Technological change and its impact on businessName: Mahamid RahmanID: 15264031

Technology

Technology is defined as the sum of knowledge of the means and methods of producing goods and services.

Technological change

Introduction of new products Change in methods and organization of

production Changes in the quality of resources

and products New ways of distributing the products

and new ways of storing and disseminating information

Information Technology AND It’s Effect

Advances in information technology have many impacts upon business.

1. Administration.2. Communication.3. Production.4. Storage and distribution.5. The Internet.

Technology and Investment

There is an important relationship between investment and technological change which runs in both directions

Investment can form the basis of improvements in technology while improved technology which brings about new ways of producing goods will lead to greater investment

Innovation and Technology There are two types of innovation that

can occur as a result of technological change:

Product Innovation and Process Innovation.

Research and Development Research can be theoretical or applied, and

development refers to the using of the research in production process.

It is designed to develop new products and production process which will render production more profitable. It is also aimed at improving existing products and process.

Limits to technological change

Technological change has effects on: The economy and The environment High levels of unemployment The exhaustion of natural resources.

Conclusion

Literally and practically technological change has a very big impact upon the world of business. Investment Economy and Rate of economic growth