Technological Environment:
Technology is a term that ignites passionate debates in many circles these days. Technology have been instrumental for environmental destruction and cultural fragmentation. It has been the main cause to economic and social progress. Explosion in information technology have made the position of some firms vulnerable. The life cycle of the products have reduced and expectations of the consumers are becoming higher and higher due to all these technological changes. But to cope up with this kind of scenario, a continuous vigil of the happenings and adequate investment on R & D department is to be earmarked by the marketer. Marketers must also be aware of certain government regulations while developing and launching new products with latest technological innovations.
Technological change is fundamentally reshaping hoe companies
and nations do business. The technique of doing business has entirely changed
after the internet access and mobile smart phones. Information technology has
reduced the world to an electronic village. Technology includes inventions,
innovations and affects the way the resources of an economy are converted into
outputs. Technology mainly influences the ways of doing things that a man
designs, produces and distributes or sells good and services, managerial
practices and organisational structure. The main factors that affect
competitiveness are:
i.
domestic economic strength: or
overall macroeconomic environment
ii.
government- the extent to which
government policies promotes technologies for
competitiveness.
iii.
the performance of capital markets
and the quality of financial services.
iv.
infrastructure the availability of
best infrastructure affects technological growth.
v.
availability of scientific and
technological work force i.e. the quality of human resources available
In many industries, the introduction of new technology has
essential become a pre-condition foe remaining in business. The continuous
introduction of technical innovations and fast changing basic technology has
increased the cost of new investment while simultaneously reducing the expected
life span of any innovation in production of a new product.
Spectacular advances can easily be witnessed in the field of
technology. Many of today’s products were not available even a decade ago.
Markets are flooded with new products. Many multi-national firms have
channelled considerable resources into speeding up the innovations with the
idea of using rapid product change to keep their competitive advantage. The
combination of rising investment risks and shorter life span for new products,
have increased the risks of production. Businesspersons have to keep themselves
well informed and plan such strategies to meet the challenges posed by the
rapid changing technological environment.
The major technological changes given by Koontz and O’Donnell
in their book are as follows[1]:
(i)
Increased ability to master time
and distance for movement of freight and passengers, rail, roads, automobiles,
and trucks, airplanes space vehicles
(ii)
Increased ability to generate
store, transport and distribute energy, nuclear power and laser
(iii) Increased ability to design new materials and
change the properties of others so that
they better serve needs : steel alloys, synthetic fibres plastic new drugs
(iv) Mechanisation
and automation of physical processes
(v)
Mechanisation and automation of
certain mental processes: the computer
(vi) Extension of Human ability to sense things
radar, microscope, etc
(vii)
Increased understanding of
individual and group behaviour and how to deal with it, psychological bases of motivation group
behaviour, patterns, improved management techniques
(viii)
Increased understanding of diseases
and their treatment
Scientists
are working for the development of new technologies and spending enormous funds
on R&D. The revolutionary technological innovations and development during
recent times pose a major challenge for the third world countries. Major
changes in informatics, biotechnology, and materials are bringing about rapid
transformation in various industries with a rapid growth of informatics
involving close relationship between computer, telecommunication, and system
application. The area of new technical usage has emerged involving a variety of
microelectronics applications, these are being accompanied by bio-technological
developments in agricultural and health and use of new material such as
composites. These technological changes have brought about radical changes in
products and processes. It is essential that business firms utilise these
technologies to much greater extent than at present in most developing
countries. Some basic facts about technology should be kept in mind by all
business firms that: every new technology is a force for creative destruction.
The discovery of many new technologies creates long-term consequences that are
not always predictable. Technology is capital intensive and demand more and
more funds for R&D. Business firms should check harmful effects of
technology.
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