1|Page

BUSINESS ENVIRONMENT AND COPORATE ETHICS

MODULE 3

TECHNOLOGICAL ENVIRONMENT

SEMESTER 1
MBA TOURISM
2|Page

CHAPTER NO TOPICS PAGE NO DONE BY

TECHNOLOGICAL
1 ENVIRONMENTAND ITS 3 BIMAL M
IMPLICATIONS TO
BUSINESS

RUGMA ANIL/
2 NEW TECHNOLOGIES 5 MUHAMMED
YASEEN S

3 NEW AREAS OF GROWTH 11 SIVALEKSHMI

JS

4 ECONOMIC EFFECTS OF 13 MANU AJAY

TECHNOLOGY

SOCIAL CONSEQUENCES
5 OF TECHNOLOGICAL 19 ANJITHA A K
CHANGE

MANAGEMENTS
6 RESPONSIBILITY FOR 22 GOURY MADHU
TECHNOLOGICAL
CHANGE
3|Page

1. TECHNOLOGICAL ENVIRONMENT

Introduction to technological environment

According to Economist J.K. Galbraith, technology means, “systematic application of
scientific or other organized knowledge to practical tasks”.
 Technological environment refers to the state of science, technology and related
aspects such as rate of technological progress, institutional arrangements for
development and application of new technology.

 It can also be defined as the development in the field of technology which affects
business by new inventions of productions and other improvements in
techniques to perform the business works.

 Technological environment consists of external factors in technology that impact

business operations.

 Changes in technology affect the business in a company.

 Examples of technological changes are seen in aviation, electronics, energy,

communication, consumer goods industry, optics, medicines and manufacturing.

Features of technological environment

 Technological environment is a component of macro 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(invention in one place leads to a

sequence of inventions in other places)

Components of technological environment

1. Level of technology
2. The pace of technological Changes
3. Technological transfer
4. Research and Development (R & D)
5. Impact of technology in business.
4|Page

1. Level of Technology

 Labour based Technology

 Capital based technology

2. The pace of Technological Changes

 Technological change generally refers to the advancements in the

production and manufacturing process of different goods and services.

 This technological change brings both opportunities and threats to a business.

 There is always the advantage of assessing the technological environment and

embracing the new technology which make product better, bring down costs, edge
out the competition, increase production capacity but at the same time, such changes
does not adopted by the businesses can make them obsolete and out of trend very
quickly.

Technological changes influences organization in the following ways.

 It can make existing industries obsolete.

 It can improve the existing industries through product improvement or cost
reduction.
 It can create entirely new industries.
 It can increase government regulation.

3. Technological Transfer

Technology imported from technologically advanced foreign countries.

Technology transfer can be through:

 Projects
 Globalization
 Trade ( sale of equipment by the manufacturer)
 Training assistance (Bilateral and multilateral donors provide technical
assistance)

4. Research and Development (R & D)

Important aspect of the technological environment is the role of the R&D of the country

 Technology and business are very interdependent

5|Page

 The benefits of all the R&D a country does reaches the public via the businesses
 These findings and developments improve our quality of life and uplift the economy
and society.

5. Impact of technology in business

 Businesses are affected by changes in the technological environment

 Technological change offers risks, opportunities and threats to businesses
 Some businesses can have sudden changing technology to improve products and
processes and it will expand markets and profits
 Technological environment consist of both positive and negative effects

Positive Effects
 Productivity
 Competitive advantage
 Innovation
 Increase in profit
 Customer value

Negative Effects
 Capital Burden( huge investment)
 The threat of quick replacement
 Increase in cost
 Regular maintenance
 Need for skilled manpower.

2. NEW TECHNOLOGIES

Wireless Fidelity
Wi-Fi is a wireless networking technology that allows devices such as computers (laptops
and desktops), mobile devices (smart phones and wearable’s), and other equipment
(printers and video cameras) to interface with the Internet. It allows these devices--and
many more--to exchange information with one another, creating a network.
Wi-Fi's wavebands have relatively high absorption and work best for line-of-sight use.
Many common obstructions such as walls, pillars, home appliances, etc. may greatly
reduce range, but this also helps minimize interference between different networks in
crowded environments. An access point (or hotspot) often has a range of about 20 metres
6|Page

(66 feet) indoors while some modern access points claim up to a 150-metre (490-foot)
range outdoors.

