The first advance in technology that has had a significant effect on business management functions is computer added design/manufacturing (CAD/CAM). Computer-aided design (CAD) is a technology for creating and modifying images in a computer. CAD software consists of three basic types: solid modeling, wireframe, and surface modelers. Computer-aided manufacturing (CAM) is the application of computers to control machine tools and related tools that are used to create objects. CAM software controls machines that can drill, cut, mill, turn, grind and mill into a workpiece so that it has the desired shape. This technology allows organizations to mass customize their products and services to meet the needs of individual customers and place them where and when they are needed to supply demand. For example, CAD/CAM has been used by the automobile industry for many years.
Today, most cars are built using computer-aided design (CAD) software programs that allow engineers to design any car imaginable. The designers can then use computer-aided manufacturing (CAM) software programs to create a specific part or component that meets their needs. This process allows manufacturers to build exactly what the customer wants instead of making parts in large batches that may not be needed by everyone who buys the product in question. Another benefit of CAD/CAM is that it allows manufacturers to save money on inventory costs because they do not have to stockpile parts until they are needed. Instead, they can produce just enough items for each order without wasting money on unnecessary inventory levels (Liebermann, Detzer, and Stawarczyk, 390) Computer-aided design (CAD) and computer-aided manufacturing (CAM) are two types of applications that have revolutionized the design and production process. Although CAD/CAM technologies have been around for decades, they are still evolving to meet the needs of today’s organizations.