Chapter 8: The technological framework Flashcards Preview

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Flashcards in Chapter 8: The technological framework Deck (8):
1

Technology Refers too..

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

2

Technological advancement comprises of..

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

3

Technological change can refer to..

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

4

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

5

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

6

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

7

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

8

Innovation

- 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