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TECHNOLOGICAL
ENVIRONMENT
P R E S E N T E D B Y :
 R A J AT K U M A R
 K AV YA G U P TA
 G A R I M A S I N G H
 U D AY P R ATA P S I N G H
 R U D R A P R ATA P S I N G H
TECHNOLOGICAL
ENVIRONMENT
Technological environment refers to the state of science and technology in the
country and related aspects such as rate of technological progress, institutional
arrangements for development and application of new technology, etc.
Technology comprises of both machines (hard technology) and scientific thinking
(soft technology) used to solve problems and promote progress.
It consists of not only knowledge and methods required to carry on and improve
production and distribution of goods and services but also entrepreneurial
expertise and professional know how. Technology includes inventions and
innovations.
FEATURES OF TECHNOLOGICAL
ENVIRONMENT
The main features of technological environment are as
follows :
Technological environment is a component of macro or indirect action environment.
Technological environment changes very fast.
Technological environment affects the manner in which the resources of the economy are
converted into output.
Technological environment is self reinforcing. An invention in one place leads to a sequence
of inventions in other places.
STATUS OF TECHNOLOGICAL ENVIRONMENT
IN INDIA
 Establishmentof technologicalandresearchinstitute
 Positivetechnicalpolicy
 Highgrowth rateof information technologyinIndia
 Incentivefor promotingtechnologyIndia
TECHNOLOGICAL FACTORS
AFFECT BUSINESS ENVIRONMENT
Technological factors are variables that are being used for evaluating available
alternatives with respect to technological capabilities.
Organizations consider it an important tool for improving operations and functions.
Technological factors are one of various external environment factors that affect
businesses greatly and are also an integral component of the PESTLE analysis.
EXAMPLES OF TECHNOLOGICAL FACTORS
Regardless of what your company is selling or offering it will be benefited immensely by
using different types of technological factors.
 Internet: almost every business today has a website which helps them in making and
maintaining a global presence. Utilizing the social media platform businesses can easily
communicate with their targeted audience. In addition to this, through internet technology,
you can also easily communicate with your employees, clients and co-workers in other
countries.
 Automated Process: Automating various production lines allow companies to replace
human unskilled tasks with completely machinery ones. This benefits the company by
reducing the cost for manufacturers, suppliers, retail stores as well as other parties involved.
This factor, however, imposes a negative impact on the employment level of an economy.
ADVANTAGE & DISADVANTAGE OF
TECHNOLOGICAL ENVIRONMENT
ADVANTAGE
Increased Reach : Using information
technology, a marketer can reach an
enormous number of people with just the
click of a button. Networked technologies
give millions of people instant access to each
other.
Speed and Flexibility : Technology allows
advertisers to respond quickly to changes in
the marketplace. For example, if a
competitor develops a product that quickly
becomes popular, an advertiser can alter the
image of his own product to more closely
resemble the competitor's
DISADVANTAGE
Competition : What makes all of these
technological developments less than
perfect is that they are available to
everyone. If only one promoter had access
to advanced technology, he would
certainly have a tremendous advantage.
Homogenization :As marketers all hone in
on the fastest, most efficient and most
effective way of getting public attention,
the result is a growing homogenization in
both products and the way that they are
promoted.
THE IMPORTANCE OF TECHNOLOGY IN
BUSINESS
Technology improves business' communication.
Technology increases efficiency.
New innovations protect important assets.
Employees demand it.
With technology, there are no limitations.
Technology keeps employees engaged.
Tons of new resources exist that can improve your business.
Technology is necessary to succeed.
Technology increases the capacity of businesses.
Technology saves time and money
NEGATIVE IMPACT OF TECHNOLOGY ON
BUSINESS
Technological environment Imposes positive effects on a business. Internet makes the
communication process smoother and easier. Despite all the pros, technology has on the business
environment, it also imposes some negative impacts as well.
Business Relationships: Internet technology like Skype and other chat rooms have made it possible
for businesses hold meetings without having all the parties be physically present at the same place.
This type of meeting is less personal as compared to a face-to-face meeting. In this way, the personal
aspect of business relationships tends to reduce. Lack of physical proximity has reduced
brainstorming and another form of communication which involves personal touch.
Brick and Mortar. Advancement in e-commerce technology holds a negative impact on brick-and-
mortar stores. Small-scale businesses are finding it very difficult to compete with both online and
larger businesses in the industry that are operating both in person and on the internet. This
advancement in the technological environment of business eventually forces small organizations to
go out of operation.
