Technology has drastically impacted our economy and the way we do business in Kenya. This trend is expected to go on with the advancement of IT technology and telecoms. Businesses can harness the on-going technology transformation and use it to their advantage. Here are ways in which technology has impacted our economy.

Mobile payment avenues

Mobile payment platforms such as Mpesa have allowed for convenient and faster payment methods. Businesses are now able to plan better and even project their revenue. On the other hand, customers do not have to carry cash when making transactions. Another beneficiary of the mobile payment avenues is the bank. We have now seen a migration from the banking halls.

Major banks such as Equity, KCB and Co-operative are encouraging their customers to use mobile banking and agency services. Through mobile banking, many banks have reported profits after the migration from banking halls. In 2016, KCB announced a 14 percent increase in net profit, attributing the rise to the introduction of mobile payment platforms.

Resourcing

Advancement in technology has also changed the way resourcing is done by many companies in Kenya. There are two main examples that show a shift in resourcing methods thanks to technology. Through technology, companies can now outsource, delegate or devolve certain business aspects to third parties or affiliates. They are able to remain connected through video, email, Skype and other social platforms. This has greatly reduced the cost of doing business with major savings realized in reduced labour and operating costs.

Cloud computing is another way that has changed resourcing. Cloud computing allows for online access to resources such as applications, software, hardware and data storage. In Kenya, bodies such as the Independent Electoral Commissions Body make use of could computing and the use of virtual machines to fortify the security and storage of data. Resourcing has also led to a shift in business models and organizational structures. We now have leaner structures, which has also seen many lose their jobs.

A boost in business and service providers

Social media is another platform that has had a tremendous change in how we do business. Today, many Kenyans operate online shops where they source their clients and deliver goods. This has greatly boosted the economy as people who could not afford rent in major cities can still do business. Social media has also created free or cheap advertising for businesses. The result has been increased revenue and more job opportunities for Kenyans.

Interaction and participation

Interaction and participation are mainly evidenced through social media business. Social media has given Kenyans a voice. People can comment on service delivery, customer care and give product reviews. We have seen initiatives such as crowd voting and even online market surveys. The result has been better products and service delivery.

Organizations have realized the power of the internet and the fact that it can make or break their business. This has provided a platform where organizations can collect feedback from their customers. The information has been instrumental in developing products and services that benefit the customer. This has also contributed positively towards the economy.

While technology has been beneficial, it has also come with challenges such as identity theft, system failures and cybercrime. However, even in the backdrop of these misgivings, the gains have been significant.

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