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Technological Environment
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TECNOLOGICAL ENVIRONMENT
Technological Environment
INDEX
Technological Environment
Prepared By:
Name Roll #
1. Vidhi Malhotra 26
2. Jigna Shah 50
3. Archana Nair 35
4. Saumiya Nair 49
5. Sumandevi Chauhan 12
Technological Environment
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iii) Technology can be used to carry out more risky and hazardous jobs
in factories more efficiently and safely. The use of computers and robots is
beneficial to increase productivity and reduce industrial accidents.
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c. The import of computers and modem technology is allowed at
reduced rates of import duties.
The most prevalent wireless standard in the world today, is GSM. The
GSM Association (Global System for Mobile Communications) was
instituted in 1987 to promote and expedite the adoption, development and
deployment and evolution of the GSM standard for digital wireless
communications.
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private operators are presently offering only GSM based mobile services.
The new licensees for the 4th cellular licenses that were awarded in July
2001 too, have opted for GSM technology to offer their mobile services.
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through which the cell phone can be reached has improved drastically in
terms of clarity in hearing and coverage of areas. The service providers have
also increased over a period of time. They are still trying to cover as many
areas they can for the betterment of the consumer. Earlier, the cell phones
were just used for calling purposes. But today, with the advancement in
technology, the cell phones have varied uses from serving as a reminder to a
computer. Recently, in the year 2001, camera cell phones were introduced.
These kinds of changes project the rapid development of the telecom
industry.
Keeping the camera cell phones aside, latest technology enables the user
to connect to the internet at broadband speeds more than 386kbps. This new
technology is known as the 3G technology. Our very own MTNL will be
providing us with this 3G service very soon. This service enables the user to
stream or download audio and video content or applications over-the-air,
including sports highlights, music videos and multi-user games. It also
provides the services of in – built video camera. It also enables the user to
participate in live conferences without missing their 9 – 5 schedule. This
new service will be beneficial to the service providers providing 3G because
it would enable them high data applications. This 3G network will have a
capacity of 4 million lines and will be operational next year. The total
investment will tune up to Rs.4000 crores. The company has already started
discussions relating to the equipments and this service will be first started in
Mumbai and Delhi. 3G services have already become popular in Japan, UK,
Hong Kong, Australia, Sweden and Denmark. NTT DoCoMo has a
subscriber base of more than 3.5m in Japan. Swedish mobile service
provider ‘3’ has a subscriber base of 350,000 in Sweden and Denmark,
adding around 150,000 customers since mid-August. In UK, Hutchison is
the 3G service provider. Other developments in this field are that now the
users can have mobile phones with in built soft wares like Bluetooth, which
enable them to download audio – visual movies and other videos and then
pass the same to other people. Various other soft wares are available like
Smart Crypto, Photo Fusion, Avecradio, Wow Screen, Antithief, etc.
At the most basic level, mobile phones are either analog or digital.
Some are both. Today's mobile phones are primarily digital, especially in
India and run on different technologies such as CDMA (Code Division
Multiple Access) and GSM .Code Division Multiple Access (CDMA) is a
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very new concept in wireless communications, which has lead to improve
both; the system capacity as well as the service quality.
CDMA is a form of spread-spectrum, a family of digital
communication techniques that have been used in military applications for
many years. The core principle of spread spectrum is the use of noise-like
carrier waves, which have bandwidths much wider than that required for
simple point-to-point communication for the same data rate. The CDMA
systems are the latest technology on the market and are quite competitive in
terms of cost and call quality. Many current CDMA systems boast of having
at least three times the capacity of GSM systems. Apart from the soft wares,
viruses that affect the computers, similar kind of mobile viruses have started
infecting cell phones. To fight against these viruses, technological experts
have introduced anti viruses. Technology is evolving in many such ways.
These were the technological developments taking place in the cellular
industry. Technology always has a dark side to it. So the dark side can
worsen if the misuses are not regulated. Keeping the misuses and their after
effects in mind we have an act called the Information Technology Act, 2000.
This Act looks after the misuse of any service provided to the user which is
harmful to the society or the people.
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under consideration. This will help in attracting investments in improving
the infrastructure and services at these airports. Setting up of new
international airports at Bangalore, Hyderabad and Goa with private sector
participation is also envisaged.
