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Course Title, Code: Business Environment (BUS201)
Semester/Year: 1st / 2014
Teacher’s Name: Ujjal Barua
ASSIGNMENT NO: 2
What Is Technology
Impact of Technology on Business
Economic Effects of Technology
Date of Submission:
4th December, 2014
Dpt. of Business Administration
World University of Bangladesh
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What Is Technology –
Meaning of Technology and Its Use
Types and Examples
The word technology comes from the Greek words “techne” and “logos”. A modern
definition proves hard to pin down. Technology is a body of knowledge devoted to creating
tools, processing actions and extracting of materials.
Merriam-Webster says, technology is:
“ Application of knowledge to the practical aims of human life or to changing and
manipulating the human environment. Technology includes the use of materials, tools,
techniques, and sources of power to make life easier or more pleasant and work more
productive. Whereas science is concerned with how and why things happen, technology
focuses on making things happen. ”
The term “Technology” is wide and everyone has their own way of understanding the meaning of
technology. We use technology to accomplish various tasks in our daily lives, in brief; we can describe
technology as products, processes or organizations. We use technology to extend our abilities, and that
makes people as the most important part of any technological system.
Technology is also an application of science to solve a problem. But what you have to know is that
technology and science are different subjects which work hand-in-hand to accomplish a specific task or
solve a particular problem.
We apply technology in almost everything we do in our lives, we use technology at work, we use it
to , extract materials , we use technology for communication, transportation, learning, manufacturing,
creating artifacts, securing data, scaling businesses and so much more. Technology is human knowledge
which involves tools, materials and systems. The application of technology results in artifacts or products.
If technology is well applied, it can benefit humans, but if it is wrongly applied, it can cause harm to human
We use technology to accomplish various tasks, so technology comes in different types, below I have listed
some of the different types of technology we use on a daily basis and on each type of technology; I
have included an example of that particular technology.
Communication Technology: This is a
system that uses technical means to
transmit information or data from one
place to another or from one person to
another. Communication is used for many
purposes; it is used to convey ideas,
exchange information and express
emotions. Humans use communication
technology tools like phones, computers,
emails, fax, text messaging tools to stay in
touch with friends and family, then,
businesses use communication technology
tools to facilitate the flow of information in
a workplace, to help in decision making, to
serve customers needs and requests, to
promote new products or services to
targeted consumers and so much more.
Example of Communication Technology:
KUDOS Presenter for iPhone
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Let your iPhone control your power point
presentations. This KUDOS presenter uses
audio connector to communicate. So you can
improve the way you make power point
presentation using your iPhone with this
Information Technology: Information Technology is a set of hardware and software tools
used to store information. Information technology tools help in providing the right people with
the right information at the right time. Knowledge workers in organization use information
technology to complete various tasks and these can include; transferring of information which
facilitates decision making within an organization, improve customer service, and so much
more. In this information age, it is very important to manage information systems to ensure
accuracy and efficiency. Management information systems (MIS) involves planning for,
development, management, and use of information technology tools to help knowledge workers
and people perform all tasks related to information processing and management. Big financial
institutions like banks use information technology to operate their entire businesses as well as
serve their customers.
Example of information technology:
This IT based technological tool will enable
you share, access and protect files.
Transporter is an online, off-cloud storage
solution which supports private sharing of
valuable files. Unlike cloud storage facilities
like Dropbox.com & Box.com, this device is
private and it can allow you to store your files
remotely and share them with your
employees or partners. To use the device
remotely, you will have to create a free online
account, create shared documents, and much
more, the only difference with Dropbox.com,
is that the files are stored on this device, so
the all cloud service is brought to your office
Educational Technology: Is the type of technology which aims at improving performance by
creating and managing various technological processes and resources. It is an academic
discipline which prepares individuals to acquire deeper understanding and knowledge. It helps
them learn how to devise solutions to problems through research, design, evaluation and
utilization. Educational technology helps in improving the way we learn, some of the benefits of
educational technology include:
– It motivates students and it encourages individual learning.