Working

Wi-Fi is a high speed internet connection and network connection without use of any cables
or wires. The wireless network is operating three essential elements that are radio signals,
antenna and router. The radio waves are keys which make the Wi-Fi networking possible.
The computers and cell phones are ready with Wi-Fi cards. Wi-Fi compatibility has been
using a new creation to constituent within the ground connected with community network.
The actual broadcast is connected with in sequence in fact it is completed by way of stereo
system surf as well as the worth of wires with monitor to classification prone. Wi-Fi allows
the person in order to get access to web any place in the actual provided area. You can now
generate a system within Resorts, library, schools, colleges, campus, personal institutes, as
well as espresso stores as well as on the open public spot to help to make your company
much more lucrative as well as interact with their own customer whenever. Wi-Fi
compatibility can make surf with stare to company using their inspiring cable television
much a smaller amount force down.
The radio signals are transmitted from antennas and routers that signals are picked up by
Wi-Fi receivers, such as computers and cell phones that are ready with Wi-Fi cards.
Whenever the computer receives the signals within the range of 100-150 feet for router it
connect the device immediately. The range of the Wi-Fi is depends upon the environment,
indoor or outdoor ranges. The Wi-Fi cards will read the signals and create an internet
connection between user and network. The speed of the device using Wi-Fi connection
increases as the computer gets closer to the main source and speed is decreases computer
gets further away.

Mobile Phone Technologies

Mobile technology is a form of technology that is mostly used in cellular communication
and other related aspects. It uses a form of platform where by many transmitters have the
ability to send data at the same time on a single channel. This platform is called Code-
division multiple access (CDMA).
 7|Page

COMPARISON OF 1G, 2G, 3G, 4G and 5G.

TECHNOLOG 1st 2nd 3rd 4th 5th

Y OR GENERATION GENERATION GENERATION GENERATION GENERATION
FEATURES TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY TECHNOLOGY

Start/ 1970/1984 1980/1999 1990/2002 2000/2010 2010/2015

Deployment

Data 2kbps 14.4-64kbps 2Mbps 200Mbps to 1Gbps and

Bandwidth 1Gbps for low higher
mobility

AMPS 2G,TDMA,CDM WCDMA Single unified Single unified

Standard A,GSM2.5G:GP CDMA-2000 standard standard
RS,EDGE,
1*RTT

Analog cellular Digital cellular Broad bandwidth Unified IP and Unified IP and
Technology technology technology CDMA,IP seamless seamless
Technology combination of combination of
broadband, broadband
LAN/WAN

Artificial Intelligence
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that
are programmed to think like humans and mimic their actions. The term may also be
applied to any machine that exhibits traits associated with a human mind such as learning
and problem-solving. The ideal characteristic of artificial intelligence is its ability to
rationalize and take actions that have the best chance of achieving a specific goal.
8|Page

Virtual Reality
Virtual reality (VR) is a simulated experience in which a person can interact with an
artificial 3-D environment using electronic devices, sensors etc and it is similar to or
completely different from the real world. Applications of virtual reality can include
entertainment (i.e. video games) and educational purposes (i.e. medical or military
training). Other, distinct types of VR style technology include augmented reality and mixed
reality, sometimes referred to as extended reality.

Robotics
Robotics are intelligent machines that can help and assist humans in their day to day lives.
It is used for manufacturing, assembling, transport, surgery, weaponary production of
industrial goods.

Main three functions are:

 They sense, think and act ie; they senses environmental stimula.
 Think in terms of present algorithm for planning.
 Define the reactions and overall behavior.

Augmented Reality
Augmented reality (AR) is an interactive experience of a real-world environment where
the objects that reside in the real world are enhanced by computer-generated perceptual
information, sometimes across multiple sensory
modalities,including visual, auditory, haptic, somatosensory and olfactory.AR can be
defined as a system that fulfills three basic features: a combination of real and virtual
worlds, real-time interaction, and accurate 3D registration of virtual and real objects. The
overlaid sensory information can be constructive (i.e. additive to the natural environment),
or destructive (i.e. masking of the natural environment).

Internet of Things (IoT)

The Internet of things describes the network of physical objects—“things”—that are
embedded with sensors, software, and other technologies for the purpose of connecting and
exchanging data with other devices and systems over the Internet.
IoT technology is most synonymous with products pertaining to the concept of the "smart
home", including devices and appliances (such as lighting fixtures, thermostats,
home security systems and cameras, and other home appliances) that support one or more
common ecosystems, and can be controlled via devices associated with that ecosystem,
such as smartphones and smart speakers.
9|Page

3-D Printing
3D printing or additive manufacturing is a process of making three dimensional solid
objects from a digital file. The creation of a 3D printed object is achieved using additive
processes. In an additive process an object is created by laying down successive layers of
material until the object is created. The creation of a 3D printed object is achieved using
additive processes. In an additive process an object is created by laying down successive
layers of material until the object is created. Each of these layers can be seen as a thinly
sliced cross-section of the object.

Wearable Technology
Wearable technology, wearables, fashion technology, smartwear, techtogs, skin
electronics or fashion electronics are smart electronic devices (electronic device with
micro-controllers) that are worn close to and/or on the surface of the skin, where they
detect, analyze, and transmit information concerning e.g. body signals such as vital signs,
and/or ambient data and which allow in some cases immediate biofeedback to the wearer.
Wearable technology has a variety of applications which grows as the field itself expands.
It appears prominently in consumer electronics with the popularization of the smart
watch and activity tracker. Apart from commercial uses, wearable technology is being
incorporated into navigation systems, advanced textiles, and healthcare.

