TECHNOLOGICAL ENVIRONMENT:

DEFINITION:
“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”.
External factors in technology that impact business operations. Changes in technology affect how a
company will do business. A business may have to dramatically change their operating strategy as a
result of changes in the technological environment.
MEANING:
The technology has a major impact on the business. There are many external factors in
technology that impact business operations in a big way. It affects the business prospects,
cuts down the profits and forces the management to change the course of the business
operations. The changes in technology affect how a company will do business. Technology is
being changed every second — every day, new and improved technology is being released.
Since the change in technology changes the work cultures, the methods and the systems, a
business may have to dramatically change their operating strategy as a result of changes in
the technological environment. It affects the speed of the operations and gives a boost to the
productivity of the production systems. Examples of technological changes are seen in
aviation, electronics, energy, communication, consumer goods industry, optics, medicines
and manufacturing.
The advantages of technology:

1. Increased food output: We depend on food for our living. With the introduction of
methods and techniques of cultivation, human-beings are able to increase food output. The
modern irrigation technologies has helped to cultivate lands that were otherwise
considered barren. The agriculture equipment such as tractor helps the farmer in his
farming.
2. Increased industrial output: As a result of introduction of technology in the process of
producing goods, there has been tremendous increase in the industrial output. The
automation of industries processes has resulted in processing tasks effectively and
efficiently. Large industries make good use of engineering technology for large scale
production of goods.
3. Business growth: Technology has positively impacted business activities involving
manufacturing, selling, marketing, distribution, recording, etc. Technology has touched
almost every sphere of business activities. Businesses need to make wide variety of
mathematical calculations for various purposes such as counting, estimation cost and
profit, etc. Prior to the introduction of calculators, all these mathematical calculations were
done manually. With the introduction of computers, large business data are effectively
processed and stored in computers. The growth of eCommerce business is an excellent
example of how Information Technology can benefit our life.
4. Comfort: Technology had made human life comfortable. Everything that we see and use
in our daily life is the gift of technology. The clothes we wear, the house we live, the car
we travel, the bridge and flyovers, the mobile phone we carry, the fan, etc. are all
examples of successful implementation of technology.
5. Better utilization of resources: Modern tools and equipment has helped us to utilize the
natural resources at optimum level. For example, the irrigation technologies has enabled us
 to make better utilization of water resource in the field of agriculture. Hydel power plants,
thermal power plants, nuclear power plants, etc. uses natural resources to generate power.
6. Ease in travelling: The invention of wheel is perhaps the most important technological
discovery in human history. Automobiles, trains, etc. are powered by engine and run on
wheels.
7. Improved communication: Printing press, internet, telephone, email, and other
communication technologies has helped us to communicate on global scale.
8. Education: Virtual classes are a delivered at many schools. E-learning is a relatively new
concept. Students make use of internet technology to download important study materials
in the form of text, audio and videos.
9. Healthcare: Technology has revolutionized the healthcare industry. The
various diagnostic tools such as x-ray machines, blood pressure monitoring machine,
glucose level measuring machine, etc. has made possible accurate diagnosis of health
related problems. Accurate diagnosis of disease results in faster and effective treatment of
the patient.
10. Emerging technologies: Emerging technologies such as Information Technology, bio-
technology, artificial intelligence, etc. are among the most important technologies of
modern times. The introduction of computers, internet, smartphones, etc. have deep impact
on common people. Much research are being conducted in the field of artificial
intelligence intelligence.
11. Food Preservation: The food preservation technologies help in freeing the world from
food crisis. Food preservation technologies such as freezing, canning, packaging, drying,
etc., prevent or slows down the growth of bacteria and yeast. This helps in preservation of
the foods items that can be consumed in the future.
12. Architectural excellence: Architectural, building and modern engineering are applied in
designing urban skyscrapers, flyovers, and bridges. Newer technologies constantly strive
to make use of reliable, environment friendly building materials. They also put emphasis
on space, light and safety.