A good example of the impact of technology would be that of AAI,
wherein with the help of technology it has converted its obsolete and unused
hangars into profit centers. AAI is now leasing these hangars to international
airlines and is earning huge profits out of it. AAI has also tried to utilize
space that was previously wasted installing a lamination machine to laminate
the luggage of travelers. This activity earns AAI a lot of revenue.
These technological changes in the environment have an impact on
Air India as well. Better airport infrastructure, means better handling of
airplanes, which can help reduce maintenance cost. It also facilitates more
flights to such destinations.
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The RBI after being flooded with complaints against banks reluctant
to accept 50 paise and 25 paise coins asked the Birla Institute of Technology
(BITS), Pilani, to do a study to suggest remedial solution. As recommended
by the BITS, the RBI has now decided to act tough with those who refuse to
accept the legal tender.
The Government of India has the sole right to mint coins in the
country as per the Coinage Act, 1906. The designing and minting of coins in
various denominations is also the responsibility of the government. The
coins are minted at the four government mints at Mumbai, Alipore in
Kolkata, Saifabad in Hyderabad, Cherlapally in Hyderabad and Noida in UP.
Coins in India are presently being issued in denominations of 10
paise, 20 paise, 25 paise, 50 paise, one rupee, two rupees and five rupees.
Coins up to 50 paise are called 'small coins' and coins of Rupee one and
above are called 'Rupee Coins'. Coins can be issued up to the denomination
of Rs 1000 as per the Coinage Act, 1906.
New Delhi: Hyundai Motor India Ltd (HMIL) signed an MoU with
telecom service provider Tata Indicom to facilitate the implementation of its
Global Dealer Management System, a software that will help its dealers stay
connected with the company in real time.
Under the five-year MoU signed by HMIL president B.V.R. Subbu
and Tata Indicom Enterprise Business Unit president Sandeep Mathur, the
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telecom player will enable the GDMS by providing the Virtual Private
Network and VSAT technologies. It will also be the technological service
partner of HMIL to ensure the smooth operation of the GDMS system.
GDMS, a web-based communication software, will enable dealers to
place online orders of cars, spare parts and accessories to HMIL and speed
up operations and eventually benefit the customer. It will initially be run as a
pilot on about 20 dealer locations and will be extended to all HMIL dealers
in 305 locations across India by May 2005.
"With the implementation of GDMS, we aim to make it the first
integrated system, on which our dealers can view stocks of products online,"
Subbu said.
New Delhi: Having laid out a broad policy framework for regulation
of the television industry and growth in the FM radio sector, the government
has expressed optimism that the broadcast industry would make more waves
in terms of growth in 2006.
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"Our interest is that growth should not be impeded and we should not
give a signal that we are overbearing," Information and Broadcasting
Secretary S.K. Arora said here. Commenting on the developments in the
I&B sector in 2005, he said it had been a "fairly good year" as far as
expansion of television and electronic media was concerned.
"TV channels have increased considerably and, in fact, have been
growing rapidly over the last three years," Arora said, adding that as per
projections made in studies conducted by Ernst & Young and
PricewaterhouseCoopers, the growth rates are going to sustain for the next
five years. The year gone by saw the government come out with the much-
awaited revisions to downlinking and uplinking policies, that govern
television channels in India. The government also came out with a bold
policy on the private FM radio front, where it not only allowed 20 per cent
foreign direct investment (FDI) but also switched over to a revenue share
regime from the license fee structure adopted in the first round of bidding.
"There is far greater optimism on the FM radio side," Arora said, and
pointed out that the government not only went in for wide-ranging
consultations with the stakeholders but also kept in mind the commercial
viability of the projects while reviewing the policy. "This time we kept
commercial aspects, to which the industry contributed largely, in mind while
designing the policy," he said.
It is surely not news to a group of bankers that the same forces that
have been reshaping the real economy have also been transforming the
financial services industry. Once again, perhaps the most profound
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Technological Environment
development has been the rapid growth of computer and telecommunications
technology. The advent of such technology has lowered the costs, reduced
the risks, and broadened the scope of financial services, making it
increasingly possible for borrowers and lenders to transact directly, and for a
wide variety of financial products to be tailored for very specific purposes.
As a result, competitive pressures in the financial services industry are
probably greater than ever before.
