Effects Of Advanced Technology On Modern Economy, And Business Operations Research Study
Task: How research study help identify Advancement of technology has changed the modern economy, and its impact on business operations?
Advancement of technology has led to change in various sectors of the modern economy, which has inflicted major impact on the business organisations. Having said that, it also be witnessed that these advancement has led to rise of new consumer goods and services, either by upgrading an existing product and service or by creating a new innovative product in accordance to the current technological changes or advancement. Thus, the impact of such changes on the overall aspect of an existing product and service will be discussed in the research study.
Background of the study
In order to determine the impact of technological changes on the consumer goods and service and their further impact on consumers as well as the organisations producing such goods and services, the following research study considers the automobile sector. In doing so, the research study takes into account the emergence of electric cars and compares the same with the sales and production, consumer preference, and various other aspects with the existing non-electric cars. The reason for undertaking the automobile sector is due to the fact that the automobile is an example of revolutionary technology and changes in this technology has a significant impact on various other aspects of the manufacturing industry as well as the entire global economy.
Keeping in mind the current level of production of electric and non-electric cars and the automobile sector in the present business environment, the research study aims to determine the future changes in the automobile sector and its current implication in the contemporary business environment.
The objectives of the undertaken research study are: To evaluate the impact of technological changes in the automobile sector
To determine the existence of non-electric cars over electric cars in the near future
Research question: In alignment with the undertaken research study topic following are the research question:
How electric cars are going to change the global automobile sector?
What will be the impact of changing automobile sector on the global economy?
By analysing and scrutinizing theoretical framework of several research studies based on the chosen topic, the research study in the literature review section will evaluate the insights on the use of electric cars over non electric cars. The aim of conducting this literature review is to gather the detailed data regarding the subject matter and further determine its relevance in practical scenario.
While speaking of electric cars the idea of renewable energy comes to mind and the use of renewable energy has been proposed by various professional after the emergence of the gas or petrol vehicles. The concept of electric car or cars that could run on energy other that oil is being emphasized since many decades. However, in this context (Nykvist & Nilsson, 2015), states that the time when such ideas were given, the technology to harness the energy at a certain level was not available and it was then considered to be more costly than oil or gas. The modern scientist on the other hand emphasizes on the replacement of the oil in the transportation sector and proposed the idea of electric vehicles that can not only cut cost but also has the potential to increase productivity.
As per several research studies it can be stated that the current awareness of the consumers regarding the use of the electric cars has risen to a positive extent. However, the (Brandstätter, Kahr & Leitner 2017), mentions that the consumers are not ready to take a sudden leap towards the electric vehicles being some of the major populated and developing countries still struggle for basic electricity or underdeveloped countries in the African region where basic needs for life is the major issue. To the contrary (Moons & De Pelsmacker, 2015), argues that various organisations have already invested in the production of hybrids vehicles and also have launched a few test models in the market. This brings to the first question of the research study electric cars changing the global automobile sector. In this context, it can be stated as per relevant research studies that electric vehicle is gaining consumer preference in the global market (Plötz, Funke & Jochem, 2015). In this regard, (Dijk, Wells & Kemp, 2016) suggest that the reason for the consumer preference is communicating with the target audience and conveying the need of electric vehicle is important for both economic and environmental benefit. The estimates suggest that by 2022 the demand for the electric vehicle will rise up to 3% and the major driving factor in this regard is policies and regulation for environmental safety and conservation. Moreover, it has been further reported that in the previous year of 2018 the sales has increased to an approx. of 783000 units. This figure allows anticipating the changes in the global automobile sector and its demand in the near future. This demand as per (Randall, 2016), has been evident in most of the developed nation that includes both Asian and European market, thus in this context it can be said that a positive anticipation in case of rise in demand for electric vehicles can be assumed.
Figure 1: EV sales of passenger car and light vehicle
(Source: Deloitte US)
In alignment to the above discussion it can be further stated that the expected sales of the EV will rise by 2030 to a drastic level. This allows aligning with the second research question of the change automobile impacting the global economy. As mentioned above, the major reason for the expected growth is controlling the fuel economy and formulating specific emission target allowing electric vehicles to grow. On the other hand the monetary implication and the benefit of promoting the electric vehicle as per (Wilberforce et al. 2017), is the financial incentives that includes subsidies and other value added tax to the government. As, the aim here is to make the electric vehicle more convincing to the private consumers as well as business entities and apart from that it has been further reported that some of the major nations have considered in banning the use of biofuel by the year 2040.
