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TECHNOLOGY
Importance for Businesses
0 Reduce business costs.
0 Help automate back office functions such as record
keeping, accounting and payroll.
0 Create secure environments for maintaining sensitive
business or customer information.
0 As it is quite user friendly, businesses can adopt easily.
Functions
0 Increase employee productivity.
0 Process more information.
0 Reduce human labour.
0 Expand operations.
0 Better production output
Facebook generates revenues from advertising,
using the platform of over 500 million users.
Low-cost airline generates revenues by selling
direct to consumers (avoiding intermediaries) with
a high proportion of bookings made online
Technology mechanisms
Technology Mechanism How It Potentially
Creates an Advantage
Example
A new process Produce faster, at lower
cost or better quality
Online video streaming
Solve a complex problem Do something
competitors find hard to
master
Google search engine
A new product The first product to
market
The iPad & iPhone
Protect a valuable idea Have something others
can only sell if they pay
for a license
Pfizer’s Viagra
Rewrite the rules A completely new
approach which makes
other products and
markets redundant
Smartphones
Technology as Threat
Technology as Threat
Technology
Three
Main
Options
In-house
Development
Alliances
Acquisition
In-House Development
0 Favoured if technology is a key competitive advantage.
0 Commercial and financial risk.
0 Experience of first-mover advantage.
0 Strong insight into technology and
market needs.
Alliances
0 ‘Follow and Imitate’ rather than Market innovator.
0 New technology beyond the skill and experience of
the business.
0 Helps limit commercial and financial risk.
0 Outsourcing.
Acquisition
0 If technology is complex.
0 High risk-have to be sure that the right technology is
being bought.
0 Often important if speed is important.
Technology Today
Technology Today

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Technology Today

  • 2. Importance for Businesses 0 Reduce business costs. 0 Help automate back office functions such as record keeping, accounting and payroll. 0 Create secure environments for maintaining sensitive business or customer information. 0 As it is quite user friendly, businesses can adopt easily.
  • 3. Functions 0 Increase employee productivity. 0 Process more information. 0 Reduce human labour. 0 Expand operations. 0 Better production output
  • 4. Facebook generates revenues from advertising, using the platform of over 500 million users.
  • 5. Low-cost airline generates revenues by selling direct to consumers (avoiding intermediaries) with a high proportion of bookings made online
  • 6. Technology mechanisms Technology Mechanism How It Potentially Creates an Advantage Example A new process Produce faster, at lower cost or better quality Online video streaming Solve a complex problem Do something competitors find hard to master Google search engine A new product The first product to market The iPad & iPhone Protect a valuable idea Have something others can only sell if they pay for a license Pfizer’s Viagra Rewrite the rules A completely new approach which makes other products and markets redundant Smartphones
  • 10. In-House Development 0 Favoured if technology is a key competitive advantage. 0 Commercial and financial risk. 0 Experience of first-mover advantage. 0 Strong insight into technology and market needs.
  • 11. Alliances 0 ‘Follow and Imitate’ rather than Market innovator. 0 New technology beyond the skill and experience of the business. 0 Helps limit commercial and financial risk. 0 Outsourcing.
  • 12.
  • 13. Acquisition 0 If technology is complex. 0 High risk-have to be sure that the right technology is being bought. 0 Often important if speed is important.