Time and Change in Technology - Essay Example

Most people do not require handheld internet access, a video camera, and a telephone on the same device. However, communications within a company require compatibility. In the case of communications, providing compatible hardware is more important than upgrading. Technology change generally would not be a vital factor in the decision to upgrade unless a specific application requiring the upgrade became available.   Health diagnostic equipment is high-cost and regulated on a need basis. The desire to expand a hospital by adding 50 beds to meet a health demand may occur years before a Certificate of Need (CON) process is completed. The anticipated technology incorporated in the certificate application may be functionally antiquated. Technology may eliminate the need for beds. So, when management collects data to assess the decision in-house, they must anticipate future developments or their time will be wasted lobbying for an irrelevant change.   The environmental remediation regulations are both pliable and rigid. Brownfield sites are judged on a “risk assessed” basis to encourage redevelopment of contaminated sites. The building may be restricted to industrial usage only, or perhaps residential with no basements. The increased allowable limits of contamination are attained at less cost than full compliance remediation. Once the site is cleared for redevelopment, utilities are installed. However, now instead of Environmental Protection Administration (EPA) regulations, Occupational Safety and Health Administration (OSHA) regulations cover workers in trenches cut from contaminated soil. OSHA may require breathing apparatus and specialty clothing to work in a hydrocarbon-rich environment. Worker safety and health regulations are much more rigid. The soil cuttings may be unusable on the site, but removal is complicated since the increased, compromised, level of contamination is greater than landfills can receive. The cost of disposal increases. Management requires a broader view of Brownfield development in this scenario because future costs and inconvenience may outweigh the initial savings. Time and application change the regulations regarding levels of contamination, and therefore, the company's bottom line.   In these three examples, technology, regulations, and consumer demand change with time and the application of technology. The prudent business manages the balance sheet and the income statement. In the first scenario, with telecommunications devices, forecasting technological change is relatively accurate and simple. Poor decisions do not affect the bottom line too badly, and overcoming the poor decision is not difficult. In the latter scenarios, poor decisions complicate operations and negatively affect the bottom line. And unfortunately, forecasting change is difficult.   The healthcare system problem resolves when management “hindcasts” technological change. Using the hospital bed example, management needs to look at two past trends. Population growth and bed utilization data in the service area for the past ten years will show a trend comparing supply and demand. When the service area population increases, bed utilization should increase if the number of beds remains constant, unless technology reduces in-hospital stays. So, the proper statistic is the rate of bed utilization per 1000 people. If this number is decreasing faster than the population increases, the beds will never be needed. If this number increases or decreases slower than the population increases, the beds may be needed. The next step is to forecast these statistics to predict when the beds will be needed. The CON process should begin anticipating the time CON plus the time of construction. The demand for beds should intersect with the completion of construction to maximize profits.   The environmental example is a different prediction. Managing the most strict probable regulation or coordinating civil engineering with environmental engineering is required. Predicting regulatory change is an inexact science; predicting scientific discovery in the area of toxicology is less so. Designing around impacted soils is cost-effective and time neutral. Consultants need to be aware of the timeline of construction, and how to avoid creating problems in solving another. Read More