Technology

Technology means systematic application of scientific or other organized knowledge to practical tasks.

Features of Technology

Application of Knowledge- knowledge is of theoretical nature is not of much use, but when it is put into practical use, it becomes technology. Wide spread effects- used in many areas like medicine, industry, agriculture, space, education etc. Includes Hard and Soft TechnologyHard technology includes plant, machinery etc. whereas soft technology includes formula, method of working, skills.

Fast Changes:- creates the problem of technological discontinuity , with the invention of new technology, old technology is replaced by the new one. Self- Reinforcing:- technology feeds itself. Existing technology helps to invent new technology.

Technological Environment
It includes: Technology. Research and Development Efforts. Technological Policy. Availability of Technology.

Areas in which firms use Technology

Communication and information management. Operations as in any production or manufacturing activity. Product design. Research and development.

ADVANTAGES

Improved product quality Increased productivity Shorter turnaround period Informed decision making Innovations MIS, HRIS, Corporate Blogging, faster Finger Frank talk, UMS, Net banking, Global Cadre

Forms of Technology Transfer

Exchange of Information: distribution of papers and surveys, discussion of special problems at international seminars, fact finding tours and exhibitions. Free use of technology based information: specifications and technical documentation for products, designs, materials etc. Gratuitous transfer of technology with assistance: sending consultants to help the local specialists to master the new technology and start production.

Technology obtained through agreement: merger, management agreement, strategic alliance. The rendering of technical services: includes different types of short term technical assistance from foreign companies under contract. Industrial co-operation: this implies contractual relations between independent enterprises or firms. Import of Industrial goods: purchase of industrial goods from abroad thus acquiring new technology.