Disadvantages of Technology

1. Pollution: Too much use of technology has resulted in an increase in waste products into
the environment. This has caused pollution. The discharge of industrial wastes into the
environment diminishes the quality of soil, water, air , etc. The vehicle emission is among
major causes of air pollution. Excessive use of pesticides in farming has caused soil
erosion.
2. Faster depletion of natural resource reserves: Modern equipment are very powerful.
They can quickly extract huge quantity of natural resources. However, the total reserves of
natural resources are depleting as a result of quicker extraction of natural resources.
3. Production of unwanted products: Technology has also opened doors for the production
and demand of unwanted products or unnecessary products.
4. Wastage of time in non-productive activities: Some people waste immense time and
energy in doing non-productive activities. For example, internet technology has enabled
people to browse the internet for information. However, some people get addicted to
internet activities such as browsing, gaming, etc., and waste time and energy.
5. Excessive dependency: We are dependent on technology for all of our task. People are
excessively dependent of modern gifts of technologies such as cars, computers,
smartphones, etc. They feel helpless if any of these technological equipment, machinery or
 tool fail to perform. We have adopted technology in our life to an extent that it is
impossible to think of performing our day-to-day tasks without the help of technology.
6. Effect on health: Thought various technologies have made our life comfortable, they have
come at the cost our health. The impure air and water is hazardous to human health. Loud
noise of vehicles and running factories disrupts the human auditory senses. Excessive use
of smartphones causes stress and posture related health issues.
7. Social gap: Not all people know to make the best use of technology. Some people use
modern technologies to work in their favour, while there are others who find themselves in
miserable condition. This may causes a gap in the society. Further, a situation of digital
divide is created when too many people who do not have access to digital technologies
such as internet and computers.

IMPACTS ON BUSINESS:
The rapid development of technology requires quick reaction by businesses in order to survive in
an emerging competitive environment and keep up with new trends and innovative services
which other competitors might be offering.
These technological factors can include both products and processes and can present
opportunities and threats but it is vital for competitive advantage and is a successful driver in
globalization. Products can be marketed in new ways and processes present immense Value to
the business.
Some of the following points should be considered:
• Understanding Web Terminology
• Technology legislation
• Internet/broadband – consumer & business markets
• Technology infrastructure in a country (Web/Broadband/Mobile)
• Do the technologies offer consumers and businesses more innovative products and services
such as Internet banking, new generation mobile telephones…
• Secure Systems: encryptions, digital certificates, SSL (secure sockets layer protocol
mechanisms)
• How is distribution changed by new technologies e.g. books via the Internet, flight tickets,
auctions…
• Does technology offer companies a new way to communicate with consumers e.g. Social
media, Customer Relationship Management (e CRM), etc
• Machinery
• Equipment
Some of these technological factors affecting businesses proved to be dramatic for some. Some
companies seriously invested in certain type of equipment only to see a more innovative and
cost-effective technology emerge.
Spending money on the latest technology can be daunting for some organisations and questions
such as (‘Ignore it.., Ignore it for now.., Evaluate it carefully.., Adopt it enthusiastically?’)
always come up in their response to Innovation.
Other technological factors affecting businesses and their environment:
• Organisational change – is usually quite difficult especially when a high number of people are
involved as routines will be modified. It is recommended to inform employees in advance and
keep them up to date encouraging feedback when making such change.
• Business processes – integrating modern technology solicits identifying the business
requirements and evaluating the business processes according to its objectives and goals. These
changes should benefit the company and the consumers.
• SCA (Sustainable Competitive Advantage) – looking at technology from a positive
perspective instead of a ‘necessary evil’. Traditional models are changing and advantages can be
achieved by investing in modern technology but just purchasing technology for the sake of
having it is not enough, implementing a strategic plan is the key in order to succeed.
• Costs involved – a necessary expense in today’s emerging environment. However, it’s
understandable that some organisations are hesitant to invest due to systems being outdated quite
often, but the ones who view this investment as an opportunity to gain competitive advantage
and have a well-developed strategy attached, could benefit immensely.
• Efficiency – productivity, reducing manual labour costs, cost-effective overall factor as it can
simplify, speed up and enhance accuracy (or e.g. departments can interact or check a particular
issue or status of an order/delivery/service from different locations in the Value Chain).
• Information Security/Contingency Planning – Technology provides a lot of advantages but
we should also take into consideration the responsibilities that come with it. Businesses should
take into account the rise in data breaching and various cyber-crime elements and must invest in
effective ways of preventing or combating these factors. Imagine if an important process
becomes unavailable suddenly or a system is hacked. Businesses must have these contingency
plans in place in order to protect their valuable assets.
Mostly, technology is beneficial and businesses should try to counter the negatives in order to
find the beneficial impact in its adoption.
“High technology has become like a force of nature. It transforms the economy, schools,
consumer habits, the very character of modern life. Investors pour money into it; parents urge
their children to study it; communities vie to attract its factories; decorators adopt it as a style;
politicians push it as a panacea.” (Source : Science Digest Magazine)

