1. 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

2. 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

3. 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 – major changes happening?
Banking – security issues,
See The Master Switch – book.
ITEC 102