Technology factors are any external changes related to technology that may affect an organization’s strategy. Identifying and analyzing technology factors is a fundamental part of strategic planning methods, such as PEST analysis. Technology can bring changes to business models, products, consumer perceptions, costs, risks, and the competitive landscape. Some common examples of technology factors include the following.
- Applications
- Artificial Intelligence
- Automation
- Barriers to Entry
- Bottlenecks
- Business Models
- Capabilities & Competencies
- Communication Tools
- Consumerization
- Convergence
- Customer Experience
- Data
- Dematerialization
- Ecommerce
- Engagement & Conversion
- Information Security Threats
- Information Security Vulnerabilities
- Infrastructure
- Intellectual Property
- Internet of Things
- Legacy Technology
- Machines
- Materials
- Media
- Partnerships & Outsourcing
- Platforms
- Privacy Processes
- Productivity & Efficiency
- Quality
- Research & Development
- Revenue Models
- Software
- Substitute Goods
- Systems Technological Change
- Technology Compliance
- Technology Culture
- Technology Prices
- Technology Regulations
- Technology Risk
- Technology Shortages
- Transactions & Payments
- Usability
A deeper look some of these examples.
Consumerization is the process by which businesses begin to use products and services used by consumers.
Convergence is the process by which single technologies replace multiple technologies such that things become one over time.
Dematerialization is the process by which things become smaller and lighter. This also includes physical things being replaced with intangible things.
Legacy technology is technology that is no longer supported or competitive in the market. Technological change includes the deprecation of technologies whereby new technologies eventually become legacy.
Technology culture are the norms, expectations, perceptions, experiences and shared meaning that emerges around technology.
Technology isn’t just information technology. For example, change to basic technologies such as materials can influence product designs, cost, quality, supply and demand in a market.
Substitute goods are products or services that can indirectly compete with your offerings. For example, many consumers use a tablet (iPad) as a substitute for a laptop (Macbook).