– It makes the access of educational material easy.
– It helps students learn new subjects and languages through Gamification
Example of Education Technology:
Teachers you can try this Paperless grading
application for iPad. If you want to have a
paperless classroom and your students have
access to iPads, then this technology will be
of great use to you and your students.
Markup has completely changed the way
teachers mark test and exam papers,
students can submit electronic papers to be
marked by their teachers electronically, this
saves time and resources on both sides. Try
out this Markup application for ipad from
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Impact of Technology on Business -
Businesses are using technology to stay competitive, they create new products and services using
technology, and they also use technology to deliver those products and services to their customers
on time. A good example is, mobile phones companies like Apple & Samsung, these two electronics
companies, use high end technology to create new smartphones and other electronic devices to
stay competitive. This competitive edge is gained through employing advanced technology.
Technology is good because it simplifies the way we do things in our daily lives, however, if
technology is wrongly applied, it can be harmful in so many ways. Technology is developed by
humans, so we can use it to accomplish almost every task; it makes the impossible look possible.
If technology is well implemented it can be of great use to humanity, but it can also cause harm.
Below I have detailed points on the advantage and disadvantage of technology in business.
Advantages of Technology in Business:
Increases production: Technology helps businesses automate most tasks and this process
results into increased production and efficiency. Business can automate tasks in the accounting
department by using accounting software like QuickBooks. Bakeries can automate the
temperature room by using temperature sensors to detect a drop or an increase in temperature.
Technology Helps small business gain competitive advantage: If business technology is
well implemented, it can help a small business gain position in a competitive market. Some of
the ways small businesses use technology to scale out and gain a good position in the market
are; improving customer care services through internet technologies like social networks and
electronic mail, creating new products and services tailored basing on customer’s needs and
Saves time: Since most of the activities in the business are automated, time is saved during the
process. Computers can be used to perform various business tasks, for example a computer can
be used to record data, it can be used in video conferencing, and much more.
Technology accelerates innovation: The only way small businesses can succeed in today’s
competitive world is by using technology to create new products or services. Small businesses
can use internet technology to collect information about targeted consumers, so that they
understand their needs and wants, this information can be used when tailoring new products or
It improves sharing of information: Many businesses use internal networks to facilitate the
flow of information within the organization. This internal network can help in the transfer of
information among different departments at work. Also employees can share different
technologies like printers, fax machines and internet via an internal network. This easy flow of
information also improves on the speed at which decisions are made in a business.
It improves on data storage: It is very important to keep business data secure, because a
disaster can strike your business and you lose all important information. The use of databases
and remote storage facilities helps in keeping business information and data secure and
accessible from anywhere.
Technology simplifies business communication: Every business survives on
communication; you need to communicate with your suppliers, business partners and
employees, so technology will make this all process simple. Many businesses use communication
technologies like mobile phones, video conferencing applications like SKYPE, text messaging
services and electronic mail to exchange important business information.
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Disadvantages of Technology in Business:
It’s expensive: Technology comes at a price, not every small business can manage to use
technology. After buying and integrating technology in business, you will have to pay another
cost of maintaining that technology, monthly maintenance is recommended and this can be
Not Safe: Technology is not safe; it is very easy to lose business data through internet
technology. Hackers can easily access your remote database and use your business data for
their own personal needs.
Disconnectedness: Over-dependence on technology has killed workplace relationships,
employees and business managers communicate through email, phones, text messages and
video conferences, this kill’s face-face communication. Also most tasks are being automated, so
you find that employees have less involvement in the final product which leads to dissatisfaction
and workplace boredom.
Economic Effects of Technology -
Technology has been a major factor of economic expansion throughout mankind's recorded history,
since the invention of the wheel. However, it was after the Industrial Revolution that extensive use
of new technology revealed the boost machinery can give to an economy's output. Furthermore,
relatively recent experience (of the last century) has also revealed certain drawbacks applied
science can have for capital circulation and people's economic prosperity.
