Technological Environment Affecting Indian Business

Topics: Economics

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A. High expectation of customers:

Technology can change the buying patterns of customers. Customers are the crux whenever a business venture is created. Organizations produce to sell, but if the spending power of the consumers decreases or they become averse to a particular type of product or service, the organization will be affected immensely. It is important therefore, that business leaders are able to gauge he change in tastes and preferences of customers so that they are better prepared for any eventuality.

People want better products with superior quality, safer and free from pollution. For all this to be achieved, more investment has to be done on Research and Development. High expectations can pose a challenge as well as opportunities to the business sectors. The most successful and powerful organizations are looked at with hope for the newest and best products and so it completely depends on their work methods to satisfy the customers with good products or lose their faith with bad products.

B. Modernization and Arbitration:

Technology has resulted in both Modernization and Complexity. Modernization is indicated by a change in people’s food habits, dress habits, speaking styles, tastes, choices, preferences, ideas, values, recreational activities and so on. People in the process of getting them modernized give more importance to science and technology. The scientific and technological inventions have modernized societies in various countries. They have brought about remarkable changes in the whole system of social relationship and installed new ideologies in the place of traditional ones.

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Arbitration denotes a diffusion of the influence of urban centers to a rural hinterland.

It describes the growth of a society in which a major role is played by manufacturing industry. The industry is characterized by heavy, fixed capital investment in plant and building by the application of science to industrial techniques and by mainly large-scale standardized production. Due to technological changes people are trying to upgrade themselves from just agriculture to other options and opportunities. Hence only when a large proportion of inhabitants in an area come to cities arbitration is said to occur.

Arbitration has become a world phenomenon today. An unprecedented growth has taken place not only in the number of great cities but also in their size. As a result of industrialization people have started moving towards the metro cities like Bungalow, Achaean and Iambi etc in search of employment. More and more rural areas are thus getting converted in to urban areas to accommodate the moving populations.

C. Social Changes:

The implementation of technology influences the values of a society by changing expectations and realities. The implementation of technology is also influenced by values. There are (at least) three major, interrelated values that inform, and are informed by, technological innovations: * Mechanistic world view: Viewing the universe as a collection of parts, (like a machine), that can be individually analyzed and understood. This is a form of reductionism that is rare nowadays. However, the “neo-mechanistic world view” holds that nothing in the universe cannot be understood by the human intellect.

Also, while all things are greater than the sum of their parts (e. G. Even if we consider nothing more than the information involved in their combination), in Renville, even this excess must eventually be understood by human intelligence. That is, no divine orbital principle or essence is involved. * Efficiency: A value, originally applied only to machines, but now applied to all aspects of society, so that each element is expected to attain a higher and higher percentage of its maximal possible performance, output, or ability. Social progress: The belief that there is such a thing as social progress, and that, in the main, it is beneficent.

Before the Industrial Revolution, and the subsequent explosion of technology, almost all societies believed in a cyclical hero of social movement and, indeed, of all history and the universe. This was, obviously, based on the cyclist of the seasons, and an agricultural economy and society’s strong ties to that cyclist. Since much of the world is closer to their agricultural roots, they are still much more amenable to cyclist than progress in history. This brings on with it, some disadvantages too.

Though social differences tend to be ironed out, status differences are created by technological advancements in Indian and other developing countries. In India, employees in foreign collaborations are paid more than employees working in local collaborations, though they do the same job in the same field. Moreover, modernization pressurize for more and more Genetically Modified Products over natural products and this several adverse affects like misaligning the natural pathways. It also leads to consolidation Of market towards the companies providing GM products.

D. Social Systems:

Of particular interest is the knowledge of technology. At this level, technology creates a distinct type of social system, namely, the knowledge society. In the knowledge society, use and transfer of knowledge and information, rather Han manual skill, dominates work and employs the largest portion of labor force. The knowledge worker will have to show why he should be retained, what benefit he can offer to the organization and how he can add value to whatever the organization does. He will have to create new jobs in consultation with his employer.

The factories have brought down the prices of commodities, improved their quality and maximized their output. The whole process of production is mechanized. The process of industrialization has affected the nature, character and the growth of economy. It has contributed to the growth of cities or to the process Of arbitration. Development Of transport and immunization has led to the national and international trade on a large scale. The road transport, the train service, the ships and air transport have eased the movement of men and material goods.

