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Technological knowledge refers to societies understanding of how the world works in terms of producing goods and services. Businesses only prevail with the use of technology, if they know how it functions in the economy. Although rapid population growth has been known to depress economic prosperity by reducing the amount of capital each worker has, it also has its advantages with its contribution to technology, in the business environment. Economists have since suggested that world population growth is the key to technological progress and economic prosperity. The reasoning behind this theory is that, “if there are more people, then there are more scientist, inventors, and engineers to contribute to technological advances, which in turn benefit everyone.” (economics 267)
Most recently, computers and information technology has improved the efficiency and competitiveness of businesses, changing the way companies do business in the economic environment. A great example is that of Dow Jones, publisher of The Wall Street Journal and Barron’s. Dow Jones was one of the first publishers to create a Web site that sold subscriptions of digitalized newspaper, magazine, and journal content. The Dow Jones Digital Network site offers customized digital clipping services that provide its subscribers with daily messages, on topics related to viewer interest. In 2002, Dow Jones introduced Factiva, an online content management and integration service. Today, with the technological advancement of Factiva, “companies have the ability to manage internal information and integrate it with external information to track company and industry news, perform analysis of acquisition candidate, and manage the company’s risk in a dynamic business environment.” (e commerce pg 118)
Since the mid 1990’s, the Web “has had a drastic impact on culture and commerce.”(Wikipedia) With its two-way communication features and traceable connection technology, firms are now able to gather much more information about its customer’s behavior and preferences than they have been able to gather from micromarketing approaches. Companies are now capable of measuring a large number of things that are happening as customers and potential customers gather resources and make consumer decisions. A Web site can gather information about its visitors, such as, which pages were viewed, how long each page was viewed, gathers sequences, and other data, all in a processes called clickstream.
When promoting and selling on the Web, firms use technology-enabled relationship management to obtain detailed information about a customer’s behavior, preference, needs, and buying patterns, and uses that data to set prices, negotiate terms, tailor promotions, and add product features. Although companies use technology-enabled relationship management to help manage relationships with vendors, employees, and other stakeholders, most companies now use these concepts to customize its relationship with individual consumers. Internally, companies are able to establish competitive advantage, by integrating technical resources with business operations. Externally, competitive challenges and opportunities have relied on information technology resources to drive change within and outside of the company. (CIO ARTICLE 2 Literature Review)
Technological changes in production have also been an important implication for businesses. Production technology can increase the speed of production, improve the quality of product and reduce costs per unit of production. Computer-aided manufacturing (CAM) is computer software that controls machine tools and related machinery in the manufacturing of work places. The benefit of CAM is that it reduces labor costs, is accurate, fast and can work any hours of the day. Similar to CAM, computer-integrated manufacturing (CIM) is the process in which computers control the entire production line. The benefits of…