Chapter 8: The technological framework Flashcards Preview

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Flashcards in Chapter 8: The technological framework Deck (8):

Technology Refers too..

refers to the know-how or pool of ideas or knowledge available to society.


Technological advancement comprises of..

comprises of new knowledge or additions to the pool of knowledge that can change how businesses behave.


Technological change can refer to..

can refer to groundbreaking advances in knowledge or simply minor modifications to products and processes


The waves of innovation

- 1 – Industrial revolution – machinery
- 2 – Steam power to drive machines in production of manufactured goods
- 3 – Expansion of chemical industry, increased communication with telephones
- 4 – Oil and application of electricity to industrial processes
- 5 – Second half of 20th century – rapid development in electronics, communications, pharmaceuticals, biotechnology


Information and Communications Technology (ICT)

- Encompasses all forms of technology used to create, store, exchange and use information in its various forms
- Machines – computers, telephone exchanges, robots, satellites
- Digitalization is breaking down barriers between different forms of media


Web 2.0

- Creates a global system that makes it easier for B2B and B2C interactions
- Can use Web 2.0 to communicate with employees and invite customers to rate products and provide recommendations
- Social media gives insight into how to position products, create new products and decide on pricing strategies


The cloud

- Allows business to use software on the internet
- Company data can be stored on cloud
- Reduced costs needed to spend on IT personnel and infrastructure
- Disadvantage – very dependent on it, negative consequences if it is hacked



- Who innovates? The medium to high technology sectors account for most R&D and contribute to large shares of sales of new and improved products
- What motivates businesses to innovate?
o Intensity of competition – increasing competition from emerging markets, globalization, reduction in barriers
o Customer/suppliers
o Government policy – policies to remove barriers, can cut costs associated with innovation
- Opportunities: New goods/services, freezing out competitors, increase productivity, reduce costs
- Threats: Not good for firms who cannot manage change effectively, creative destruction – when firms are not prepared for new technology that will lead to them going out of business
- Protecting technology
o Methods: patents, designs, trademarks, copyright
o Problems: cost, multiple applications, differing protection periods