This is the one important component of business environment. technological environment is external environment which affects the business. it provides opportunities as well as threats to our business. so understanding of technological environment is important to business man.

1. TECHNOLOGICAL ENVIRONMENT
(Nepalese prospective)
Presented by:
Rupesh Nyaupane

2. Introduction
 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.
 Technological environment consists of external
factors in technology that impact business
operations.
 Changes in technology affect how a company will
do business.
 Examples of technological changes are seen in
aviation, electronics, energy, communication,
consumer goods industry, optics, medicines and
manufacturing.

3. What is Technology?
 Technology is about application of tools,
methods and techniques to improve production
and processes.
 The intensity and type of technology use varies
depending on the type of economic activities
an enterprise is involved in.
 Technology involves the purposeful application
of knowledge, experience and resources to
create processes and products that meet human
needs.

4. Levels of Technology:
 Manual Technology:
 Human based simple and traditional technology
 low cost
 suitable for low volume production
 Mechanized Technology:
 Machine based technology
 suitable for large volume production,
efficient
 involves high maintenance costs.

5. Levels of technology…contd:
 Automated Technology:
 based on use of self-controlled machines
 suitable for large volume of standardized production
 costly
 Computerized Technology:
 based on the use of computer based machines
 requires few numbers of employees but they should be
highly skilled.

6. cont:
 Robotized Technology:
 based on the use of robots in place of
human beings.
 Some robots require some degree of
guidance, which may be done using a
remote control, or with a computer interface
 Robots ensure high speed, quality and
productivity

7. Business and technology:
 Significance
 Technology and business are practically
inseparable today.
 Without technology and computers, the
routine business functions that are the
backbone of an organization would be
severely slowed.

8. Business and technology
 Benefits
It decreases the time it takes to perform a task and
increases the volume of information that can be
processed.
It has the ability to take on multiple tasks at once.
There is a minimal chance of error when
technology is used.
The low acquisition costs along with the efficiency
and precision of technology make the benefits of
using it in business undoubted.
Technology has forced businesses to remain
flexible, adapting their operations to newer and
better technological advances.

9. Cont…
 Besides these, technology is relevant
to a business in the following ways:
Reduced running costs
Improved productivity
Improved competitiveness
Improved quality of service (e.g.
speed of service)
Reduced wastage
Introduction of new and better
products and services

10. Business and technolog
 Opportunities
 The use of technology in business has created
opportunities for more technological advances.
 Many business functions are able to operate
autonomously with the use of technology.
 With technology running certain business
functions constantly, with international
employees businesses are able to have customer
support at all times as well.

11. Business and technology
 The role that technology plays for the business
sector cannot be taken for granted.
 Almost all businesses are dependent on
technology on all levels from research and
development, production and all the way to
delivery.

12. Technology and Human Factors:
 Technology consists of skills, processes, techniques,
methods and equipment.
 It is developed, handled and managed by people.
 Human factor in technological settings relate to skills,
motivation, learning, communication and social change.
 Technology without human factor is unthinkable.
 Technology capabilities can be classified into three broad
areas :
 Production
 Investment
 Innovative capabilities

13. Technology Affecting Human
Factors:
1. Technical skills
Technical skills are ability to perform specialized jobs.
People need technical skills to get jobs done.
2. Job performance
Technology is important for productivity. It’s important
for improving job performance in following ways:
a) Technology eliminates old jobs. It also creates
new jobs.
b) Technology reduces the physical efforts and time
required to do the jobs.
c) Technology has facilitated virtual offices based on
information technology.

14. Technology Affecting Human Factors
3. Motivation
Motivation is a process that accounts for an individual's
intensity, direction and persistence of efforts toward goal
attainment .
a) Technology, through skills improvement, helps people earn
more money.
b) Jobs can be designed and redesigned to suit changing
technologies.
c) Work environment is important for motivation.
4. Learning
Learning is an enduring change in behavior. Handling of
technology helps people to learn.

