How Technology Affects the Business Environment Essay Example for Free

How engine room Affects the Business Environment EssayDuring the last century, the organism has been by means of a proficient revolution. We fool in few years moved from existence a world where it could take months to receive a message, to universe a world where it takes microseconds. Within most industries, engineering is a very important factor to succeed. Especially in certain industries, like energy, transport and fiscal services, technological innovations have been vital to make those industries develop into what they are today. Companies are al dashs struggling to acquire better technology, so that they in a to a greater extent efficient way trick produce their products or carry out their services. It is therefore important for companies to keep an eye on new technological innovations. The technological elements of the external environment are a part of the LoNGPEST analysis, which is being calld to scan a firms environment, so it in a best possible way can adopt t o it. In this essay, I will attempt to explain how technology has been a vital reason for the globalisation, and how it has do the world more efficient. there is no doubt that the breeding of tuition and communications technology is one of the causes for globalization. The t able-bodied below shows the reduction in communicating and travelling scathes.According to the table, the price of a 3 minutes 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 rapid growth of the internet has made it possible to share information with the pass off of the world in microseconds. Eric Samuels states that one of the industries that has magnanimous because of information technology is the fiscal service patience. He states that delivery of services has become more efficient because of the action of technology. What he is saying, is that the financ ial 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 grown due 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 previously 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 between 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 greater geographic reach by 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 expanded geographically in the 90s is Goldman Sachs (GS). I 1990, Robert Ruding and Stephen Friedman decided to localize on GS global operations. During the 1990s, GS went through a rapid geographical expansion. Today, GS has offices located in all major financial centres around the world. I have made 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 aforementioned(prenominal) snip that the financial service industry, according to Pologeorgis, really started expanding 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 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 many 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 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 change magnitude from 31,806,000 barrels dail y in 1965, to 82,095,000 barrels daily in 2010. The development of oil has increased from 96,9 billion cubic feet daily in 1970, to 309 billion cubic feet daily in 2010. The main reason to the increase in production is off course 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 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 developed because of new technology is the nuclear industry. numbers pool 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 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 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 the 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. usable from http//www.bis.gov.uk/files/file44332.pdf accessed at 22.11.2011. British Petroleum (2011) Historical data online. Available fromhttp//www.bp.com/sectionbodycopy.do?categoryId=7500contentId=7068481 (then click on historical data) Accessed at 23.11.2011.U.S. Department of energy (1999) Environmental benefits of advance oil and geographic expedition and production technology online. Available from http//www.fe.doe.gov/programs/oilgas/publications/environ_benefits/4envben.pdf Accessed at 22.11.2011.U.S. Department of Energyhttp//www.fe.doe.gov/programs/oilgas/publications/environ_benefits/3innov.pdfFunding Universe, The Goldman Sachs group INC online. Available from http//www.fundinguniverse.com/company-histories/The-Goldman-Sachs-Group-Inc-Company-History.html Accessed at 22.11.2011.Goldman Sachs (2011), who we are at a glance online. Available from http//www2.goldmansachs.com/who-we-are/at-a-glance/index.html Accessed at 22.11.2011.Internet World Stats (2008), internet growth statistics online. Available fromhttp//www.internetworldstats.com/emarketing.htm Accessed at 21.11.2011.Internet World Stats (March 31, 2011), internet usage statistics online. Available from http//www.internetworldstats.com/stats.htm Accessed at 21.11.2011.Dr. Nicolas Pologeorgis (2009), The Globalization of financial Services online. Available from http//www.investopedia.com/articles/financial-theory/09/risk-free-rate-return.aspixzz1eNeBhksO Accessed at 20.11.2011.Eric Samuels (2011), Marketing of Financial Services online. Available from http//www.measurethat.com/?cat=5 Accessed at 20.11.2011. NaturalGas (2010), Natural Gas and Technology online. Available from http//www.naturalgas.org/environment/technology.asp Accessed at 22.11.2011.Nuclear Energy Institute (2011), world statistics, nuclear energy around the world online. Available from http//www.nei.org/resourcesandstats/nuclear_statistics/worldstatistics/ Accessed at 22.11.2011.Wall way Journal (2010), A Brief History of Goldman Sachs online. Available from http//online.wsj.com/article/SB10001424052748704671904575193780425970078.html Accessed at 21.11.2011Allen N. Berger, Qinglei Dai, Steven Ongen, David C. Smith (2002) To What Extent Will the situateing Industry be Globalized?A Study of Bank Nationality and Reach in 20 European Nations, page 3 online Available from http//siteresources.worldbank.org/INTFR/Resources/banking_industry_globalization.pdf Accessed at 22.11.2011.