Unit 5:

Technology & Energy

Management
TMC -BBA Fourth Semester- Section
‘A’
Course Instructor- Prerana
Maharjan
 Introduction/concept of
•
technological environment:
Technological environment refers to the state of science and technology in the
country and related aspects such as rate of technological progress, institutional
arrangements for development and application of new technology, etc.
• Technology comprises of both machines (hard technology) and scientific
thinking (soft technology) used to solve problems and promote progress. It
consists of not only knowledge and methods required to carry on and improve
production and distribution of goods and services but also entrepreneurial
expertise and professional know how. Technology includes inventions and
innovations.
• According to the well known economist J.K. Galbraith,
technology means, “systematic application of scientific
or other organized knowledge to practical tasks”.
• Technological environment refers to the factors in
technology that impact business operations. It
includes the institutions & activities involved with
creating new knowledge & translating that knowledge
into new outputs, products, processes & materials.
• All types of businesses from small to large use
technology in their operations for enhancing their
productivity. Technology largely dictates(influence) the
success of modern organizations. Investment in new
technology is one of the most critical decisions of a
manager as it involves rigorous(exact/correct) cost
benefit analysis.
• Changes in technology affect how a company does its
business. A business has to change its operating strategy
as a result of changes in the technological environment.
• The main features of technological environment are as
follows :
• Technological environment is a component of macro(large-scale)
or indirect action environment.
• Technological environment changes very fast.
• Technological environment affects the manner in which the
resources of the economy are converted into output.
• Technological environment is self reinforcing( self-
administered). An invention in one place leads to a sequence of
inventions in other places
 Business & Technology:
• Technology plays an important role in business operations.
Technology plays a key role in the growth of business all around the
world. Almost all businesses & industries use technology in their
operations.
• Businesses use technology to carry out their functions as:
production, accounting, human resources, research & development,
marketing & distribution effectively & efficiently. Without the
growth of technology, the idea of globalization wouldn’t turn to be a
reality. Businesses can go international through the use of the
internet. Technology has allowed businesses to grow & expand in
different ways.
• A business should make technology as an important part of
its operation. Technology also affects the ways & strategy of
doing business. Use of technology affects inputs, process &
output both qualitatively & quantitatively.
• Technology allows opportunities to optimize production.
Manufacturers constantly look to upgrade technology to
compete with industry leaders on production efficiency.
Using technology, small companies can often compete with
big companies in operational efficiency. Technology also
makes the process of selling to & servicing customers much
more efficient & effective.
 Current Status of technology/ status of
technology in Nepalese business:
• Technology plays a crucial role in the economic development of a country.
Technology is the practice of putting the knowledge into practice. The
development of industry & business in any country largely depends on the
adaptation & development of technology. Technology is the foundation for
the development of all sectors as well.
• The developed countries in the world are technologically strong in
different sectors. However, Nepal is not found to take benefits of the global
technological advancements. The level of technology used by Nepalese
businesses is not found to be satisfactory.
• The present status of technology in Nepalese business are
mentioned below:-
1. There are some organizations working for the development
of technology & science in Nepal. Some of them are:
• Ministry of Science & Technology
• Nepal Academy of Science & Technology (NAST)
• Research Centre for Applied Science &
Technology(RECAST)
• Nepal Agricultural Research Council (NARC)
• Different University
• University Grant Commission
2. Modern technology is capital intensive. Most of the Nepalese organizations
do not afford to invest in modern technology.
3. The government spends less than 1% of the total budget in research &
development. It shows the low priority of the government for the
development of technology.
4. The medium & small scale industries in Nepal are using indigenous(local/
ancient) technology or simple technology mostly imported from India.
5. The private sector in Nepal is reluctant(hesitate) to invest in development
of technology. On the other hands, Nepalese organizations are found to be
weaker in selecting the appropriate technology that they require.
6. The rate of technology transfer from other countries in different
forms is also not satisfactory.
7. The service sectors in Nepal are found to adopt the latest
technology compared to manufacturing sector.
8. Nepalese export products are mainly in form of raw material &
semi-finished goods. It indicates the low level of technology in
Nepalese business.
9. The supply of technical manpower like electricians, electric
engineers, IT & professionals is still below the required level.
• After liberalization of the Nepalese economy, the private sector
has better access of modern technology. However, the pace(rate)
of technological development is still slower than the expected.
  Technology transfer issues:
• Technology transfer may be defined as the moving of ideas from
a research laboratory to the marketplace. According to Foreign
Investment & technology Transfer Act-1992, Technology
transfer means transfer of any technology made under an
agreement between industry & a foreign investor on the
following matters:
 Use of any trademark of foreign ownership
 Use of any technological right, specialization, formula, process,
patent
 Acquiring(obtaining/receiving) any foreign technical,
consultancy, management & marketing service.
• Technology transfer has become a hot topic in the
contemporary world. The rate of technology transfer,
especially from the west to the developing countries has
increased over the years.
