Business and the Technological Environment BUSS4 Technological Environment

Technology Changing technology can represent an opportunity or a threat It can provide a firm with a competitive advantage or make its product or service obsolete Things like CAD/CAM and industrial robots means that firms can reduce their costs however technology changes so fast that often it is out of date as soon as it is implemented The internet has been a big opportunity and a very large threat to the retail industry Online shopping means much larger markets but retailers are having to find ways to tempt people into shops

Technology Research still says that 70% of people like to be able to touch a product before they buy it Some online retailers are moving into bricks and mortar Screwfix started out as a catalogue retailer in 1979, and its listings of nuts, bolts and nails were the cornerstone of any tradesman's toolkit In 2005, after the business was bought out by the retail giant Kingfisher, Screwfix made the move from paper to bricks and mortar. Oak Furniture Land started life as an eBay retailer in 2003 Soon that was not enough, It now does 65% of its trade in- store - and that has boosted its turnover considerably

Technology - Evaluation Whether new technology provides an opportunity or a threat for an organisation depends on the firm’s resources and their attitude to change The introduction of new technology needs to be carefully managed Managers need to think about the compatibility of the technology, the financial implications of buying and implementing People are often suspicious or worried by new technology and managers need to think about speed of implementation and how it is introduced Organisations have to at least keep up with their competitors’ technology or be ahead It must be remembered that a Kaizen approach (gradual improvements) can be as successful as dramatic technological change