Technological change is part of the economic process. The economist Joseph Schumpeter once
described economic innovation as,
“The perennial gale of creative destruction”; Competition and the drive to find better, more
efficient ways to produce goods and provide services leads businesses to take advantage of every
new technology. Technological innovation comes with a price, however, destroying some jobs while
Technology has dramatically changed the face of economics by reorienting the economy from
industrial to service-oriented. Computer technology created the information sector, and the greater
increased efficiency of transportation infrastructure has made labor arbitrage a viable tactic for even
small businesses. Below I have detailed some points on the positive and negative effects of
technology on economy.
Positive Effects of Technology on Economy:
Service Oriented Economy: The biggest change in economics caused by technology is the shift
from a manufacturing-based economy to a service-oriented one. Before the invention of the
Internet, services like accounting or writing had to be transmitted by mail, which resulted in
significant time lag; enough to make it uneconomical for some businesses. By having instantaneous
information, service-based industries were able to expand to the entire country and grow rapidly.
For example, investors can now contact trading firms via website instead of having to meet an
Automated trading: Automated trading has changed the landscape of investing. Gone are the
days when it took days or even weeks to accrue the necessary information to make a trade. Now
smart programs shift through gigabytes of market data to time their investments and sell off points.
Derivatives went from being an esoteric investment vehicle to a market mover because computers
were able to do the math on all the variables involved in the space of seconds. Arguably this has
also exposed certain weaknesses in the markets that the derivatives are based on, like housing,
though a skilled human trader could have also acted upon those markets with equal pressure.
Lower Cost Production: Robotization of assembly lines has drastically lowered the cost of many
items to the point of lowering the advantage of economies of scale. In the past, a company could
become a behemoth in the market by leveraging its size to squash competition.
Lower Transportation Costs: Even though the economy is more service-oriented now, it still has
physical goods that must be transported. However, the creation of cargo container ships has
drastically lowered these costs. By having goods transported in standardized cargo containers that
can be loaded onto ship, truck or train, costs can be lowered due to ease of transportation. Union
costs can also be reduced due to the automation of seaports and ships.
Increasing Productivity: Since the start of the Industrial Revolution in the 18th century, the
introduction of advanced machinery in factories has made it possible to give human workers only
the most delicate or crafty of jobs and leave the rest to automated devices.
Reaching New Markets: An important aspect of a successful economy is its ability to sell its
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excess production to other markets, in other words to export goods and services.
Negative Effects of Technology on Economy:
Reliance on Technology: As technology has become a basic element of all modern enterprises,
production is affected greatly by flaws and malfunctions of machinery and information systems. E-commerce
businesses cannot function if Internet connection is lost, while production of a factory is
reduced when a machine stops operating. In addition, as technological devices become more
advanced and complicated, only specialized professionals, such as mechanics and programmers,
have the ability to fix a problem.
Loss of Jobs: New technology has created a whole new field of jobs, which includes mechanics,
programmers, machine operators and other relevant specialized professions. However, at the same
time a number of low- to middle-level jobs -- requiring no particular specialization -- are lost, as
machines replace the human capital. For instance, modern machines can undertake routine tasks in
factories, making one or more salaried employees unnecessary. Unemployment deprives people of
money that they could spend in the market, making their contribution to the economy tiny.
Technology and Economic Growth
According to classical economic theory, the accumulation of physical capital – tools, trucks,
bulldozers and assembly lines, for example – is responsible for increasing human productivity. You
can drive a nail with a rock, a hammer or a nail gun, but you will be most productive with the latter.
But capital goods do not account for all economic growth. Technology plays a significant role in
fueling economic growth. The impact of technology can be seen in advances in manufacturing
where robots perform precision operations and in hospitals where robots are used to make medical
procedures less invasive. Advances in technology are improving batteries to create better
performance in everything from hand-held devices to electric automobiles. Predicting the advances
made possible by technology is challenging, but they will continue unabated.