TECHNOLOGY TRANSFORMS
OPERATIONS
 The technological environment of business has changed the way in which businesses function.
Advancements in information technology have almost taken over every department of the
organization. Now, information is stored in data servers and cloud technology as against the old way
of storing data in registers and files.
 Furthermore, development of technology has also introduced digital marketing strategies through
which companies are able to sell their products and services. Even the research and development
R&D divisions in companies have changed its way of functioning and more advanced techniques in
the development of products and services have been introduced only through technological
advancements.
For example, Siemens and Boeing are hugely investing in the adaption of 3D printing technique for product designing.
They believe that this will accelerate the designing process, reduces production cost as well as improves the effectiveness of
designing.
TECHNOLOGY HELPS IN DEVELOPING
MARKETING STRATEGIES
 Technology has brought in a transformation through which companies collect, record, retrieve and
utilize data and which also helps them in coming up with ground breaking business strategies.
Through available data, companies are able to monitor and evaluate customer trends and their
demands for a particular product. Thanks to the development of information technology,
businesses can understand consumer behaviour and conduct a macro environment analysis and
develop marketing strategies accordingly.
 Technology is not only useful for collecting and using data but, it is also being used by organizations
to analyse data and make meaningful conclusions as well as informed decisions. Having more focus
on the customers, business strategies will certainly prove out to be effective for the success of an
organization.
TECHNOLOGY
TRANSFER
CONCEPT OF TECHNOLOGY TRANSFER
 Technology Transfer, also called Transfer of Technology and Technology Commercialization, is the process
of transferring skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and
facilities among governments or universities and other institutions to ensure that scientific and
technological developments are accessible to a wider range of users who can then further develop and
exploit the technology into new products, processes, applications, materials or services. It is closely
related to knowledge transfer.
 Some also consider technology transfer as a process of moving promising research topics into a level of
maturity ready for bulk manufacturing or production.
 Technology brokers are people who discovered how to bridge the disparate worlds and apply scientific
concepts or processes to new situations or circumstances.
 A related term, used almost synonymously, is "technology valorization". While conceptually the practice
has been utilized for many years, the present-day volume of research, combined with high-profile
failures at Xerox PARC and elsewhere, has led to a focus on the process itself.
THE IMPORTANCE OF TECHNOLOGY
TRANSFER
Contrary to popular belief, publishing your research will not guarantee
that someone will notice your discovery and continue developing it into a
tangible product that will reach the end user. As I previously
mentioned, technologies first need to be developed and that is achieved
through collaborations with industrial partners.
For Example: once a lead compound is identified it must go through a drug development process that
includes pre-clinical research, development, and clinical trials. Additionally, drug development is focused
on addressing the regulatory requirements of regulatory authorities, such as the FDA and later on for
marketing approval. Overall, the process can be quite expensive and may exceed $100 million dollars per
drug compound.
FORMS OF TRANSFER TECHNOLOGY
Commercial transfer - transfer of knowledge or technology from government to
commercial organizations for potential or new/improved technologies
Exporting resources - collaborative agreements or volunteer services that provide
expertise to outside organizations
Importing resources - a cooperative effort that brings outside technology (pull) into
the agency/laboratory to enhance its mission
Dual-use - development of technologies that have "dual" or
commercial/government applications
Scientific dissemination - the multidirectional sharing of government, industry, and
academic publications (i.e., conference papers, working papers, etc.)
IMPORTANT CHANNELS OF TECHNOLOGY TRANSFER IN
INTERNATIONAL TECHNOLOGY ENVIRONMENT
1. Foreign Direct Investment (FDI): FDI is the
most preferred route to transfer newer
technology. Foreign firms are instrumental in
closing the intellectual (idea, skills) and physical
capital gaps. FDI helps in overcoming the
productivity gaps between the foreign and
domestic firms.
2. Licensing Technology: The mode of
technology transfer through licensing is older
than the FDI. Prior to liberalization this was a
popular mode. But now almost all states are
eager to welcome FDI. Licensing may be inward
(using the technology for a fee) and outward
(sharing patents for a royalty.
3. Joint Venture and Strategic Alliances:
Innovation through collaboration is in currency
among firms in advanced countries and also
between developed and developing countries.
Alliances should not be formed to correct a
weakness of one of the partners or a weakness
of both the partners.
4. International Trade: Import of machinery and
equipment and the product may provide an
alternative to assimilate the technology. What
was an issue in Japan – sharing technology –
comes under this category only. Through
reverse engineering Japan got the technology
and became a techno leader.
