PESTLE Analysis: Technological Factors Affecting Business

PESTLE Analysis: Technological Factors Affecting Business

The concept of PESTLE analysis is nothing new in the world of business and corporate decision-making. It has been around for decades, but recently its importance has grown exponentially. This can be attributed to the ever-increasing technological advances that have taken place over the past decade or so, which have revolutionized many industry sectors and dictated how businesses need to operate day to day.

The power of PESTLE analysis lies in its simplicity; it helps identify and analyze those external factors that may be influencing a business’s success or lack thereof: political, economic, social, technological, legal, and environmental. It is these six categories that makeup what is commonly referred to as “PESTLE.”

We’ll be focusing on one category of PESTLE: Technological factors.

Technological factors refer to innovations that affect not only how products are created, but also how services provided by an organization function in terms of efficiency and effectiveness. This can include anything from increased computational power to advanced engine technologies applicable within specific industries, such as the automotive or aviation manufacturing sectors.

In general, though, technological factors should be seen as any development or advancement that alters how things were once done across all facets of an enterprise or, indeed, industry-wide — both internally within operations themselves and externally between customers/clients/partners, etc.

Technological Factors in Business

  • The existence of 3D technology
  • Computer calculation speed/power
  • The ability of computers to create truly ‘random’ numbers
  • Engine efficiency
  • Internet connectivity
  • Wireless charging
  • Automation
  • Security in cryptography


The automation of unskilled work can be advantageous for companies, particularly in industries such as manufacturing, distribution, and supermarkets, which often require a lot of personnel. Automating tasks may allow these businesses to substitute human production lines for entirely machine ones, thus reducing the expenses associated with labor and office space. 

Automation also offers increased speed and accuracy compared to traditional manual production processes. Companies that take advantage of automation technology have the potential to gain a competitive edge by being able to produce more quickly and efficiently than their competitors.

On the other hand, the increase in automation might not necessarily be advantageous for those employed by job search firms or recruitment agencies. Many jobs considered low-skill, such as data entry or call center work, are slow but steady careers that bring financial stability to people; automation has already begun replacing these positions with automated software programs. 

Automation creates difficulty for those providing recruitment services, who then need to find other markets that machines cannot yet replace; this could affect profitability for recruitment firms across the board if there is insufficient demand for their services elsewhere. 

The ease with which machines can learn tasks and adapt means that more complex roles may start being replaced over time; even professions like legal advisory could potentially become automated, given sufficient technological advances in artificial intelligence (AI).

The main considerations here should relate not only to whether an AI-driven program can easily perform an occupation or service (reducing operational costs), but, more importantly, whether it’s ethically sound to perform these operations at scale without any human oversight or input whatsoever. A careful balance between cost optimization driven by advances in technology and responsible stewardship should always be maintained during any process involving job automation.

Computer calculation speed/power

Computer calculation speed/power are important technological factors affecting businesses, because the faster and more powerful computers become, the more productive and efficient processes can become. This not only increases the profits of businesses, but also allows them to stay competitive in their respective markets. With advancements in computer technologies, such as increased processing power, businesses can take on more extensive and complex tasks than ever before. This can lead to new product development for larger companies or process simplification for small businesses. 

One example of how computer calculation speed has affected businesses is in data mining — the use of advanced algorithms and technologies to uncover patterns in large datasets. Companies across different industries increasingly rely on machine learning-based data mining techniques that require high levels of computational power.

By better understanding these patterns through data mining, they can make more informed decisions based on insights gained from the data they collect, which could result in an improved customer experience or higher sales volumes due to better pricing strategies enabled by this information. 

In addition, advanced computing capabilities allow businesses to conduct simulations that can optimize their processes by considering diverse elements such as costs and resource accessibility without the danger of actual losses associated with experimental strategies.

These models can also be employed for predictive analysis, for example, forecasting future demand or identifying the best stock levels according to customer requirements. This way, a business avoids overstocking and having to store surplus items or understocking in times of high customer demand, leading to an unsatisfactory supply that might result in a loss of potential earnings. Ultimately, businesses can quickly launch products and react rapidly to varying market circumstances. 

