by Norman Halls, contributor
Technological change means the technical knowledge used in the production of capital and machinery. The various changes in technology lead to an increase in the productivity of labor, capital and other production factors. Technological progress is comprised of creation of skill, new means of production, new uses of raw materials and the widespread use of machinery.
Technology is the most powerful means of extracting power from nature in all possible ways. It strengthens the amenities of man. Prof. Frankel E. D. assumes that the, “Technological change is not a mere improvement in the technical know-how. It means much more than this. It should be preceded by sociological change also, a willingness and desire on the part of community to modify their social, political and administrative institutions so as to make them fit with new techniques of production and faster tempo of economic activity.” Technology, according to J. P. Dewhurts, in fact, can be thought of as the change in the production process of material and human skills.
The dynamic process at the root of economic growth is technological change. The bulk of economic growth – 87.5% according to Nobelist Robert Solow (1957) “initial estimates, stems from technological change: improvements in efficiency and effectiveness of industry.” And Solow’s estimates do not even correct for the “hedonic” price changes needed to account for improvements in products’ features and quality, nor for the development of new goods and services. To understand how to achieve the kinds and amount of economic growth we desire, we must understand technological change and its role in the industries where it occurs.”
“The Fourth Industrial Revolution builds on the Digital Revolution, representing new ways in which technology becomes embedded within societies and even the human body. The Fourth Industrial Revolution is marked by emerging technology breakthroughs in a number of fields, including robotics, artificial intelligence, nanotechnology, quantum computing, biotechnology, The Internet of Things, 3D printing and autonomous vehicles.” Wikipedia
“In manufacturing, this technological progress is forcing companies to adapt. Having a huge impact on how companies research, develop, manufacture and distribute products. It has implications for all parts of business operations, from sales and service teams all the way to the back office. All of this helps manufacturers get closer to their customers, and the future will belong to those who know their customers the best. But in order to ride this wave of innovation, manufacturers need to fundamentally change the ways they think about doing business. These changes are not easy. For most of its history, our industry has been focused on getting product out the door in the most efficient way possible. And once the sale was complete, the job was done. This way of doing business is no longer enough, as technological innovation in our daily lives has completely changed customer expectations.” Comments by Michelle Roberts The AI Revolution
“If we are to seize the opportunities, and avoid the pitfalls, of the Fourth Industrial Revolution, we must consider carefully the questions that it raises. We must rethink our ideas about economic and social development, value creation, privacy and ownership, and even individual identity. We must address, individually and collectively, moral and ethical issues raised by cutting-edge research in artificial intelligence and biotechnology, which will enable significant life extension, designer babies, and memory extraction. And we must adapt to new approaches to meeting people and nurturing relationships.” Said Chief Economist, Jennifer Blanke
The reality is we must start looking at the direction, outcome and kind of enterprise to build. What sources, if any, can give the competitive edge?
The following may produce some ideas for your business:
Large manufacturers cannot stand alone – they will need assistance from small job shops to make the tools.
The manufacturers and retailers have to DIVERSIFY their business.
The reality is employment growth, higher paying jobs and highly skilled personnel.
Have a closer relationship with inventors for research and development and innovation.
Politicians have to understand the manufacturing and retail industry and how to retain them.
Assist with companies that need High Tech machines and trained employees.