15. Technology Affecting Human Factors
5. Decision Making
Decision making is choosing from among alternatives to solve
problems. Technology aids decision making by managers
6. Communication
Communication is the transfer of information and understanding
of meaning from one person to another.
7. Environment
Technology is a big source of environmental pollution that
adversely impacts people's lives. Technology is needed to control
pollution.
8. Social Change
Technology changes social life and patterns of living. It can
uproot population, create new jobs and change social relations.

16. Present Level of Business
Adopted by Nepalese Business:
 Competitiveness depends increasingly on technology
development and its underlying knowledge, skills and
organizational arrangements.
 Nepalese industry runs the risk of further
competitiveness weakness as liberalization proceeds.
 Nepal has opted to develop a structure of public and
semi-public institutions to deliver technological services
to firms.
 The supply of technology by external institutes has led
to the neglect for stimulating the demand for
technology development on the part of industrial firms.

17. Contd..
 The Department of Industry currently plays a limited role in
policy-making and allocation of resources for industrial
technology development.
 There are numerous public and semi-public science and
technology institutes in Nepal, yet their impact on the
technology development of manufacturing firms has been
limited.
 The level of industrial technology in a country can be assessed
by the analysis of:
 The system of R&D
 The export performance
 The skill inventory
 The pattern of technology transfer

18. The system of R&D
 R&D incentives (e.g., tax allowances and soft loans) do not address the
main challenge facing countries such as Nepal at their stage of
technological development.
 What is required is a direct and flexible grant-based system
 Due to concern to corruption and misuse of grant funds, such a scheme
should be implemented on a pilot basis.
 Currently, the R&D is mainly undertaken by the government research
agencies and the universities such as Research Centre for Applied Science
and Technology (RECAST), Information Technology (IT) Park, Royal
Nepal Academy of Science and Technology (RONAST) etc.

19. The export performance
 The export performance of industries and manufacturing
firms also portrays the level of technology implemented
by them.
 Nepal’s export is quite low in comparision to the imports
it makes.
 The major exports of Nepalese manufacturing firms are
the raw materials and semi finished goods while the
finished products exported are few textiles, garment,
carpet and some leather items.
 On the other hand, the major imports are the consumer
durables, and high tech machineries and other goods.

20. The skill inventory
 The other indicator of technology can be the skill inventory of the Nepalese
business firms.
 We have seen the increment in literacy rate over a period of time. However,
we haven’t yet witnessed the remarkable expansion in the higher
educational level.
 In addition, most of such the top level jobs are held by the foreigners. Only
few Nepalese are in such positions while most of the Nepalese are holding
the blue collar jobs.

21. The pattern of technology transfer
 It refers to the transfer of technology from foreign
country to the domestic industries in the form of foreign
direct investments, joint-ventures, turnkey projects,
licensing, and capital transfers, contract manufacturing,
and franchising.
 The major factors influencing the nature of the
technology transfers are:
 The scale of operation
 The nature of production process
 The relative cost of labour and capital
 The cost of adopting the technology
 Foreign direct investment by multinational companies
has helped in the transfer of modern technology.

22. Technology Policy:
 Science and Technology Policy
 first adopted in 1989
 The basic and priorities of this policy include:
a) Development of technologies and services for priority
areas
b) fulfillment of people`s basic needs
c) qualitative development of human resources
 Programs adapted for implementation of technology policy
according to Tenth Plan:
 Development and Expansion: high level National Science
and Technology Council and coordination committee
constitute and formulate national vision and policy.
 Development of Human Resource: extension of cooperation
in producing necessary manpower, enhance competence of
universities, checking brain drain with attractive program at
home