Net Neutrality
Network neutrality, most commonly called net neutrality, is the principle that Internet
service providers (ISPs) must treat all Internet communications equally, and not
discriminate or charge differently based on user, content, website, platform, application,
type of equipment, source address, destination address, or method of communication.
Net neutrality is the principle that an internet service provider (ISP) has to provide access
to all sites, content and applications at the same speed, under the same conditions without
blocking or preferencing any content. Under net neutrality, whether you connect to Netflix,
Internet Archive, or a friend's blog, your ISP has to treat them all the same. Without net
neutrality, an ISP can decide what information you are exposed to. This could cause an
increase in monetary charges for companies such as Netflix in order to stream their content.

Cloud Computing
Cloud computing is the on-demand availability of computer system resources, especially
data storage (cloud storage) and computing power, without direct active management by
the user. The term is generally used to describe data centers available to many users over
the Internet. Large clouds, predominant today, often have functions distributed over
multiple locations from central servers. If the connection to the user is relatively close, it
may be designated an edge server.
Clouds may be limited to a single organization (enterprise clouds), or be available to many
organizations (public cloud).Cloud computing relies on sharing of resources to achieve
coherence and economies of scale.
10 | P a g e

Software Unification
Software unification is a platform that would sync or unify your data across all the systems.
A code that can cross language barriers to retrieve or send any data across and between the
platforms.
Block Chain Technology
Block chain technology is a structure that stores transactional records, also known as
the block, of the public in several databases, known as the “chain,” in a network connected
through peer-to-peer nodes. Typically, this storage is referred to as a 'digital ledger. Based
on a peer-to-peer (P2P) topology, block chain is a distributed ledger technology (DLT) that
allows data to be stored globally on thousands of servers – while letting anyone on the
network see everyone else's entries in near real-time. That makes it difficult for one user to
gain control of, or game, the network.

Green Computing
Green computing is the environmentally responsible and eco-friendly use of computers and
their resources. In broader terms, it is also defined as the study of designing,
manufacturing/engineering, using and disposing of computing devices in a way that
reduces their environmental impact.
The goals of green computing are similar to green chemistry: reduce the use of hazardous
materials, maximize energy efficiency during the product's lifetime,
the recyclability or biodegradability of defunct products and factory waste. Green
computing is important for all classes of systems, ranging from handheld systems to large-
scale data centers.

Financial Technology

Financial technology (abbreviated fintech or FinTech) is the technology and innovation

that aims to compete with traditional financial methods in the delivery of financial services.
It is an emerging industry that uses technology to improve activities in finance.
The use of smartphones for mobile banking, investing, borrowing services,
and cryptocurrency are examples of technologies aiming to make financial services more
accessible to the general public. Financial technology companies consist of
both startups and established financial institutions and technology companies trying to
replace or enhance the usage of financial services provided by existing financial
companies.
11 | P a g e

3. NEW AREAS OF GROWTH

Growth Fundamentals
To grow fast, businesses need to understand the fundamental elements of accelerated
business growth. This involves a mix of skills and abilities such as knowledge of why
people buy, the principles of persuasion, being great communicators and ambassadors and
people management and development.

Defined Product Proposition

Having a defined and clearly articulated proposition - as one voice within the company - is
critical for growth. The elevator pitch needs to be perfectly rehearsed, understood,
communicated and expressed with clarity and belief. Too many times we see businesses
that fall into temptation and say that their products do ‘everything’, or have their employees
communicate different messages.

Target Audience Definition

A critical element for growth is being able to have a big impact on a small audience, the
better the audience is defined - where the business’s products and services are more likely
to have a differential impact on the status quo and competitors - the better the chances are
of sales success and growth.

Compelling Brand
The proposition needs to be encapsulated into a compelling brand. The brand is the
representation of the fundamental beliefs of the business, expressed visually and through
words, intended to be meaningful to a target audience, and permeating every form of
communication of the business.

Defined Customer Journeys & Acquisition

The venture needs to devise, build and optimise the way customers discover, consider, buy,
implement and advocate the products and services of the business. This informs the
channels to market and maps different buying behaviours according to different personas
and intentions. Growth acceleration depends on the clarity of customer journeys and the
ability to improve them over time.

Engagement & Content Strategy

As opportunities come through the customer journey, the right engagement strategy will
help drive and accelerate these journeys. This applies across all channels - more engaged
prospects are more likely to become customers. This may involve purpose-built digital
properties and landing pages, well-crafted written and video content and illustrations,
driving the right engagement and speeding up the journey as customers become more likely
to progress to the next stage.
12 | P a g e

Lead Generation, Nurturing & Conversion - Marketing Automation

Having the journeys defined to be able to scale faster and better, means that businesses can
fill their acquisition funnels with the right marketing leads, which are adequately nurtured
through the right communication, with the goal of creating conversion into sales, and
successful customers after that. Businesses need a clear idea of how to find their customers.
A small business networking, and then progress towards automation - this includes the
process of optimising the sales funnel, and scaling it without increasing sales costs
substantially.

