Five Ways Technology Is Impacting The Big Conglomerates

Arshdeep Singh Mundi Dec 06, 2022

Modern company operations have evolved as a result of technological improvements. Business procedures that were once time-consuming and challenging have been simplified. Additionally, firms across a variety of industries can now build digital infrastructure and aim for maximum effectiveness, thanks to technology. According to a report by Statista, 38 per cent of respondents believe that software as a service (SaaS) is highly significant in helping them achieve business goals. Organisations are also making substantial use of big data, artificial intelligence, and machine learning. These tools enable firms to explore new research pathways and out-innovate competitors. They can also assist in resolving client needs, such as through chatbots.

Although almost every business sector has incorporated some new technologies into their operations, conglomerate firms are the most in need of them. These firms currently use a fundamental set of common services to manage their diverse business sectors efficiently. Despite the fact that these shared services are somewhat helpful in managing the business, it might be challenging to manage the business strategies for all business units effectively. To name a few of these challenges, tracking performance across various business divisions, ensuring local compliance, and bridging technological gaps can be difficult. Conglomerate enterprises must therefore adopt digital new-age technologies into their operations if they are to deliver results that are effective.

Ways technology is affecting big conglomerates

Globalisation: Businesses now find it simple to reach a wider audience, thanks to technology. The fact that the globe has truly become a global village has made it easy for firms to target customers throughout the world. Previously companies were restricted to a particular location and only localites were aware of the company's existence. However, owing to technological innovations, businesses can now communicate with customers everywhere. Especially if we talk about big conglomerates, technology has made it possible for these companies to expand their various business areas worldwide.

Easy communication: Technology has changed the idea of communication for big conglomerates. Earlier gathering all the people in one place at one time seemed like an impossible task. But with the arrival of smart devices, emails, social sites and networking apps, conducting meetings has become less of a hustle. Bringing together several corporate divisions at once was previously difficult, especially for conglomerates, but thanks to networking apps, it is now simple to interact with individuals present anywhere in the world.

Enhanced efficiency: Managing different business divisions was a challenging task for conglomerates because it created room for errors and duplications. Inefficiencies were inevitable, especially when it came to manual data management, which in turn hindered the effectiveness and integrity of the data and affected subsequent decision-making. Since technological advances have gained prominence, there is no longer a place for mistakes and duplications, producing outcomes that are credible and genuine.

Cyber security: Since conglomerates consist of multiple business areas, there are truckloads of data that needs to be protected against theft and breaches. Also, no matter the nature of a business, data security has always been a matter of concern. But thanks to technological breakthroughs, cyber security came into the picture, which has made it easy for companies to secure their data.

Cost reductions: Every company's ultimate goal is to increase profitability. Due to the advent of task automation as a result of technology developments, staff workloads have decreased, which has led to significant cost savings. Conglomerates, in particular, have diversified workforces across many company units, which raises costs. But task automation eliminates manual management of jobs, which produces correct results and lower costs.

Technology: Future of Conglomerates

The development of technology has proven to be beneficial for all business sectors. As a result of these developments, business processes that were previously time-consuming and difficult have been made simpler. Modern advancements have been seen as being especially helpful for conglomerate businesses that combine different company sectors. Prior to this, the conglomerate corporations experienced poor management and a lack of coordination, which decreased customer loyalty. These businesses were already using a foundational set of shared services to manage their daily operations, but they weren't enough to achieve strategic management across all business divisions. However, with the advent of digital initiatives, conglomerates have benefitted in terms of globalisation, easy communication, enhanced efficiency, cyber security and cost reductions.