TECHNOLOGY AND SOCIETY – IMPACT OF TECHNOLOGY ON SOCIETY

Technology and human life cannot be separated; society has a cyclical co-dependence on
technology. We use technology; depend on technology in our daily life and our needs and
demands for technology keep on rising. Humans use technology to travel, to communicate,
to learn, to do business and to live in comfort. However, technology has also caused us concerns.
Its poor application has resulted in the pollution of the environment and it has also caused a
serious threat to our lives and society. This calls for the proper use of technology. The biggest
challenge facing people is to determine the type of future we need to have and then create
relevant technologies which will simplify the way we do things.
It is impossible to explore how each new advanced technology has impacted our lives and how it
will impact the future. Technology impacts the environment, people and the society as a whole.
The way we use technology determines if its impacts are positive to the society or negative. For
example, (POSITIVE IMPACT) we can use corn to make ethanol and this ethanol can be used as
fuel. Fuel can be used to run machines and cars which will increase the output of manufacturing
industries at a lower cost. (NEGATIVE IMPACT) However, if we decide to shift large quantities
of corn to fuel production from food production, humans will be left with no food and this will
cause world hunger which even is a worse situation.
Basing on the example above, technology by its self is not harmful to the society, but the way
society uses technology to achieve specific goals is what results into negative impacts of
technology on the society. Humans need to use energy to process products in factories, to run
cars, to light homes and also run technological machines like computers, but the only way we
can do this without affecting the environment and society is by shifting from exhaustible energy
sources to renewable and inexhaustible sources like Solar / Wind energy. I have listed both
positive and negative impacts of technology on our society.

Positive Impacts Of Technology On Society

 Technology Has Mechanized Agriculture

Technology has mechanized agriculture: Modern agricultural technology allows a small number
of people to grow vast quantities of food in a short period of time with less input which results
into high yields and RIO ”return on investment”. Through government subsidies, small and
medium-sized farmers have managed to acquire plowing, sowing, watering and harvesting
machines. The use of technology in agriculture has also resulted in the manufacturing of genetic
crops which can grow fast and they can be resistant to many pests and diseases. Also, farmers
have access to artificial fertilizers which add value to the soil and boost the growth of their crops
and enable them to produce high-quality yields. Farmers in dry areas have been in a position to
grow healthy crops, they use advanced water pumps and sprinklers which derive water from
rivers to the farms, the all process can be automated to save time. A good example is Egypt, this
is a desert country which receives little rain, but small and big farmers have used automated
sprinklers to irrigate their farms. In Egypt, they grow a lot of rice, yet this crop needs sufficient
water to grow well. The water is pumped from River Nile to the rice fields on a daily basis.
 Technology Has Improved Transportation
Technology has improved transportation: Transportation is one of the basic areas of
technological activity. Both society and businesses have benefited from the new transpiration
methods. Transportation provides mobility for people and goods. Transportation, like all other
technologies, can be viewed as a system. It is a series of parts that are interrelated. These parts all
work together to meet a certain goal. Transportation uses vehicles, trains, airplanes, motorbikes,
people, roads, energy, information, materials, finance and time. All these parts I have mentioned
work together to move and relocate people and goods. Technology has helped in advancing all
the four types of transportation and these include ; (1) road transport used by automobiles ,(2) air
transport which is used by airplanes , (3)water transportation which is used by ships and speed
boats and (4) space transportation used to go to the moon. The most used of all these is Road
transportation, this one facilitates the movement of goods and people. Technologies like
automobiles, buses, and trucks have improved the way humans move and how they transport
their goods from place to another. Also, developing countries are getting funds from wealthy
countries to improve their road transport which has resulted in the development of rural remote
areas.
 Technology Has Improved Communication
Technology has improved communication: Communication is used for a number of purposes.
Both society and organizations depend on communication to transfer information. People use
technology to communicate with each other. Electronic media like radios, televisions, internet,
social media have improved the way we exchange ideas which can develop our societies. In
many countries, radios and televisions are used to voice the concerns of the society, they
organize live forums where the community can contribute through mobile phones or text service
systems like tweeter. During political elections, leaders use radio, television and internet media
to reach the people they want to serve. A good example is the recent presidential election in the
USA, ”President Barak Obama ” has embraced the communication technology to reach and
voice out his concerns towards the development of America. Communication technologies like
Televisions, radios, and internet can be used to persuade, entertain and inform the society. Small
businesses have also used the internet and mobile communication technology to grow and
improve their customer service.