Sales Execution & Optimisation

To achieve fast growth, we need to go beyond the myth that if the product is good enough,
it will sell itself. Success and fast-growth depend on a stellar sales capability, continuously
improving, based on results and data from end-to-end conversion tracking. Building and
optimising sales from the right identification of opportunities, defining the right sales
messages, and building inside sales capabilities will be a determinant for success.

Customer Success & Advocacy

Some businesses, naively or complacently, often overlook customer success after the sale
is made. The last thing a growing business needs is unhappy customers. This will distract
resources and senior management, and may negatively influence potential customers. It is
important to make the right sale, and then maximise the value that customers generate from
the solutions they acquired from the business, making them as profitable and productive as
possible. This will create goodwill that can easily be transformed into advocacy.

Growth Optimisation
With limited resources for fast growth, it is critical to understand the different alternatives
providing the most cost-effective or highest achievable performance under the existing
business constraints, therefore maximising business growth and unit economics. Fast
growth starts with the ability to measure what is making an impact on the bottom line.
If you believe this approach can be improved or if you have a successful experience you
are keen on sharing, drop us a line anytime.

4. ECONOMIC EFFECTS OF TECHNOLOGY

Introduction
There is no question that technology has greatly impacted the economy today, from
international trade to manufacturing to agriculture to corporate business. Both the positive
and negative effects of technology are felt everywhere in the new economy. Modern
economic growth revolves around technology. The advancements in technology have not
only affected the economy on a large scale, but they also affect small businesses and
13 | P a g e

regarded as primary source in economic development and the various technological

changes contribute significantly in the development of underdeveloped countries.
Technological advancement and economic growth are truly related to each other. The level
of technology is also an important determinant of economic growth. The rapid rate of
growth can be achieved through high level of technology. Schumpeter observed that
innovation or technological progress is the only determinant of economic progress. But if
the level of technology becomes constant the process of growth stops. Thus, it is the
technological progress which keeps the economy moving. Inventions and innovations have
been largely responsible for rapid economic growth in developed countries.
Technological progress is inevitable because technological advancement will go as
outlined by scientific improvement. Each and every development is created to offer
positive gains for human living. Technology offers many conveniences and a new way of
doing human pursuits. Particularly in the field of technology, the community has
appreciated lots of benefits a result of the improvements which have been made. It’s
important to understand the full impact of technology on economy.

The impact of technology on economy

 Qualitative and Quantitative Increase in Productivity

The most significant impact of technology is greater productivity. The example of

quantitative increase is more production at less cost. In a hospital, the effect may be
qualitative such as maintaining electronic monitoring equipment regardless of its cost. As
a result of increase in productivity, real wages of employees increase and prices of some
products decline. Thus the benefit of technology spreads throughout the whole social
system. This results in the demand for more technological advancement.

 More Intellectual and Upgraded Jobs

A job which was earlier handled by an unskilled worker now requires the services of an
educated and competent worker. Office jobs now demand the services of computer experts.
Thus the technological development has made the jobs more intellectual and upgraded.
Some workers will be dislocated unless they are well equipped to work on new machines.
This makes it the duty of the businessman to retain the employees. For those, who pickup
and acquaint themselves with new technology, the job opportunity should be given in
priority basis.

 Need for Highly Professionalized and Knowledgeable Personnel

Not only jobs become more intellectual have even the employees tended to become more
professional. The organization shall need scientists, engineers and highly skilled workers
on its payroll. The organization can boast of progressive and modern personnel.
14 | P a g e

But motivation of such jobs is a difficult task. They will need attractive remuneration, job
security and just treatment. Job retention of such employees is another difficult job. The
company has to make several efforts to discourage shifting of jobs by professionalized
employees.

 Government Regulations and Public Opposition

Another impact of technological development is the ever-increasing regulations imposed
on business by the Government and stiff opposition from the public. Government has the
power to investigate and ban the products which are harmful for a section of society.
Sometimes these developments invite stiff opposition from public who fear that new
innovations are a threat to ecology, privacy, simplicity and even the human race. But the
public must be enlightened that the technology in not always harmful. It can be corrective
as well as curative also.

 Insatiable Demand for Capital

Today’s technology is characterised by its insatiable demand for capital. Huge investment
of money is required for:
i. Acquisition or discovery of new ideas & their adoption.
ii. Education and training of the managers and other related employees.
iii. Several other related areas.

Business organisation should not only raise huge amounts of capital, but proper utilization
of the funds for gainful purposes is also a must. This calls for an efficient and effective
financial management along-with qualified and competent financial managers.

 Impact of Changes on Products and Organizations

Technology refers to change and more change. This poses another throat to business
community. A new technology may develop a new industry but destroy an existing one. In
this changing world, every product is like a mortal human being, subject to a life cycle.
Even the organisation which is associated with a particular technology will have the same
life pattern as that of the technology.

