Digital Communication (OCR GCSE Business)

Revision Note

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Forms of Digital Communication

  • Digital tools are increasingly used to enable rapid communication within and outside of a business

Websites

  • Businesses of all sizes commonly operate websites that can be used for a variety of communication purposes:

    • Informing customers of new products or business news

    • Allowing customers to place and track orders, as well as raise concerns or ask questions

    • Sharing corporate information, such as business location or job openings

  • Many businesses also use social media websites such as Facebook and Instagram

    • Information can be updated swiftly and regularly

    • Advertising activity on social media can be very inexpensive

    • Messages can be shared and feedback can be gained quickly

An evaluation of communication using websites

Advantages

Disadvantages

  • Websites are operational at all times of the day and night

  • Websites are at risk of unauthorised access or network failure

  • They can be updated regularly and mistakes can be corrected swiftly

  • Regular maintenance and updates may require dedicated staff members

  • Websites can reach a global audience at low cost

  • Some customers may lack the expertise or equipment to access websites

Email

  • Emails are a quick way to send formal and informal messages, both within and outside of a business

  • Benefits of email include:

    • They can be used to send identical messages to multiple recipients at the same time

    • Senders can confirm that the receiver has interacted with an email by attaching a read receipt

    • Emails can be scheduled to arrive at a determined time and have the facility to add attachments such as images or documents

  • Some users ignore email messages or, in some circumstances, messages can be classified as spam, meaning the message will not be received

Texts and instant messaging

  • Texts are usually brief messages, sent from one mobile phone to another

  • Instant messages are sent via apps such as Whatsapp or iMessage, usually with more functionality than texts

    • E.g. Whatsapp allows for the inclusion of attachments within messages

  • Texts and instant messaging is often very low cost or free, as many mobile providers include unlimited data allowances within contracts

The Impact of Digital Communication

  • Digital communication has had a range of positive impacts for each of the business functional areas

Digital communications have benefitted marketing, finance, human resources and operations functions
Digital communications have led to a range of benefits for marketing, finance, human resources and operations functions

Marketing

  • Digital communication has enabled even the smallest of businesses to sell products online, allowing them to reach many more customers

  • Social media platforms such as Facebook and Instagram are widely used to promote products and communicate with customers

  • Some products, such as books, music and films, can be instantly delivered to customers digitally

Finance

  • Invoices can be issued and received by email, speeding up the billing process

  • Payments can be sent and received instantly using digital banking

  • Financial management systems that process all sales and cost data can provide high-quality, up-to-date financial information that can be converted into suitable formats for presentation

  • Payroll systems can process wages and salaries and automatically issue digital payslips to workers

Human Resources

  • Recruitment tasks such as advertising vacancies, receiving applications and conducting online interviews using videoconferencing are increasingly common

  • Improvements in digital communications, including access to wi-fi networks and advanced mobile devices, have enabled employees to work remotely or whilst mobile

  • Staff location can be monitored using GPS

  • Staff meetings use widely accessible apps, such as Teams, to allow the participation of remote participants

Operations

  • Automated production processes allow machinery and robots to communicate with each other to improve the efficiency of production

  • Detected quality problems can be automatically communicated to devices that make appropriate adjustments without the need for human intervention

  • Repetitive or hazardous tasks are carried out by machinery or robots, requiring minimal supervision

    • This leaves more interesting or safe roles for humans to complete, making their jobs less mundane

Examiner Tips and Tricks

You may be asked to evaluate the impact of digital communication on a business. While there are many benefits, you should consider whether employee roles have been made redundant or made less interesting. You may also consider whether customers' access to greater choice online is likely to have had an impact on sales.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.