Business – 6.1 External influences – Technological | e-Consult
6.1 External influences – Technological (1 questions)
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Rapid technological change influences product development in several ways:
- Shortened product life cycles: New technologies render existing products obsolete more quickly, forcing firms to accelerate research and development (R&D) cycles. For example, smartphone manufacturers must introduce new models annually to keep pace with advances in processor speed and camera technology.
- Increased need for innovation: Companies must continuously incorporate emerging technologies (e.g., AI, IoT) to maintain competitive advantage. An automotive firm integrating autonomous‑driving sensors into its vehicles illustrates how technology drives product redesign.
These impacts lead firms to adopt agile development methods, invest more heavily in R&D, and adopt modular design approaches that allow quicker updates.