 Advantages & Disadvantages of Technology in Our Economy

In recent years, technology was initially designed to acquire positive advantages,

alternatively could also be utilized for adverse things. Such an example is the introduction
of electric scooter Dublin, this innovation had brought on convenience to some but had
brought harm to others because of unregulated use. Let’s take a look at further at the
positive and negative impacts of technological progress in general to our economy.
15 | P a g e

ADVANTAGES

 Contributing to GDP Growth

The advancements in technology contribute to the gross domestic product growth of many
countries. According to CIO, countries worldwide spend close to $6 trillion a year in
corporate spending on hardware, software, data centers and more. That expenditure is
bigger than the entire GDP of countries like Japan and Germany. Technology is a part of
every single industry, and as such, businesses need to invest in technology advancements
in order to improve their products and services, gain market share and keep up with their
competition.

 Increasing Efficiency and Mobility

One of the major benefits of technology in the economy is how it has helped to increase
efficiency and productivity across industries. Manufacturing organizations are able to
increase their output with technology advancements, which has resulted in more
competitive pricing for end customers.
Mobility has also been significantly impacted by technology. Shipments from the other
side of the country or from a different country arrive at your doorstep within days. The
internet has also given employees the freedom to work from remote locations. Many
companies have completely virtual offices thanks to advancements in telecommuting
software.

 Improving Communication and Collaboration

One of the advantages of technology in international trade and other areas of the economy
is the ease of communication and collaboration across geographical distances and time
zones. Corporations with offices in different countries can seamlessly meet with their
colleagues and customers over video-conferencing software. Cell phone service in
developing countries has changed the way people communicate in remote areas.

 Automation and Productivity

Smaller businesses can compete with large businesses by being more swift and agile, and
responding to change faster. Information technology can improve your company's
efficiency and decrease human error by developing automated processes. With software
applications like Quick books and contact management sites like Sales Force, company
bookkeeping and sales tracking can be automated. In turn, small business owners can focus
on their overall business strategy and their employees are free to work on other things while
the computer runs their reports, creates queries, and tracks projects. This leads to one of
the biggest benefits of automation and technology in businesses productivity.
16 | P a g e

 Business innovation
In OECD countries, more than 95% of businesses have an online presence. The Internet
provides them with new ways of reaching out to customers and competing for market share.
Over the past few years, social media has established itself as a powerful marketing tool.
ICT tools employed within companies help to streamline business processes and improve
efficiency. The unprecedented explosion of connected devices throughout the world has
created new ways for businesses to serve their customers.

 Advantages of Technology in the Workplace

 Technology allows for working remotely, which has shown to increase employee
productivity
 Connecting with the best resources regardless of their location in the world
 External and internal communication is quicker through emails, project management,
co-working tools, and work place productivity apps
 Helps save time, thanks to automation of redundant tasks
 Leaves time for more innovation and growth related conversations
 Cost savings due to computing technology that takes care of the repetitive tasks
 Less wastage of time because files are stored on the cloud and can be searched easily
 Because of technology, companies can act faster, make quicker decisions, and remain
adaptability
 Less wastage and optimal usage of all other resources can be controlled
 Monitoring of employee performance is made easier

 Ease of Access to Information

The World Wide Web, abbreviated as www has made the world a social village. This is
because information from all around the globe is widely available on the internet. While
most of the news you get to see on social media is purely factual, one may also see image
results for particular news. Not only more news is available, but all such information is
also straightforward to access. All thanks to modern technology . One can get to read a
book in the comfort of their bed and a cup of coffee. EBooks are available on the internet
for this purpose. The modern technology has replaced radios with televisions, and now
even televisions have been digitised to “LCD’s” and “LED’s”. Efforts are underway to
create more reliable sources of information. All this is possible only because of technology.
17 | P a g e

DISADVANTAGES

 Adding to Cyber Crime and Security Concerns

A limitation of the new economy that’s centered around technology is that an
organization’s data may not be as secure online as it is on paper. Modern technology opens
up a business to online security threats including viruses and other software and hardware
concerns. According to a McAfee-sponsored study, organizations worldwide lose up
to $400 billion as a result of hacking, credit card fraud and intellectual property theft.

 Dependence as a Downside of Technology

While technology has certainly increased productivity in many industries, it can also bring
it crashing to a halt. If the machinery, software or hardware malfunctions or needs to be
repaired, the efficiency goes down considerably since organizations are fully dependent on
technology for day-to-day business operations.
As a result of this dependence, many workers are losing skills they may have needed a few
years ago to do their jobs. For example, something as simple as talking on the phone is no
longer common in many workplaces, as most people prefer to email or instant message
instead. When the technology goes down, not all tasks can be done manually due to lack
of skills or lack of resources.

 Moving Faster Than Regulations Can Catch Up

When technology is changing month to month, it’s difficult for regulations and laws to
keep up with the advancements. As a result, when issues arise due to technological reasons,
there may not be guidelines on how to proceed from a legal or regulatory standpoint. For
example, there is the question of whether the government has the right to intercept and
listen in on a cell phone conversation or whether that encroaches on a person’s civil
liberties. Because technology is advancing the way people communicate, work and do
business faster than the rule of law, it can lead to questions around privacy, security and
individual rights.

