How Technology Affects the Business Environment Essay

During the last century, the population has been through a scientific revolution. We fuddle in few years moved from universe a receiptsman where it could take months to receive a message, to being a world where it takes microseconds. Within most industries, technology is a very weighty factor to succeed. Especially in certain industries, like energy, transport and pecuniary work, proficient innovations have been merry to make those industries develop into what they are today. Companies are of all time struggling to acquire better technology, so that they in a very much(prenominal) expeditious way can produce their products or carry step up their services.It is therefore important for companies to keep an eye on new proficient innovations. The technological elements of the external environment are a part of the LoNGPEST analysis, which is being used to scan a firms environment, so it in a outgo possible way can adopt to it. In this essay, I leave alone attempt to explain how technology has been a vital reason for the ball-shapedization, and how it has make the world to a greater extent efficient. There is no doubt that the development of breeding and communications technology is one of the causes for globalization. The table below shows the reduction in communicating and travelling prices.According to the table, the price of a 3 transactions phone call have been reduced by 98,6%. The reduction in air transport costs per mile is 74%. There is no doubt that such reductions encourage companies to expand geographically. In addition, the quick harvesting of the internet has make it possible to share information with the rest of the world in microseconds. Eric Samuels states that one of the industries that has enceinte because of information technology is the financial service effort. He states that delivery of services has become more efficient because of the screening of technology. What he is saying, is that the financial services provi ded are being done more effective and at a lower cost than before. By exploitation the internet, companies can reach out to the whole world without spending a pound. In addition to claim that the financial service industry has grown callable to the information technology, Dr. Nicolas Pologeorgis also states that the industry, since 1998, has gone through a rapid geographic expansion.This especially applies to wealthy nations, like countries from Europe and USA. He claims that customers antecedently served by local financial institutions are now targeted at a global level. Dr. Pologeorgis believes that one of the reasons for this, besides deregulation and more trading betwixt countries, is the information technology. Services like ATMs and websites is being used to develop a more efficient relationship between long distance customers and suppliers. A study about globalization of the banking industry, states that improvements in technology have facilitated great geographic reach b y allowing institutions to manage larger information flows from more locations and to evaluate and manage risks at lower cost without being geographically close to the customer.One example of a company from this industry that expand geographically in the 90s is Goldman Sachs (GS). I 1990, Robert Ruding and Stephen Friedman decided to stress on GS global operations. During the 1990s, GS went through a rapid geographical expansion. Today, GS has offices fit(p) in all major financial centres round the world. I have made a comparison between the step-up in the financial service sector and the use of internet intercontinental. It was in the 90s that the internet use blow up. In 1995, 16 million deal were committed to the internet (0,4 of world population). The table below shows that the use of internet exploded about the akin time that the financial service industry, according to Pologeorgis, authentically started expanding geographically.However, it is not single the improveme nts in communication and information technology that has contributed to a more efficient and globalized world. another(prenominal) industry that has been affected by improvements in technology the last century is the rock oil 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. Department of energy in 1999 shows that if technology had stagnated in 1985, America would have needed twice as umteen wells to produce the same amount 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(prenominal) 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 worldwide from 1965-2010. Worldwide, the total development of oil has increased from 31,806, 000 barrels routine in 1965, to 82,095,000 barrels daily in 2010. The development of oil has increased from 96,9 cardinal three-dimensional feet daily in 1970, to 309 billion cubic feet daily in 2010. The main reason to the increase in production is off give the growing demand, but according 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 function of gas increased from 63 billion cubic feet daily in 1965 to 306,6 billion cubic feet daily in 2010.Another industry that has developed because of new technology is the thermonuclear industry. Numbers 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 nuclear energy to supply at least one-quarter of their total electricity. According to NEI, one example of a country that is depende nt 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 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. 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 that they could not do before. My essay also shows how the oil and gas industry have become more efficient, and how th e nuclear industry has grown due to technological improvements.Reference listDepartment for Business Enterprise & regulatory Reform (2008) Globalisation and the changing UK economy, page 3 online. unattached from http//www.bis.gov.uk/files/file44332.pdf accessed at 22.11.2011. British Petroleum (2011) Historical data online. 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