 Technology Has Improved Education And Learning Process

Technology has improved education and learning process: Education is the backbone of every
economy. People need well and organized educational infrastructures so that they can learn how
to interpret information. Many schools have started integrating educational technologies in their
schools with a great aim of improving the way students learn. Technologies like smart
whiteboards, computers, mobile phones, iPads, projectors, and internet are being used
in classrooms to boost students moral to learn. Visual education is becoming more popular and it
has proved to be the best method of learning in many subjects like mathematics, physics,
biology, geography, economics and much more. The business community has invested money in
various educational technologies which can be used by both teachers and their students. For
example, on iTunes, you will find many educational applications which can allow students and
teachers exchange academic information at any time, this has made learning mobile. Also,
programs like Long distance learning have opened boundaries too so many scholars around the
world.
Negative Impacts Of Technology On Society
 Resource Depletion
The more demand for new technologies and advancement of current technologies, the more
pressure we put on earth’s natural resources. Look at the total number of mobile phones and
computers being manufactured today, our population is increasing every day and all these billion
consumers demand either a mobile phone or a computer in their homes or offices. This is good
news for the manufactures, like Apple or Samsung, the demand for their gadgets is high, but to
sustain this demand, they have to exploit Mother Nature for resources like aluminum, once these
resources are extracted from the earth plates, they will never return back because it took them a
billion years to mature. That means that at one time, we shall be left with no natural resource
which can be a problem to the future generation and economy. Likewise, the intensive farming
practices will deplete the soil. This makes heavy applications of commercial fertilizers necessary
to yield healthy harvests, but also these fertilizers have chemicals which are dangerous to the soil
and human lives.
 Increased Population
Technology has helped us live longer by improving health facilities and aiding in the research for
solutions for most health problems which affect humans. This is good news for developed
countries but is bad news for developing countries which have not been in a position to access
these health care benefits brought by technology. In developed countries population growth is
controlled by advanced birth control methods, this has helped them balance their population in
relation to natural resources and other opportunities which come with a planned population. This
is different in developing countries, the rate at which people produce is very high, the mortality
rate is high, food is scarce and health care is poor.
 Increased Pollution
Pollution affects the land we grow crops on, the water we drink and the air we breathe. The
increased demand for new technologies and advancement of technologies has resulted in many
manufacturing and processing factories. As they work so hard to create the best technologies for
both society and business, they release harmful chemicals and gasses which have polluted our
environment and this has resulted in climate changes (global warming). So the more technology
we enjoy, the more we harm our environment. Experts have tried to implement ways of reducing
this impact by encouraging factories to go green, to a small extent, this has been achieved
through the development of green technologies like; green cars, green computers, but a great
effort is still needed to reduce the pollution of the air and the earth.

