Unit 4 Business Environment - Investigate the behaviour of organisations and the market environment
Technology and innovation
What is technology?
How does technology and technological change affect organisations?
What is technology ?
Technology is the result of using our knowledge to tool, products and processes for human purposes.
Huczynski & Buchanan
Technology and its impact on business
- Apparatus
- machines & tools
- Technique
- skills & procedures
- Organisation
- manipulation of society to foster production
- manipulation of society to foster production
So...
- Types of Products and Services
- Production Methods
- Equipment
- Provision of Services
- Information
- Market Identification
- Procedures
- Employee Flexibility
Products and Services
Consumer and Industrial markets have seen major innovations:
- electronics
- microchips
- digital
- MIS
- the "PC"
Production Methods
- Production Quality
- J.I.T. production
- Managing the Human Resource
- Internal Customers
- Responding to the Customer
- Relationship Marketing
Equipment
- CIM ~ Computer Integrated Manufacturing
- CAD ~ Computer Aided Design
- CAM ~ Computer Aided Manufacturing
- PC ~ Personal Computer
Provision of Services
We have seen major changes in services because of:
- telephone
- tv
- call centres
- internet
- access
- the portal
- dot.com companies
- e-commerce
- individualisation
The major areas of business affected by this are:
- Banking
- Insurance
- Financial Services
- Books
- Music
- DVDs
- Cars
Information
Information about customers, their buying habits, their personal details, allow companies to create individual products, tailored services, directed marketing and they can also sell the information to other companies.
Computerisation makes this quicker and easier.
Market Identification
Database systems can be used to identify new opportunities with new or existing customers
- financial services
- insurance
- cars and servicing
Procedures
- what we do…
- the way we do it…
- the order in which we do it…
- where we do it…
- the way in which we act with customers…
Employee Flexibility
- automation and computerisation can dispense with some staff
- job roles
- multi-skilling
- employee organisation
- employee involvement
- empowerment
J.I.T.
…is a technique that focuses on organisation of work flows to provide a production method which minimises waste and keeps stock levels to a minimum…
a car is not built until a customer orders it
sometimes referred to as: just too late
How we work…
- Core Workers
- essential, skilled, qualified, full-time and provide functional flexibility
- essential, skilled, qualified, full-time and provide functional flexibility
- Peripheral Workers
- temporary, part-time, provides numerical flexibility
- temporary, part-time, provides numerical flexibility
- sub-contractors
- hire other companies or people provide services rather than doing them in-house
Internet
- information
- world wide web
- e-mail
- chat
- newsgroups
- e-commerce
- unlimited access
- ADSL
- streaming
Web 2.0
- user generated content
- social networking
Digital
What is digital?
Digital is converting analogue information into binary information 1010110001111001
- CD
- MiniDisc
- DVD
- Digital Cameras
- Digital TV
- Digital Radio
Impact on Business
- It changes products and services
- It changes the production process
- It changes access to customers
- Business needs to respond…
Music
- Compact Disc
- mp3
- MiniDisc
- ATRAC
- DVD Audio
- Digital Radio
- iPod
- iTunes Store
- DRM free music
mp3
How will mp3 impact on those businesses involved in the music industry?
How should those organisations respond?
What strategies could they use?
Impact of technology on:
- music
- retail
- video
- pc
- internet
What is the impact on demand?