As is true in the real economy, it is difficult to overestimate the
importance of education and ongoing training to the advancement of
technology and product innovation in the financial sector. I doubt that I need
to tell any of you about the importance of education and training for
employees. But the same is almost surely true for your customers. Surveys
repeatedly indicate that users of electronic banking products are typically
very well educated. For example, data from the Federal Reserve Board's
Survey of Consumer Finances suggest that a higher level of education
significantly increases the chances that a household consumer will use an
electronic banking product. Indeed, this survey indicates that, in late 1995,
the median user of an electronic source of information for savings or
borrowing decisions had a college degree--a level of education currently
achieved by less than one-third of American households.
Technological innovation and more sophisticated users have
accelerated the second major trend--financial globalization--which has been
reshaping our financial system, not to mention the real economy, for at least
three decades. Both developments have expanded cross-border asset
holding, trading, and credit flows and, in response, both securities firms and
U.S. and foreign banks have increased their cross-border operations. Once
again, a critical result has been greatly increased competition both at home
and abroad.
A third development reshaping financial markets--deregulation--has been as
much a reaction to technological change and globalization as an independent
factor. Moreover, the continuing evolution of markets suggests that it will be
literally impossible to maintain some of the remaining rules and regulations
established for previous economic environments. While the ultimate public
policy goals of economic growth and stability will remain unchanged,
market forces will continue to make it impossible to sustain outdated
restrictions, as we have recently seen with respect to interstate banking and
branching.
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In such an environment, I share your frustration with the pace of
legislative reform and revision to statutorily mandated regulations.
Nonetheless, we should not lose sight of the remarkable degree of re-
codification of law and regulation to make banking rules more consistent
with market realities that has occurred in recent years. Deposit and other
interest rate ceilings have been eliminated, geographical restrictions have
been virtually removed, many banking organizations can do a fairly broadly
based securities underwriting and dealing business, many can do insurance
sales, and those with the resources and skill are authorized to virtually match
foreign bank competition abroad. Moreover, it seems clear that there is
recognition by the Congress that the basic financial framework has to be
adjusted further. The process, as you know, is not easy when the results of
regulatory relief create both a new competitive landscape and new
supervisory and stability challenges.
Change will, I believe, ultimately occur because the pressures
unleashed by technology, globalization, and deregulation have inexorably
eroded the traditional institutional differences among financial firms.
Examples abound. Securities firms have for some time offered checking-like
accounts linked to mutual funds, and their affiliates routinely extend
significant credit directly to business. On the bank side, the economics of a
typical bank loan syndication do not differ essentially from the economics of
a best-efforts securities underwriting. Indeed, investment banks are
themselves becoming increasingly important in the syndicated loan market.
With regard to derivatives instruments, the expertise required to manage
prudently the writing of over-the-counter derivatives, a business dominated
by banks, is similar to that required for using exchange-traded futures and
options, instruments used extensively by both commercial and investment
banks. The writing of a put option by a bank is economically
indistinguishable from the issuance of an insurance policy. The list could go
on. It is sufficient to say that a strong case can be made that the evolution of
financial technology alone has changed forever our ability to place
commercial banking, investment banking, insurance underwriting, and
insurance sales into neat separate boxes.
Nonetheless, not all financial institutions would prosper as, nor desire
to be, financial supermarkets. Many specialized providers of financial
services are successful today and will be so in the future because of their
advantages in specific areas. Moreover, especially at commercial banks, the
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demand for traditional services by smaller businesses and by households is
likely to continue for some time. And the information revolution, while it
has deprived banks of some of the traditional lending business with their
best customers, has also benefitted banks by making it less costly for them to
assess the credit and other risks of customers they previously would have
shunned. Thus, it seems most likely that banks of all types will continue to
engage in a substantial amount of traditional banking, delivered, of course,
by ever improving technology.
Community banks, in particular, are likely to provide loans and
payments services via traditional on-balance sheet banking. Indeed, smaller
banks have repeatedly demonstrated their ability to survive and prosper in
the face of major technological and structural change by providing
traditional banking services to their customers. The evidence is clear that
well-managed smaller banks can and will exist side by side with larger
banks, often maintaining or increasing local market share. Technological
change has facilitated this process by providing smaller banks with low cost
access to new products and services. In short, the record shows that well-
managed smaller banks have nothing to fear from technology, globalization,
or deregulation.
