Professional Documents
Culture Documents
(ECO-505)
Session-9-10
9-2
Technological Environment
Technological Environment
◦ Technology – Lesser Inputs and Higher Output
◦ Use of Scientific knowledge to bring out need satisfying
products by the Industry
◦ Application of Science by Engineers
◦ Motive is socio economic gains (profit) where science is
in pursuit of knowledge and glory
◦ Technology imposes certain amount of Change on Society
◦ Sophisticated Production Processes
9-3
Technological Environment
Classification of Technology
◦ State of the art Technology – Equals or surpasses competitors
◦ Core technology – To maintain a competitive position
◦ Supporting Technology – Supporting Core Technology
◦ Emerging Technology – Currently under consideration
9-4
Technological Environment
Impact of Technology
◦ Social Implications
◦ Economic Implications
9-5
Impact of Technology – Social Implications
Social Implications
◦ High Expectations of Consumers
More Safe more comfortable items expected at lesser cost
Many more variants required which needs huge R&D
◦ System Complexity
Complexity of servicing new Technology –Process failure
Reliable Performance expected
◦ Social Changes
Job displacement and Income Inequality (Software example)
◦ Social System
From Manual driven work to Intellectual Driven Work (Perception towards work;
Mallikarjun’s Vegetable shop example)
9-6
Impact of Technology – Economic Implications
Economic Implications
◦ Increased Productivity
◦ Need to Spend on Research and Development
◦ Job Profiles – More Intellectual and Knowledge Oriented; Concept of
Knowledge workers
◦ Problem of Technostructure – Motivation to employees become tough
in the light of enlightenment (Stickiness vs. Hopping)
◦ Increased Regulation and Stiff Opposition
◦ Rise and Decline of Products and Organizations
◦ New Business Boundaries
◦ Training of Scientists and Engineers –Quality of Graduates (China-India
Comparison; Correlation in the case of US Phds and Technological innovations)
9-7
Impact of Technology – Plant Level Implications
Plant-Level Implications
◦ Technology and Organisational Structure
◦ Fear of Risk
◦ Resistance to Change (Example of Railways and many more)
Psychological and Social commitments to existing Products and Process
Capital Investment
Complacent Top Management
Industry Norms and Associations
Powerful Trade Unions resistance
◦ E-Commerce
Internet and E-commerce
Shorter Time Period to Produce and Worldwide Transactions with less cost
9-8
Impact of Technology – Plant Level Implications
Plant-Level Implications
◦ Patenting – HUL with Highest patent files from India
◦ Globalization of Product
◦ Globalization of Markets
◦ Collaboration
◦ Use of Social Networking
◦ Use of Data Mining to Firms Advantages
◦ Use of Latest Communication Mobile Technology to gain
competitive Advantage at Plant Level
9-9
Technology Transfers
9-10
International Technology Transfers
9-11
International Technology Transfers
9-12
International Technology Transfers
9-13
Technology Transfers Process
9-14
Issues in International Technology
9-15
Issues in International Technology
9-16
Issues in International Technology
9-17
Issues in International Technology
Choice of Technology
Terms and Conditions of Technology Transfer
Globalization
Creating Local Capabilities
Barriers to Technology Transfer
International Technological Environment and
International Business
9-18
Technology Transfer and Economic
Environment
Economic Environment
GDP and Growth in GDP
Inflation and Technology Transfer (Rafale Deal
Example)
Stability in Exchange Rate
Employment Potential and Technology Transfer
Availability of Resources (Price vs. Availability of Factors)
9-19
Technology, R & D and Economic Environment
9-20
Resource availability and International Business
Availability of Resources
Inputs Availability vs. Prices
Work Force Quality
Quality work Force Availability vs. Wages
Cost Factors in Production and Marketing
◦ Bella case; Posco Case; Arecelor Mittal Case
Support and Ecosystem of the Host Country
Work Culture, Technology and International Business
9-22
Case on Bella Health care
9-23