How Technology Affects the Business Environment Essay

During the conk issue century, the foundation has been finished a proficient revolution. We acquire in few old age moved from be a world where it could take months to receive a message, to be a world where it takes microseconds. Within just about industries, engineering science is a very all important(p) detailor to succeed. Especially in sure industries, like skill, transport and pecuniary gos, scientific innovations have been racy to make those industries intermit into what they be today. Companies are al authoritys seek to acquire better engine room, so that they in a more price-efficient musical mode can let their products or hold up out their services.It is therefore important for companies to take place an eye on un lawsuitd proficient innovations. The technical elements of the external environment are a part of the LoNGPEST analysis, which is being apply to scan a firms environment, so it in a best possible way can adopt to it. In this essay, I will attempt to explain how engine room has been a vital suit for the globalisation, and how it has do the world more efficient. There is no doubtfulness that the exploitation of information and dialogue theory applied science is one of the ca purpose of goods and servicess for globalization. The table infra shows the reduction in communi spewing and change of location prices.According to the table, the price of a 3 minutes phone call have been reduced by 98,6%. The reduction in air transport cost per knot is 74%. There is no doubt that such reductions make headway companies to expand geographically. In addition, the rapid growth of the profit has make it possible to share information with the stay on of the world in microseconds. Eric Samuels states that one of the industries that has prominent because of information technology is the financial service persistence. He states that delivery of services has perish more efficient because of the application of techno logy. What he is saying, is that the financial services provided are being done more effective and at a lower cost than before. By using the internet, companies can reach out to the whole world without spending a pound. In addition to claim that the financial service industry has enceinte collectable to the information technology, Dr. Nicolas Pologeorgis also states that the industry, since 1998, has gone through a rapid geographic expansion.This particularly applies to wealthy nations, like countries from Europe 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, besides deregulating and more trading between countries, is the information technology. Services like ATMs and websites is being employ to develop a more efficient relationship between long aloofness customers and suppliers. A study about globalization of the banking industry, states that imp rovements in technology have facilitated great geographic reach by allowing institutions to lot larger information flows from more locations and to evaluate and manage risks at lower cost without being geographically close to the customer. one(a) example of a company from this industry that expanded geographically in the 90s is Goldman Sachs (GS). I 1990, Robert Ruding and Stephen Friedman decided to focussing on GS global operations. During the 1990s, GS went through a rapid geographical expansion. Today, GS has attainices located in all major financial centres close to the world. I have do a comparison between the growth in the financial service sector 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 same time that the financial service industry, accord to Pologeorgis, really started expa nding geographically.However, it is not only the improvements in communication and information technology that has contributed to a more efficient and globalized world. Another industry that has been affected by improvements in technology the last century is the fossil vegetable anele and swash industry. An member made by inborngas states that new-sprung(prenominal) innovations have reshaped the industry into a technological leader9. A report made by the U.S. Department of heartiness in 1999 shows that if technology had stagnated in 1985, America would have requisite twice as many surface to produce the same occur of oil and gas. However, because of technological improvement, we only need half(prenominal) as many wells to produce the same amount in 1999. In 1999, the America used 22 000 slight wells to produce the same amount as they did in 1985.A statistical revue of world energy made by BP illustrates how much oil and natural gas that has been produced in each arena and worldwide from 1965-2010. originationwide, the agree phylogeny of oil has change magnitude from 31,806,000 barrels day-to-day in 1965, to 82,095,000 barrels daily in 2010. The development of oil has increased from 96,9 billion boxlike feet daily in 1970, to 309 billion cuboid feet daily in 2010. The main reason to the increase in labor is off course the growing demand, but check to naturalgas it would have been impossible without the improvement in our technology. Consumption of oil increased from 30,783,000 daily in 1965 to 87,382,000 barrels daily in 2010 and consumption of gas increased from 63 billion cubic feet daily in 1965 to 306,6 billion cubic feet daily in 2010.Another industry that has unquestionable because of new technology is the thermonuclear industry. Numbers taken from NEI shows that 13,5 of the worlds electrical energy production IN 2010, was provided by nuclear power. Furthermore, NEI states that in total, 15 countries relied on nuclear energy to supply at least one-quarter of their total electricity. According to NEI, one example of a country that is dependent 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 consumption of electricity generated from nuclear power has increased enormously 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 workaday In this essay, I have act 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. Lower costs of travelling and communicating overseas encourage people to expand geographically. In addition, the fact that use of internet has developed into a common thing, especially in developed countries, makes customers able to do services th at they could not do before. My essay also shows how the oil and gas industry have pose more efficient, and how the nuclear industry has grown due to technological improvements.Reference numberDepartment for Business Enterprise & regulative Reform (2008) Globalisation and the changing UK economy, pageboy 3 online. purchasable from http//www.bis.gov.uk/files/file44332.pdf accessed at 22.11.2011. 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