This Technological Analysis is the final part of "PEST analysis" in Macro Environments and technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
1. Recent technological developments;
How can you make good use of the technological development?
2. R&D activity;
Can a new technology improve your research work for new product? Do you have purchasing power to buy this technology?
3. CRM with technology;
How can you keep customer record by the use of technology and serve major customers according to your historical record.
4. Technology's impact on product;
How is the new technology impacting your product? Can you increase your product features, or product functionality by the use of technology? Can it create value for customers?
5. Impact on cost structure (automation);
Can you reduce cost by the use of technology? New machinery for production? Machines in place of people (Like ATM, Automated Door)? How much can you reduce the cost and how convenient it is for the users?
6. Technology incentives;
Can you attract more customers by the use of new technology, for example, in hospital to conduct quick and reliable diagnoses, X-ray, scanning and so on.
Impact on value chain structure; How well can you build value chain with technology? How good can you integrate with the suppliers, inter-department and retailers? (it will be elaborated in the next article about Value chain).
7. Rate of technological change; How fast is the technology changing? If it is changing too fast, the use of it may not cover to cost of it because its life span is too short.
Reading this analysis will give you some good knowledge about macro-business analysis. But it will not give details for your business. It is up to your knowledge to prioritize which is more important to your business and which is not. But always remember, the capitalist business is to make money and profit.
So, Think first about whether the use of technology can reduce the cost or increase the profit, remain competitive in the market, attract more customers. If it didn’t help you in any of these or positive for the business, then, it is not for you. Don’t use it. Use the resource somewhere else more effectively!
Good Luck!.
1. Recent technological developments;
How can you make good use of the technological development?
2. R&D activity;
Can a new technology improve your research work for new product? Do you have purchasing power to buy this technology?
3. CRM with technology;
How can you keep customer record by the use of technology and serve major customers according to your historical record.
4. Technology's impact on product;
How is the new technology impacting your product? Can you increase your product features, or product functionality by the use of technology? Can it create value for customers?
5. Impact on cost structure (automation);
Can you reduce cost by the use of technology? New machinery for production? Machines in place of people (Like ATM, Automated Door)? How much can you reduce the cost and how convenient it is for the users?
6. Technology incentives;
Can you attract more customers by the use of new technology, for example, in hospital to conduct quick and reliable diagnoses, X-ray, scanning and so on.
Impact on value chain structure; How well can you build value chain with technology? How good can you integrate with the suppliers, inter-department and retailers? (it will be elaborated in the next article about Value chain).
7. Rate of technological change; How fast is the technology changing? If it is changing too fast, the use of it may not cover to cost of it because its life span is too short.
Reading this analysis will give you some good knowledge about macro-business analysis. But it will not give details for your business. It is up to your knowledge to prioritize which is more important to your business and which is not. But always remember, the capitalist business is to make money and profit.
So, Think first about whether the use of technology can reduce the cost or increase the profit, remain competitive in the market, attract more customers. If it didn’t help you in any of these or positive for the business, then, it is not for you. Don’t use it. Use the resource somewhere else more effectively!
Good Luck!.
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