2.3 The Technological Environment
The application of technology can stimulate growth under capitalism or any other economic system. Technology is the application of science and engineering skills and knowledge to solve production and organizational problems. New equipment and software that improve productivity and reduce costs can be among a company’s most valuable assets. Productivity is the amount of goods and services one worker can produce. Our ability as a nation to maintain and build wealth depends in large part on the speed and effectiveness with which we use technology—to invent and adapt more efficient equipment to improve manufacturing productivity, to develop new products, and to process information and make it instantly available across the organization and to suppliers and customers.
Many U.S. businesses, large and small, use technology to create change, improve efficiencies, and streamline operations. For example, advances in cloud computing provide businesses with the ability to access and store data without running applications or programs housed on a physical computer or server in their offices. Such applications and programs can now be accessed through the internet. Mobile technology allows businesses to communicate with employees, customers, suppliers, and others at the swipe of a tablet or smartphone screen. Robots help businesses automate repetitive tasks that free up workers to focus on more knowledge-based tasks critical to business operations.
Technological innovation focuses specifically on technology and how to embody it successfully in many types of innovations such as products, services, processes, profit models, channels, and customer service engagement innovations. Technological innovation can be a source of competitive advantage for organizations that seek to create value in the market.
Below is a list of a few of the technological innovations emerging today.
- AI. Today, we find artificial intelligence applied in several ways: virtual assistants like Alexa and Siri, autonomous vehicles, and intelligent houses, among others.”[8] “The wide range of AI innovations is expected to impact people and processes within and outside an enterprise context, making them important to understand for many stakeholders, from business leaders to the enterprise engineering teams tasked with deploying and operationalizing AI systems.
- Extended Reality (XR). “Extended Reality (XR) is the combination of human & computer-generated graphics interaction, which is in reality as well as the virtual environment. In basic terms, Extended Reality is a superset of Augmented Reality (AR), Virtual Reality (VR) & Mixed Reality (MR). Applications for XR can be found in the entertainment industry, sales and marketing, housing and real estate, education and training, and work from home for remote areas. There are three major challenges with XR: cost, hardware, and privacy.”[10]
- Breath Testing for Disease Control. Beyond delivering results far faster than a blood draw, breath testing for infectious diseases and cancer detection could streamline medical diagnostics by providing a non-invasive way to collect critical health data.[11]
- Generative AI. Generative AI, or generative artificial intelligence, is a form of machine learning that is able to produce text, video, images, and other types of content. ChatGPT, DALL-E, and Bard are examples of generative AI applications that produce text or images based on user-given prompts or dialogue.
- Green Hydrogen. “Hydrogen has always been an intriguing possible replacement for fossil fuels. It burns cleanly, emitting no carbon dioxide; it’s energy dense, so it’s a good way to store power from on-and-off renewable sources; and you can make liquid synthetic fuels that are drop-in replacements for gasoline or diesel. But most hydrogen up to now has been made from natural gas; the process is dirty and energy intensive. The rapidly dropping cost of solar and wind power means green hydrogen is now cheap enough to be practical. Simply zap water with electricity, and presto, you’ve got hydrogen. Europe is leading the way, beginning to build the needed infrastructure.”[16]
- Agricultural Drones. “Farmers have begun to use agricultural drones adorned with cameras to improve the treatment of their crops. The drones allow farmers a unique perspective that previously-used satellite imagery could not provide. They help to expose issues with irrigation treatment, soil variation, and distressed plants at a much lower cost than methods like crop imaging with a manned aircraft. The success of the drones is made possible by technological advances in GPS modules, digital radios, and small MEMS sensors. Together, these advances allow farmers to bring greater precision to their craft in order to reap greater rewards.”[17]