How Technology Affects the Business Environment Essay

During the last century, the world has been by means of a technological revolution. We check in a couple of(prenominal) years moved from existence a world where it could take months to receive a message, to macrocosm a world where it takes microseconds. at bottom most industries, engineering is a in truth strategic factor to succeed. Especially in certain industries, like zilch, transport and pecuniary function, technological innovations let been vital to receive those industries develop into what they are today. Companies are forever struggling to acquire better technology, so that they in a much good way can produce their products or carry out their returnss.It is therefore important for companies to keep an eye on brand-new technological innovations. The technological elements of the external surroundings are a part of the LoNGPEST analysis, which is being used to scan a firms purlieu, so it in a best possible way can adopt to it. In this essay, I will attem pt to explain how technology has been a vital motive for the globalisation, and how it has do the world more cost-effective. in that respect is no doubt that the schooling of culture and communications technology is matchless of the causes for globalization. The plank infra shows the drop-off in communicating and travelling prices.According to the table, the price of a 3 minutes ph i chit-chat ca-ca been reduced by 98,6%. The reduction in air transport make up per mile is 74%. There is no doubt that such reductions encourage companies to broaden geographicalally. In addition, the rapid ontogenesis of the cyberspace has make it possible to share discipline with the rest of the world in microseconds. Eric Samuels states that one of the industries that has bountiful because of data technology is the pecuniary service diligence. He states that delivery of serve has become more efficient because of the lotion of technology. What he is saying, is that the pecunia ry services provided are being done more potent and at a turn down cost than before. By using the net, companies can eliminate out to the whole world without outlay a pound. In addition to necessitate that the financial service industry has grown due to the information technology, Dr. Nicolas Pologeorgis besides states that the industry, since 1998, has deceased through a rapid geographic expansion.This especially applies to wealthy nations, like countries from europium and USA. He claims that customers previously served by local financial institutions are now targeted at a global level. Dr. Pologeorgis believes that one of the reasons for this, anyhow deregulation and more trading amid countries, is the information technology. service like ATMs and websites is being used to develop a more efficient relationship between big distance customers and suppliers. A study more or less(predicate) globalization of the banking industry, states that usefulnesss in technology f uddle facilitated greater geographic r distri just nowively by allowing institutions to manage larger information flows from more locations and to evaluate and manage risks at lower cost without being geographically decision to the customer.One example of a troupe from this industry that expanded geographically in the 90s is Goldman Sachs (GS). I 1990, Robert Ruding and Stephen Friedman inflexible to focus on GS global operations. During the 1990s, GS went through a rapid geographical expansion. Today, GS has offices turn up in all major financial centres around the world. I have made a comparison between the growth in the financial service sphere of influence and the use of internet worldwide. It was in the 90s that the internet use exploded. In 1995, 16 million people were connected to the internet (0,4 of world population). The table below shows that the use of internet exploded about the uniform time that the financial service industry, according to Pologeorgis, really st arted expanding geographically.However, it is not tho the improvements in communication and information technology that has contributed to a more efficient and globalized world. other industry that has been affected by improvements in technology the last century is the fossil vegetable inunct and gas industry. An article made by naturalgas states that new innovations have reshaped the industry into a technological leader9. A report made by the U.S. section of slide fastener in 1999 shows that if technology had stagnated in 1985, America would have exacted twice as many a(prenominal) come up to produce the same criterion of oil and gas. However, because of technological improvement, we only need half as many wells to produce the same amount in 1999. In 1999, the America used 22 000 less wells to produce the same amount as they did in 1985.A statistical review of world energy made by BP illustrates how much oil and natural gas that has been produced in each country and worl dwide from 1965-2010. Worldwide, the total development of oil has increase from 31,806,000 barrels nonchalant in 1965, to 82,095,000 barrels day-to-day in 2010. The development of oil has increase from 96,9 cardinal cubic feet everyday in 1970, to 309 one million million cubic feet nonchalant in 2010. The chief(prenominal) reason to the increase in payoff is off course the growing demand, but according to naturalgas it would have been impossible without the improvement in our technology. Consumption of oil change magnitude from 30,783,000 daily in 1965 to 87,382,000 barrels daily in 2010 and drug addiction of gas increased from 63 billion cubic feet daily in 1965 to 306,6 billion cubic feet daily in 2010.Another industry that has positive because of new technology is the atomic industry. numbers pool taken from NEI shows that 13,5 of the worlds electricity production IN 2010, was provided by nuclear power. Furthermore, NEI states that in total, 15 countries relied on n uclear energy to supply at least(prenominal) one-quarter of their total electricity. According to NEI, one example of a country that is reliant of nuclear energy is France. 74,1 percent of the energy produced in France was generated through nuclear energy. The statistical review published by BP, shows that the breathing in of electricity generated from nuclear power has increased tremendously since 1965.In 1965 the global consumption of terra hours has increased from 25,7 in 1965 to 2767,2 terra hours in 2010. FINN UT OM DAILY In this essay, I have tried to show how technology has been a vital part of both the globalization and the development of a more efficient world. I have found that information and communication technology has been important for globalization. land costs of travelling and communicating overseas encourage people to expand geographically. In addition, the fact that use of internet has genuine into a common thing, especially in developed countries, makes cus tomers able to do services that they could not do before. My essay also shows how the oil and gas industry have become more efficient, and how the nuclear industry has grown due to technological improvements. indication listDepartment for Business endeavour & Regulatory Reform (2008) globalization and the changing UK economy, page 3 online. forthcoming from http//www.bis.gov.uk/files/file44332.pdf accessed at 22.11.2011. British Petroleum (2011) historic data online. ready(prenominal) fromhttp//www.bp.com/sectionbodycopy.do?categoryId=7500&contentId=7068481 (then finish off on historical data) Accessed at 23.11.2011.U.S. Department of energy (1999) Environmental benefits of advance oil and exploration and production technology online. on hand(predicate) from http//www.fe.doe.gov/programs/oilgas/publications/environ_benefits/4envben.pdf Accessed at 22.11.2011.U.S. Department of Energyhttp//www.fe.doe.gov/programs/oilgas/publications/environ_benefits/3innov.pdf reinforcemen t Universe, The Goldman Sachs group INC online. visible(prenominal) from http//www.fundinguniverse.com/company-histories/The-Goldman-Sachs-Group-Inc-Company-History.html Accessed at 22.11.2011.Goldman Sachs (2011), who we are at a glance online. Available from http//www2.goldmansachs.com/who-we-are/at-a-glance/index.html Accessed at 22.11.2011. cyberspace World Stats (2008), internet growth statistics online. 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