Post and telegraph, radio and television, newspaper and magazines, wireless has developed a great deal. They have helped the people belonging to different corners of the nation or the world to have regular contacts. The introduction of the factory system of production has turned the agricultural economy into industrial economy. The industrial or the capitalist economy has divided the social organization into two predominant classes- the capitalist class and the working class. These two classes are always at conflict due to mutually opposite interests.

A. Productivity and Competition:

Most of the organizations today fiercely contest with each other to woo customers. Although, the customer is in a win-win situation and gets many options to choose from, organizations for their part have to be on their toes with all preparedness to counter any marketing or publicity campaigns by the rivals to score over the consumers. If a rival is able to come up with an innovative product or service, other organizations then need to play the thatch-up game and this factor affects business immensely.

It is the driving factor behind the technological advancements. In technology the competition is remorseless. In most businesses the competition might be able to do something as well as you – and it will remove your excess profit. People will build hotels for instance until everyone’s returns are inadequate but not until everyone’s returns are sharply negative. Even in a glutted market a hotel tends to have a reason to exist – it still provides useful service.

For example, data suggests that during the years since 1991-92, when the Indian software arrives industry and, to an extent, the hardware industry was still in its infancy, there has been one striking structural feature characterizing the sector. Over this 1 7-year period when industry revenues have grown by more than 1 50 times or at a compound rate of 34 per cent per annum, a few firms have routinely dominated the industry. Thus the share of the top 20 firms in the industry throughout the period has fluctuated between 47 and 57 per cent, standing at 55 per cent in 1999-2000 and at 56 per cent in 2006-07.

That is concentration as conventionally measured has been high and relatively table. What is more there is evidence that at the core of the industry concentration is in fact increasing. According to the results of Disquiet’s most recent survey, the share of the Top 20 firms in the revenues of the Top 200, which has been increasing consistently over the last few years, rose sharply from 54 per cent in 2005-06 to 64 per cent in 2006-07, as compared to a rise from 50 to 54 per cent between 2004-05 and 2006-07 (Datasets, July 1 5, 2007).

Acquisitions such as that of I-Flex by Oracle and a sudden, sharp 1 36 per cent increase in the revenues of Tech Maidenhair partly explain this rend. But the fact of a high degree of concentration cannot be denied. With the increasing technology requirements of Indian businesses and government along with increased summarization, the Indian technology industry is expected to grow to RSI. 1. 8 trillion by 201 6, a growth of over 2012.

Opportunities’, the contribution of the Internet economy to the country’s gross domestic product (GAP) is expected to increase from 4. % in 2010 to 5. 6% in 2016, to touch RSI. 1 1 trillion, driven largely by the country’s demographic dividend. Also, the number of billion-dollar Indian companies ill increase from 141 in fiscal year 2010 to more than 700 by 2020, and these firms will require extensive use of technology to remain competitive. This thus, is leading to increased productivity in terms of quality and quantity by the major Indian industries. A number oftentimes factors can affect both true and “measured” productivity.

For example, workers may work harder during periods of high demand and firms may use their capital assets more intensively by running factories for extra shifts; both factors can lead measured productivity to be too high relative to actual technological progress. Similarly, during periods of high demand, productivity can rise because firms take advantage of increasing returns to scale. Technology has brought about increased productivity in almost all sectors Of Indian Economy like Infrastructure, Agriculture, Communication and Information Technology through new techniques and methods.

Some of the productivity improving technologies are:

  1. Replacing human and animal power with water and wind power, steam, electricity and internal combustion and greatly increasing the use of energy
  2. Energy efficiency in the conversion of energy to useful work
  3. Infrastructures: canals, railroads, highways and pipelines
  4. Mechanization, both production machinery and agricultural machines
  5. Work practices and processes: The American system of manufacturing, Tailors or scientific management, mass production, assembly line, modern business enterprise
  6. Materials handling: bulk materials, popularization and centralization
  7. Scientific agriculture: fertilizers and the green revolution, livestock and poultry management
  8. New materials, new process for their production and denationalization.
  9. Communications: Telegraph, telephone, radio, titillates, fiber optic neuron and the Internet
  10. Home economics: Public water supply, household gas, appliances
  11. Automation and process control
  12. Computers and software, data processing.

B. Need to spend on Research and Development:

Research and Development assumes considerable relevance in organizations as technology advances. Firms are required to consider, decide and take action on various issues. In the modern world, superior technologies, resources, geography, and history give rise to robust economies; and in a well-functioning, robust economy, economic excess naturally flows into rater use of technology. Moreover, because technology is such an inseparable part of human society, especially in its economic aspects, funding sources for (new) technological endeavourers are virtually illimitable. However, while in the beginning technological investment involved little more than the time, efforts, and skills of one or a few men, today, such investment may involve the collective labor and skills of many millions.

