Academic literature on the topic 'External business environments'

The existing literature has acknowledged the complicated links among external business environments, corporate governance and organisational performance. However, a large void exists in the extant research models of corporate governance, because none have discussed and empirically examined the intervenient effect of the corporate governance mechanism on the external business environments and organisational performance. A thorough review of the literature on corporate governance, external business environments and organisational performance comes to the proposed hypotheses. The indirect effect of external business environments on organisational performance via corporate governance is statistically tested. The research provides empirical evidence that organisational performance is the consequence of both corporate governance and external business environments that is, in turn, the causality of corporate governance. More importantly, it offers insight into the mediating effect of corporate governance in transforming the uncertainty of external business environments into organisational performance. The findings suggest that firms facing uncertainty in external business environments should adopt suitable corporate governance to achieve the best organisational performance.

Purpose The purpose of this paper is to increase understanding of the logic of business network formation among the co-located and external actors of a facility. Design/methodology/approach The research adopts a theory-building approach through developing propositions inductively from the empirical case study on four purposefully sampled modern service station facilities. The focus is on analyzing how a facility and its inherent co-located actors represent an entity that forms a business network with external actors in the facility’s environment. Findings The findings propose that when co-located with a large number of actors, the facility and its actors represent an entity that is connected to a wide business network of multiple external actors. On the other hand, when co-located with a small number of actors, the facility becomes a part of the overall supply in the surrounding business environment with a differentiated offering for competitive advantage. Practical implications The research suggests that an appropriate co-locating strategy, for example, when planning the tenant mix of the facility, can contribute to creating a vivid business network in the external environment, which raises the facility to a role of a central entity in such a network. Originality/value The findings explaining how co-location affects the businesses within the facility and within a wider networked environment are novel to the scholarly knowledge on co-location. The research bridges the theories of co-location and business networks that have been treated as separate discourses in previous research.

Using insights from Peter Drucker’s Theory of the Business framework, the authors show that global challenges such as pandemics and climate change are contributing to a critical misalignment between businesses and their increasingly complex external environments, leading to a growing malaise in many organizations. Central to this misalignment are seven legacy assumptions which no longer serve businesses effectively. Seven new assumptions better reflect today’s external environment and point to how businesses can thrive (“Do Well”) by making a positive difference in society (“Do Good.”) The authors propose a set of change management methods and tools along with specific steps that leaders and organizations can take to transform their businesses into what they define as Positive Institutions.

Women’s entrepreneurship in Pakistan has been booming in recent years, and it has made a significant impact on social and economic expansion. However, it is notable that these businesses are smaller in size and considered less profitable when compared with men’s entrepreneurial efforts. This dilemma encourages the investigation of the success factors that contribute to the performance of women-owned businesses (WOBs) within this understudied region. Factors that may determine the success of WOB in Pakistan are divided into four broad headings: the entrepreneur’s characteristics, internal business environment, external business environments, and supportive factors. This study also explores the direct and moderating role of perceived national culture within the framework. The results demonstrate that the entrepreneur’s characteristics, external business environments, and supportive factors are positively related to the performance of WOB, while the internal business environment is of little significance. Furthermore, while perceived national culture does not influence the performance of WOB, it weakens the relationship between the entrepreneur’s characteristics and performance but strengthens the impact of supportive factors on the performance of the WOB. This study leads to a solid awareness about the critical success factors, the perceived national culture, and their association with the performances of WOB within Pakistan.

This paper emphasizes the necessity of quality communication skills in management. Business communication needs to be adaptable and to have the ability to flexibly react to dynamic changes in the environment and to give positive response to the demands imposed by the environment. Business communication promoters, i.e. managers, must be capable of utilizing all available data with speed and efficiency and to distribute the information to both the internal and external environments. The author intends to point out the need for business organizations to establish harmonic communication, thus creating conditions underpinning a better working atmosphere that contributes to motivation of employees.

The problem companies are becoming increasingly complex and competitive business be increased very sharply, as a result of changes in the business environment in the era of globalization. Companies must be able to adapt to the environment in order to survive in the midst of these conditions. For that management is required to manage the organization in a better and more professional in controlling the activities of the company. Business "shock market" Cikarang, Jababeka, Bekasi as a collection of merchants who sell various products to lower middle class should immediately anticipate and prepare for making new business strategies to survive and thrive in the future. The study has the purpose of analyzing the external and internal business environment, identifying, evaluating business strategies and finding alternative strategies for the future that can be implemented " shock market.” External business environment will be analyzed with descriptive qualitative method involving shared business environment (economic, political, ecological and technological), Porter's competitive forces, the forces of the trigger and the key success factors.The results showed that the manager should earnestly follow external analysis results such as politics, economics and ecology as well as industrial environments (competition among members of the industry, the threat of new entrants, threat of substitute products, buyer powerful and strong supplier) Keywords : market shock, the external business environment , the strength of competition Porter

Corporate survival and growth depend on corporate adaptation and challenges to environmental changes. This is under an open system, all activities of the entity take place in constant interaction with the internal and external environments. Environment changes pose a threat to the survival of companies and provide opportunities for growth. Changes in the internal and external environment surrounding businesses have a profound impact on the establishment of management strategies and the achievement of management performance. The business environment is changing rapidly as the needs of customers increase and various technological innovations are commercialized. To meet these changes, an entity needs to develop an appropriate management strategy. In order to secure competitiveness in a complex market environment, appropriate management strategies and various control systems must be established. In this study, the prior study of management environment, management strategy, and management performance was re viewed and empirical research was carried out. Based on prior research, technological strength, competitive strength, government support policy and financial support were adopted as factors for the business environment. The collected data were analyzed using the default statistics of SPSS 22.0 and the Smart PLS 2.0 (Partial Least Squared) using the structured formula. The results of the study are as follows. First, the management environment (technology strength, competition strength, government support policy, and finance support) had a significant impact on the management strategy. Second, management strategies had a significant impact on management performance. This means that in order for an entity to settle in the market, it is essential to establish a discriminatory management strategy in various business environments. To measure an entity's performance, active use of its management strategy is necessary.