BARRIERS IN
TECHNOLOGY
TRANSFER
Before a new technology can be implemented by a depot or other military facility, a clear
definition is needed of the technology’s role, including it’s suitability for meeting the customer’s
needs, its impact on current and future regulatory compliance, and its impact on labor and other
operating costs, as well as the cost, schedule, and requirements for training associated with its
implementation. Because the systems in place are complex including equipment, facilities,
specifications, existing technology, the knowledge base, and so on it is often a challenging task to
implement a new technology, whether the changes in existing operations are minor or major.
• Maturity. The technology must be at the appropriate
level of maturity. A technology ready for transfer has
already been implemented in a similar facility or a
similar product, either in an industrial or academic
setting.
• Organization. Both the transferring and receiving organizations
must be well prepared for the technology implementation process,
which is guaranteed to consume additional time and funds in the
short term. When a technology is owned by a supplier with few
employees to aid in implementation, or a depot is unable to allocate
adequate personnel to the project, the budgets, time lines, goals,
and objectives must reflect this shortcoming. Identification of
champions on both sides of technology transfer is especially critical
when validating and accepting a new process or material for
defense applications, for which the technical complexity,
environmental demands, and system considerations are generally
high when compared to many commercial activities. For example,
implementing a new coating for aircraft that meets VOC compliance
regulations typically requires new surface preparation, new
application methods, new specifications, and new maintenance
procedures, as well as training of depot facility operators.
• Design Control. It is important to understand which organization controls the design of the
product and the process. In general, the designs are controlled by the original equipment
manufacturers of the weapons or by the research laboratories in the military services.
Therefore, for example, the implementation of vapor-deposited coatings on a part for an Army
helicopter would require the approval of both the Army Aviation Systems Command and the
helicopter manufacturer—perhaps with no input from a major technology user, the
equipment depot
Time line: The time line for use of a new
technology requires careful consideration,
because the time for maturation and
implementation may exceed budgetary,
environmental, or other constraints. Plans for
alternative capabilities must be assessed, as
well as the possibility that a technology may
become obsolete by the time it is put in place.
Life-cycle costing should always be considered,
and cost models must relate future benefit to
present cost and risk.
System Considerations: The system
drivers for technology implementation must be
well defined. Due to the substantial effort
needed to implement process changes,
processes without an immediate regulatory or
specification driver tend to remain unchanged
even if less-polluting processes are available. A
system-level understanding of logistics and of
depot operation is required in order to select
appropriate technologies for transfer. Details
such as equipment
~FIN~

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Technology transfer

  • 1. TECHNOLOGICAL ENVIRONMENT P R E S E N T E D B Y :  R A J AT K U M A R  K AV YA G U P TA  G A R I M A S I N G H  U D AY P R ATA P S I N G H  R U D R A P R ATA P S I N G H
  • 2. TECHNOLOGICAL ENVIRONMENT Technological environment refers to the state of science and technology in the country and related aspects such as rate of technological progress, institutional arrangements for development and application of new technology, etc. Technology comprises of both machines (hard technology) and scientific thinking (soft technology) used to solve problems and promote progress. It consists of not only knowledge and methods required to carry on and improve production and distribution of goods and services but also entrepreneurial expertise and professional know how. Technology includes inventions and innovations.
  • 3. FEATURES OF TECHNOLOGICAL ENVIRONMENT The main features of technological environment are as follows : Technological environment is a component of macro or indirect action environment. Technological environment changes very fast. Technological environment affects the manner in which the resources of the economy are converted into output. Technological environment is self reinforcing. An invention in one place leads to a sequence of inventions in other places.
  • 4. STATUS OF TECHNOLOGICAL ENVIRONMENT IN INDIA  Establishmentof technologicalandresearchinstitute  Positivetechnicalpolicy  Highgrowth rateof information technologyinIndia  Incentivefor promotingtechnologyIndia
  • 5. TECHNOLOGICAL FACTORS AFFECT BUSINESS ENVIRONMENT Technological factors are variables that are being used for evaluating available alternatives with respect to technological capabilities. Organizations consider it an important tool for improving operations and functions. Technological factors are one of various external environment factors that affect businesses greatly and are also an integral component of the PESTLE analysis.