 Costs
Technology has never been cheap. Not only is it costly to purchase, but the maintenance
and upkeep for technology poses a mess of costs for your business. It seems like every few
months you need to upgrade to the latest software, and in addition to the product costs, you
must also train and educate your employees on the latest editions. Performance and
productivity can drastically decrease while employees adjust to new systems, and for those
who are less-than-technologically-savvy, the process of switching to a new technology can
be very time-consuming.
18 | P a g e

 Loss of Interpersonal Communication Skills

Cell phones, email, texting and social media have largely replaced face-to-face
communications. One short meeting or conversation can eliminate multiple text messages,
phone calls or emails. The ability to choose the people you interact with, as on Facebook
or Twitter, isn't an option in the workplace, whether dealing with fellow workers or with
clients. Interpersonal communications, critical to building business relationships, are more
complicated and require courtesies and listening skills not necessary in social media.

5. SOCIAL CONSEQUENCES OF TECHNOLOGICAL CHANGE

Science and technology are essential ingredients of modern life. They transcend local
boundaries and touches lives of everyone. Evolution of mankind can be seen in terms of
technological evolution as well. Invention of fire and wheel changed the face of mankind.
Various historical epochs - hunter-gatherers, agrarian society and industrialist society are
distinguished from each other in term of technological advancement.
19 | P a g e

The technological factors represent the conditions created by men that have a profound
influence on his life. Technology is product of civilization. According to Karl Marx even
the formation of social relations and mental conceptions and attitudes are dependent upon
technology. Veblen has regarded technology as the sole explanation of social change. W.F
Ogburn says technology changes society by changing our environments to which we in
turn adapt. This change is usually in the material environment and the adjustment that we
make with these changes often modifies customs and social institutions.

Impact of Technology Change

Technology and Industrialization:

Technology has contributed to the growth of industries or to the process of

industrialization. Industrialization is a term covering in general terms the growth in a
society hitherto mainly agrarian of modern industry with all its circumstances and
problems, economic and social. It describes in general term the growth of a society in which
a major role is played by manufacturing industry. The Industrial Revolution of 18th century
led to the unprecedented growth of industries. Industrialization is associated with the
factory system of production. The family has lost its economic importance. The factories
have brought down the prices of commodities, improved their quality and maximized their
output. The whole process of production is mechanized. Consequently the traditional skills
have declined and good number of artisans has lost their work. Huge factories could
provide employment opportunities to thousands of people. Hence men have become
workers in a very large number. The process of industrialization has affected the nature,
character and the growth of economy. It has contributed to the growth of cities or to the
process of urbanization.

Technology and Urbanization:

In many countries the growth of industries has contributed to the growth of cities.
Urbanization denotes a diffusion of the influence of urban centers to a rural hinterland.
Urbanization can be described as a process of becoming urban moving to cities changing
from agriculture to other pursuits common to cities and corresponding change of behaviour
patterns. Hence only when a large proportion of inhabitants in an area come to cities
urbanization is said to occur. Urbanization has become a world phenomenon today. An
unprecedented growth has taken place not only in the number of great cities but also in
their size. As a result of industrialization people have started moving towards the industrial
areas in search of employment. Due to this the industrial areas developed into towns and
cities.
20 | P a g e

Technology and Modernization:

Modernization is a process that indicates the adoption of the modern ways of life and
values. It refers to an attempt on the part of the people particularly those who are custom-
bound to adapt themselves to the present-time, conditions, needs, styles and ways in
general. It indicates a change in people’s food habits, dress habits, speaking styles, tastes,
choices, preferences, ideas, values, recreational activities and so on. People in the process
of getting modernized give more importance to science and technology. The scientific and
technological inventions have modernized societies in various countries. They have
brought about remarkable changes in the whole system of social relationship and installed
new ideologies in the place of traditional ones.

Development of the means of transport and communication:

Development of transport and communication has led to the national and international trade
on a large scale. The road transport, the train service, the ships and the airplanes have eased
the movement of men and material goods. Post and telegraph, radio and television,
newspapers and magazines, telephone and wireless and the like have developed a great
deal. The space research and the launching of the satellites for communication purposes
have further added to these developments. They have helped the people belonging to
different corners of the nation or the world to have regular contacts.

Transformation in the economy and the evolution of the new social classes:

The introduction of the factory system of production has turned the agricultural economy
into industrial economy. The industrial or the capitalist economy has divided the social
organization into two predominant classes-the capitalist class and the working class. These
two classes are always at conflict due to mutually opposite interest. In the course of time
an intermediary class called the middle class has evolved.

Technology and Unemployment:

The problem of unemployment is a concomitant feature of the rapid technological

advancement. Machines not only provide employment opportunities for men but they also
take away the jobs of men through labour saving devices. This results in technological
unemployment.

