Technological Environment

CBE

Definition
Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business work. " Explanation

We see that in 21st century, technology is changing fastly. Now, all work is done online and business shops are using machinery at high level. There are following technological environment factors which affects business.
New inventions to produce the products. New inventions relating to marketing like BPO for selling online in international market

Classification of technology
State -of-art technologies Proprietary technologies Known technologies Core technologies Leveraging technologies Supporting technologies Pacing technologies Emerging technologies Scouting technologies Idealized unknown basic technologies

Stages of technology cycle

Awareness phase : This is the first phase of the technology cycle in which a company has a formal mechanism to become aware of emerging technologies Some companies from think tank with engineers & scientists, who research from around the world & put in short internal report form for the benefit of corporate strategic planners & technology policy markers. Acquisition Phase : To go from the awareness phase from acquisition phase, the companys technology group, in collaboration with the industrial engineering group, would conduct technical feasibility, & economic feasibility studies before justifying & acquiring a new technology.

Adaptation Phase : Virtually every enterprise ends up adapting an acquired technology for its particular needs If the homework done correctly, the transition from acquisition to adaptation becomes much smoother & less expensive.
Advancement Phase : When capital is limited one cannot indiscriminately purchase & abandon technologies with scarce money It becomes imperative to improvise the acquired technologies for ones home needs. Abandonment Phase : This last phase of the technology is the most critical Bad timing in prematurely abandoning a product could result in lost revenues, & on the other hand because a customer may find a better alternative in competition.

Stages of technological cycle

Need driven Expectation

Technology Awareness Of marketable invention

Justification

Technology Abandonment obsolescence External and internal environment

demolition

Technology Acquisition By self- generation or transfer

Installation

Technology advancement i.e. innovation involving major modification of acquired technologygy Advancement

Technology Adaptation Minor modification of acquired technology for specific needs

promotion

Stages of technological life cycle

Problem Definition
System Implementation

SDLC Phases
System Design

Feasibility Study

System Manufacturing

System Analysis

Impact of technology
A. Social Impact
B. Economic Implications C. Plant Level Changes

A. Social Impact

Before

After

Contd.
Perhaps the most striking influence of technology is found on society as every area of social life & the life of every individual has been, in some sense or the other, changed by the developments in technology. High expectation of consumers Systems complexity Social changes Social systems

B. Economic implications

Undeveloped economy

Developed Economy

Contd..
Developments in technology also have significant economic implications :Increased productivity Need to spend on R&D Jobs become intellectual Problems of techno-structure Increased regulation and stiff opposition Rise and decline of products and organisations Boundaries redefined

C. Plant level changes

Contd..
Organisation structure Resistance to change Fear of risk E-commerce Telecommunication Transportation Markets Technology transfer

Technology transfer
International TT Regional TT Cross-industry or cross sector technology Inter firm TT Intra-firm TT Pirating or reverse-engineering

Technology Issues
Foreign Technology Acquisition Barriers Choice of Technology

International Technology Issues Creating Local Capability Globalization Terms of Technology Transfer

Status of Technological Environment or Technology in India :After Independence, India had basic problems like poverty , unemployment and development of India . Indian Govt. has taken many following steps for technological development. 1. Establishment of technological and research institute Indian govt. has established 500 technological institutes for providing education to Indian students. It has also established 1080 research institutes. In these institutes major names like space research centre, medical research centre and agricultural research centre have developed India technically. 2. Positive Technical policy India has strong and positive technical policy for technological development. This policy opens door to import technology from foreign countries for increasing agricultural and industrial developments.

3. High Growth Rate of Information Technology in India

In India, IT sector is developing with 35% growth rate, India is second country after China who is using internet at large scale for e-commerce , e-education and e-accounting .

4. Incentive for promoting Technology in India

Indian Govt. has given 100% income tax exemption for expenses incurred in research of technology in India. State financial corporation is uplifting domestic technology by supporting finance to domestic Industries.