  • 6. EXAMPLES OF TECHNOLOGICAL FACTORS Regardless of what your company is selling or offering it will be benefited immensely by using different types of technological factors.  Internet: almost every business today has a website which helps them in making and maintaining a global presence. Utilizing the social media platform businesses can easily communicate with their targeted audience. In addition to this, through internet technology, you can also easily communicate with your employees, clients and co-workers in other countries.  Automated Process: Automating various production lines allow companies to replace human unskilled tasks with completely machinery ones. This benefits the company by reducing the cost for manufacturers, suppliers, retail stores as well as other parties involved. This factor, however, imposes a negative impact on the employment level of an economy.
  • 7. ADVANTAGE & DISADVANTAGE OF TECHNOLOGICAL ENVIRONMENT ADVANTAGE Increased Reach : Using information technology, a marketer can reach an enormous number of people with just the click of a button. Networked technologies give millions of people instant access to each other. Speed and Flexibility : Technology allows advertisers to respond quickly to changes in the marketplace. For example, if a competitor develops a product that quickly becomes popular, an advertiser can alter the image of his own product to more closely resemble the competitor's DISADVANTAGE Competition : What makes all of these technological developments less than perfect is that they are available to everyone. If only one promoter had access to advanced technology, he would certainly have a tremendous advantage. Homogenization :As marketers all hone in on the fastest, most efficient and most effective way of getting public attention, the result is a growing homogenization in both products and the way that they are promoted.
  • 8. THE IMPORTANCE OF TECHNOLOGY IN BUSINESS Technology improves business' communication. Technology increases efficiency. New innovations protect important assets. Employees demand it. With technology, there are no limitations. Technology keeps employees engaged. Tons of new resources exist that can improve your business. Technology is necessary to succeed. Technology increases the capacity of businesses. Technology saves time and money
  • 9. NEGATIVE IMPACT OF TECHNOLOGY ON BUSINESS Technological environment Imposes positive effects on a business. Internet makes the communication process smoother and easier. Despite all the pros, technology has on the business environment, it also imposes some negative impacts as well. Business Relationships: Internet technology like Skype and other chat rooms have made it possible for businesses hold meetings without having all the parties be physically present at the same place. This type of meeting is less personal as compared to a face-to-face meeting. In this way, the personal aspect of business relationships tends to reduce. Lack of physical proximity has reduced brainstorming and another form of communication which involves personal touch. Brick and Mortar. Advancement in e-commerce technology holds a negative impact on brick-and- mortar stores. Small-scale businesses are finding it very difficult to compete with both online and larger businesses in the industry that are operating both in person and on the internet. This advancement in the technological environment of business eventually forces small organizations to go out of operation.
  • 10. TECHNOLOGY TRANSFORMS OPERATIONS  The technological environment of business has changed the way in which businesses function. Advancements in information technology have almost taken over every department of the organization. Now, information is stored in data servers and cloud technology as against the old way of storing data in registers and files.  Furthermore, development of technology has also introduced digital marketing strategies through which companies are able to sell their products and services. Even the research and development R&D divisions in companies have changed its way of functioning and more advanced techniques in the development of products and services have been introduced only through technological advancements. For example, Siemens and Boeing are hugely investing in the adaption of 3D printing technique for product designing. They believe that this will accelerate the designing process, reduces production cost as well as improves the effectiveness of designing.
  • 11. TECHNOLOGY HELPS IN DEVELOPING MARKETING STRATEGIES  Technology has brought in a transformation through which companies collect, record, retrieve and utilize data and which also helps them in coming up with ground breaking business strategies. Through available data, companies are able to monitor and evaluate customer trends and their demands for a particular product. Thanks to the development of information technology, businesses can understand consumer behaviour and conduct a macro environment analysis and develop marketing strategies accordingly.  Technology is not only useful for collecting and using data but, it is also being used by organizations to analyse data and make meaningful conclusions as well as informed decisions. Having more focus on the customers, business strategies will certainly prove out to be effective for the success of an organization.
  • 13. CONCEPT OF TECHNOLOGY TRANSFER  Technology Transfer, also called Transfer of Technology and Technology Commercialization, is the process of transferring skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments or universities and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services. It is closely related to knowledge transfer.  Some also consider technology transfer as a process of moving promising research topics into a level of maturity ready for bulk manufacturing or production.  Technology brokers are people who discovered how to bridge the disparate worlds and apply scientific concepts or processes to new situations or circumstances.  A related term, used almost synonymously, is "technology valorization". While conceptually the practice has been utilized for many years, the present-day volume of research, combined with high-profile failures at Xerox PARC and elsewhere, has led to a focus on the process itself.
