2. 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.
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.
3. FEATURES OF TECHNOLOGICAL ENVIRONMENT
• 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.
4. STATUS OF TECHNOLOGY IN 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.
5. 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.
6. FACTORS OF TECHNOLOGICAL ENVIRONMENT
1.Pull of Technological Change
• Technological change generally refers to the advancements in the
production and manufacturing process of different goods and services. So
it is when we improve the way products are made or services are delivered.
In these times there is always a new invention or better technology around
the corner.
• This technological change brings both opportunities and threats to a
business.
2. Opportunities from New Innovations
• There are so many concepts, products, services, etc that have been
unexplored in the market. The advancements in technology mean that there
is the possibility of a new invention every single day. And firms have to be
alert about their technological environment to smell out a great
opportunity. If the firm can capitalize on a new invention or product, it can
become a pioneer in the industry.
7. 3. Risk of Technological Environment
• With opportunities come threats. If the company does not keep a track of
the new innovations and advancements in the industry, they risk being out
of date. If a business cannot adopt a new technology it can be forced out of
the competition. There is also the ever-present risk of new innovations and
entrants to the market.
4. Role of Research and Development
• The other important aspect of the technological environment is the role of
the R & D of the country. Technology and business are very
interdependent. The benefits of all the R&D a country does reaches the
public via the businesses. These findings and developments improve our
quality of life and uplift the economy and society.
8. ADVANTAGES OF TECHNOLOGICAL ENVIRONMENT
• Increased Reach
Using information technology, a marketer can reach an enormous number
of people with just the click of a button. Networked technologies give
millions of people instant access to each other, and this fact is being
exploited ever more actively by marketers trying to get their products into
the public eye.
• Speed and Flexibility
Technology allows advertisers to respond quickly to changes in the
marketplace. For example, if a competitor develops a product that quickly
becomes popular, an advertiser can alter the image of his own product to
more closely resemble the competitor's. Different markets can be targeted
with differently themed promotions using digital technology, without the
prohibitive costs associated with traditional print technologies.
9. • Competition
These technological developments less than perfectas they are available to
everyone. If one promoter had access to advanced technology, he would
certainly have a tremendous advantage. In a world that is saturated with
such technology, the result is a marketing arms race in which each business
is striving for the next edge over its competitors. This level of competition
can become expensive and stressful as new machines and software are
constantly being purchased and employees are constantly being trained in
new practices.
• Homogenization
Since marketers all hone in on the fastest, most efficient and most effective
way of getting public attention, the result is a growing homogenization in
both products and the way that they are promoted. Because digital
technologies make replication so easy, no marketer can have an edge on
the competition for very long, because others will copy whatever is
effective.
DISADVANTAGES OF TECHNOLOGICAL
ENVIRONMENT
10. IMPACT OF TECHNOLOGICAL ENVIRONMENT ON BUSINESS
• New Technology – New Products – New Business
During the 1990s, the world of photography started to see a shift from film
photography to digital photography. Three big names in the field of film
photography then were Fujifilm, Konica and Kodak. The change in
technology affected these businesses greatly. Experts state that Fujifilm
was more successful in adapting to the new digital technology and today it
manufactures digital cameras and lenses.
• Technology Transforming Operations
The developments in IT has taken over almost all departments of an
organization. Today, information is mostly stored in servers as opposed to
decades-old method of storing in hard copies (files and registers). Thanks
to the advancement in the internet, companies use digital marketing
strategies to market and sell their products today. Even the research and
design department of organization are subject to constant developments in
technology. For instance, companies like Boeing and Siemens are investing
hugely on adapting 3D printing technique for designing their products.
11. • Technology Helps Develop Business Strategies
The transformation in the way how data is collected, recorded, retrieved
and utilized has helped companies come up with groundbreaking business
strategies. Today, companies monitor customer taste and trends using data
that is available. The development in information technology has made it
possible for businesses to study customer behavior and develop strategies
accordingly. Technology has not only made it possible to collect and store
data but organizations are able to analyze the available data to come up
with meaningful conclusions and make informed decisions. With more and
more customer focus, data analytics will play a key role in growth
strategies of companies.
12. Gone are those days where companies could stick to decades old model
and they have their share of customers in the market. Today, companies are
working towards aligning themselves with the new-age technology. While
some organizations have been successful in leveraging on technological
development to grow in the market, to some businesses it has been
challenging to adapt to the changes. Technology and globalization has
made its impact on business of all scales.
