Factors in uencing
technological environment
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TECHNOLOGICAL factors
i) Technological factors are variables that are being used for evaluating
available alternatives with respect to technological capabilities.
Organisations consider it an important tool for improving operations and
functions. Technological factors refers to the ways new practices and
equipment can affect businesses. These include;
✦ ICT
✦ research and development
✦ automation
✦ e-commerce
i) ICT- It can make processes and communication within a busine
quicker and more ef cient.Firms also need to keep their software a
hardware up to date. If they don’t, they risk being seen as o
fashioned by customers and in danger of becoming obsolete.
iii) Research and development- Research and development refers to t
steps businesses take in the innovation of new products, systems a
services. In recent years research and development has led to t
introduction of:
i) 3D printers
ii) smart phones
iii) tablets
iv) a multitude of apps
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i) Automation- Automation refers to the introduction of machines to
work that was previously done by people.For example the introduc
of self-scan checkouts in supermarkets means that fewer employ
are needed on the tills.
ii) With driverless cars and deliveries by drone on the way, busines
will need to think about:
i) how many people they employ
ii) which new jobs will be needed to support advances in technology
iv) E-commerce- It has the following bene ts;
i) widens the number of customers
ii) lowers the costs of production
iii) is highly competitive
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How Technological Factors Affect Business Environment???
✦ Technology trends affect businesses on many levels.
✦ Advancement of technology can make this possible.
✦ Strategic leaders are constantly looking for development and upda
within the technological environment.
i) Technology Transforms Operations
iii) Advancements in information technology have almost taken over eve
department of the organisation. Now, information is stored in da
servers and cloud technology as against the old way of storing data
registers and les.
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i) Technology helps in Developing Marketing Strategies
iii) Technology has brought in a transformation through which
companies collect, record, retrieve and utilise data.
i) Technology is not only useful for collecting and using data but, it is
also being used by organisations to analyse data and make
meaningful conclusions as well as informed decisions.
FACTORS INFLUENCING TECHNOLOGICAL ENVIRONMENT
✦ Level of technolog
The extend of technology employed by an organisation can be either
labor based or capital based. Both of the technology can have lot of
implications for organisations under such situations where they are
best suitable
i) Labor based technology: Human labour and mechanical work is
mainly used for performing the operations.
ii)Capital based technology : Capital based technology requires the
utilisation of machinery.It mainly comprises of automation, utilisation of
computers,robotics,etc...
✦ Pace of technology
Technology is dynamic in nature as it brings about change in a much
accelerated manner. Such changes are introduced because of the
factors like invention, innovation, and diffusion. Change in technology
had the following impact on organisations;
i) can obsolete existing industries
ii) can breathe new life in industries through product launches and
cost cut.
iii) can lead to the birth of new industries.
iv) can increase government intervention in the form of new rules and
regulations.
✦ Technological Transfe
There are varied sources of technology. They can exist within an
organisation country or in other foreign nations. It is the process
whereby technology gets transferred from technologically advanced
countries or organisations. The speed at which it is transferred and
adopted is very critical as technology can get obsolete if delay is
large.
✦ Research and developmen
Innovation requires a robust R& D base. With the increase in
globalisation, customers are now becoming more demanding and their
expectations for quality and improvements are constantly increasing.
Therefore organisations need to invest in research and development
for ful lling such demands and expectations.
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✦ Other factors include;
✦ The existence of 3D technology
✦ Computer calculation speed/power
✦ The ability of computers to create truly ‘random’ numbers
✦ Engine ef ciency
✦ Internet connectivity
✦ Wireless charging
✦ Security in cryptography
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