Technological Environment Alisher Ismailov

Technological Environment

Alisher Ismailov

Agenda

• What is technological environment?
• Technology indicators
• R&D
• Internet access
• E-Business

Technological environment

• The science of technical processes in wide, though related, fields of knowledge
• Technology refers to
• The development of new or better products
• Reduction in the cost of making existing products
• Improvement in the distribution of goods and services
• New methods of communicating with customers and suppliers
• It is all about providing a value for customers through technology.

Technological environment

• Technology doesn’t exist in separate form but in fusion for example:
• Electronics
• Electrical engineering
• Robotics
• Solid state engineering
• Superconductors
• Mechanics
• Mechanical engineering
• Computers
• Biology
• Biotechnology
• Micro-processors
• Chemistry
• Chemical-engineering
• Fiber optics

• VIDEO ABOUT ROBOTS

Technological indicators

• Expenditure on Research and Development (R&D) – refers to how much of GDP is spend on technological improvements in a given country
• Company also establish their own R&D departments in order to improve their products and service to create a competitive edge

Reasons for R&D

• For countries
• Engine of growth
• Improve the quality of life
• Medicine
• Foreign policy
• Military dominance
• For companies
• Making profits
• Establishing competitive edge
• Creating efficiency
• Communication

OECD R&D chart

Live example

Internet access

• Refers whether an individual or an organization has an access to world wide web
• Important to keep communication
• Improve R&D
• Sharing ideas
• Staying updated

Internet access map review https://telegraphtravelmaps.carto.com/viz/b0a43e76-40bf-11e5-bfd4-0e6e1df11cbf/public_map

Live example

E-Business

• technology-mediated exchanges between parties (individuals, organization, or both) as well as the electronically based intra- or inter organizational activities that facilitate such exchanges

CATEGORIES OF E-BUSINESS

Business

Consumers

Business

Consumers

Business originating from…

And selling to…

B2B

C2C

B2C

C2B

E-Business

Advantages

Disadvantages

• Available 24/7
• More choices
• Feedback

• Still developing
• Inability to touch and feel
• Trust issues
• Security issues

Other important technological factors

• New 3D technologies
• Machinery
• Assembly line (Historical)
• Automation
• Availability of machinery to replace human workforce
• Online security
• Refers to the degree of online surfing

Reference

Madura, J. (2010) Introduction to Business, 5th edn., Paradigm Publishing (Chapter 8)

Pride, W. M., Hughes, R. J. & Kapoor J. R. (2016) Foundations of Business, 5th edn., Cengage Learning

Peter Stimpson. Business Studies, Cambridge

Adrian Palmer., Bob Hartley. (2006) The Business Environment, 5th edn.,

David Needle., (1994) Business in Context, 2nd edn., Chapman & Hall

Ian Worthington., Business Environment, Chapman & Hall