Technological Environment


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Assignment, Nepalese Business Environment, BBA-BI 6th semester, Ace Institute of Management

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Technological Environment

  1. 1. Presented By:•Adesh Thangden•Anmol Pasa Shrestha•Asish Tandukar•Chhitiz Shrestha•Dikshya Acharya
  2. 2. Nepal Developing economy: transferring from rural to urban and traditional to modern market oriented Predominantly agricultural country, about 80 percent populations deriving their livelihood from this sector and the main source of gross domestic production (about 40%) Literacy rate: 68.2% ( According to the UNDP report 2011)
  3. 3. Nepal’s economy at a glance US$1 Qatar Cote 91,379 142 $1,700 D’Ivoire2 Luxembourg 89,562 143 Kenya $1,600 United Arab 143 Ghana $1,6003 Emirates 57,744 143 Benin $1,6004 Norway 56,920 144 Tanzania $1,5005 Singapore 56,797 144 Zambia $1,500 United6 States 47,084 145 Nepal $12007 Switzerland 46,424 145 Uganda $1,2008 Hong Kong 46,333 145 Haiti $1,2009 Netherlands 42,447 145 Mali $1,200 Burkina10 Austria 39,711 145 $1,200 Faso11 Denmark 39,410 146 Rwanda $1,10012 Australia 39,231 Burma13 Sweden 38,885 146 $1,10014 Canada 38,841 146 Ethiopia $1,10015 Germany 37,622
  4. 4. Introduction Technology includes all aspects of applied science for achieving a practical purpose. Technology is viewed as a means of combining four factors of production( land, labor, capital and knowledge) which increases the ability to create new product from combining these factors.
  5. 5. Definitions According to G. Jones And C. Hill : “Technology is the combination of skills and equipments that managers use in the design, production and distribution of goods and services.” According to R.W. Griffin (2007) :- “Technology is the set of processes and systems used by organizations to convert resources in to products or services”.
  6. 6. Business and Technology Business and technology are inseparable, and complementary to each other. Technology advancement increases the production, effective use of resources, and brings opportunity for upgrading business firms. Technological change leads to improved production of goods and services
  7. 7. Business and Technology Technology which are related to business are:-  Reduced running costs  Improved productivity  Improved competitiveness  Lower costs per unit of product  Improved quality of service (e.g. speed of service)  Reduced wastage
  8. 8. Technology and Human Factor There are 3 areas which make the effective use of technology and they are:  Production,  Investment, &  Innovation The capability of technology revolves around its people. Managers should be skillful for full utilization of technology.
  9. 9. Technology and Human Factor Employee must have ability to acquire new skills. Technology can cause impact on business firm: • Shutting down of old business • Changes in occupational structure and • Displace of employees
  10. 10. Status of Technology in NepaleseIndustrial Sector Research and Development Exports as Indicators of Technology Skill base for Technology Technology transfer
  11. 11. Research and Development R&D is generally dominated by universities and government research agencies Industrial sector basically classifies it as “Quality control and Production Engineering” activities Most industries are dependent on imported and low grade technologies Less focus is given to the importance of R&D  Only 0.13% of GNP and GDP activities R&D is classified tax deductible by the government in theory only
  12. 12. Exports as Indicators of Technology Technological status of a nation can be measured by its export status Nepalese exports are mainly focused on raw or semi-processed materials Major exports in the form of finished goods include:  Carpets  Garments  Leather Products This deficiency is primarily caused due to lack of efficiency and competitiveness
  13. 13. Skill base for Technology Skill base for technology can be gauged by education enrollment statistics Nepal has witnessed more than 5 decades of educational enrollment yet, enrollment ratio is minimal The nation needs  Mechanical skills  Electricians  IT Professionals  Chemical Technicians  Business Entrepreneurs Yet the required level of Human capital is well below the need.
  14. 14. Technology Transfer The most commonly used modalities: FDI via joint ventures, technical collaboration, import of machinery and equipment, technical assistance through human assistance Other mechanisms -- through license, exchange patents, or a know-how agreement, personal contact etc.
  15. 15. Technology Transfer in NepalForeign Investment and Technology Transfer Act, 1992 The Act defines technology transfer as any transfer of technology to be made under an agreement between an industry and a foreign investor on the following matters:  Use of any technological right, specialization, formula, process, patent or technical know-how of foreign origin;  Use of any trademark of foreign ownership;  Acquiring any foreign technical, consultancy, management and marketing service
  16. 16. Status of Technology Transfer (as per 2007) Number of projects with foreign collaboration No. of projects approved 250 200 150 100 50 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 o ptU
  17. 17. Status… Scale of projects with foreign collaboration 1151 1200 1000 800Numbers 600 400 199 146 200 0 Large Medium Small Industry category
  18. 18. Status…Category of projects with foreign collaboration Construction Energy-based 4% Mineral-based 3% 1% Agro-based 3% Manufacturing 89%
  19. 19. Status…Status of foreign investment projects Cancelled Closed 5% 1% Operational 27% Approved 42% Under construction 17% Licensed 8%
  20. 20. Science and Technology policy Nepal adopted the science and technology policy in 1989. Objective was to improve country’s S&T for the over all development and scientific creativity. Later S&T adopt new innovation and development of science and technology to increase production and productivity.
  21. 21. Science and Technology policy The following strategies were adopted for the sector:- • Development of technologies and services for priority areas of socio-economic development. • Fulfillment of people’s basic needs. • Qualitative development of human resources Three Year plan (2010/2013) focused on • Ensuring maximum utilization of the resources. • Developing and adopting appropriate technology through mobilization of private sector. • Developing a mechanism to conduct research and development activities.
  22. 22. Science and Technology policy • Contribution in the socio-economic development of people. • Encouraging universities, concerned institutions and individuals in scientific researches.
  23. 23. Information Technology Information technology (IT) is a branch of knowledge concerned with the development, management, and use of computer-based information systems. The term "information technology", or IT, commonly refers to computers and computer networks but is also used to encompass other information distribution technologies such as television and telephones etc.
  24. 24. IT policy Government adopted Information technology policy in 2000. The main objectives were:  To increase employment through reaching IT among the general public  To create knowledge based society  To established knowledge based industry
  25. 25. IT in Nepal In Nepal, Mercantile Office System introduced e-mail services in 1993. Mercantile Office Systems, the first Internet Service Provider (ISP) in Nepal started its services since July 1995 Today there are about 30 ISPs in Nepal IT mostly limited to urban areas Yet due to low costs of computers nowadays, it is spreading nation wide gradually
  26. 26. IT in Nepal In recent years, the use of Internet has increased in the country The most web-effected areas of information in Nepal are  Education,  Travel,  Tourism, and  Media The past few years have seen an impressive growth in Internet use and web-based information dispersal in the country
  27. 27. IT in Nepal Today, there are about 300,000 users of Internet in the country However, the majority of the internet users are in the Kathmandu valley. Yet, it has much scope Nation wide