Business and the Technological Environment

1. Business and the Technological Environment BUSS4 Technological Environment

2. Technology • Changing technology can represent an opportunity or a threat • It can provide a firm with a competitive advantage or make its product or service obsolete • Things like CAD/CAM and industrial robots means that firms can reduce their costs however technology changes so fast that often it is out of date as soon as it is implemented • The internet has been a big opportunity and a very large threat to the retail industry • Online shopping means much larger markets but retailers are having to find ways to tempt people into shops

3. Technology • Research still says that 70% of people like to be able to touch a product before they buy it • Some online retailers are moving into bricks and mortar • Screwfix started out as a catalogue retailer in 1979, and its listings of nuts, bolts and nails were the cornerstone of any tradesman's toolkit • In 2005, after the business was bought out by the retail giant Kingfisher, Screwfix made the move from paper to bricks and mortar. • Oak Furniture Land started life as an eBay retailer in 2003 • Soon that was not enough, • It now does 65% of its trade in-store - and that has boosted its turnover considerably

4. Technology - Evaluation • Whether new technology provides an opportunity or a threat for an organisation depends on the firm’s resources and their attitude to change • The introduction of new technology needs to be carefully managed • Managers need to think about the compatibility of the technology, the financial implications of buying and implementing • People are often suspicious or worried by new technology and managers need to think about speed of implementation and how it is introduced • Organisations have to at least keep up with their competitors’ technology or be ahead • It must be remembered that a Kaizen approach (gradual improvements) can be as successful as dramatic technological change