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Unit 4: Technological Environment

Technology helps the manager to make decisions related to business in the following ways: notes
1. Decision Support System: It is an information system which collects the information
from various sources like government, customers and suppliers and global market and
competitors and helps the manager to interact with the mathematical decision models to
make decision.
2. Group Decision Support System: An expert system with set of hardware, software and
procedures that support a group of people engaged in a decision-related meeting.

3. Office Automation System: An office automation system uses computers or networks to
carry out various office operations.
4. Transaction Processing System: A system that handles the processing and tracking of
transactions is called TPS.
5. Management Information System: MIS is a set of software tools that enables managers
to gather, organize, and evaluate information about a workgroup, department or entire
organization.
6. Expert System: Expert system is a specialized application that performs tasks that would
normally be done by a human.

Example: Medical diagnosis Credit History.

4.1.2 communication tools used in international Business

1. Video Conferencing
2. E-mail

3. Internet
4. Laptop
5. Cell Phone

Did u know? With the help of MIS, managers can gather, organise and evaluate information
effectively and in short time.

4.1.3 effect of technology on strategy and competition

Some of them are discussed as under:
1. Creating Barriers to Entry: The cutting edge technology used by MNCs has created barriers
for the new entrants into the industry and also caused a major threat to the domestic
industries this has given rise to the increase in competition and importance for companies
to invest in research and development.

2. Generating New Products: Technology has always created new to the world products and
modified new products; there is a greater need for the business organizations to invest in
large volumes in research and development to bring out new products. Some minor changes
in features of the product with the same technology has given rise to new products.

Example: The modified features of the tape recorder has given rise to Walkman where
both uses the same technology.

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