TECHNOLOGICAL ENVIRONMENT (Nepalese prospective)

Presented by:Rupesh Nyaupane

Introduction Technological Environment means the

development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business work.

Technological environment consists of external factors in technology that impact business operations.

Changes in technology affect how a company will do business.

Examples of technological changes are seen in aviation, electronics, energy, communication, consumer goods industry, optics, medicines and manufacturing.

What is Technology?

Technology is about application of tools, methods and techniques to improve production and processes.

The intensity and type of technology use varies depending on the type of economic activities an enterprise is involved in.

Technology involves the purposeful application of knowledge, experience and resources to create processes and products that meet human needs.

Levels of Technology:

Manual Technology: Human based simple and traditional technology low cost suitable for low volume production

Mechanized Technology: Machine based technology suitable for large volume production,

efficient involves high maintenance costs.

Levels of technology…contd: Automated Technology:

based on use of self-controlled machines suitable for large volume of standardized production costly

Computerized Technology: based on the use of computer based machines requires few numbers of employees but they should

be highly skilled.

cont:

Robotized Technology: based on the use of robots in place of

human beings. Some robots require some degree of

guidance, which may be done using a remote control, or with a computer interface

Robots ensure high speed, quality and productivity

Business and technology:

Significance Technology and business are practically

inseparable today. Without technology and computers, the

routine business functions that are the backbone of an organization would be severely slowed.

Business and technology Benefits

It decreases the time it takes to perform a task and increases the volume of information that can be processed.

It has the ability to take on multiple tasks at once. There is a minimal chance of error when technology is

used. The low acquisition costs along with the efficiency and

precision of technology make the benefits of using it in business undoubted.

Technology has forced businesses to remain flexible, adapting their operations to newer and better technological advances.

Cont… Besides these, technology is relevant to a

business in the following ways: Reduced running costsImproved productivityImproved competitivenessImproved quality of service (e.g. speed of

service)Reduced wastageIntroduction of new and better products

and services

Business and technolog

Opportunities

The use of technology in business has created opportunities for more technological advances.

Many business functions are able to operate autonomously with the use of technology.

With technology running certain business functions constantly, with international employees businesses are able to have customer support at all times as well.

Business and technology

The role that technology plays for the business sector cannot be taken for granted.

Almost all businesses are dependent on technology on all levels from research and development, production and all the way to delivery.

Technology and Human Factors:

Technology consists of skills, processes, techniques, methods and equipment.

It is developed, handled and managed by people. Human factor in technological settings relate to skills,

motivation, learning, communication and social change. Technology without human factor is unthinkable. Technology capabilities can be classified into three

broad areas : Production Investment Innovative capabilities

Technology Affecting Human Factors:

1. Technical skills

Technical skills are ability to perform specialized jobs. People need technical skills to get jobs done.

2. Job performance

Technology is important for productivity. It’s important for improving job performance in following ways:

a) Technology eliminates old jobs. It also creates new jobs.

b) Technology reduces the physical efforts and time required to do the jobs.

c) Technology has facilitated virtual offices based on information technology.

Technology Affecting Human Factors

3. Motivation

Motivation is a process that accounts for an individual's intensity, direction and persistence of efforts toward goal attainment .

a) Technology, through skills improvement, helps people earn more money.

b) Jobs can be designed and redesigned to suit changing technologies.

c) Work environment is important for motivation.

4. Learning

Learning is an enduring change in behavior. Handling of technology helps people to learn.

Technology Affecting Human Factors

5. Decision Making

Decision making is choosing from among alternatives to solve problems. Technology aids decision making by managers

6. Communication

Communication is the transfer of information and understanding of meaning from one person to another.

7. Environment

Technology is a big source of environmental pollution that adversely impacts people's lives. Technology is needed to control pollution.

8. Social Change

Technology changes social life and patterns of living. It can uproot population, create new jobs and change social relations.

Present Level of Business Adopted by Nepalese Business:

Competitiveness depends increasingly on technology development and its underlying knowledge, skills and organizational arrangements.

Nepalese industry runs the risk of further competitiveness weakness as liberalization proceeds.

Nepal has opted to develop a structure of public and semi-public institutions to deliver technological services to firms.

The supply of technology by external institutes has led to the neglect for stimulating the demand for technology development on the part of industrial firms.

Contd.. The Department of Industry currently plays a limited role in

policy-making and allocation of resources for industrial technology development.

There are numerous public and semi-public science and technology institutes in Nepal, yet their impact on the technology development of manufacturing firms has been limited.

The level of industrial technology in a country can be assessed by the analysis of: The system of R&D The export performance The skill inventory The pattern of technology transfer

The system of R&D

R&D incentives (e.g., tax allowances and soft loans) do not address the main challenge facing countries such as Nepal at their stage of technological development.

What is required is a direct and flexible grant-based system Due to concern to corruption and misuse of grant funds, such a scheme

should be implemented on a pilot basis. Currently, the R&D is mainly undertaken by the government research

agencies and the universities such as Research Centre for Applied Science and Technology (RECAST), Information Technology (IT) Park, Royal Nepal Academy of Science and Technology (RONAST) etc.

The export performance

The export performance of industries and manufacturing firms also portrays the level of technology implemented by them.

Nepal’s export is quite low in comparision to the imports it makes.

