by Technological environment refers to the state of science and technology in the country and related aspects such as rate of technological progress, institutional arrangements for development and application of new technology, etc.
According to the well known economist J.K. Galbraith, technology means, “systematic application of scientific or other organised knowledge to practical tasks”.
Technology comprises of both machines (hard technology) and scientific thinking (soft technology) used to solve problems and promote progress. It consists of not only knowledge and methods required to carry on and improve production and distribution of goods and services but also entrepreneurial expertise and professional know how. Technology includes inventions and innovations.
The main Significance of technological environment are as follows:
- Technological environment is a component of macro or indirect action environment.
- Technological environment changes very fast.
- Technological environment affects the manner in which the resources of the economy are converted into output.
- Technological environment is self reinforcing. An invention in one place leads to a sequence of inventions in other places.
Technological Transfer
Technology transfer implies technology imported from technologically advanced foreign countries. Technology transfer can be through:
- Globalization (MNCs)
- Projects (Turnkey Projects: Ready for immediate use or operation)
- Trade ( Sale of equipment by the manufacturer)
- Training assistance (Bilateral and multilateral donors provide technical assistance)
Relationship between Business and technology
Technology is the backbone of running any successful business in modern society. The kind of business setup we have today requires an entrepreneur to take note of the ever-evolving technology and keep pace. Many businessmen would be sincerely surprised at the degree of impact modern technology can make in their business.
Impact of Technology in Business
Positive Effects
- Productivity
- Competitive advantage
- Innovation
- Increase in profit
- Customer value
Negative Effects
- Capital Burden: Huge investment
- The threat of quick replacement
- Increase in cost: regular maintenance
- Need for skilled manpower.
Human Factor and Technology
Human Factors (Ergonomics): Human factors are the study of how humans behave physically and psychologically in relation to particular environments, products, or services. In other words, Human Factor is the scientific application of knowledge with the aim of making products, systems, services, and environments safe, efficient and easy to use.
Ergonomics is the science of the design of equipment, especially so as to reduce operator fatigue (tiredness), discomfort and injury.
Effective implementation of technology is totally depending on the human factor. Their knowledge, skills, and abilities determine technology effectiveness and efficiency. Technology must address natural (physical and mental) abilities and ensures success and safety. It should add value to human operation. There must be a close match between technology tech news and human factors for enhancing effectiveness.
Components of Technological Environment
The technological segment business environment includes the institutions and activities new knowledge and translating it into new products, processes, and materials. Technology diversified scope. Hence, it affects many parts of society. Given the rapid pace of technological vital for firms to study the technological segment thoroughly. The importance is that early technology often achieve higher market shares and earn higher returns. The different technological environment is mentioned below.
- Levels of Technology:
There are different levels of technology. Levels of technology refer to the degree of sophistication
technology. The levels may be manual, mechanized, automated, computerized and robotized a. Manual technology:
It is the simplest form of technology. It is based on human beings. It is traditional technologies are used. Production volume is low. The overall cost of production is high. In Nepal, the cottage industries still use manual technology.
- Mechanized Technology:
With the advancement of science and technology, many machines are invented. Mechanized machine-based. The production and capacity utilization is high. The quality also improves. investment and maintenance costs are high.
- Automated Technology:
It uses self-controlled machines. It is widely used in modern industries. The production high are mostly used in the industries involved in the production of standardized products. Workers is low. The investment is very high.
- Computerized Technology:
It uses computer-based sophisticated machines. Digital technology is used. Investment is high. few employees to run the technology.
- Robotized Technology:
It uses robots in place of human beings. It is mostly used in hazardous conditions. The productivity is superior. However, investment is very high.
- Pace of Technology change:
It is the stage and speed of technological change. The change seems very low in organizations are not found to adopt modern technologies in a timely manner.
- Technology Transfer:
It implies technology imported from foreign countries. The drivers of technology transfer companies, technical assistance by foreign countries, donor-assisted projects, and Multinational companies are playing an increasingly important role in technology transfer abroad to expand production, marketing, and research activities.
