IMPACT OF TECHNOLOGY ON INTERNATIONAL BUSINESS

Made by KIRAN

057 BBA(E1)2012-15

TECHNOLOGY

• TECHNOLOGY is a sort of knowledge or skill used for employing and controlling factors of production that, in turn could lead to the output of products and services.

• Technology refers to inventions or innovations from applied science or engineering research.

• Technological innovation can replace existing products and companies.

Technology as a strategic asset

• It brings new products with new features, processes, and materials.

• New features attract consumers who are ready to pay a higher price for the novel product. when the technology mature, the consumers do not like to pay a high price. But since the process of innovation is often a continuous process a new technology is innovated and takes the place of the mature one.

TYPES OF TECHNOLOGY

PRODUCT TECHNOLOGY:- it is the information that specifies a product’s features and uses.PROCESS TECHNOLOGY:- It is the knowledge used in the processing or manufacturing of a product.MANAGEMENT TECHNOLOGY:- it is the managerial skill s required for running a business.

Impact of Technology

We propose to discuss the impact oftechnology in general, under three heads :-

a) Technology & social changeb) Economic effects of technology, & c) Technology & plant level changes

Social Implications

High Expectations of ConsumersTechnology has contributed to the emergence of affluent societies, who want varieties of products, superior in quality, free from pollution, more safe, & more comfortable. This calls for substantial investment in R&D.

System ComplexityTechnology has resulted in complexity. Modern machineswork better & faster no doubt But if they fail, they need the

services of experts for repairs

Economic Implications

Increased productivitythe most fundamental effect of technology is greater productivity in terms of

both quality & quantity. This is the main reason why technology at all levels is adopted

Need to Spend on R&DResearch & Development (R&D) assumes considerable relevance in organizations

as technology advances. Firms are required to consider, decide & take action

Increased Regulation & Stiff OppositionA by-product of technological advancement is the ever-increasing regulation

imposed on business by the government of the land & stiff opposition from the public as the host government has the powers to investigate & ban products that are directly harmful or hurt the sentiments of a section of society.

Plant Level Changes

Technology & Organisation StructureTechnology has considerable influence on organization structure,

length of the line of command, & span of control of the chief executive Where companies use technology, which is fast changing, matrix structures are more common.

Resistance to ChangeThe manager of a given business unit shall face resistance to change

as new technology poses new problems The resistance to change is often psychological. A typical businessman himself is opposed to adopting new technology as it is expensive & risky