How does digital technology change the way organisations work, for better and worse?
The impact of digital technology on organisations and on working practices, including the benefits and drawbacks for the organisation and the employee, and the implications for security and ways of working.
An SQA Higher Administration and IT answer on the impact of digital technology on organisations and working practices, covering the benefits and drawbacks for the organisation and the employee and the implications for security and ways of working.
Reviewed by: AI editorial process; not yet individually human-reviewed
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What this key area is asking
Digital technology has transformed how organisations work, and the SQA wants you to discuss its impact: the benefits and drawbacks for both the organisation and the employee, and the security implications and changes to ways of working. Because this is usually a "discuss" topic, strong answers give a balanced view, both the gains and the costs, rather than only the positives.
The benefits of digital technology
Efficiency, accuracy and storage
Computers process information quickly and accurately, automate repetitive tasks, and store large amounts of data in little space, which can be searched and retrieved instantly. This makes administration far more efficient than paper-based working.
Communication and collaboration
Email, video conferencing and shared cloud files let staff communicate and work together quickly, including across different sites or while working from home. Several people can work on the same document and see each other's diaries.
Flexible working, cost and reach
Technology supports flexible and remote working (working from home or on the move), which widens recruitment and improves work-life balance. It can cut costs (less paper, postage and travel) and helps the organisation reach more customers through a website, online services and social media.
The drawbacks and the impact on employees
- Cost and training: buying, updating and maintaining systems, and training staff, all cost money.
- Security risks: more electronic data means greater risk of hacking, viruses and data loss, so strong security is essential.
- Impact on jobs: automation can replace or change jobs and require retraining.
- Dependence and stress: a system failure can halt work, and constant connectivity can blur work and home life.
Security and ways of working
Because so much personal and business data is held electronically, organisations must protect it and meet data-protection duties. Common measures are passwords, encryption, regular backups, anti-virus software, firewalls and access controls, plus staff training in safe data handling. Technology has also changed ways of working: more remote and flexible working, paperless offices, cloud storage, and instant online communication and collaboration, all of which the administrator must manage securely.
Examples in context
Example 1. A cloud-based, remote team. A firm stores files in the cloud, holds video meetings and lets staff work from home. It gains efficiency, collaboration and a wider recruitment pool, and saves on office space, but must invest in secure systems and training and accept dependence on reliable internet, showing the balanced impact of technology.
Example 2. Automation in an office. An organisation automates routine data entry and invoicing. This speeds up work and cuts errors, but some roles change and staff need retraining, and the system must be backed up and secured. The example shows both the efficiency benefit and the impact on employees and security.
Try this
Q1. Name two benefits to an organisation of using digital technology. [2 marks]
- Cue. Any two of: greater efficiency, speed and accuracy; faster communication and collaboration; flexible/remote working; cost savings; wider customer reach; better information storage and retrieval.
Q2. Describe two drawbacks of digital technology for an organisation. [4 marks]
- Cue. Cost of hardware, software, maintenance and training; security risks (hacking, viruses, data loss); job changes/losses and retraining; dependence on systems (work stops if they fail); stress of an "always on" culture (any two, developed).
Exam-style practice questions
Practice questions written in the style of SQA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
SQA Higher style6 marksDiscuss the impact of digital technology on an organisation.Show worked answer →
Worth 6 marks. Give benefits and drawbacks for a balanced "discuss", one mark each.
Benefit - efficiency and speed (about 1 mark). Tasks are done faster and more accurately, and information is processed, stored and shared electronically.
Benefit - communication and collaboration (about 1 mark). Email, video conferencing and shared cloud files let staff communicate and work together quickly, even from different locations.
Benefit - flexible and remote working (about 1 mark). Staff can work from home or on the move, widening recruitment and improving work-life balance.
Drawback - cost and training (about 1 mark). Hardware, software and training cost money, and systems must be updated and maintained.
Drawback - security risks (about 1 mark). More data held electronically means greater risk of hacking, viruses and data loss, so security must be strong.
Drawback - employee impact (about 1 mark). Technology can replace some jobs, create stress or an "always on" culture, and depends on reliable systems.
SQA Higher style4 marksDescribe the benefits to an organisation of using digital technology.Show worked answer →
Worth 4 marks. Describe benefits, one mark each.
Efficiency and accuracy (about 1 mark). Work is done faster and more accurately, and large amounts of information can be processed and stored.
Better communication (about 1 mark). Email, video conferencing and shared files speed up communication inside and outside the organisation.
Flexible working (about 1 mark). Staff can work remotely or flexibly, widening the recruitment pool and improving work-life balance.
Cost savings and reach (about 1 mark). Technology can cut costs (less paper, less travel) and reach more customers (for example through a website).
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