Technological Environment
• How the Technological Environment
Might Affect
– Customer/Consumer Demand for Your
Recommended Service/Product in Your
Recommended Country
– Your Company’s/Organization’s Ability &
Willingness to Supply Your Recommended
Service/Product in Your Recommended Country
BUSML 757
1
Technological Environment
• Technological Environment Factors
– High Technology Penetration
• Computer, Internet, Mobile Telephone Penetration
• iPhone, iPad Penetration (Surrogate Measure of
Technological Skill Level)
• Level of Broadband Media Access
• Level of Telecommunications Equipment Production
• Digital vs. Analog TV Households Penetration
• # ISPs
• # Internet Cafes
BUSML 757
2
Technological Environment
• Technological Environment Factors
– R&D
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•
•
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Level of Expenditures
# Personnel
# Institutions (Research Universities)
# R&D Facilities
# Technological Training Facilities
BUSML 757
3
Technological Environment
• Technological Environment Factors
– Country Infrastructure
•
•
•
•
•
Transportation Infrastructure (Surface, Air, Rail)
# of Ports & Terminals
Distribution & Logistics Infrastructure
Media Infrastructure (Broadcast, Print, Outdoor)
Reliability of Communication Infrastructure
BUSML 757
4
Technological Environment
• Technological Environment Factors
– Population’s Technological Skill Level
• # of Scientific & Technological Employees
• # Innovators
• Workforce Qualifications: Education Level,
Technological Skill Level
• Computer Literacy Rate
• Country’s Comparative Technological Skill Level
BUSML 757
5
Technological Environment
• Technological Environment Factors
– Level & Type of Government Support
• Intellectual Property Protection
• Presence of Technology Development Zones
• Technological Monopolies: Public, Private
BUSML 757
6
Technological Environment
• Technological Environment Factors
– Domestic Industry Characteristics
• FDI in Technology
• Domestic Ability to Produce Technologically
Sophisticated Products (e.g., Hybrid Cars, Digital TVs,
iPhones, iPads, Portable Navigation Systems, etc.)
• Level of E-Commerce
BUSML 757
7
Technological Environment
• Technological Environment Factors
– Country Characteristics
• # Patent Applications/Grants
• ISO (International Organization for Standardization)
Certifications
– 9000 (Quality)
– 27001 (Information Security Management)
• Technology Transfer Rate
• Power Supply
• Country’s Position on the Diffusion of Innovation Curve
BUSML 757
8
Technological Environment
• Technology’s Impact on Industry
– Innovation Accounts for >50% of Productivity
Growth
BUSML 757
9
Technological Environment
• Technological Environment Factors
– Global Innovation Index (BCG, NAM, MI)
Ranking
•
•
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•
•
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Singapore, 1
Hong Kong, 6
U.S., 9
UK, 16
Australia, 23
India, 44
BUSML 757
10
Technological Environment
• Technological Environment Factors
– The Network Readiness Index (INSEAD, World
Economic Forum): A Country’s Capacity to Benefit
from New Technologies
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•
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Singapore, 2
U.S., 5
Hong Kong, 12
UK, 15
Australia, 17
China, 36
India, 48
BUSML 757
11
Technological Environment
• Technological Environment Factors
– Global Competitiveness Index (World Economic
Forum) Innovation & Sophistication Sub-Index
• Business Sophistication
– Quality of a Country’s Business Networks
– Quality of Individual Firms’ Operations & Strategies
• Technological Innovation
– R&D Investment, Especially the Private Sector
– # of High Quality Scientific Research Institutions
– Extensive Collaboration in Research Between Universities &
Industry
– Intellectual Property Protection
BUSML 757
12
Technological Environment
• Technological Environment Factors
– Global Entrepreneurship Monitor (Babson College,
London Business School): Innovation-Driven
Economies
• Australia
• Europe : Belgium, Denmark, Finland, France, Germany,
Greece, Iceland, Ireland, Italy, Netherlands, Norway,
Portugal, Slovenia, Spain, Sweden, Switzerland, United
Kingdom
• Middle East: Israel
• Asia: Japan, South Korea
• United States
BUSML 757
13
Technological Environment
• Technology’s Impact on the Pharmaceutical
Industry
– Aging Population With Need for Multiple Drug Regimens (e.g.,
Alzheimer’s, Parkinson’s). U.S. Drug Delivery Market > $22b
– Microchips
• Implanted in the Body
• Drug Release. Deliver Minute Doses of Drugs In Measured
Quantities
• Response Sensing
– Measure Drug Levels in the Body
– Measure Body’s Physiological Responses to Drugs
• Data Transmission. Broadcast Information to Data-Logging
Equipment Outside Body
BUSML 757
14
Technological Environment
• Technology’s Impact on Agriculture: GM
Crops
– Claimed Advantages
• GM Achieves Cross Breeding Results Faster
• GM Is More Precise than Cross Breeding By Transferring
Only the Genes Associated with the Desirable Trait
• GM Allows Trait Transfer to Unrelated Species (e.g., Cornell
Has Created Bananas Containing Hepatitis B Vaccine)
• GM Crops are More Resistant to Viruses & Insects
• GM Crops are More Tolerant of Herbicides
• GM Crops Might Protect the Environment by Reducing
Chemical Pesticide Use
BUSML 757
15
Technological Environment
• Technology’s Impact on Agriculture: GM
Crops
• Claimed Potential Dangers
– Transferring Genes Between Different Species Could Create
Health Risks (e.g., Evoking Allergies)
– GM Crops May Cause Environmental Problems (e.g., GM
crops Might Spur Evolution of Super Pests)
BUSML 757
16
Technological Environment
• Technology’s Impact on Agriculture: GM
Crops
– GM Crops in China:
• Save Farms. Small Farms Means the Cost Per Bu. of
Wheat/Rice/Corn is Higher than Europe or the U.S.
• China Wants to Co-opt a New Science. Genetic Engineering
is a Top Government Priority
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First to Grow Virus-Resistant Tobacco Plants
Slow-Ripening Tomatoes
Virus-Resistant Green Peppers
Work on Rice (World’s Most Important Grain)
» Twice as Many Kernels Per Stalk
» Reduced Need for Water
» Higher Protein Content
BUSML 757
17
Technological Environment
• Technology’s Impact on Agriculture: GM
Crops
– Results
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•
•
•
50% Increase in Yield
Reduced Cost (No Pesticides Needed)
14% Reduction in Production Costs
No Public Debate to Incite Opposition That has Stopped
Genetically Modified Crops in India
BUSML 757
18
Technological Environment
• Technology’s Impact on Retailing
– Electronic Ordering: Internet
– Automated Distribution Centers
– Inventory Management: Mass Customization
– Radio Frequency Identification Tags
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•
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Improve Distribution
Reduce Theft
Cut Labor Costs
Shrinks Inventory
Monitor Stock Levels
BUSML 757
19
Technological Environment
• How the Technological Environment
Might Affect
– Customer/Consumer Demand for Your
Recommended Service/Product in Your
Recommended Country
– Your Company’s/Organization’s Ability &
Willingness to Supply Your Recommended
Service/Product in Your Recommended Country
BUSML 757
20