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Change in technology

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1.) What are some factors management should examine prior to approving a change in its company's technology?

2.) In regards to technology? Why should there be a detailed implementation/upgrade plan? Who should be involved in making this plan?

3.) Based on personal experience, describe some of the ways that a technology change has benefited a company that you work or worked for such as United Parcel Service? (List three technology changes).

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1.) What are some factors management should examine prior to approving a change in its company's technology?

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1.) What are some factors management should examine prior to approving a change in its company's technology?

Some of the important factors that management should examine prior to approving a change in its company technology include:

A) Cost benefit analysis: An extensive cost benefit analysis should be conducted via various capital budgeting techniques such as NPV, IRR, etc. and other tools to ensure that the investment made on new technology is beneficial for the company or in other words, the benefits obtained via new technology significantly outweigh its cost.

B) The readiness of the organization in terms of existing infrastructure, training/education among employees to handle such new technology should also be evaluated before finalizing the decision for new technology. It is often seen that employees are not ready to embrace new technology, either due to lack of knowledge and training or lack of awareness about the benefits of new technology. Therefore, management should ensure that proper conditions exist in the organization to handle new technology.

C) The scalability of the technology should also be considered before finalizing the decision. If the technology is not scalable ...

Solution provided by:
Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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