Effect of technological factors on business environment:

• Technological factors affect the production decision and hence the business environment of a region.
• Based on the technological factors, the producer needs to decide as to what technology should he adopt to produce goods so that he can deliver the best possible products and increase profit.
• Research and Development (R & D) takes place at a very fast rate across the world. This leads to constant improvement in technology of production and processing methods. The country has to adopt these changes else it will not be able to compete the international market and the businesses will start making losses. For example, there was a time when India believed that use of machines should be kept at its lowest to enable employment generation. But India had to adopt fast mechanization owing to liberalization of industrial policy.
• Many industries have started using robotic machines. Using such machines products can be produced much faster that too with very high precision.
• In banking sector, internet banking and mobile banking have become quite common now. People use these technologies to save time and effort. These technologies have given rise to a new level of business environment where in the need for development of banking software, mobile applications, etc. have increased tremendously.