23. Technology Policy
 Promotion of R & D :conduct program to preserve and upgrade
traditional technology, develop necessary technologies to uplift rural
life standard, programs with focus on special areas and targeted groups
 Socio-economic Development of Urban and Rural Sectors:
developing and expanding the use of modern technology like
biotechnology, IT etc.
 Expansion of Scientific and Technological Services: expanding water,
meteorological, forensic, equipment maintenance service
 Enhancing Awareness: establishing planetarium, science and
technology museum, mobilizing professional organizations, publishing
materials and conducting awareness programs

24. Technology Policy
 IT Policy:
 Introduced by Government in 2000 and revised in 2010
 Basic Objectives :
 Announce IT sector as government's priority sector and
also to make it practical
 Increase in employment through establishment of
knowledge oriented industries with proper utilization of
IT
 Public services and information dissemination to be made
more inclusive and effective as per concept of e-
governance
 Productive use of IT in social, economic and business
organizations
 Increase the access of IT development at international
level and arena
 Make state owned integrate data center more effective
for infrastructure development

25. Technology Policy
 Salient features of IT policy:
 IT policy in coordination with other development policies of other sectors will be used
for programs to generate employment.
 Domestic Preferential Treatment will be provided to the IT equipment, software and
services produced domestically.
 Domestic and foreign investment will encourage in IT sector and one door policy will
be adopted.
 Effective mechanism to be developed for protection of Intellectual Property Rights.
 Conducive environment will be created for health competition between Internet Service
Providers to provide reliable and quality services.
 Establishment, operation, promotion and expansion of IT parks to be carried out.
 Special priority will be provide to IT enable services, BPO, legal and statistics data
processing, animation, remote maintenance, back up operation and data processing of
insurance, banking.
 Gradual development of regulatory and institutional mechanisms for e-payment and
gateway to facilitate e-trade, e-commerce.

26. Electronic Transactions Act, 2007:
 Internet has opened up many opportunities for the world.
 It has given tremendous market access that any one from any corner of the
world can offer their products and services to any part of the world.
 Nepal has moved a step further in the information and communication
technology (ICT) as the government has promulgated Electronic
Transaction Act-2007.
 The Act is divided into 12 sections and 80 clauses with detailed
information.
 The computer and cyber crimes such as hacking, piracy, copyright
violation, fraudulent and all other deceitful activities have been clearly
defined and punishments are set accordingly.

27. Problems of Managing Technology
• Improper assessment of needs for technology:
 This makes the use of technology questionable.
• Poor selection and acquisition of technology:
 It is not based on informed choice. Alternatives are not considered properly.
Training and after sales service aspects are neglected. Transparency is lacking.
• Ineffective utilization of technology:
 Workers are not properly trained and motivated to use new technology.
Management skills are lacking. Most industries in Nepal are not fully using
their capacity.
• Lack of upgradation of technology:
 Maintenance facilities are inadequate. In house R & D programs are missing.

28. Problems of Managing Technology in
Nepal
 Lack of political commitment:
 Nepal lack political commitment toward technology. This is
evident from poor investment in technology. Mutual trust between
the politicians and technologist is lacking. R& D Budget is low.
The public understanding for technology is poor in Nepal. Efforts
to promote such understanding have been inadequate.
 Ineffective technology institutions:
 The institutions dealing with technology in Nepal number more
than 40. But most of them function in isolation. Effective co-
ordination and co-operation between them is lacking.
 Poor availability of technical human resources:
 Nepal has a small pool of technical manpower. This has
constrained development of technical capacity.

29. Contd..
 Inadequate maintenance facilities:
 Nepal lacks adequate workshop facilities for repair and
maintenance of equipment and machinery. Very few industries
have their own workshops. The outdated technology has made
repairs difficult. It is often a problem to find the spare parts for
machinery and plants in use in Nepal. The procurement of the
spares is costly and time consuming.
 Rapid pace of technological change:
 Technology is changing at rapid pace. Nepal has not been able to
keep up with technological changes. The cost of acquiring is high.
Efforts are lacking to upgrade technologies. Private sector is
reluctant to make investment for technologies.

30. Any Queries???