Technology with Business Essay Example | Topics and Well Written Essays - 1500 words

Technology with Business - Essay Example It is used to automate the payroll functions. As a result of this automation, Microcel has been able to reduce the level of paperwork to a substantial level. Another module is attendance which in combination with biometrics automatically tracks employee attendance records. These software modules are tested in-house and therefore the HR processes which are standardized are automated. This saves a considerable level of costs. The company operates in a highly competitive industry and the use of cost-saving technology enables it to develop a competitive advantage. Technology in sales and marketing Because the software development industry is characterized by high competition, Microcel must attempt to provide solutions which deliver a high level of value. By employing information technology, the company improves operational efficiency and therefore is able to provide great customer service. According to the sales manager, the implementation of information technology enables his sales forc e to stay in constant touch with the customers, thus creating an efficient communications system. Because the company is in the business of providing IT services, it has the infrastructure which can incorporate the latest IT technology. This also serves as a unique selling proposition. The clients can see the software technology function at Microcel and thus make their purchase decisions. Therefore the use of IT enables Microcel not only to improve the efficiency of operational processes within the company but also to demonstrate the products to the clients. In this manner the software products not only generate revenue but also save costs. As mentioned before, the company operates in a competitive industry. There are quite a number of other companies which are developing human resource software. Other companies such as Trinet and Administaff are also developing human resource software. Therefore Microcel has to develop the best products in the industry so that it can continue to wi n market share away from other competitors. Because competitors like Trinet and Administaff are already well entrenched in the market, it may not be possible for a smaller company like Microcel to compete with them. Therefore the strategic focus of the company has been to focus upon those segments of the market which have not been using software products up to this time. These smaller companies do not have the resources to make massive cash outlays for purchasing software products. For this reason Microcel has focused upon minimizing product development costs. This allows the company to offer products at a relatively lower cost, thus making them affordable to the smaller companies which have not considered installing human resource information systems. Technology in human resource management At Microcel , the employees are considered to be the most important assets. Therefore the management focuses upon maintaining a motivated work force. Since the company operates in a competitive environment, it has to create a sustainable competitive advantage. According to Porter’s framework for competitive strategies, a company can implement the strategies of cost minimization, differentiation and focus to create a competitive advantage. However the competing organizations can also implement these same strategies and therefore none of the companies has a competitive edge any longer. On the other hand, if the organizational culture serves as the source of the competitive edge, then it becomes sustainable