For all size entities, however, technological change is blurring not
only traditional distinctions between the banking, securities, and insurance
business, but is also having a profound effect on historical separations
between financial and nonfinancial businesses. Most of us are aware of
software companies interested in the financial services business, but some
financial firms, leveraging off their own internal skills, are also seeking to
produce software for third parties. Shipping companies' tracking software
lends itself to payment services. Manufacturers have financed their
customers' purchases for a long time, but now increasingly are using the
resultant financial skills to finance noncustomers. Moreover, many nonbank
financial institutions are now profitably engaged in nonfinancial activities.
Current facts and expected future trends, in short, are creating market
pressures to permit the common ownership of financial and nonfinancial
firms. In my judgment, it is quite likely that in future years it will be close to
impossible to distinguish where one type of activity ends and another begins.
Nonetheless, it seems wise to move with caution in addressing the removal
of the current legal barriers between commerce and banking, since the
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unrestricted association of banking and commerce would be a profound and
surely irreversible structural change in the American economy.
Were we fully confident of how emerging technologies would affect the
evolution of our economic and financial structure, we could presumably
develop today the regulations which would foster that evolution. But we are
not, and history suggests we cannot, be confident of how our real and
financial economies will evolve. If we act too quickly, we run the risk of
locking in a set of inappropriate rules that could adversely alter the
development of market structures. Our ability to foresee accurately the
future implications of technologies and market developments in banking, as
in other industries, has not been particularly impressive. As Professor
Nathan Rosenberg of Stanford University has pointed out, ". . . mistaken
forecasts of future structure litter our financial landscape."
Indeed, Professor Rosenberg suggests that even after an innovation's
technical feasibility has been clearly established, its ultimate effect on
society is often highly unpredictable. He notes at least two sources of this
uncertainty. First, the range of applications for a new technology may not be
immediately apparent. For instance, Alexander Graham Bell initially viewed
the telephone as solely a business instrument--merely an enhancement of the
telegraph--for use in transmitting very specific messages, such as the terms
of a contract. Indeed, he offered to sell his telephone patent to Western
Union for only $100,000, but was turned down. Similarly, Marconi initially
overlooked the radio's value as a public broadcast medium, instead believing
its principal application would be in the transmission of point-to-point
messages, such as ship-to-ship, where communication by wire was
infeasible.
A second source of technological uncertainty reflects the possibility
that an innovation's full potential may be realized only after extensive
improvements, or after complementary innovations in other fields of science.
According to Charles Townes, a Nobel Prize winner for his work on the
laser, the attorneys for Bell Labs initially refused, in the late 1960s, to patent
the laser because they believed it had no applications in the field of
telecommunications. Only in the 1980s, after extensive improvements in
fiber optics technology, did the laser's importance for telecommunications
become apparent.
It's not hard to find examples of such uncertainties within the financial
services industry. The evolution of the over-the-counter derivatives market
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over the past decade has been nothing less than spectacular. But as the
theoretical underpinnings of financial arbitrage were being published in the
academic journals in the late 1950s, few observers could have predicted how
the scholars' insights would eventually revolutionize global financial
markets. Not only were additional theoretical and empirical research
necessary, but, in addition, several generations of advances in computer and
communications technologies were necessary to make these concepts
computationally practicable.
All these examples, and more, suggest that if we dramatically change
the rules now about banking and commerce, with what is great uncertainty
about future synergies between finance and nonfinance, we may well end up
doing more harm than good. And, as with all rule changes by government,
we are likely to find it impossible to correct our errors promptly, if at all.
Modifications of such a fundamental structural rule as the separation of
banking and commerce accordingly should proceed at a deliberate pace in
order to test the response of markets and technological innovations to the
altered rules in the years ahead.
The need for caution and humility with respect to our ability to predict
the future is highly relevant for how banking supervision should evolve. As I
proposed to this audience last year, regulators are beginning to understand
that the supervision of a financial institution is, of necessity, a continually
evolving process reflecting the continually changing financial landscape.
Increasingly, supervisory techniques and requirements try to harness both
the new technologies and market incentives to improve oversight while
reducing regulatory burden, burdens that are becoming progressively
obsolescent and counterproductive.
