Environmental influences - External factors - Technological factors

8 important questions on Environmental influences - External factors - Technological factors

Why are technological developments essential?

Technological developments are essential for the internationally competitive position of its business life. Thanks to technological development, there is continuous improvement of production methods and innovation of goods and services. As a consequence, the lifespan of existing products is continually shortened.

What are important stimuli for technological innovation?

  • Competition
  • demand for more environmentally friendly goods and services of a higher quality, with a lower cost price, which can be delivered faster and more conveniently

In which areas can major technological changes and successes expected?

  • Artificial intelligence
  • Network speeds (5G)
  • Energy transition
  • Biotechnology
  • Information technology
  • Robotisation (automation)
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What is Information Technology?

Information technology is concerned with the application of micro-electronics, and deals with saving and adapting information. Examples of products in the field of information technology are hardware (computers), software, communications networks, and intelligent computer chips.

What is robotization or automation?

The term for having robots perform work that is being carried out by people.

Developments in information technology will exert a big influence on all organizations in the coming years. The main consequences of this will be:

  • Fundamental changes in the way work is done
  • Integration of functions
  • Changes in economies of scale and decision-making

Integration of functions. Through the expansion of communication networks, relevant information can be made available in the right form, at the right moment, and in the right place. What are the three different identifiable categories of function integration?

  1. Within the organisation
  2. Between organisations
  3. Electronic markets

Why is the size of the R&D budget not necessarily an indicator of the potential success of a business?

The way in which technology is implemented and renewed within operations in comparison with competitor activity also plays a key role. A flexible, efficient, and goal-oriented way of operating within organisations is required.

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