MAJOR-III:

BUSINESS ENVIRONMENT
 Technological Environment:
Meaning and features;
types of innovation,
Impact of Technological changes on business,
Technology and Society,
Technological Acquisition modes,
IT revolution and business,
Management of Technology.
 Meaning and features

 external factors in technology that impact business operations

The technological environment refers to external factors in

technology that impact business operations. Changes in technology
affect how a company will do business. A business may have to
dramatically change their operating strategy as a result of changes in
the technological environment
INNOVATIO
N

Some people think that creativity and

innovation are synonyms. They are
not. Creativity means coming up with
a new idea. Innovation is taking this
novel idea, and solving customer pain
points and creating value.
 1. Product & Product Performance
Innovation

Fields of
Innovation 2. Technology Innovation

3. Business Model Innovation

4. Organizational Innovation
Managing and sharing resources in a new way
can also be an innovation. This way it’s possible
to use resources and assets in a completely new
way.
5. Process Innovation
Innovation in the processes can improve the
efficiency or effectiveness of existing methods.
Possible process innovations involve production,
delivery, or customer interaction.
6. Marketing / Sales – New Channel
Innovation
New methods to capture and hold attention
from customers. Either through the use of
innovative marketing/sales concepts or the use
of new channels for customer acquisition/sales.
7. Network Innovation
By connecting different groups and stakeholders
it might be possible to create extra value. This
type of innovation is very common due to the
use of ICT services.
8. Customer Engagement / Retention
Innovative concepts that try to increase the
engagement of customers and keep the
retention up. The goal is to have innovative
models to keep the customers “locked-in” or
engaged.
 Types of
Innovation
 Existing Technology, Existing Market
One of the most common forms of innovation
that we can observe. It uses existing
technologies within an existing market. The
goal is to improve an existing offering by
adding new features, changes in the design,
1. etc.
Incremental
Example
Innovation
The best Example for incremental innovation
can be seen in the Smartphone market where
the most innovation is only updating the
hardware, improving the design, or adding
some additional features/cameras/sensors,
etc.
 New Technology, Existing Market
Disruptive innovation is mostly associated with applying
new technologies, processes, or 
disruptive business models to existing industries.
Sometimes new technologies and business models seem,
especially in the beginning, inferior to the existing
2. solutions but after some iterations, they surpass the
Disruptive existing models and take over the market due to
efficiency and/or efficacy advantages.
Innovation
Examples
Amazon used Internet-Technologies to disrupt the existing
industry for book-shops. They had the existing market for
books but changed the way it was sold, delivered and
experienced due to the use of disruptive technologies.
Another example was the iPhone, where existing
technologies in the market (Phones with buttons,
keypads, etc.) were replaced with touch-interface-
centered devices combined with intuitive user interfaces.
 Existing Technology, New Market
Architectural innovation is something we see with
tech giants like Amazon, Google, and many more at
the moment. They take their domain expertise,
technology, and skills and apply them to a different
market. This way they can open up new markets and
expand their customer base.
3.
Architectural Examples:
Innovation
Especially digital ecosystem orchestrators like
Amazon and Alibaba use this innovation
strategy to enter new markets. They use
existing expertise in building apps, platforms,
and their existing customer base to offer new
services and products for different markets.
A recent example for this: 
Amazon recently entered the medical care field.
 New Technology, New Market
Even it is the stereotypical way most people
see innovation; it is the rarest form of them
all. Radical innovation involves the creation
of technologies, services, and business
models that open up entirely new markets.
4. Radical
Innovation
Example
The best example of radical innovation was
the invention of the airplane. This radical
new technology opened up a new form of
travel, invented an industry, and a whole
new market.
 1. Impact on Operating Costs
Small business owners can use technology to reduce
business costs. Basic enterprise software enables a firm to
automate back-office functions, such as record keeping,
accounting and payroll. Mobile tech allows home offices and
Impact of field reps to interact in real time. For example, field reps can
use mobile apps to record their daily expenses as they incur
Technological them and have them sync automatically with accounting
changes on software back at the office.
business
2. Securing Sensitive Information
Business owners can also use technology to create secure
environments for maintaining sensitive business or consumer
information. Many types of business technology or software
programs are user-friendly and allow business owners with
only minor backgrounds in information technology to make
the most of their tools and features.
 3. Improved Communication Processes
Business technology helps small businesses improve their
communication processes. Emails, texting, websites and apps,
for example, facilitate improved communication with
consumers.
Impact of
Technological
changes on Technology also improves inter-office communication as well.
business For example, social intranet software gives employees a
centralizes portal to access and update internal documents
and contracts and relay relevant data to other departments
instantly.
These methods also help companies reach consumers through
mobile devices in a real-time format.
 4. Increased Employee Productivity
Computer programs and business software usually allow employees
to process more information than manual methods.
Business owners can also implement business technology to reduce
the amount of human labor in business functions.
Impact of This allows small businesses to avoid paying labor costs along with
employee benefits.
Technological
changes on Even fundamental business tech can have a major impact on
employee performance.
business
For example, by placing employee-performance appraisal
information in an online framework, supervisors can easily create
measurable goals for their employees to reach and sustain company
objectives.
Business owners may also choose to expand operations using
technology rather than employees if the technology will provide
better production output.
 5. Broaden Customer Bases
Businesses to reach new economic markets.
Rather than just selling consumer goods or services in the
local market, small businesses can reach regional, national
Impact of and international markets.
Technological
Retail websites are the most common way small businesses
changes on sell products in several different economic markets.
business
Websites represent a low-cost option that consumers can
access 24/7 when needing to purchase goods or services.
Small business owners can also use internet advertising to
reach new markets and customers through carefully placed
web banners or ads.
 6. Collaboration and Outsourcing
Business technology allows companies to outsource business
functions to other businesses in the national and
international business environment.
Impact of Outsourcing can help companies lower costs and focus on
completing the business function they do best.
Technological
changes on Technical support and customer service are two common
function companies outsource.
business
Small business owners may consider outsourcing some
operations if they do not have the proper facilities or
available manpower.
Outsourcing technology also allows businesses to outsource
function to the least expensive areas possible, including
foreign countries.
Technology and Society,
THANKS