Concerns about setting a potentially inappropriate regulatory standard
were an important factor in the decision by the banking agencies several
years ago not to incorporate interest rate risk and asset concentration risk
into the formal risk-based capital standards. In the end, we became
convinced that the technologies for measuring and managing interest rate
risk and concentration risk were evolving so rapidly that any regulatory
standard would quickly become outmoded or, worse, inhibit private market
innovations. Largely for these reasons, ultimately we chose to address the
relationship between these risks and capital adequacy through the
supervisory process rather than through the writing of regulations.
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achieved by flailing piles of grain with a club or by treading on it. A man
also seen winnowing the threshed grain by tossing it into the air with a
shovel: gravity returns the heavier grains to the pile at his feet while a breeze
separates the light chaff and blows it away.
The efforts of labor extended beyond planting and harvesting. To live
by exploiting grain crops, humans must process the grain before it can be
eaten. Human teeth, jaws, and digestive tract are simply not adapted for this
kind of diet. The typically human solution to this problem is, however, not to
evolve biologically, but to find cultural or technical solutions to problems: in
this case, to develop the knowledge and techniques for processing grain.
One early and universal technique of transforming grain into food is
to mill the seeds slightly between two stones and then to boil the grain in
water, making a kind of gruel. If ground into coarse meal, boiling in water
will produce something like the oatmeal we still eat at breakfast. If ground
fine and mixed with water into a paste and then baked, the grain is
transformed into bread. The yeast cultures which leaven some forms of
bread are naturally occuring, but were regarded as magical prior to the
relatively recent discovery of micro-organisms.
If stored grain gets wet and begins to sprout, the stored carbohydrates
in the seed begin converting into sugar. While the grain is spoiled for bread-
making, it can still be consumed if treated in another process called
fermentation. The sprouted grain is first baked, ground into a paste (called
malt), and then added to water. With the right yeast and little luck, the result
is beer, another of the food inventions of early Mesopotamian
agriculturalists. Some archaeologists even believe that making beer was one
of the driving forces behind domestication of wheat and barley. Large vats
for storage of beer have been found in early Sumerian cities.
Another advantage of sedentary life is the ability to use heavy and
breakable--but none the less very useful--household objects made of baked
clay. Hunter- gatherers have no use for pottery because they have to carry
their possessions with them when they move. Agriculturalists, in contrast,
can accumulate such objects--and put them to multiple uses. This discovery
was made many times by human communities all over the globe, and seems
to have occurred almost as soon as they settled down in one place.
In the photo above, an Egyptian woman fashions a bowl out of rings
of clay-- probably the oldest way of making pottery. At right, an Egyptian
craftsman fashions a large container using the next level of technological
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development--a potter's wheel, which he moves with his foot. Technology as
basic as the potter's wheel allowed early humans to enjoy the first fruits of
mass production.
The wheel may have first been developed--invented--for these
purposes rather than for use in vehicles. In any case, the settled mode of life
led to many new discoveries out of which elaborate technologies eventually
developed.
Agricultural societies world-wide have discovered that "baking" clay
in extremely hot fires for a long period creates hard, durable objects such as
the plates, jugs, and pots above. These examples are from 'Ubaid' culture in
Mesopotamia, one of the earliest pottery-making societies.
Another step in a sequence of technological development was the
modification of the pottery kiln into a furnace capable of melting metal ores.
Note that the earliest forms of furnaces for smelting ores retain the
form of the mud oven. Over time, smelting ores became a highly refined
technology and furnaces evolved into new forms.
The discovery of techniques for turning plant and animal fibers into
cloth represented a revolutionary improvement in the quality of human life.
Weaving may have preceded agriculture, as it grew naturally out of basketry
and the weaving of reed mats. Life in sedentary agricultural villages
permitted the refinement of ancient techniques and the adoption of more
complex looms.
One of the most important contributes that stemmed from the
agricultural revolution was the invention of writing. As commercial
activities increased as trade became more and more important, there was a
need to record trade activities. As a result, Mesopotamians began to use clay
tokens to keep track of economic exchange values. Later, this rather
cumbersome mechanism was replaced by written symbols in clay tablets.
With time, Mesopotamian scribes began to write down everything on these
clay tablets as a record of life emerged.