FIVE WAYS TECHNOLOGY CAN HELP THE ECONOMY

At a time of slowed growth and continued volatility, many countries are looking for policies that
will stimulate growth and create new jobs. Information communications technology (ICT) is not
only one of the fastest growing industries – directly creating millions of jobs – but it is also an
important enabler of innovation and development. The number of mobile subscriptions (6.8
billion) is approaching global population figures, with 40% of people in the world already online.
In this new environment, the competitiveness of economies depends on their ability to leverage
new technologies. Here are the five common economic effects of ICT.
1. Direct job creation
The ICT sector is, and is expected to remain, one of the largest employers. In the US alone,
computer and information technology jobs are expected to grow by 22% up to 2020, creating
758,800 new jobs. In Australia, building and running the new super-fast National Broadband
Network will support 25,000 jobs annually. Naturally, the growth in different segments is
uneven. In the US, for each job in the high-tech industry, five additional jobs, on average, are
created in other sectors. In 2013, the global tech market will grow by 8%, creating jobs, salaries
and a widening range of services and products.
2. Contribution to GDP growth
Findings from various countries confirm the positive effect of ICT on growth. For example, a
10% increase in broadband penetration is associated with a 1.4% increase in GDP growth in
emerging markets. In China, this number can reach 2.5%. The doubling of mobile data use
caused by the increase in 3G connections boosts GDP per capita growth rate by 0.5% globally.
The Internet accounts for 3.4% of overall GDP in some economies. Most of this effect is driven
by e-commerce – people advertising and selling goods online.
3. Emergence of new services and industries
Numerous public services have become available online and through mobile phones. The
transition to cloud computing is one of the key trends for modernization. The government
of Moldova is one of the first countries in Eastern Europe and Central Asia to shift its
government IT infrastructure into the cloud and launch mobile and e-services for citizens and
businesses. ICT has enabled the emergence of a completely new sector: the app
industry. Research shows that Facebook apps alone created over 182,000 jobs in 2011, and that
the aggregate value of the Facebook app economy exceeds $$12 billion.
4. Workforce transformation
New “microwork” platforms, developed by companies like oDesk, Amazon and Samasource,
help to divide tasks into small components that can then be outsourced to contract workers. The
contractors are often based in emerging economies. Microwork platforms allow entrepreneurs to
significantly cut costs and get access to qualified workers. In 2012, oDesk alone had over 3
million registered contractors who performed 1.5 million tasks. This trend had spillover effects
on other industries, such as online payment systems. ICT has also contributed to the rise of
entrepreneurship, making it much easier for self-starters to access best practices, legal and
regulatory information, marketing and investment resources.
5. Business innovation
In OECD countries, more than 95% of businesses have an online presence. The Internet provides
them with new ways of reaching out to customers and competing for market share. Over the past
few years, social media has established itself as a powerful marketing tool. ICT tools employed
within companies help to streamline business processes and improve efficiency. The
unprecedented explosion of connected devices throughout the world has created new ways for
businesses to serve their customers.
The Impact of Technology on Economic Development Policy
In a world where technology is enabling almost everything, economic development policy
makers are faced with several challenges when planning and implementing strategies for
economic growth. Communities, regions and states must be able to adapt programs and
initiatives to address the economic disruption caused by technology. In particular, investments in
technology and talent are vital to ensuring economic growth and wealth creation for residents
and businesses throughout the world.
History is always instructive when looking at public policy impacting economic development
issues. The United States and world have experienced evolution in the economy for centuries.
The introduction of steam power and electricity were game changers for the economy.
Transcontinental railroads and interstate highway systems allowed businesses to reach more
markets with its goods. The oil and gas sector created wealth and allowed businesses and
consumers to enjoy affordable and diverse energy sources.
Today, we sit squarely in the information technology economy and this is transforming the globe
in dynamic ways. From the Internet of Things to automation, consumers and businesses alike are
seeing more rapid disruption than any other time in our history. This requires public policy
makers to be nimble in order to react and maximize economic opportunities and results. Thought
leaders must focus on the best ways to prepare talent, position its tax climate, change regulations
and align incentives to be best positioned for economic development opportunities.
In a technology enabled world, talent is the most important commodity. In fact, talent will not
only be the most important location decision factor for a technology business, but it also
represents the area where those businesses will invest the most money in order to ensure success.
In our site selection practice for approximately 90 percent of our projects, talent is the highest
weighted location decision driver by our clients. Due to this fact, governmental and economic
development leaders have to adjust public policy to support the development of talent.
Today, towns, cities and counties need to examine the best ways to support the retention and
attraction of talent. Investments in quality of place assets, job training (industry recognized
credentials and certifications), telecommunications infrastructure and entrepreneurial
development programs are critical. These types of investments position areas to attract a highly
educated and sustainable workforce that meets the needs of its key business sectors.
When it comes to economic development incentive programs, technology disruption has had a
significant impact on long standing tools used by local and state government. As an example,
most local communities tie their incentive programs to capital investment as compared to
headcount and earnings, because this is what has historically generated the most tax dollars for
them. In addition, this is the way local leaders have approached economic development for
decades.
As a result, it is important to pivot incentives to focus on human capital versus fixed assets
(building and equipment) in order to competitive. This will require communities and states to
examine their approach to taxation to ensure it meets the needs of a changing economic base.
This way, incentives, forms of investment and generation of taxes are fully aligned.
In closing, communities, regions and states can no longer approach economic development in the
same manner as it has for decades. By recognizing the importance of talent, technology and
automation and most importantly, aligning initiatives and programs to support businesses, a
location can position itself to provide more opportunities for jobs and wealth creation for its
residents and businesses. The challenge is in front of us and the locations that seize the
opportunity will be the economic winners.