Technology is knowledge to create new things. Mangers need technology to design, produce, distribute and sell goods and services.
Technology is knowledge to create new things.
Mangers need technology to design, produce, distribute and sell goods and
services. Impact of technology is mixed. Positive benefits are seen in new
products, new machines, new tools, new materials and services. Benefits include
greater productivity, higher living standards, more leisure time and greater
variety of products. Ex: Range of cars – subcompacts, compacts, intermediates,
sports, specialty, variations in engine power, steering A/c, speed control, roof
etc. Negative effects include pollution, energy shortage, loss of privacy,
traffic jam etc. A balanced approach is therefore needed.
dominated the world photocopier market with 93 percent of the market share. It
guarded its technology with over 500 patents. Cannon was a camera company from
Japan that entered into this business around 1970. It did not have the process
technology to by-pass Xerox’s patents. Yet over the next three decades, Canon
rewrote the rule book of how copiers were to be produced and sold. Canon’s
copiers are a business of around Rs.300,000 crore in annual revenues and it
sells more copiers than Xerox does. Canon succeeded, not by coping Xerox, but
Canon believed that individuals and small businesses would find the product useful
if only they could afford it. The technology appropriate for this product would
therefore be different from Xerox’s patent protected technologies.
In 1975, revolutionary technological changes and
discoveries have brought about dramatic impact of organizations. Among such
discoveries mention may be made of super conductivity, computer engineering, “thinking”
computers, robotics, unmanned factories, miracle drugs, fiber optics biometrics
and electronic funds transfer. Superconductivity is expected to revolutionize
business operations especially in such areas as transport, utility, health
care, electrical and computers.
Technological Change is of
Convergent change - where incremental innovation
and improvement optimizes the ability of the organization to succeed in the
existing environment. In India this change occurs in 10-12 years, in western
firms five to six years and in Japan it is four years. Presently some
Japanese firms like Nissan make changes from 14 months to 2 years time.
Divergent change – Involves changes where the
framework of the organization undergoes discontinuities. Whether it is in
response to events over which the corporation has no control, like
deregulation, major shift in economic policies, nationalization or events
related to radical changes in technology like product life cycle shifts, new
process technologies, radical innovations, etc., these changes involve
organizational re-formation or transformation. Example includes replacement of
Swiss mechanical watches with high innovation by simple battery operated
electronic watches. Some of the winners and losers of technological changes are
given in the following Table 4-1.
Tags : Strategic Management - Environmental Analysis and Diagnosis
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