Technology transfer is a complex, time-consuming and costly process, and the successful implementation of such a process demands continuous communication and o-operation between the parties involved. Furthermore, technology transfer cannot be effective if it experiences conflict with the economic and social needs of the people. In spite of the many differences in social, political, cultural, geographic and economic conditions, there are some common characteristics in the technological environments of developing countries. The most common technology transfer from industrialists to developing countries has been in agriculture and health care.

As a result of improved health care systems, infant mortality rates have been cut while the incidence f once common diseases such as malaria and typhoid has been reduced in Latin America, south-east Asia and Africa (although the incidents Of the AIDS virus has increased alarmingly). Similarly, agricultural technology has increased agricultural productivity in Brazil, India and elsewhere. However, in most developing countries, technology has made little impact on the productive systems, income distribution and living conditions of the majority of the population. Moreover, as new technology comes in, the old one needs to be abandoned.

The process of old replaced by new is called Technological Discontinuity. Such discontinuity occurs when a new technology cannot be used simply to enhance the current technology but actually substitutes for it to yield better performance. The R n D management must determine when to abandon present technology and when to develop or adopt new one.

C. Increasing Intellectuality of jobs:

With the advent of technology, jobs tend to become more intellectual or upgraded. A job hitherto handled by an illiterate and unskilled worker now requires the services of an educated and component worker. Introduction of new technology dislocates some workers. This makes it obligatory on the part f business houses to retrain its employees and to rehabilitate those displaced and non-trainable.

Equal is the responsibly of the government to provide training and educational facilities to its citizens-those who pick up and acquaint themselves with the new technology, the job will be rewarding as they stand to gain through increased productivity, reduced prices and increased real wages. Along with upgrading jobs, technology has its impact on human relations. Since interaction and activity affect sentiments and they begin to feel and think about one another and about their situation. Not only bobs become more intellectual and knowledge-oriented, even the incumbents tended to become highly professional and knowledgeable.

D. Unemployment:

The problem of unemployment is a concomitant feature of the rapid technological advancement. Machines not only provide employment opportunities for men but they also take away the jobs of men through labor- saving devices. This results in technological unemployment. Labor displacing technologies can generally be classified under mechanization, automation, and process improvement. The first two fundamentally involve transferring tasks from humans to machines.

The third monumentally involves the elimination of tasks altogether. Unemployment due to an increment in productivity generates an expectancy that no new jobs, or not enough new jobs, will arise to fill the void. Variants of this argument persist through the present day, as do counter-arguments to it. Average working hours have decreased significantly since the advent of modern efficiency producing technologies and continue to fall as less and less labor is needed to meet demand.

The Great Indian Technologies From launching its first satellite to becoming self sufficient in food grain production to entering the nuclear power club, the last 60 years have seen India transform from a poor, struggling country into a modern scientific power that defied global pressure to carve out a place for itself in the field of science and technology Subbed Farm When India became independent, the political leadership -? like the people at large -? had magnificent dreams.

They wanted to build a prosperous, modern India casting aside centuries of stagnation, poverty and backwardness. And one of the important facets of this vision was the harnessing of science and technology to deal with the huge economic and social challenges facing the country. In the early years the foundation for a gigantic, state-funded scientific establishment was laid. Scientific research in the Nan-strategic sphere was entrusted to the Council of Scientific and Industrial Research (SIR) with its 37 laboratories and over 1 2,000 scientists.

Similarly, the Indian Council for Agricultural Research took on the task of addressing problems of increasing agricultural output through its 97 institutes and 45 agricultural universities. -? India was a poor country, ravaged and plundered by colonialism. Yet, precious resources were set aside for all this because there was a vision that science should be put to direct use of society. These investments made 60 years ago have since borne fruit. Unlike any other post-colonial country (barring China) India can boast of one of the world’s largest scientific establishments with personnel to match it.

How have these capabilities been put to use? How has the science and technology establishment tackled the halogens? The answers to these questions are not easy because its a mixed bag -? there are some well-known crowning achievements, but there is also a growing sense of unease about some issues where problems are mounting. Five areas can immediately be identified where Indian scientists have made significant strides. Their significance is not that they are fantastic discoveries that changed the world. They are remarkable because they were achieved against all odds, often in international isolation, and working with limited resources.

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Technological Environment Affecting Indian Business. (2018, Feb 14). Retrieved from

Technological Environment Affecting Indian Business
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