The major exports of Nepalese manufacturing firms are the raw materials and semi finished goods while the finished products exported are few textiles, garment, carpet and some leather items.

On the other hand, the major imports are the consumer durables, and high tech machineries and other goods.

The skill inventory

The other indicator of technology can be the skill inventory of the Nepalese business firms.

We have seen the increment in literacy rate over a period of time. However, we haven’t yet witnessed the remarkable expansion in the higher educational level.

In addition, most of such the top level jobs are held by the foreigners. Only few Nepalese are in such positions while most of the Nepalese are holding the blue collar jobs.

The pattern of technology transfer

It refers to the transfer of technology from foreign country to the domestic industries in the form of foreign direct investments, joint-ventures, turnkey projects, licensing, and capital transfers, contract manufacturing, and franchising.

The major factors influencing the nature of the technology transfers are: The scale of operation The nature of production process The relative cost of labour and capital The cost of adopting the technology

Foreign direct investment by multinational companies has helped in the transfer of modern technology.

Technology Policy:

Science and Technology Policy first adopted in 1989 The basic and priorities of this policy include:

a) Development of technologies and services for priority areas

b) fulfillment of people`s basic needs

c) qualitative development of human resources Programs adapted for implementation of technology policy according

to Tenth Plan: Development and Expansion: high level National Science and

Technology Council and coordination committee constitute and formulate national vision and policy.

Development of Human Resource: extension of cooperation in producing necessary manpower, enhance competence of universities, checking brain drain with attractive program at home

Technology Policy Promotion of R & D :conduct program to preserve and upgrade

traditional technology, develop necessary technologies to uplift rural life standard, programs with focus on special areas and targeted groups

Socio-economic Development of Urban and Rural Sectors: developing and expanding the use of modern technology like biotechnology, IT etc.

Expansion of Scientific and Technological Services: expanding water, meteorological, forensic, equipment maintenance service

Enhancing Awareness: establishing planetarium, science and technology museum, mobilizing professional organizations, publishing materials and conducting awareness programs

Technology Policy

IT Policy: Introduced by Government in 2000 and revised in 2010 Basic Objectives :

Announce IT sector as government's priority sector and also to make it practical

Increase in employment through establishment of knowledge oriented industries with proper utilization of IT

Public services and information dissemination to be made more inclusive and effective as per concept of e-governance

Productive use of IT in social, economic and business organizations

Increase the access of IT development at international level and arena

Make state owned integrate data center more effective for infrastructure development

Technology Policy

Salient features of IT policy: IT policy in coordination with other development policies of other sectors will be used

for programs to generate employment. Domestic Preferential Treatment will be provided to the IT equipment, software and

services produced domestically. Domestic and foreign investment will encourage in IT sector and one door policy will

be adopted. Effective mechanism to be developed for protection of Intellectual Property Rights.

Conducive environment will be created for health competition between Internet Service Providers to provide reliable and quality services.

Establishment, operation, promotion and expansion of IT parks to be carried out. Special priority will be provide to IT enable services, BPO, legal and statistics data

processing, animation, remote maintenance, back up operation and data processing of insurance, banking.

Gradual development of regulatory and institutional mechanisms for e-payment and gateway to facilitate e-trade, e-commerce.

Electronic Transactions Act, 2007: Internet has opened up many opportunities for the world. It has given tremendous market access that any one from any corner of the

world can offer their products and services to any part of the world. Nepal has moved a step further in the information and communication

technology (ICT) as the government has promulgated Electronic Transaction Act-2007.

The Act is divided into 12 sections and 80 clauses with detailed information.

The computer and cyber crimes such as hacking, piracy, copyright violation, fraudulent and all other deceitful activities have been clearly defined and punishments are set accordingly.

Problems of Managing Technology

• Improper assessment of needs for technology: This makes the use of technology questionable.

• Poor selection and acquisition of technology: It is not based on informed choice. Alternatives are not considered properly.

Training and after sales service aspects are neglected. Transparency is lacking.

• Ineffective utilization of technology: Workers are not properly trained and motivated to use new technology.

Management skills are lacking. Most industries in Nepal are not fully using their capacity.

• Lack of upgradation of technology: Maintenance facilities are inadequate. In house R & D programs are missing.

Problems of Managing Technology in Nepal Lack of political commitment:

Nepal lack political commitment toward technology. This is evident from poor investment in technology. Mutual trust between the politicians and technologist is lacking. R& D Budget is low. The public understanding for technology is poor in Nepal. Efforts to promote such understanding have been inadequate.

Ineffective technology institutions: The institutions dealing with technology in Nepal number more

than 40. But most of them function in isolation. Effective co-ordination and co-operation between them is lacking.

Poor availability of technical human resources: Nepal has a small pool of technical manpower. This has

constrained development of technical capacity.

Contd..

Inadequate maintenance facilities: Nepal lacks adequate workshop facilities for repair and

maintenance of equipment and machinery. Very few industries have their own workshops. The outdated technology has made repairs difficult. It is often a problem to find the spare parts for machinery and plants in use in Nepal. The procurement of the spares is costly and time consuming.

Rapid pace of technological change: Technology is changing at rapid pace. Nepal has not been able to

keep up with technological changes. The cost of acquiring is high. Efforts are lacking to upgrade technologies. Private sector is reluctant to make investment for technologies.

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