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Business · Lesson

Explain how a technology changes a process

You know that new equipment helps a business, but the question wants to know exactly what changes and what it costs.

On this page
  1. What does a good answer contain?
  2. How do you build the answer, step by step?
  3. Worked example
  4. The mistake to watch for
  5. Check yourself
  6. Where this leads next

To explain how a technology changes a process, describe the task before, the task after, and the effect on time, cost or quality. Then add one cost or limit. This skill appears in case questions where a firm buys a machine, adopts software or moves a task online.

It opens the module on technology, quality and sustainability and is the base for the trade-off lesson later in the set.

What does a good answer contain?

A weak answer names the technology and says it helps. A strong answer tells the story of one task.

Think of it as four parts: the task that changes, the before, the after, and the consequence. The consequence can be a saving in time or money, a change in quality, or a new cost. Strong answers include one of each kind when the case allows.

How do you build the answer, step by step?

  1. Pick the task. Choose the exact step that the technology touches, such as taking orders, cutting cloth or counting stock.
  2. State the before. Use the case figures: how long it took, how many people, what went wrong.
  3. State the after. Use the same units, so the comparison is fair.
  4. Calculate the change if numbers are given: time saved, cost saved or payback.
  5. Add a cost or limit: purchase price, running cost, training, or dependence on power and internet.
  6. Finish with a judgement that refers back to the firm.

Worked example

Roti Segar Sdn Bhd, a bakery in Seremban, takes about 40 orders a day by phone. Staff write each order in a book and then copy it onto a production sheet. This takes 6 minutes per order.

The owner considers an online ordering system. Customers type their own orders and the system prints the production sheet. Staff only check each order, which takes 2 minutes.

The software costs RM300 a month, and staff are paid RM12 an hour. The bakery operates 26 days a month.

Step 1, before: 40 orders × 6 minutes = 240 minutes, which is 4 hours a day.

Step 2, after: 40 orders × 2 minutes = 80 minutes a day.

Step 3, time saved: 240 − 80 = 160 minutes, which is 160 ÷ 60 = 2⅔ hours a day.

Step 4, money saved: 2⅔ hours × RM12 = RM32 a day. Over 26 days: 32 × 26 = RM832 a month.

Step 5, net of cost: RM832 − RM300 = RM532 a month, before any set-up or training cost.

Step 6, judgement: the system saves staff time and removes copying, which also removes copying errors. However, the case does not say whether customers will use it, so the saving depends on how many orders really move online.

Notice that every figure in the answer came from the case or from a calculation on it.

The mistake to watch for

A common slip is to praise the technology without describing any process.

Mistaken answer: “Online ordering is modern and efficient, so it will improve the bakery.”

Nothing here says which task changes, by how much, or what it costs.

The correction is to use the structure: Orders are copied by hand, taking 6 minutes each. With the system, staff only check, taking 2 minutes, so 160 minutes a day are freed. The software costs RM300 a month, which is lower than the RM832 saved.

Check yourself

Try these on paper, then open each answer.

1. A printing shop in Johor Bahru cuts paper by hand: 60 sheets take 15 minutes. A cutting machine does 60 sheets in 3 minutes. How many minutes are saved when 300 sheets are cut?

Show answer

300 ÷ 60 = 5 lots of 60 sheets. By hand: 5 × 15 = 75 minutes. By machine: 5 × 3 = 15 minutes. Saving: 75 − 15 = 60 minutes.

2. A machine costs RM9,000. It saves RM750 a month in labour and costs RM150 a month to run. How many months to recover the purchase price?

Show answer

Net saving: 750 − 150 = RM600 a month. Payback: 9,000 ÷ 600 = 15 months.

3. A tailor in Kuching starts using design software on a computer. Give one benefit and one drawback, each linked to the process.

Show answer

Many answers are possible. For example: benefit, a pattern can be saved and reused, so repeat orders need less drawing time. Drawback, the tailor must spend time learning the software and pay for the computer, and work stops if the computer breaks down.

Where this leads next

Once you can describe a process change, move on to distinguishing quality assurance from inspection, then try the mixed practice set. The cash versus profit bridge shows why buying a machine takes cash out at once, even though the benefit arrives over months. The ratios tool can help when a case gives profit and revenue.

Some students can describe technology in general but lose marks when the case wants a specific before-and-after. That is the kind of habit our teachers look for in online one-to-one Business tuition.

Questions people ask

What does 'explain how technology changes a process' mean?

It means you describe the task before the technology, describe it after, and state the effect. Name the step that changed, say what became quicker, cheaper or more consistent, and mention a cost or limit. A sentence like 'it saves time' only earns credit when you say which task and how much time.

Do I always need to calculate something?

Only when the case gives figures. If it does, use them: time saved, cost saved or payback. If it does not, explain the change in words and avoid inventing numbers. Either way, the answer should refer to the actual process in the case, not technology in general.

Is technology always a good decision for a small firm?

No. Equipment has a purchase cost, running costs and training time, and the savings depend on how much the firm actually uses it. A small firm with low volume may take a long time to recover the cost. A balanced answer weighs these against the benefits.

Updated:

Your next step

If your technology answers stay at 'faster and better', a one-to-one teacher can take one of your written answers and show how to anchor each point to the process in the case.

Paid one-hour trial at your assigned teacher’s confirmed rate, starting from RM80.

Tuition is arranged with a parent or guardian. Send them this page on WhatsApp and they can enquire for you.

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