Q4 Bloom and Petal, a small Irish florist, sets up an online shop using Shopify.


Outline one benefit and one cost to the business of selling through an e-commerce website. Benefit:


Cost:


Q5 Match each digital technology to what it does. Write the correct letter (A to D) in the box.


Digital technology 1. AI chatbot


2. Cloud computing


3. Stock-control software


4. Social media A. Updates stock levels automatically when an item is sold.


B. Answers common customer questions automatically at any time.


C. Promotes products and helps the business reach more customers online.


D. Stores files online so staff can access them from any location.


1 2 3 4


EXAM CORNERINTRO ACTIVITY 2019 Q16 (a)


Investing in Information and Communication Technology (ICT) can bring many benefits to a local business like New Chapter. (v) Illustrate how the business could use technology to its advantage.


It could set up an e-commerce website


It could use social media like an Instagram page to promote its books with free posts


so customers can browse and buy books online at any time, which increases sales.


to reduce how much it spends on advertising


(vi) Outline two possible costs for New Chapter associated with investing in ICT. Hardware costs: it must buy computers and equipment, which increases its costs.


Training costs:


staff need to be trained to use the new systems, which costs money for training courses and lost work hours.


You should mention a specific technology (e.g. e-commerce website) when answering a question that includes types of technology.


190 2 TOP TIP


STRAND 2


CHAPTER 19:


The impact of digital technology in business


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