Technological Environment 5xa1e

TECHNOLOGICAL ENVIRONMENT  DEF - 1. TECHNOLOGY-Systematic application of

scientific or other organised knowledge to practical tasks  DEF -2 . Systematic knowledge for  the manufacture of a product  for the rendering of a service  and does not extend transactions involving mere sale or lease of goods  Technology not only means knowledge but* entrepreneurial expertise & * professional knowhow According to World Economic Forum –Technology is one of the factors considered to evaluate global competitiveness

INNOVATION  DEF - The technical , industrial commercial

steps which lead to the marketing of new manufactured products and to commercial use of new technical process and equipment

BASIC ELEMENTS OF TECHNOLOGY  Information on product design

 Production techniques  Quality assurance measures  Human resource development

 Management systems

FEATURES OF TECHNOLOGY 1. Change 2. Reducing time gap between idea and implementation 3. More benefits 4. Self-reinforcing 5. Complex set of knowledge

TECHNOLOGY TRANSFER  Technology gives owners competitive

advantage  Therefore the owner of technology protect their technique from others through ing as patent and charges money from those who want to use it  The acquisition of technology from external sources is known as technology transfer

Methods of Technology Transfers  Training or employment of technical expert  Contracts for supply of machinery and

equipment  Licensing Agreements  Turnkey contracts – which includes the supply of such services as design, creation, commissioning, or supervision of a system or a facility to the client apart from the supply of goods

SOCIAL BENEFITS OF TECHNOLOGY 1. 2. 3. 4. 5. 6.

Decreasing hardships and improved convenience and comforts Increased productivity and increased wages and more leisure time Better exploitation of resources leading to increased economic growth life has become more easier technology has affected communication by reducing the charges drastically It has helped to relieve the people of dirty jobs

HARMFUL EFFECTS OF TECHNOLOGY 1. 2. 3.

4. 5. 6. 7.

Displacement of labour - depriving many of their livelihood Disappearance of a number of traditional occupations Increasing economies of scale (increase in efficiency of production as the number of goods being produced increases.) and inequalities Ruthless exploitation of non-renewable resources People become more materialistic It affects the morality of the society. Many times the technology is not suitable for developing countries

case for and against Import of technology  Technology is a high risk, costly and

uncertain activity  Firms need to price highly,( to justify R & D and heavy investment) which is unwelcome by the public  Product will be duplicated or closely imitated thereby reducing the market and profit potential for the original innovator  Imitation also reduces the inducement to innovate

 Undifferentiated competitive advantage leads

to a slowdown in rate of product improvements  In seeking more profitable potentials for future growth, management either turns more to manufacturing or distribution process

Problems in import of technology  Infrastructural facilities like training of

technicians and supervisors, testing facilities for raw material and replacement parts are not easily available  It is also not easy because developed countries do not easily lend it  Ability to absorb technology is low in India

Appropriate technology and technology adaptation

 It needs to be ensured that the technology

chosen is most appropriate for the company /country  It may not be suitable due to reasons like differences in natural factors like topographical conditions, climatic /weather conditions, soil conditions; differences in income levels scale of operation, demand conditions, use facility characteristics, customer characteristics

Indigenous technology Govt. has established a series of research establishments and granted recognition to R& D centers run by private industries and educational institutions, like –  Council of Scientific and Industrial Research (CSIR)  Dept. of Science and Technology  Dept. of Space  Dept. of Defence R &D  Dept. of Biotechnology  Ministry of Non – conventional energy sources

Private R & D centers  Reliance Life Sciences set up in 2001 – working in novel proteins. It is also working in developing wide range of cell- based therapies  Microsoft has its research center in Bangalore. It covers 7 areas of research including mobility and cryptography( the conversion of data into a scrambled code that can be deciphered and sent across a public or private network). It is the cutting edge of Microsoft’s R & D

Technology development, Assimilation or absorption, and diffusion requires a systems approach Factors against adaptation –  High cost of adaptation  Industrial products  Predominant use in urban environment