Analyse two disadvantages to GBS of its proposed communication process innovation.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

1. [1] Definition or explanation of process innovation: application or introduction of a new technology or methods/systems that increase efficiency, e.g., new IT systems, blockchain, automated payments/inventory, robotics, or part of an ERP system.
2. Possible disadvantages include:
3. [K1] Cost of the proposals and need for finance.
4. [K1] Possible employee resistance to change.
5. [K1] Cost of training employees.
6. [K1] Technology may fail.
7. [APP] Application to GBS context, e.g., 13 employees needing training, coordinated IT system for customer orders/distribution, low inventory, tracking sand & gravel orders, Gordy's expansion plans, finance for new grinding machine.
8. [AN] A new IT system could be expensive to implement, leading to cash flow problems.
9. [AN] Employees may feel less control due to innovation, potentially causing conflict, disturbing working relationships, leading to staff leaving and increasing recruitment costs.
10. [AN] Training employees will increase costs and reduce short-term profit.
11. [AN] Opportunity cost of investment could delay the new grinding machine purchase, reducing GBS's ability to meet increasing demand.
12. [AN] The app could crash, preventing customers from placing orders, leading to lost sales and profit as they purchase building materials elsewhere.