CHAPTER 10

Technology IssuesTechnology Issues

Chapter Objectives

• To examine the nature and characteristics of technology

• To explore the economic impact of technology

• To examine technology’s influence on society

• To provide a framework for the strategic management of technology issues

The Nature of Technology

• Technology relates to the application of knowledge, including the processes and applications for the solving of problems, performance of tasks, and creation of new methods to obtain desired outcomes.

• Technology reduces the number of worker hours necessary to generate the nation’s output.

• It increases job opportunities.

• Failure to share with developing countries can cause a major divide in the quality of life.

Characteristics of Technology

• Constant change that challenges the structure of social institutions

• Challenge many traditional products

• Broad reach

• Functions as a catalyst to spur even faster development

Technology’s Influence on the Economy

• A major factor in the economic growth in the U.S.

• More jobs and improved living standards

Concerns About the Use of Technology

• Small businesses may be less able to take advantage of technological changes.

• It creates a class breakdown between the “haves” and “have-nots.”

• The ability to purchase technology affects the nature of competition.

• It reduces privacy and encourages the growth of cyber crime.

The Internet

• Interactive communication has supported business relationships with consumers and business customers, provided for more precise target marketing, and facilitated supply-chain management.

• Fraud has become a major concern.– Complaints from consumers have risen

dramatically over the past five years.

Privacy Laws

• Privacy Act (1974)• Right to Financial Privacy Act (1978)• Computer Security Act (1987)• Computer Matching and Privacy Protection

Act (1988)• Telephone Consumer Protection Act (1991)• Driver Privacy Protection Act (1993)• Fair Credit Reporting Act (1997)• Children’s Online Privacy Protection Act (2000)

Intellectual Property

• Ideas and creative materials developed to solve problems, carry out applications, and educate and entertain others

• Generally protected via patents and copyrights• Original works in text form, pictures, movies,

computer software, musical multimedia, and audiovisual works protected by U.S. copyright laws– Digital Millennium Copyright Act (1998)

Health and Biotechnology

• Bioethics- the study of ethical issues in the fields of medical treatment and research

Strategic Implementation of Responsibility for Technology

• The Role of Government– With an economy that is increasingly driven by

technology, the government must maintain the basic infrastructure and support for technology in society.

– Defense department explores ways that technology can improve the quality of life.

– Government serves as a watchdog to ensure technology benefits society, not criminals.

– However, it is difficult to keep pace with technology.

Strategic Implementation of Responsibility for Technology

• The Role of Business– Business is involved in both reactive and

proactive attempts to market and make effective use of technology.

– Reactive concerns relate to issues with legal/ ethical implications as well as to issues of productivity, customer welfare, or other stakeholder issues.

– Business is concerned about undesirable employee use of computers.

Strategic Technology Assessment

• Technology assessments foresee the effect of new products and processes on a firm’s operations, on other business organizations, and on society in general.