Technological factors affecting businesses
Technological factors affecting businesses all over the world
Remember the traditional office full of clutter? Surprisingly we are quite slow to the adoption of all things Digital. About time we closed the door to an ancient set-up and look towards evolving ways to succeed in business.
Technological factors affecting businesses all over the world demands a changing behaviour with regard to traditional marketing.
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 globalisation. 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?
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)
Technological Environment Video
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