buss4.5 technological environment assessing changes in the business environment the relationship...
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BUSS4.5 Technological Environment
Assessing Changes in the Business Environment
The Relationship between Businesses and the Technological Environment
There are two options, adapt or die.Andrew S Grove
Just as ‘location, location, location’ defines value in real estate, in business today it’s
connectivity that equals competitiveness. Mary Cronin
BUSS4.5 Technological Environment
In this topic you will learn about
Assessing the effects of technological change
Evaluating the response of businesses to technological change
Does society embrace technology?
BUSS4.5 Technological Environment
Technological change
It is the diffusion or spreading of technological change through society that impacts upon business behaviour.
What has the impact of some of these technological changes been on modern businesses?◦ Intranet
◦ Internet
◦ Social Networking
◦ CAD/CAM
◦ Robotics
◦ Handheld computers
◦ Software packages e.g. DTP, spreadsheets, databases etc
“Technological change is a term that is used to describe the
overall process of invention, innovation and diffusion of technology
or processes.”
Wikipedia
Consider how these
technologies can help a business across all functional
areas
BUSS4.5 Technological Environment
Changes in the Technological Environment
Technology is the use of scientific discoveries in a practical way. We make use of technology on a daily basis in all walks of life. Technology has impacted upon business operations in a number of areas:
BUSS4.5 Technological Environment
Changes in the Technological EnvironmentMarketing Opportunities
New markets – using the internet for globalised markets
Data bases – developing sophisticated methods to target new market segments
Does Internet shopping attract new customers in a domestic market or just switch shopping
habits?
What is the relationship between loyalty cards and databases?
How are loyalty cards used as marketing opportunities?
Who benefits from loyalty cards, the “loyal” customer or the business?
BUSS4.5 Technological Environment
Changes in the Technological EnvironmentMarketing Opportunities
Charging higher prices for the latest technological updates
• creating a product with a USP or high added value through technological advancements allows a business to charge premium prices
New methods of marketing – social networking and viral marketing
Cadbury’s have gone world wide with its viral marketing campaign – using the internet and social networks to create word of mouth. Even Lilly Allen has got in on the act!
BUSS4.5 Technological Environment
Changes in the Technological Environment
The culture of the business
Traditional cultures – these will find it harder to accept new means of communication
Power culture – information will remain with the few who have power in the firm
Task culture – new technology is ideal for cooperation between departments
Entrepreneurial culture – technological development and the spirit of risk taking are closely linked
Culture will be studied in more detail in BUSS4.10
BUSS4.5 Technological Environment
Changes in the Technological Environment
The processes and systems used within the business
New methods of production – being more capital intensive can speed up production, making it cheaper and more accurate (see Unit 2.12 for more on types of technology)
Stock management – highly sophisticated systems are in place to deal with the efficient management and delivery of stock
Information – increasingly, firms are replacing internal systems in order to deliver information. Information overload is a common concern in the workplace!
Are paperless schools a thing of the future?What about paperless offices?
How has technology affected expectations of
workers?
BUSS4.5 Technological Environment
Activity – Woolworths reborn onlineVisit the new Woolworths online website
www.woolworths.co.ukWatch the BBC video clip about the re launch
of WoolworthsWhat are the advantages to Woolworths of
operating on the Internet?What will be the key factors affecting the
success or failure of Woolworths online?Do you think the reincarnated Woolworths
will survive in the medium term? Justify your answer.
BUSS4.5 Technological Environment
Essay
In April 2008 The Independent reported “Internet sales have hit an all-time high in the UK as price-conscious shoppers shun the high street in lieu of bargain-hunting online.” Consumers in the UK can now buy almost anything online from their weekly shopping to second hand cars and discount flights. With reference to businesses you have studied to what extent do you consider internet retailing to be the key to business success in the 21st century?