The Changing Business Environment Essay: LB5228, SP21

This essay delves into the dynamic nature of the changing business environment, emphasizing the pivotal role of technology. It explores the concept of creative destruction, as introduced by Joseph Schumpeter, and its impact on organizations. The essay examines how technology drives innovation, enhances competitiveness, and necessitates adaptation to meet evolving consumer needs. It highlights the positive impacts of technology, such as increased efficiency, innovation, and market stability, while also acknowledging potential challenges, including workforce skill gaps and economic and social impacts. The essay provides examples from social media and entertainment companies to illustrate how businesses must adapt their technological strategies to remain competitive. The conclusion reiterates the significance of technology in business development and the need for companies to balance technological advancements with the needs of employees and customers, while also providing a balanced view of positive and negative implications. The essay references various academic sources to support its arguments.

Reading Head: THE CHANGING BUSINESS ENVIRONMENT
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IT Write up
April 13
2020

THE CHANGING BUSINESS ENVIRONMENT 1
Contents
Introduction................................................................................................................................2
Role technology in Creative Destruction...................................................................................2
Impact of Technology................................................................................................................4
Examples....................................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
Technology is considered to be an essential part of every business. Technology helps
the business in achieving a competitive advantage in the market. Technology also helps
companies in updating their business environment and it will also create new jobs for the
people. Technological change is also considered as a major driver that drives social change.
Technological change also creates a new opportunity that helps in economic growth.
Technologies also help in adapting to new cultures of the country. Creative destruction is the
process through which an organization can create a new environment. Many theories are
linked to this concept. This concept is also adopted by many organizations because they want
to implement changes in their organization. Technology adaption is done by the companies so
that they can fulfil the changing requirements of the people. Adaption to new technology has
some challenges as well. This is because it will directly affect the employment of the
employees that are working in the organization (Australia School Search, 2020). In this
discussion, the role of technology in creative destruction with its impact and examples will be
discussed.
Role technology in Creative Destruction
Creative Destruction is also known as Schumpeter’s gale. This concept was developed
in the 1950s and it was developed by Australian economist Joseph Schumpeter. Technology
plays a major role in this concept it is because technology has an important role in the
organization and it also impacts on operations of the organization. Innovation is also
considered to be a factor that can help the organization in achieving a competitive advantage.
Technology and innovation are interrelated concepts. Innovation is only possible because of
technological advancement. It will also help the organization in controlling their quality and
minimizing the cost of production of the products. With technological Change, Company can
effectively compete with other organizations that exist in the market (Howells, 2020). Quality
is also important to meet the requirements of the people because people are now more
focused towards quality and innovations that are involved by the company in their products.
Technology Helps Company in thinking of new ideas for innovation and it also help in
maintaining quality of the product.
Technology and innovation involve new ways through which an organization can
operate. This will also help the organization in putting their old approach aside. There are

THE CHANGING BUSINESS ENVIRONMENT 3
chances that technological advancement will destroy organizations in terms of technology,
employment and many more. But it will also create new opportunities for growth and
development of the organization. The process of creative destruction will affect the internal
economic structure of the organization. After implementing this process there are chances
that the company will experience the economic growth of the company. With the
implementation of new technology products of the company will enhance. An increase in
production will directly impact the cost per unit of production. As a result of the cost per unit
of the product will minimize. The decrease in production will increase the profits of the
company (ALLISON, 2013).
Technology fosters the growth of the company and it will also help the company in
gaining full employment. The company can also face some challenges because of the
adoption of new technology because low skilled labourers are unable to understand the
functioning of new technology. This will also create a problem in evaluating and estimating
the long effect of technological change. Technological change impacts the company
economically and socially (Clark, 2017). Technological change will shift the focus of society
towards technology development. Technological changes also affect the GDP of the country
and the growth of the company.
But on the other hand, some problems are faced by people because of technological
advancements. There are many people whose human and social needs will not be fulfilled
(Nathan & Ahmed , 2018). Technology also affects the relationship between the company
and its employees. Income distribution will also be affected because of the technological
change in the company. The composition and evaluation of the demand of people will be
affected. There are also chances that problems of overproduction, under consumption, high
unemployment, insufficient demand, and income distribution will all be affected. But
regardless of these all problems there are some positive impacts of changing technology in
the organization. It will increase the efficiency of the market. Technology also helps in
stabilizing the condition of the company in the market as profits of the company will
increase. Knowledge of employees will also be enhanced and they will also become
technology friendly with the new technology that is adopted by the company (Evangelista,
2017).