• Technology transfer may follow two situations:
1. Point to point transfer: It implies that a source develops an
innovation for a highly specified purpose to a known audience
user.
2. Diffusion: It suggests that a source develops an innovation
for a general audience user whose purpose may or may not be
clearly known.
• Issues/ Problems/ challenges/Barriers of Technology
Transfer:
1. Lack of systematic planning for technology transfer in developing
countries.
2. Lack of systematic & integrated engineering & socio-economic
approach to the technology transfer process.
3. A limited general understanding of the concept of technology, & the
lack of a consistent framework for its study.
4. Lack of bilateral (two parties) scientific/ technology advantages in
the process of technology transfer (mutual benefits)
5. Lack of attention to environmental consideration &
assessment(evaluation) of technological impact.
6. Failure to determine whether a national consensus
(agreement/harmony) & orientation exist for a transfer.
7. Failure to recognize the local potential (cultural &
economic) for adaptation of technology(that is failure to
determine the availability of social & economic
infrastructures).
8. Lack of relevant(exact) quantitative framework/ approach
to the analysis & evaluation of technology transfer process.
9. Restricting the feasibility study of technology transfer to
financial assessments(evaluation) (mostly cost-benefit
analysis).
10. Presence of ethical problems within the technology
transfer process.
11. Lack of any universally accepted perspective on relevant
socio-economic as well as technological infrastructure in
the process of technology transfer.
12. Misunderstanding of the concept of technology
appropriateness, hitherto(until now) confined(limited) to
only small & non-capital-intensive technologies.
13. Failure to evaluate or consider ‘conflict causing’ factors
pertaining (relating) to the transferred technology.
 IT policy of Nepal Information technology
(IT) Policy, 2010
• Information technology (IT) is the use of computers to store,
retrieve(rescue), transmit, and manipulate data or information. IT is
typically used within the context of business operations as
opposed(averse) to personal or entertainment technologies. IT is
considered to be a subset of information and
communications technology (ICT). An information technology
system (IT system) is generally an information system,
a communications system, or, more specifically speaking, a computer
system – including all hardware, software.
• The Information technology Policy, 2010 has been brought with the aim of making
information technology accessible to the general public & create knowledge based
society.
• The following policies are proposed for the implementation of
aforesaid(mentioned previously) strategies:
1. To declare information technology sector a priority sector.
2. To provide Internet facilities gradually to all Village Development Committees of the
country.
3. To computerize the system in all government offices & build their websites for the
flow of information.
4. To adopt one window system(facility that allows parties involved in trade &
transport to lodge standardized information & documents with a single entry point to
fulfill all import, export & transit-related regulatory requirements) for the
development in the field of information technology.
5. To use information technology to promote e-commerce, e-
education, e-health among others & to transfer technology to
rural areas.
6. To encourage the use of computers in private sectors.
7. To create an atmosphere conducive(tending to promote) to
attracting investment in the private sector, keeping in view the
private sector’s role in the development of information technology.
8. To establish a National Information Technology Centre.
9. To assist educational institutions & encourage domestic &
foreign training to fulfill the requirement of appropriate
manpower at various levels pertaining to information technology.
10. To establish a fund at the National level by mobilizing resources from
Government of Nepal, donor agencies & private sectors so as to promote
research & development of information technology & other related
activities.
11. To develop physical & virtual information technology parks at various
places with private sector’s participation in the development of information
technology.
12. To include computer education in the curriculum starting from the
school level & broaden its scope.
13. To prioritize research & development in the field of information
technology
14. To use information technology gradually in all
government activities & provide legal sanctions
(approval) to them.
15. To enact necessary laws for providing legal sanctions to
the use of information technology.
16. To establish a venture capital fund with joint
participation of public & private sectors.
17. To establish Nepal in the global market through the use
of information technology.
 Natural Environment & P0llution issues:
• Nepal is small in area. However, it is rich in natural
resources. These natural resources form the natural
environment of Nepal. Natural environment is very
important for social as well as economic life. It is the
source of food supply, energy, medicine & input for
industries. Some of the important natural resources are
forest, water, minerals, etc.
• A number of environmental issues are in Nepal due to
decrease in forest area, air pollution, soil erosion &
pollution, air pollution & loss of water sources.
• Increase in population, significant portion of poor
population, disposal of wastes & harmful & poisonous
substances, increase number of vehicles, unplanned
urban development & poor compliance of
environmental rules & regulations are the major
reasons behind poor environmental situation in Nepal.
• The natural environment & pollution issues in Nepal are as
mentioned below:
1.The population of Nepal is increasing at an alarming trend.
This has resulted in increased demand of fuel, fodder (food) for
animals, land to grow more foods, increased number of vehicles,
increased urbanization & more wastes.
2. Heavy dependence for energy on traditional sources has
caused the depletion (reduction) of natural resources &
degradation (becoming worse) of natural environment.
3. Land degradation is rampant(uncontrolled)over the years
due to improper & excessive use of chemical fertilizer.
