Technology is the making, modification, usage, and knowledge of tools, machines, techniques, crafts, systems, methods of organization, in order to solve a problem, improve a pre-existing solution to a problem, achieve a goal or perform a specific function. It can also refer to the collection of such tools, machinery, modifications, arrangements and procedures.
“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. “
Those technological factors which impact the business operation is called technological environment.
Types of Technology:
Technology can be classified in several ways. For example, blueprints, machinery, equipment and other capital goods are sometimes referred to as hard technology while soft technology includes management know-how, finance, marketing and administrative techniques. When a relatively primitive (traditional) technology is used in the production process, the technology is usually referred to as labour- intensive. A highly advanced technology, on the other hand, is generally termed capital-intensive.
Components of Technological Environment:
- Level of Technology: a. Labour based Technology b. Capital based technology
- Pace of Technological Changes: Technological changes influences organization in the following ways.
- It can make existing industries obsolete.
- It can rejuvenate (revitalize) the existing industries through product improvement or cost reduction.
- It can create entirely new industries.
- It can increase government regulation.
- 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)
- Research and Development (R & D): R & D is the essence of
- Customer except new products of superior quality which are safe, comfortable and environment friendly.
Relationship between business and technology
Technology is the backbone of running any successful business in the 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 business men would be sincerely surprised at the degree of impact modern technology can make in their business.