Technology and war:

The dangerous effect of technology is evident through the modern mode of warfare. The
weaponry has brought fears and anxieties to the mankind. They can easily destroy the entire
21 | P a g e

human race reveal how technology could be misused. Thus greater the technological
advancement the more risk for the mankind.

Changes in social institutions:

Technology has profoundly altered our modes of life. Technology has not spared the social
institutions of its effects. The institutions of family, religion, morality, marriage, state,
property have been altered. Modern technology in taking away industry from the household
has radically changed the family organization. Many functions of the family have been
taken away by other agencies. Marriage is losing its sanctity. It is treated as a civil contract
than a sacred bond. Marriages are becoming more and more unstable. Instances of divorce,
desertion and separation are increasing. Technology has elevated the status of women but
it has also contributed to the stresses and strains in the relations between men and women
at home. Religion is losing hold over the members. People are becoming more secular,
rational and scientific but less religious in their outlook. Inventions and discoveries in
science have shaken the foundations of religion. The function of the state or the field of
state activity has been widened. Modern technology has made the states to perform such
functions as -the protection of the aged, the weaker section and the minorities making
provision for education, health care etc. Transportation and communication inventions are
leading to a shift of functions from local government to the central government of the whole
state. The modern inventions have also strengthened nationalism .The modern
governments that rule through the bureaucracy have further impersonalized the human
relations. The most striking change in modern times is the change in economic
organization. Industry has been taken away from the household and new type of economic
organizations have been set up such as factories, stores, banks, corporations etc

6. MANAGEMENT RESPONSIBILITY FOR

TECHNOLOGICAL CHANGE

Introduction
The word ‘technology’ comes from two Greek words ‘techne’ meaning the skills and craft
needed to make something and ‘loges’ meaning discussion or knowledge of something.
Thus technology means knowledge of how something is made. Technology is one of the
important determinants of a success of affirm as well as the economic and social
development of a nation.
Technology includes the tools- both machines ( hard technology) and ways of thinking (
soft technology)- available to solve problems and promote progress between, among and
between societies.
22 | P a g e

Technology Change Management

The purpose of Technology Change Management is to identify new technologies (i.e.,

tools, methods, and processes) and track them into the organization in an orderly manner.
Technology Change Management involves identifying, selecting, and evaluating new
technologies, and incorporating effective technologies into the organization. The objective
is to improve software quality, increase productivity, and decrease the cycle time for
product development. The organization establishes a group (such as a software engineering
process group or a technology support group) that works with the software projects to
introduce and evaluate new technologies and manage changes to existing technologies.
Particular emphasis is placed on technology changes that are likely to improve the
capability of the organization's standard software process (as described in the Organization
Process Definition key process area). By maintaining an awareness of software-related
technology innovations and systematically evaluating and experimenting with them, the
organization selects appropriate technologies to improve the quality of its software and the
productivity of its software activities. Pilot efforts are performed to assess new and
unproven technologies before they are incorporated into normal practice. With appropriate
sponsorship of the organization's management, the selected technologies are incorporated
into the organization's standard software process and current projects, as appropriate.

Goals
 Incorporation of technology changes are planned.
 New technologies are evaluated to determine their effect on quality and productivity.
 Appropriate new technologies are transferred into normal practice across the
organization.

Commitment to perform

Commitment 1 - The organization follows a written policy for improving its technology
capability.
This policy typically specifies:

 Objectives for technology change management are established and documented.

 A documented plan addresses the objectives for technology change
management.

Commitment 2 - Senior management sponsors the organization's activities for technology

change management.
23 | P a g e

 Helps to define a strategy that addresses the organization's goals for product quality,
productivity, and cycle time for product development.
 Helps to define a strategy that addresses the customer's and end users' needs and
desires, as appropriate.
 Coordinates with the organization's managers in defining their goals and
approaches for accomplishing the organization's strategy.
 Establishes long-term plans and commitments for funding, staffing, and other
resources.

Commitment 3 -Senior management oversees the organization's technology change

management activities.

 Helps to establish policies for technology change management and reviews and
approves these policies.
 Allocates resources for technology change management activities.
 Participates in establishing the plans for technology change management.
 Senior management coordinates with the organization's managers to secure the
managers' and staff's support and participation.

Ability to perform

Ability 1 - A group responsible for the organization's technology change management

activities exists.


A group is the collection of departments, managers, and individuals who have
responsibility for a set of tasks or activities.
 A group could vary from a single individual assigned part time, to several part-
time individuals assigned from different departments, to several individuals
dedicated full time.
 Some groups, such as the software quality assurance group, are focused on project
activities, and others, such as the software engineering process group, are focused
on organization-wide activities.
 The group is either part of the group responsible for the organization's software
process activities (e.g., software engineering process group) or its activities are
closely coordinated with that group.
The group coordinates and helps to:
 Explore potential areas for applying new technology;
 Select and plan for new technologies;
24 | P a g e

 Acquire, install, and customize new technologies;

 Communicate and coordinate with related research and development activities
within the organization

Ability 2 - Adequate resources and funding are provided to establish and staff a group
responsible for the organization's technology change management activities.
Experienced staff members with expertise in specialized areas are available to this group
to help in evaluating, planning, and supporting initiatives for technology change
management.