4. Increase in number of vehicles has increased vehicular emissions
(outflow/release) causing air pollutions. The air pollution is also
increasing due to industrial emissions(released) as well as
unplanned & unmanaged construction of roads & houses.
5. industrial, commercial & household effluents(liquid wastes) are
the major source of water pollution.
6. Unauthorized sand mining from river beds is a direct cause of
erosion(weakening/ gradual destruction) & impacts the local
wildlife. Levelling of hills for construction & other purposes,
depletion of water sources, illegal export of construction materials
are other reasons of environmental degradation(worse/lower
condition) in Nepal.
  Energy situation in Nepal:
• Energy is the most important resource for the economic & social
development of a country. Availability & use of modern sources of energy
largely determines the development of trade & industry of a country.
• Nepal’s energy sources can be categorized under three broad types:
 Traditional sources of energy include fuel wood, agricultural residues(all
organic materials which are produced as by products from harvesting of
agricultural crops) & animal dung.
 Commercial sources of energy are fossil fuels & electricity.
 Alternative sources of energy are solar, micro hydro(hydroelectric power
that typically produces 5kW to 100kW using the natural flow of water-
river water), wind power, biogas & briquettes(small block made from
coal).
• The condition of energy supply in Nepal is not found in a satisfactory
state. Despite high potential for generating energy through
abundant(huge) water resource, energy crisis has continued to grow as a
result to failure to achieve notable(outstanding) progress in the
production of alternative energy.
1. Electricity:
Nepal is rich in water resources. It has over 40,000MW of technically &
financially viable(capable) sources of generation electricity. However,
around 3 % of this has currently been generated. Hydro-electricity will be
backbone of Nepalese economy if its is exploited(utilized) properly. In
Nepal, the electricity generation increased in 2019/20 by 8%. The energy
generated should benefit small & micro businesses while improving the
standard of living & the health of local people. It should contribute to the
national grid(the network of high voltage power lines between major
power stations) & help to bring new revenue to the nation.
2. Petroleum:
Nepal is entirely dependent on import for petroleum products.
They are the major sources of energy in Nepal. They occupy 18 %
of the total energy consumption in 2019/20. it is a major source
of foreign currency outflow from Nepal.
• A task for addressing country’s energy demand has been very
challenging & complex. Traditionally energy has
inflicted(cause) damage on environment while the imports of
petroleum products have been the reason for high trade
deficit(country’s imports exceed /greater than its exports) in
Nepal.
 Energy management issues in Nepal:
• Nepal has one of the most expensive power tariffs(tax imposed during import
from other country) in the world despite having the huge free water resources,
favorable terrain(physical features) for its production & all kinds of human
resource available in the country. Nepal is a country endowed (provided) with
high potential for renewable energy resources like solar, wind, hydro & biomass.
The country has abundant huge hydroelectric potential & solar energy.
• Energy is the key input for technological, social & economic development of a
nation. The energy supply & demand characteristics have a great role to play in
order to attain sustainable development in the country. Thus, meeting Nepal’s
current energy demand would help foster(promote) higher economic growth.
• Energy demand increases not only due to the increase in
population but also due to the people’s access to new
utilities in the market. As the rate of globalization has a
quick impact in technology development, the most affected
sector due to growth & globalization is the energy sector &
Nepal cannot be its exception(doesn’t follow a rule).
• Despite endowed(provided) with huge natural resources,
Nepal has not been able to tap(open) its vast(huge) energy
resources for the benefit of the country. The following are
some of the issues related to energy management in Nepal:
1.Dominance of forestry sector:
Forestry sector dominate the Nepal’s energy scenario as it supplies more
than two third of the total of energy. Therefore, it is necessary to develop
alternative means of energy to meet the need of rural people.
2. Far below exploitation of energy sources:
Nepal has a large sources of renewable energy(ie. Wind, solar,
hydroelectricity). However, it is found that only a nominal (very small)
portion of the real potentiality has been explored & exploited(utilized).
Political & policy instability are some major reasons for this.
3. Poor access of the rural people:
Around 60% of the rural population has access to electricity. This is the
main reason that traditional sources hold major source of energy in Nepal.
Hence, it is very much necessary to increase such access(gain).
4. Expensive Energy:
Nepal has one of the most expensive power tariffs in the world
despite having the huge free water resources & favorable
terrain(physical features) for electricity generation. This is
due to no other reasons than the financial irregularities
continuously present in the government & corporate systems
in the country. Nepalese power industry is more like a
monopoly market under the control of Nepal Electricity
Authority (NEA) which is responsible for generation,
transmission & distribution of electricity in the country.
5. High Dependency on Petroleum products:
Nepal has no production of petroleum products. Hence, it is
dependent on others for this. Import is the only way to
meet the demand for petroleum products. The demand &
supply both are increasing day by day. There was more
demand of LPG(Liquefied Petroleum Gas) which was
introduced as an alternate of kerosene, electricity in urban
& semi urban areas. Due to pressure of high population &
high demand Nepal Oil Corporation(NOC) is being unable
to supply properly to meet the market demand.