The superior computing power provided by modern GPUs, TPUs, and other hardware has enabled AI models that were previously unfeasible due to inadequate processing capabilities. This breakthrough has given rise to applications such as autonomous driving, where real-time responses are essential for safety purposes and efficiency gains from route optimization.   

Advances in both hardware (e.g., Moore’s Law) and software (e.g., parallel programming and grid computing) have enabled organizations with distributed operations to connect these operations worldwide via a cloud infrastructure, improving the speed of calculations and communication between geographically remote sites while reducing costs associated with traditional networking techniques, such as long-distance wiring installation.

This makes it simpler and more cost-effective to maintain visibility over all operations and perform compliance checks, since independent entities can no longer alter versions without being detected quickly. Consequently, these developments have revolutionized how modern organizations manage their operations, from product design to logistics management, process optimization to marketing activities — they are now able to gain a competitive advantage faster than ever before.

Internet connectivity

The increased global internet connectivity in recent years has manifested a wealth of opportunities for businesses. Businesses are now able to gain access to customers more quickly and effectively than ever before through the use of technology-driven marketing tactics such as search engine optimization, email campaigns, and social media marketing.

In addition, companies can investigate a range of online analytical tools that help track customer behaviors across different platforms. As a result of this improved level of connection with customers, businesses can now offer geographically diverse services in a much shorter time frame than ever before. 

Yet despite all its benefits, increased internet connectivity carries several implications for companies that may not be equipped to change their service offerings or restructure their existing communication practices accordingly. For example, telephone service providers may experience decreased demand since many people opt for alternate forms of communication like text messaging or video calls via applications like Skype or Zoom over traditional phone services. The same might be true for paper-and-ink printing companies, who may see decreased demand as more people transition towards digital copies instead due to the increasing global reliance on digital resources and products over their physical counterparts. 

It is clear that increased access to the internet presents both opportunities and challenges for business owners in all industries. On the one hand, there are promising prospects available through online marketplaces and improved customer engagement tools; on the other, businesses need to stay up-to-date with current technologies to remain competitive in this quickly changing environment or risk being left behind.

Security in cryptography

Cryptography is the practice of using algorithms to encrypt and decrypt messages, allowing secure communication between two or more parties without anyone gaining unauthorized access to the exchanged information. Modern cryptography is based on public key infrastructure (PKI), which includes encryption, digital signatures, and hashing algorithms that help secure data over networks, especially those used by companies to transmit sensitive customer information and confidential documents. Security in cryptology can be broken down into three categories: confidentiality, authenticity, and integrity. 

Confidentiality means maintaining secrecy regarding the contents of a message exchanged between two or more parties by encoding it so that any unintended recipients cannot read it. To ensure confidentiality in cryptography, encrypting algorithms are used to encode messages with a secret key, making them unreadable when intercepted by an intruder or hacker. 

Authenticity refers to the verification that a message has not been tampered with as it travels from its originator to its recipient. Authentication ensures that only the intended sender and receiver of a message can send or receive it successfully by using hashing algorithms and digital signatures to verify originality. 

Integrity deals with protection against any malicious modifications of data during transit from one location to another or at rest on storage systems such as servers within business networks. This requires robust checksum techniques being applied to detect changes before they become visible after decryption has taken place on the receiver’s end, ensuring no accidental errors were made along the path. At the same time, data was transferred, as well as preventing tampering attacks before they cause financial losses or other damages due to privacy breaches resulting from leaked confidential information like personal details found on credit card records, etc. 

Today’s cryptographic security solutions have become increasingly sophisticated as hackers continue to find new ways of breaching systems and stealing valuable data resources from corporate networks spread across multiple locations worldwide.

It is, therefore, essential for companies to evaluate their cryptographic security needs regularly to ensure they are using the most cutting-edge tools available to protect their communications and maintain high levels of security throughout their networked environment. 

This way, potential malicious threats posed by cybercriminals attempting unauthorized access can be thwarted. Company server farms connected via web applications hosted online through global internet connections often require constant supervision from IT personnel responsible for organizational safety, who may otherwise find themselves vulnerable in hazardous situations if the necessary preventative measures aren’t taken. 

