Gone were the days, when people or businesses were used to live their life or do their business almost similarly day after day for the best part of their life. In this era of information and technology, the way of doing things are changing as frequently as season changes over the year. This is the impact of advancement of technology. Two prominent challenges of technological advancement in Business are:
Ever Changing Consumer Behavior:
Because of technological advancement, consumers preferences are changing frequently. For example, before the breakthrough of Smartphone, consumers used to prefer small dimensional phones which were easy to carry with. To meet this requirements mobile phone manufacturing companies were also focusing to reduce the size of mobile phone. With the introduction of smart phone and touch screen, this situation turned upside down. Consumers now a days prefer to have larger screen which comes with larger dimensional phones. On the other hand one smart phone can work as a substitute for a wrist watch, alarm clock, camera, music player etc.
Rapid Technological Breakthrough:
Technological advancement, not only influencing consumer demands but also how businesses are meeting these demands . For example, need of listening music for consumers have not changed over time but how this demand is to be met, has changed. Compact Cassettes (audio cassettes) were the most common and commercially used media for music industry but introduction of Compact Disk (CD) has changed this and advancement of internet has changed the landscape for music industry forever.
One can follow the below approaches to cope with the challenges of technological advancement in business:
- More Focus on Short and Middle Term Strategy
- Emphasize on Lowering Fixed Cost
- Reduce Dependency on Singular Technology
- Emphasize on Quick Completion of Product Life-cycle
- Maintain Compatibility
- More Focus on Research and Development
- Be Open to Changes
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