Technology and Business U.S. has moved from an agricultural to industrial to a service based economy. World trade is part of every economy. Automation has affected jobs – resulting in both losses and gains of jobs. Result is a widening gap in job skills – either highly skilled requiring education or unskilled. Wages have diverged also. Technology has enabled telecommuting and outsourcing. Paperless office not realized yet. ITEC 102

Technology Specific Business Software has a “marginal cost” effectively zero. Ripple effect of the Dot com bubble cycle resulted in company consolidation and less interest in the computing professions. Software industry not a true competitive market – pricing usually “what the market will bear”. Once users buy a software product it is hard to get them to switch since upgrades are made to contain new features. Most successful technology companies have the same business practices of successful non-technology companies. A great idea does not necessarily mean success. In a usual competitive market selling cost is the same as the marginal cost (cost to produce another unit). ITEC 102

Technology Influenced Industries Banking – credit history, check handling, and online banking. Publishing - all phases of production have been influenced from editing to printing. What has been slow to change is the business practices (see textbook prices). E-books still not catching on rapidly. Agriculture – precise application, weather forecasting, and reduction of going over the ground. Economics can stifle innovation – Tech. industries go through a pattern of industry maturation: innovation, maturation, protection of market share resulting in conservative innovation leading to vulnerability to new innovation. Education – no major changes – yet. Banking – security issues, See The Master Switch – book. ITEC 102