Digital technology means the computers, phones, apps and networks a business uses to store information and do its daily work. In the Junior Cycle examination, you will be asked to discuss how organisations use digital tools and debate their economic, social and environmental rewards and costs.
Understanding Digital Technology
The Junior Cycle syllabus defines digital technology as a set of technological tools and resources used to communicate, and to create, disseminate (spread), store and manage information.
Modern organisations rely on digital tools across all their daily activities:
- Communication: Email and video calls allow instant contact with customers and suppliers.
- Finance: Spreadsheets and payroll software calculate wages, manage budgets and issue an electronic invoice.
- Sales and marketing: An e-commerce website and social media let a firm promote goods and sell online 24/7.
- Administration: An electronic database stores customer orders, contact details and stock records in one central file that staff across multiple branches can share.
Rewards and Benefits for Organisations
Using digital technology creates economic, social and environmental rewards:
- Economic reward: Sending an electronic invoice is faster and cheaper, so the business gets paid sooner and improves its cash flow.
- Economic reward: Selling through e-commerce gives global reach, so an enterprise can win sales from customers outside its local area.
- Economic reward: A database shows managers which products sell best, so they reorder stock before it runs out.
- Social reward: Digital systems support remote working, which saves employees commuting time and improves their work–life balance.
- Social reward: An online shop or booking app allows customers with reduced mobility or those living in rural areas to buy goods from home.
- Environmental reward: Emailing bills, receipts and documents saves paper and reduces delivery transport, lowering the firm's carbon footprint.
Costs and Challenges for Organisations
Adopting digital technology also brings financial, social and environmental costs:
- Capital and running costs: Buying computers and machinery requires heavy upfront spending, followed by continuous expenses for staff training, technical support and software subscriptions.
- Breakdown and downtime: If broadband fails or the system crashes, the firm cannot process sales or issue invoices, leading to lost revenue.
- Data protection (GDPR): Storing customer records digitally creates risks of hacking and data theft. Businesses have a legal duty to protect private data and face heavy fines if records are leaked.
- Social costs: Introducing automation can make manual jobs redundant, and constant messages can cause employee stress.
- Environmental costs: Discarded computers and phones create toxic e-waste, while running servers and digital equipment consumes large amounts of electricity.
Key terms
- Digital Technology
- A set of technological tools and resources used to communicate, and to create, disseminate (spread), store and manage information.
- Electronic Database
- A structured digital filing system that allows an organisation to store, search and update information quickly across branches.
- Electronic Invoice
- A digital bill sent over the internet from a seller to a buyer to request payment for goods or services supplied.
- E-commerce
- The buying and selling of goods and services online using the internet.
- Automation
- Using technology, software or machinery to complete tasks automatically with minimal human involvement.
- Data Protection (GDPR)
- Legal rules requiring organisations to keep personal customer and employee information secure, private and up to date.
- E-waste
- Discarded electronic equipment such as obsolete computers, tablets and phones that require specialised recycling to avoid pollution.
Check yourself
Explain what is meant by the term digital technology.
A set of technological tools and resources used to communicate, and to create, disseminate, store and manage information.
Give two operational advantages of an electronic invoice over a paper invoice.
An electronic invoice arrives instantly with the buyer and eliminates postage, paper and printing costs.
Describe one social benefit of digital technology for employees.
It enables remote working from home, which saves commuting time and gives employees a better work–life balance.
Give one environmental benefit and one environmental cost of digital technology.
A benefit is reduced paper waste from digital receipts, while a cost is toxic e-waste generated by discarded equipment.