Figure 2: research study predictinf Sale of electric passenger car and light vehicle
(Source: Deloitte US)
The entry of battery driven car (BEV) or electric car is a possibility however, it comes with limitation, and in this case, one of the primary concerns is the cost, which is the durability of the EV and its own cost and the cost that will be incurred in its maintenance and other aspects (Cano et al. 2018). However, the studies suggest that the reduction of price in the electric vehicle will be evident in the future eventually leading to the rise in the demand and consumption of the product. Accordingly, the current infrastructure for the electric vehicle is not adequate or it can also be said that such infrastructure has not yet been installed (Vagropoulos, Kyriazidis & Bakirtzis, 2015). In regards to infrastructure the current generation may face issue however, as per the estimates given it can be stated that the issue of lack of adequate infrastructure will be mitigated. The reason for the same is the rise in battery driven car and the change in the automobile sector with more charging station sufficient enough to meet the regular needs of the consumers (Andwari et al. 2017).
Thus, from the discussion above it can be said that the electric cars can potentially take over the non-electric cars due the emphasis on sustainable living. However, the time frame for the same may require another ten years and the anticipated outcomes can be beneficial for the generations to come.
In order to conduct the research study using secondary data collection method is considered for the chosen topic the secondary data is more relevant. The data taken are from the journal articles as the information therein can be considered effective for the undertaken research study.
The research study has been conducted in the light of making an analysis of the electric car and non-electric car. It deals with the advancement and flourishing of the automobile industry by the introduction of such technological innovations that look forward to taking care of the environmental scenario. It does also focus on future possibilities that can influence the whole ecosystem. Moreover, its impact on the current state of the business across the globe is also taken into consideration. According to this, the management process of not only the internal but also the external factors that affect the manufacture of such innovations is also examined in the research study.
Also, the existence of non-electric cars in the future has also made a question. Whether it might get replaced by the electric car and go for extinction or still be used. It remains a question to the adoption of such technology by every car makers out there.
The data regarding the research follows qualitative data. The qualitative data has been chosen as it is capable of providing the necessary data that can be utilized to analyse the subject matter. Also, the availability of such data benefits gathering information regarding the matter as the information gathered is found to be relevant. Hence, the feasibility being gotten through adopting such a scientific method of research is quite matchable regarding the necessity. Its adoption allows the proper representation of the data. These data are being extracted mainly from the observations as well as practical experience. Moreover, the data can easily be represented with more clarity.
In the field of research study, the qualitative approach includes information from various academic fields. In fact, it is the best way to figure out the outcomes by analysing something with the help of non-numerical data available. These aspects were found to be synchronized with the research concerned.
The research study proposal emphasizes on how the advent of electric cars can bring changes in various fields. As far as we are concerned, the fact lies that the advent is real and prevalent and it will possibly influence the current environment scenario by promoting sustainable development in order to preserve the resources. The scarcity of the natural resources is obvious and the only way to sustain is the adoption of modern technology that does not run on such natural resources. The research study also concerns the degree with which it can be used in various business organizations.
Andwari, A. M., Pesiridis, A., Rajoo, S., Martinez-Botas, R., & Esfahanian, V. (2017). A review of Battery Electric Vehicle technology and readiness levels. Renewable and Sustainable Energy Reviews, 78, 414-430.
Brandstätter, G., Kahr, M., & Leitner, M. (2017). Determining optimal locations for charging stations of electric car-sharing systems under stochastic demand. Transportation Research Part B: Methodological, research study 104, 17-35.
Cano, Z. P., Banham, D., Ye, S., Hintennach, A., Lu, J., Fowler, M., & Chen, Z. (2018). Batteries and fuel cells for emerging electric vehicle markets. Nature Energy, 3(4), 279.
Deloitte US | Audit, Consulting, Advisory, and Tax Services. (2019). Retrieved 29 August 2019, from https://www2.deloitte.com/us/en.html
Dijk, M., Wells, P., & Kemp, R. (2016). Will the momentum of the electric car last? Testing an hypothesis on disruptive innovation. Technological Forecasting and Social Change, 105, 77-88.
Moons, I., & De Pelsmacker, P. (2015). An extended decomposed theory of planned behaviour to predict the usage intention of the electric car: A multi-group comparison. Sustainability, 7(5), research study 6212-6245.
Nykvist, B., & Nilsson, M. (2015). Rapidly falling costs of battery packs for electric vehicles. Nature climate change, 5(4), 329.
Plötz, P., Funke, S., & Jochem, P. (2015). Real-world fuel economy and CO2 emissions of plug-in hybrid electric vehicles (No. S1/2015). Working Paper Sustainability and Innovation.
Randall, T. (2016). Here’s how electric cars will cause the next oil crisis. Bloomberg, New York, accessed Mar, 25, 2016.
Vagropoulos, S. I., Kyriazidis, D. K., & Bakirtzis, A. G. (2015). Real-time charging management framework for electric vehicle aggregators in a market environment. IEEE Transactions on Smart Grid, 7(2), 948-957.
Wilberforce, T., El-Hassan, Z., Khatib, F. N., Al Makky, A., Baroutaji, A., Carton, J. G., & Olabi, A. G. (2017). Developments of electric cars and fuel cell hydrogen electric cars. International Journal of Hydrogen Energy, research study 42(40), 25695-25734.
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