Srinivas Devulapalli

Technology is one of the important determinants of success of a firm as well as the Economic and social development of a nation. It includes the tools - both machines(hardware technology) and ways of thinking (soft technology) Technology may be described as systematic knowledge for manufacture of a product, for applications of a process or for rendering of a service and does not extend transactions involving mere sale or lease of goods.

Technology is one of the eight factors considered by world economic forum to evaluate global competitiveness.

According to the commonly observed pattern in the development of technologies, the rate of progress in a new technology follows S shaped curve with initial exponential rate Slowing to a linear rate turning off toward a natural limit

Michael porter points out in his well known competitive advantage, Technological change is one of the principal drivers of competition It plays a major role in industry structural change as well as in creating new industries. The technological change itself lowers cost. It enhances differentiation.

Innovation drive of the company Customers needs and expectations Demand conditions Suppliers offerings Social forces Research organizations/technical facilities

Govt. policy sometimes is a very important aspect to technological environment. Ex: a govt. may favor or disfavor certain types of technologies.

Restrictions on foreign technology, scale of operation ,type of technology etc had adversely affected Indian business in past. The liberalization has significantly improved the situation..

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