Evaluate technological change
Assess how new technology affects productivity, customer access, costs, skills, security and business choices.
Cambridge International AS & A Level Business 9609, 2026–2028 syllabus and 2029 syllabus, section 6.1.4. Apply legal, economic and political examples to the relevant country and date. Written practice is self-checked. Specialist review has not been completed for this lesson; these exercises do not award an official mark or establish exam readiness.
Before you begin
- Use the lesson's stated business context and distinguish evidence from assumptions before recommending a response.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
What should a firm define before adopting a technology?
What you will learn
- Explain operational and market effects of technological change
- Assess adoption costs and implementation risks
- Recommend technology using business evidence
Technology can change how a business creates and delivers value
Automation, digital platforms, data analytics and communications can alter output per worker, product quality, delivery speed and customer access. They can also enable new services or business models and make coordination across locations easier.
A productivity gain is not automatic. A firm must consider purchase and integration costs, training, maintenance, cyber and privacy risks, reliability, accessibility and possible job redesign. Competitors may adopt similar tools, so an early advantage may be temporary.
Adoption is an investment choice
The relevant comparison is between expected benefits and all costs over a realistic period, including transition disruption and the opportunity cost of capital. Pilot tests and measurable targets can reduce uncertainty.
Technology should fit customer needs, workforce capability and the firm's strategy. A tool that works in a large organisation may not suit a small firm with limited data, support or cash. Consider alternatives such as process improvement or a phased rollout.
Pause and explain
An online ordering system cuts order-entry time but has frequent outages. Which evaluation is most useful?
Worked example
A wholesaler considers a warehouse robot system. Explain two potential gains and two checks before purchase.
Show the worked solution
- Automation may increase throughput or reduce repetitive handling.
- It may improve consistency but require capital, integration and training.
- Test reliability, safety, total cost and the demand needed to use its capacity.
Answer Robots may raise throughput and reduce repetitive manual handling, potentially improving consistency. Before purchase the wholesaler should compare total installation and maintenance cost, check integration and safety, train staff and test whether forecast volumes will use the extra capacity. A pilot may reveal disruption before a full rollout.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A clinic's appointment software could reduce missed bookings but requires staff training and stores sensitive data. Recommend two evaluation measures and a risk control.
Give me a hint
Measure service outcomes and total implementation cost; address data protection and reliability.
Compare my reasoning
- Track missed bookings and waiting time before and after adoption.
- Include licence, integration, training and support costs.
- Test access controls, backups and outage procedures under local requirements.
It could compare missed-booking rates and waiting times with a baseline, while calculating full licence, integration, training and support costs. Before launch it should test role-based access, backups and outage procedures and meet applicable privacy obligations; a small pilot can reveal workflow problems.
Look for these in your work
- Outcomes are measurable
- Total cost is included
- A relevant risk control is proposed
A small manufacturer can spend on either a new production robot or a simpler scheduling system. Explain how it should compare the choices.
Give me a hint
Compare the same business outcomes, investment horizon and implementation constraints.
Compare my reasoning
- Estimate capacity, quality and cost effects for each option.
- Include capital, training, integration and disruption costs.
- Test demand and whether current bottlenecks are actually caused by manual work or scheduling.
The manufacturer should identify its bottleneck and compare both options against the same targets, such as lead time, defects and output. It should include purchase, integration, training and disruption costs and test whether demand supports extra capacity. If scheduling is the main constraint, a lower-cost system may address it more directly.
Look for these in your work
- The constraint is diagnosed
- Costs and benefits use a common basis
- Demand and fit are considered
A competitor automates customer support. Explain why a rival's adoption alone is insufficient evidence for your firm's decision.
Give me a hint
Check customer mix, service quality, data and capability fit.
Compare my reasoning
- Customer needs and query complexity may differ.
- The firm's own cost, data and staff capability differ.
- Run a measured pilot and compare service outcomes before scaling.
The competitor may serve different customers or handle simpler queries, and its systems, data quality and support capacity may differ. The firm should pilot the technology against response time, resolution quality, accessibility and total cost, keeping human support available where automation performs poorly.
Look for these in your work
- Context differences are identified
- Service quality is measured
- A staged test is proposed
Common mistakes
- Equating automation with guaranteed job cuts or profit
- Ignoring implementation and maintenance costs
- Choosing a technology before defining the business problem
What can you explain now?
What should a firm define before adopting a technology?
Compare with the explanation
The business problem and evidence of the expected benefit
Clear outcomes help the firm compare technology with other responses.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
How should a business compare technology's operational gains with its full cost, implementation demands and customer or workforce risks?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.