Unit 1 – Business and the Business Environment

8.1 – Dynamic Macro Environment and Emerging

Trends I

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 8.1 – Dynamic Macro Environment and
Emerging Trends I :

▪ 8.1.1 The impact of the digital revolution

▪ 8.1.2 The impact of social technologies

▪ 8.1.3 Importance of Cyber Security

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 Digital Revolution
▪ The Digital Revolution is the shift from
mechanical and analogue electronic
technology to digital electronics which
began anywhere from the late 1950s to the
late 1970s.

▪ The adoption and proliferation of digital

computers and digital record keeping that
continues to the present day
The Impact of the Digital Revolution on
Production and consumption
Production :

1. Improved performance and flexibility

Being interconnected, the means of production will be able to not only self-regulate by
reacting immediately to any problems but also to self-monitor with preventive maintenance
made possible by multiple sensors.

2. Increased productivity
Collaborative robots will significantly increase the productivity of operators and improve
their safety and well-being.
3. A massive reorganization of the supply chain

Traditional production models sometimes lead to having to relocate certain factories in order
to make them profitable by producing a lot at low cost.

4. Mass customization

Henri Ford said, “You can choose any colour for the Model T Ford, as long as it’s black.”
The industry of the future is based on the opposite principle: we are entering the era of
mass customization, where production responds to demand, where virtual reality makes it
possible to push the limits of the imagination ever further.

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Consumption :

1. Customers no longer compare companies only with competitors

Your customers compare your performance with their insurance company, their
supermarket, their holiday company. If one company exceeds the customer’s benchmark of
‘what good looks like, they will expect the same from you.

2. Customers are less tolerant

Customers have become faster to complain and harder to satisfy, as evidenced by
increasing complaint levels and customer satisfaction dropping across the board. Research
shows the importance customers place on ease of service.
3. Customer-to-customer dialogue has grown and are more informed

Digital technology has given consumers enhanced knowledge of products

and services: information and opinions on which to base decisions are a click
away. Social media and customer forums have huge potential both to build
and to destroy brands.

4. Customers are less loyal or have become Multi channel users

Customers will no longer accept perceived overpricing or poor standards of

customer service, and are open to switching provider. They want value for
money, not just cheap goods and services – they demand quality and are
willing to pay for it.

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Social Technology

▪ Any technology that facilitates social interactions and is enabled by a communications

capability, such as the Internet or a mobile device.

Example :

▪ Social Networks

▪ Web Conferencing

▪ Online Gaming Platforms

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Impact of social technologies
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Viral Marketing
• Let your customers do your marketing
o Zynga (Farmville)
o Minecraft
o Will it blend?
o OK GO
• Social media networks allow companies to access
younger markets and particular demographic
groups.
• Companies can reach consumers who uses mobile
devices for product or company research.
Cyber Security

▪ This refers to the body of technologies, processes, and practices designed to protect
networks, devices, programs, and data from attack, damage, or unauthorized access.

▪ Usually aimed at accessing, changing, or destroying sensitive information; extorting

money from users; or interrupting normal business processes.

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High-Profile Cybercrime Cases
▪ eBay
Date: May 2014
Impact: 145 million users

▪ Dubsmash
Date: December 2018 ▪ LinkedIn
Impact: 162 million user accounts Date: 2012 (and 2016)
Impact: 165 million user accounts

▪ Hiru News Web Page

Date : 18 May 2020
Impact : Millions of news readers
 Types of cybersecurity threats
▪ Phishing –
✓ The practice of sending fraudulent emails that resemble emails from reputable sources

▪ Ransomware –
✓ A type of malicious software. It is designed to extort money by blocking access to files or the
computer system until the ransom is paid

▪ Malware –
✓ A type of software designed to gain unauthorized access or to cause damage to a computer.

▪ Social engineering –
✓ Can be combined with any of the threats listed above to make you more likely to click on
links, download malware, or trust a malicious source.
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