Organizations must prioritize the reduction of damage caused by criminals who employ sophisticated strategies to breach protocols and commit acts of theft quickly and effectively. An adequate system must be established before any potential victimization occurs, guaranteeing speedy benefits for everyone involved with a project while ensuring data protection at all times with minimal expense.

Wireless charging

Wireless charging is a technology that allows for the transfer of electrical energy from one source to another without using connections or cords. The technology has been around since Nikola Tesla first unveiled it in the late 1800s; however, with advances in modern electronics and various scientific discoveries, wireless charging has become increasingly popular. A variety of industries have been able to benefit from this technology, including telecommunications companies, manufacturers, retailers, and many more.

The major advantage of wireless charging lies in its numerous features. For example, it eliminates the need for wires and cables, which can often be cumbersome and messy. Wireless chargers are also typically more efficient than traditional wired versions, as they help reduce power consumption by up to 40%. This helps them save costs while providing users with convenient access to electrical power wherever they go. 

This newfound convenience has already made its mark on businesses across the globe by allowing organizations to provide customers with devices that are both easy to use and efficient, while still being reliable enough to withstand any potential interruptions or failures that may occur due to their environment (or lack thereof). On top of this, wireless charging also provides an added layer of safety compared to traditional wired options, as there is no risk of electric shocks associated with using cords or plugs because no direct contact needs to take place between the charger itself and any other surfaces. 

Using wireless systems can be costly compared to wired systems, making it difficult for companies with limited budgets to obtain high-quality solutions without sacrificing other resources. In addition, since most technologies rely on electromagnetic radiation, the signals may travel further than anticipated and cause reception problems due to interference from other electrical sources such as radios.

As a result, additional costs may arise to install protective shielding for optimal performance; however, these issues can often be avoided if the technology is properly implemented in an appropriate scenario, like daily office use in an enterprise building.

Examples of technological factors affecting business

Technological Factors Affecting Apple

The development of new products by competitors can be one of the most significant technological factors affecting Apple’s control over the market. When rivals unveil new products with similar features or designs as those produced by Apple, customers may opt for cheaper alternatives instead. With fierce competition from companies such as Samsung and Huawei in recent years, Apple has had to work harder to remain competitive in consumer electronics markets while maintaining its reputation for premium quality goods. 

With mobile technology becoming increasingly important in today’s digital age, traditional personal computers are losing some of their relevance. This shift in consumer preferences towards mobile devices like smartphones could cause a decrease in interest surrounding particular newly released Mac laptops or desktops due to potential buyers being more interested in purchasing an iPhone instead. Consequently, this may lead to less revenue being generated through these product lines when compared with previous years. 

Apart from this challenge, Apple faces another critical issue in regard to its restrictive operating systems (OS). While iOS is widely used among all users who have compatible devices when compared to Android OS users having access to the entire Google Play Store, there are limited options for app developers to create apps on their devices since there isn’t an official method of sideloading apps other than the App Store without jailbreaking, which could potentially void customers’ warranties with the manufacturer if discovered.

This ultimately limits the type of innovative solutions that can be created for iOS, making it hard for Apple to keep up with rival firms making use of more open platforms like Android OS and thus giving them the edge when it comes to production processes or even product launches. 

Apple’s operations are also further impacted by additional technological factors, such as the security threats posed by an increasing number of cybercriminals, which have resulted in an increasing number of maliciously accessed data; this could lead to tarnishing their public image in the industry, despite their best efforts to put safeguards in place.


Technological factors are essential elements to consider when conducting a PESTLE analysis. As highlighted here, technological advancements can have both positive and negative effects on businesses.

On the one hand, advances in technology can help improve efficiency, expand into new markets, and create more opportunities for businesses to grow and develop. However, there is also the risk of disruption from competing products, which can lead to significant losses if not managed properly. Nonetheless, understanding the implications of technology on business operations and strategies is essential if companies are to remain competitive in an increasingly digital world.



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