Types and Component of Technological Environment

Types and Component of Technological Environment

The types and components of technological environment can be broadly categorized into three: Hard technology, Demographics, and Exchange rate. The third category focuses on product/service features. This type of technological environment imposes both positive and negative influences on a business. For example, using the internet to conduct business transactions and communicate with clients is a significant advantage. But, as with any technology, there are negative side effects as well.

Hard technology

There is no question that hard technologies can be used to improve production and achieve competitive advantage. These technologies are rooted in the environment and institutions that govern them. Unlike soft technologies, hard technologies do not have biases associated with their use. Moreover, these technologies do not depend on human spirituality or environmental ideologies for their development. As a result, the development of hard technologies is generally sustainable in most environments. Hard technologies are a good example of this.

Hard technology involves the transformation of raw materials and processes to improve the performance of certain products and services. The tangible nature of these technologies makes them suitable for the name. Large technology companies produce hard tech with the aim of making them more functional and convenient for people. Some hard technologies have an economic value as they are designed for depreciation and usage rather than to generate a profit. Aside from these, the development of hard technologies has benefited the environment in a positive way.

Demographics

In the field of demography, the study of human population growth is critical to the understanding of the technological environment. Changes in age, family composition, and geographic distribution of population are common indicators of the demographic environment. The population is also becoming more diverse and educated. The Demographics of Technological Environment also aims to explain why certain technologies are better suited for specific geographic regions. These factors should be considered when analyzing the development of technologies.

The future of demographics depends on a number of factors. Population ageing and low fertility are two macroeconomic indicators of our time. The retirement of baby boomers and increasing longevity are also two of the factors driving demographic change. The demographics of the economy have a substantial impact on economic growth and productivity, and they can reinforce or undermine the three trends that have emerged in the past decade. Similarly, population changes are believed to have a negative impact on innovation and growth, which are key to a country’s economy.

Exchange rate

The International Monetary Fund (IMF) has classified exchange rates into three broad categories: the market rate, which is determined by market forces, and the official rate, which is fixed by governments. Arrangements between these two types are those where one currency holds a stable value against another, or a composite of currencies. The market rate is defined as the price of a currency in relation to the U.S. dollar.

The central bank of a nation is concerned with the exchange rate because it impacts international trade and aggregate demand in an economy. In addition, a large and frequent fluctuation in the exchange rate can disrupt international trade, cause problems in a nation’s banking system, and lead to an unsustainable balance of trade. Rapid fluctuations in the exchange rate can also damage an economy’s banking system and cause a deep recession.

Product/service features

A technological environment includes innovations that improve product/service features, decrease costs, and expand production capacity. Businesses must be alert to technological changes to remain competitive. Firms that fail to incorporate new technology risk becoming outdated, while those that embrace it can become pioneers of their industry. Here are some key features of technological environments. How can businesses take advantage of them? By implementing technological changes in their business processes, they can remain ahead of competitors and gain a competitive advantage over their competitors.

Product/service quality

The debate over the definition of “quality” has continued over the years. Philosophical and economic perspectives have been largely ignored, but the four main disciplines that have embraced it have focused on the concept of quality in some form or another. Business ethics has placed a premium on quality, and marketing and operations management have addressed the question of how to maximize customer satisfaction through improved quality. The latter has a particular relevance to a technological environment where quality is increasingly correlated with cost and price. And the importance of understanding the changing attitudes of consumers and society can be equally important in defining quality.

The Parasuraman model of service quality proposes five principle dimensions of service quality. Originally, it identified ten dimensions, but ultimately distilled them down to five: reliability, assurance, empathy, responsiveness, and value. The Parasuraman model proposes a fivedimensional scale, the SERVQUAL.These dimensions, called the House of Quality, are closely linked to product/service performance and satisfaction.

Technological advancements

There are some recent developments in the technology industry that have the potential to have an effect on the technological environment. These developments include 3D printing, nanotechnology, artificial intelligence (AI), blockchain, and the Internet of Things. These technologies are converging to increase efficiencies, optimize energy use, and produce smart systems. Environmentally friendly paints such as zero-VOC paints are improving energy efficiency. Furthermore, energy innovations will continue to be essential to the fast-tracking of a sustainable future. Similarly, smart networks and connectivity will help reduce waste and improve energy management.

Final Thoughts

Another emerging technology that is transforming the technological environment is drones.These small aircraft are used to monitor endangered wildlife. With the use of data, drones and digital mapping, these drones can detect wildlife and monitor their movement. For example, in Africa, increased poaching activity has decimated the population of the Garamba National Park’s elephants. In 1970, the herd comprised 22,000 elephants, but by 2017, it was down to just over 1,200.

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