Technical environment refers to all the technological surroundings that influence organization. Technology consists of skills,methods,systems and equipment. It includes and innovations. It makes work more efficient. It is a means to transfer input into outputs.
Technology influences organizations by bringing about changes in jobs, skills, lifestyles, production methods and processes. Automation, computerization, robotics, informatics, biotechnology, laser, new materials and artificial intelligence have all influenced organizations.Information technology affects every function of within the organization.Organizations should be aware of technological changes tot avoid obsolescence and promote innovation.
Technological forecasting is also important.Technology reaches people through organization. It is a powerful force that shapes their destiny.
1)Level of technology: The level of technology can be appropriate or sophisticated. It can be labour-based or capital-based.The level of technology influence organizations.
Labour based technology: Human labour is mainly used for operations.
Capital based technology: Machinery is mainly used for operations. Technology is represented by automation, computerization, robotizing, etc.
2)Pace of technological change: Technology is a dynamic force. Its speed of change is accelerating. Invention, innovation and diffusion increase its pace. Organizations should adapt to changing technological forces. They should also upgrade the skills of their human resources to effectively cope with the demands of technological changes.
Technological change influences organizations in the following :
It can make existing industries obsolete.It can the rates of obsolescence.
It can rejuvenate the existing industries through product improvements or cost reductions.
It can create entirely new industries.
It can increase government regulations.
3)Technological transfer: Sources of technology can be within the organization, within the country or foreign countries. Technology transfer implies technology import for organizations.
Technological transfer implies technology imported from technologically advanced foreign countries. Its speed is important for organizations.
Globalization: Global companies are the key sources of technology transfer in developing nations.
Projects: Turnkey projects based on global bidding serve as a source of technology transfer.
Trade: This consists of the sale of equipment or machines by the manufacturer.
Technical assistance: Bilateral and multilateral donors under technical assistance provide international consultants who bring new technology with them.
Training and publication: They provide opportunities to about new technology.
Technological transfer influences organization by :
Increasing and decreasing costs.
New product development and product improvement.
Improving production systems and processes.
Better satisfaction of customer needs.
4)Research and development: R&D is the essence of innovation. The Expectation for improvement is increasing. Customers expect new products of superior quality which are safe, comfortable and environment friendly. This calls for increase research and development budget by organizations. Government and industry collaboration and spending in R&d efforts is also an important aspect of the technology environment.
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