  • 14. THE IMPORTANCE OF TECHNOLOGY TRANSFER Contrary to popular belief, publishing your research will not guarantee that someone will notice your discovery and continue developing it into a tangible product that will reach the end user. As I previously mentioned, technologies first need to be developed and that is achieved through collaborations with industrial partners. For Example: once a lead compound is identified it must go through a drug development process that includes pre-clinical research, development, and clinical trials. Additionally, drug development is focused on addressing the regulatory requirements of regulatory authorities, such as the FDA and later on for marketing approval. Overall, the process can be quite expensive and may exceed $100 million dollars per drug compound.
  • 15. FORMS OF TRANSFER TECHNOLOGY Commercial transfer - transfer of knowledge or technology from government to commercial organizations for potential or new/improved technologies Exporting resources - collaborative agreements or volunteer services that provide expertise to outside organizations Importing resources - a cooperative effort that brings outside technology (pull) into the agency/laboratory to enhance its mission Dual-use - development of technologies that have "dual" or commercial/government applications Scientific dissemination - the multidirectional sharing of government, industry, and academic publications (i.e., conference papers, working papers, etc.)
  • 16. IMPORTANT CHANNELS OF TECHNOLOGY TRANSFER IN INTERNATIONAL TECHNOLOGY ENVIRONMENT 1. Foreign Direct Investment (FDI): FDI is the most preferred route to transfer newer technology. Foreign firms are instrumental in closing the intellectual (idea, skills) and physical capital gaps. FDI helps in overcoming the productivity gaps between the foreign and domestic firms. 2. Licensing Technology: The mode of technology transfer through licensing is older than the FDI. Prior to liberalization this was a popular mode. But now almost all states are eager to welcome FDI. Licensing may be inward (using the technology for a fee) and outward (sharing patents for a royalty. 3. Joint Venture and Strategic Alliances: Innovation through collaboration is in currency among firms in advanced countries and also between developed and developing countries. Alliances should not be formed to correct a weakness of one of the partners or a weakness of both the partners. 4. International Trade: Import of machinery and equipment and the product may provide an alternative to assimilate the technology. What was an issue in Japan – sharing technology – comes under this category only. Through reverse engineering Japan got the technology and became a techno leader.
  • 18. Before a new technology can be implemented by a depot or other military facility, a clear definition is needed of the technology’s role, including it’s suitability for meeting the customer’s needs, its impact on current and future regulatory compliance, and its impact on labor and other operating costs, as well as the cost, schedule, and requirements for training associated with its implementation. Because the systems in place are complex including equipment, facilities, specifications, existing technology, the knowledge base, and so on it is often a challenging task to implement a new technology, whether the changes in existing operations are minor or major.
  • 19. • Maturity. The technology must be at the appropriate level of maturity. A technology ready for transfer has already been implemented in a similar facility or a similar product, either in an industrial or academic setting. • Organization. Both the transferring and receiving organizations must be well prepared for the technology implementation process, which is guaranteed to consume additional time and funds in the short term. When a technology is owned by a supplier with few employees to aid in implementation, or a depot is unable to allocate adequate personnel to the project, the budgets, time lines, goals, and objectives must reflect this shortcoming. Identification of champions on both sides of technology transfer is especially critical when validating and accepting a new process or material for defense applications, for which the technical complexity, environmental demands, and system considerations are generally high when compared to many commercial activities. For example, implementing a new coating for aircraft that meets VOC compliance regulations typically requires new surface preparation, new application methods, new specifications, and new maintenance procedures, as well as training of depot facility operators.
  • 20. • Design Control. It is important to understand which organization controls the design of the product and the process. In general, the designs are controlled by the original equipment manufacturers of the weapons or by the research laboratories in the military services. Therefore, for example, the implementation of vapor-deposited coatings on a part for an Army helicopter would require the approval of both the Army Aviation Systems Command and the helicopter manufacturer—perhaps with no input from a major technology user, the equipment depot
  • 21. Time line: The time line for use of a new technology requires careful consideration, because the time for maturation and implementation may exceed budgetary, environmental, or other constraints. Plans for alternative capabilities must be assessed, as well as the possibility that a technology may become obsolete by the time it is put in place. Life-cycle costing should always be considered, and cost models must relate future benefit to present cost and risk. System Considerations: The system drivers for technology implementation must be well defined. Due to the substantial effort needed to implement process changes, processes without an immediate regulatory or specification driver tend to remain unchanged even if less-polluting processes are available. A system-level understanding of logistics and of depot operation is required in order to select appropriate technologies for transfer. Details such as equipment
  • 22. ~FIN~