Ability 3 - Support exists for collecting and analyzing data needed to evaluate technology
changes.

 Record selected process and product data automatically.

 Support data analysis.
 Display selected data.
The results of data analysis are presented in formats that appropriately convey the
information content, e.g., graphical displays.

Ability 4 - Appropriate data on the software processes and software work products are
available to support analyses performed to evaluate and select technology changes.

Ability 5 - Members of the group responsible for the organization's technology change
management activities receive required training to perform these activities.

Activities performed

Activity 1- The organization develops and maintains a plan for technology change
management
It includes:

 Covers the assigned responsibilities and resources required, including staff and
tools.
 Defines the long-term technical strategy for automating and improving the
organization's standard software process and enhancing the organization's market
position.
 Identifies the procedures to be followed in performing the organization's technology
change management activities
25 | P a g e

 Describes the approach for introducing new technologies to address specific needs
of the organization and projects
 Process areas that are potential areas for technology changes are identified
 Approaches for identifying opportunities for technology changes are identified
 The acquisition and installation procedures are defined.
 The initial training, continuing training, and consultation support are defined

Activity 2 - The group responsible for the organization's technology change management
activities works with the software projects in identifying areas of technology change.

 A periodic search is made to identify commercially available technologies that meet

identified and anticipated needs.
 Systematic efforts are made to maintain awareness of leading relevant technical
work and trends of new technologies.
 Systematic efforts are made to review the technologies used externally and to
compare these technologies to those used within the organization.
 Areas where new technologies have been used successfully are identified, and data
and documentation of experience with using them are collected and reviewed.
 Evaluates new technologies to determine their applicability to the organization's and
projects' current and future needs.

Activity 3 - Software managers and technical staff are kept informed of new technologies.
Information on new technologies is disseminated as appropriate.

 Information on advanced technologies already in use in parts of the organization is

disseminated as appropriate.
 Information on the status of technologies being transferred into the organization is
disseminated as appropriate.

Activity 4 - The group responsible for the organization's technology change management
systematically analyzes the organization's standard software process to identify areas that
need or could benefit from new technology.

 Analyzes the organization's standard software process to determine areas where new
technologies would be most helpful.
 Identifies helpful technology changes and determines the economics of those
changes.
 Defines the relationship of the identified technology to the organization's standard
software process.
26 | P a g e

 Defines the expected outcomes of the technology change qualitatively and

quantitatively, as appropriate

Activity 5 - Technologies are selected and acquired for the organization and software
projects according to a documented procedure.

 Requests for the acquisition of new technologies are documented.

 Management approval is required for technologies with projected expenses above a
predefined level.
 Preliminary cost/benefit analyses are performed for the potential technology
changes.
 Predefined and approved selection criteria are used to identify the highest potential
benefits.
 Requirements and plans for the selected technology changes are defined and
documented

Activity 6 - Pilot efforts for improving technology are conducted, where appropriate,
before a new technology is introduced into normal practice.

 These pilot efforts are conducted to determine the feasibility and economics of
untried or advanced technologies.
 The plans for the pilot effort are documented.
 The plan covers the objectives, evaluation criteria, and activities for the pilot effort.
 The group responsible for technology change management activities provides
consultation and assistance to the project implementing the pilot effort.
 The pilot effort is performed in an environment that is relevant to the development
or maintenance environment.
 The results of the pilot effort are collected, analyzed, and documented.
A decision is made whether to terminate the effort, proceed with broad-scale
implementation of the technology, or re plan and continue the pilot effort.

Activity 7 - Appropriate new technologies are incorporated into the organization's standard
software process according to a documented procedure.
Refer to Activity 1 of the Organization Process Definition key process area and Activity 5
of the Process Change Management key process area for practices covering changes to the
organization's standard software process.

Activity 8 - Appropriate new technologies are incorporated into the projects' defined
software processes according to a documented procedure.
27 | P a g e

Measurement and analysis

Measurement 1 - Measurements are made and used to determine the status of the
organization's activities for technology change management.
Examples of measurements include:

 The overall technology change activity, including number, type, and size of changes;
and
 The effect of implementing the technology change, compared to the goals.

Verifying implementation

Verification 1 - The organization's activities for technology change management are

reviewed with senior management on a periodic basis.
The primary purpose of periodic reviews by senior management is to provide awareness
of, and insight into, software process activities at an appropriate level of abstraction and in
a timely manner. The time between reviews should meet the needs of the organization and
may be lengthy, as long as adequate mechanisms for exception reporting are available.
Verification 2 - The software quality assurance group reviews and/or audits the activities
and work products for technology change management and reports the results.