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Impact of Technology
The role of technology is more positive in creative destruction. This is because it will
increase the profitability of the business. It will also help the business to be aware of the new
technologies. The adoption of new technology will also help the company in effectively
competing with competitors in the market. The needs of people are also changing with time
the company must fulfil those needs. Technology is the key element to fulfil those needs. As
with the adoption of new technology, innovation can be done by the company. The creativity
of the company will enhance and the company will produce products that consist of advanced
features. The productivity of the company will also be improved with technological change
(Sanderson, 2017). On the other hand, technological change will also enhance the knowledge
of employees and they will also be able to learn the functions of new technology. This will
also enhance their career. Some factors will prove that technology has more positive impacts
(Singh, 2012). These factors are as follows:
 Innovation: Innovation can be done by continuously improving the working style in
the organization. Continuous improvement in products of the company will lead the
company towards innovation. Technology is considered to be an essential factor in
changing the face of innovation. But businesses should also not completely dependent
on technology because there are chances that some innovations may not be as
successful (Anderson, 2009).
 Emerging Tools: Organization needs to highlight those effective points of the
organization that emerged with the help of technology. Some of the tools may be 3D
printing, content creation and other types of digital innovations. Technology will help
the organization in exploring new things that are related to the growth and
development of the organization (Clarke, 2020).
 Accessibility: Technology has developed a path for growth and development of the
organization. This will also help the organization in moving in the right direction.
Technology helps the organization in developing its expansion strategy. Since
technology has involved innovation factors in an organization it helps the
organization in achieving success. Information can also be accessed easily with the
help of technology (Funk, 2017).
On the other hand, some disadvantages have to be faced by organizations because of the
adoption of new technology. Companies depend entirely on technology this may result
negatively because innovations don't need to always have positive impacts. Technology also

THE CHANGING BUSINESS ENVIRONMENT 5
created problems or unskilled labourers as they are not able to understand the features of the
technology (Pettinger, 2018). Technology will need fewer employees and because of that jobs
of many employees can be affected and human needs will be left unsatisfied. Technology
should create a balance between employees and the organization. Otherwise, organizations
have to face some challenges in their growth and development (Ahmed & Nathan, 2018).
Examples
The best example of technology change can be observed in Social Media
entertainment companies. Since the needs, requirements, and expectations of consumers are
changing therefore companies must change their technology so that they can fulfil the
requirements of the company. Habits and expectations of consumers are changing. Social
media also plays an important in lines of people. Social media has enhanced the
communication within people and therefore the coverage of social media is comparatively
higher than other industries. It has also been observed that the principles and norms of the
practice influence digital marketing and social media platforms. The companies that are
adopting new technology at a higher pace are Apple, Amazon, and Netflix and their
companies such as Instagram, Facebook, Youtube, and Google and Snapchat are also
changing their technology. Advance features will attract more people to the company. This
will lead the company towards earning more profits. These companies are also making use of
advertising so that more people will influence by seeing those creative advertisements ad they
will install these social media apps on their phones. Creators of these apps are using different
and creative approach so that there can be more generation of separate and different content.
This new approach is driven by interactive and creative technologies and strategies that will
influence more viewers. Technology in these factors is evaluating the qualitative approach of
the company (Mantz, 2018).
Social media networks are also providing security to their consumers by
implementing several technological factors in that. This is also influencing the behavior of
the consumers. In recent years consumers of these social media network have changed and
there is a lot of competition companies are facing because many new platforms are launching
every day and I am important for the companies to maintain their customers. People are
using social media platforms to connect with their closed ones and they want companies to
involve some innovative features in their applications. Technology is also helping people in
showcasing their talent through these applications. Technology is having positive and

THE CHANGING BUSINESS ENVIRONMENT 6
negative impacts on the lives of people. Many companies have maximized their profits and
now they are taking over other companies. This will enable them to capture a large customer
base and by adding new features in their applications they want to acquire more people.
Technology plays an important role in the development and growth of these companies
(Cunningham, 2018).
Conclusion
Technology is considered to be the background for the growth and development of
every company. This is because of technology impacts companies in many aspects such as
social, economic and many more. Many companies are not adapting the process of creative
destruction because they have a fear of adapting to new technology. It is because technology
adaptation has positive as well as negative changes. Technology is affecting the employment
and income of the employees. It is because employees will hire fewer employees if they
adopt technology it advance features. Companies have shifted their approach to technology-
based. But there are some positive aspects as well. Technology can enhance productivity and
maximize the profit of the company. It is because the cost per unit of production will
decrease. Technology will also help the company in adding innovative features to its
products. Innovations will enable the company in attracting many new customers in the
market. Technology also helps the company in creating stable positive in the market and they
will effectively face competition in the market. Companies should not entirely depend on
technology because it may result in losses. Technology should also create a balance between
the organization, customers and employees. So that needs of everyone can be fulfilled and the
company will not have to face challenges.

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References
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mployment_Creative_Destruction
ALLISON, J. (2013, 08 22). Creative Destruction. Retrieved 04 13, 2020, from Big Think :
https://bigthink.com/cornering-history/creative-destruction
Anderson, T. (2009, 02 04). Technology and Creative Destruction. Retrieved 04 14, 2020,
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and-creative-destruction
Australia School Search. (2020). Technology. Retrieved 04 13, 2020, from Australia School
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Evangelista, R. (2017). Technology and Economic Development: The Schumpeterian
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