The role of entrepreneurial orientation in firms has been a major area of interest to many scholars in the past. Entrepreneurially oriented firms are innovative, calculated risk-takers, and proactively reach markets ahead of their competitors. This paper examines the role of business development services, internal and external business environments on the relationship between entrepreneurial orientation and firm’s performance. The article is a theoretical discourse and uses literature from secondary sources in the analysis. The paper finds that past studies conceptualized entrepreneurial orientation as a three factor single-dimensional model and a five factor multidimensional model. Studies using the three factor model have reported different results to those adopting the five factor approach. This has led to inconsistencies in the empirical results of entrepreneurial orientation on firm’s performance. This article also finds that business development services play a mediating role in the entrepreneurial orientation and performance relationship, and that external environment moderates this relationship. However, the paper finds no role of internal environment in the EO-firm’s performance relationship. The paper concludes that the link between entrepreneurial orientation and performance is still a worthy area for further study since contradictions still exist in empirical studies. This study recommends that future studies can use a contingency framework to focus on how other factors are likely to affect this relationship.

AbstractThis research aims to develop an integrated information system for pharmaceutical companies in Indonesia, which has separate business units in two different locations. An Integrated System is needed to provide the value of competence in the technology and information systems that companies use in their business processes. The development stage starts from the assessment and understanding of the current situation both in the business environment and the IS/IT environment. The business environment includes the internal business environment and external business environment.Similarly, the IS/IT environment which includes internal and external IS/IT environments. With a deep understanding of current conditions, it can be determined the Information System(IS) strategy, Information Technology(IT) strategy and future IS/IT strategies. This study reveals the following results: The absence of good system integration with the business units involved makes the company in a weak position. But in terms of opportunity is quite high so that the use of technology and information systems that fit business needs is recommended in this study. The results of this study recommends some applications that can solve problems commonly experienced by companies such as system integration and business process automation to achieve more efficient and effective business processes.

This research provides empirical evidence on the implementation of the strategic marketing planning in the context of Indonesia, a newly industrialized country. Drawing from a contingency theory, the research posits that the credibility of marketing strategy depends on the external business environments and its formulation process. The credibility of marketing strategy and the strategy formulation process, in turn, determine the effectiveness of the implementation of the strategy in achieving the desired performance. The causal relationships amongst these variables were then analyzed by structural equation model using LISREL 8.30 program. The primary data for this study were collected through structured interviews with the Marketing Managers of 219 Indonesian companies. The results of the study not only strengthen the notion of the influence of external business environments on the actions of organizations, such as the credibility of marketing strategy, but also confirm the belief of the importance of an innovative culture in implementing strategic marketing planning. The study also identifies that marketing managers play a pivotal role in the formulation and implementation of the strategy. Within the scope of the strategy formulation, marketing managers as boundary spanners of their companies provide the decision makers with current and up to date strategic issues, which in turn enhance the credibility of the formulated strategy. On the other hand, within the strategy implementation, the managers with their autonomy conduct evaluation and control of the marketing strategy, and adjust the strategy to any significant environmental changes to achieve the desired performance.These findings not only support the view that it is inappropriate to separate the strategy formulation from its implementation aspects, but also corroborate the importance of the fit between marketing strategy and its external and internal environments to gain the desired performance. Finally, the use of Indonesian companies as the sample of this study and the consistencies of most of the results of the study with the existing findings reveal that the results are applicable in both industrialized and newly industrialized countries.

Our thesis is based on the constantly changing internal and external environment causing firms to increase or decrease their internationalisation efforts. The focus of this thesis is going to be on describing the process of re-internationalisation, including the different stages of de-internationalisation, time-out, and re-entry as well as identifying the influences of the internal and external environment on the process of re-internationalisation.   The influences of the internal and external environmental on the process of re-internationalisation are analysed and accompanied by secondary data about the German biogas market, which the case company is considering to re-entry. The aim of the thesis is to contribute to existing literature by exploring the process of re-internationalisation and its stages of de-internationalisation, time-out and re-entry, to enhance the understanding of SME internationalisation patterns, and the influence of the internal and external environment   The process of de-internationalisation for the case company was characterised by a lower degree of market commitment in contrast to a complete exit. The degree of commitment was maintained during time-out stage, but due to changes in the internal and external environment a move towards re-entering the market was considered. The main influences, found in this single case study, can be separated along the stages of de-internationalisation, time-out and re-entry. The de-internationalisation was mainly driven by poor economic results and a lack of resources. During the time-out, the company’s acquisition led to a change in firm objectives. The re-entry was mainly influenced by changes in institutional policies and the previously altered company objectives caused a consequential increase in resources. The change in institutional policies was perceived as a business opportunity. However, the analysis of the case company’s market showed a deviation between perceived and actual business opportunity, highlighting the importance of acquiring up-to-date market knowledge.

This research provides empirical evidence on the implementation of the strategic marketing planning in the context of Indonesia, a newly industrialized country. Drawing from a contingency theory, the research posits that the credibility of marketing strategy depends on the external business environments and its formulation process. The credibility of marketing strategy and the strategy formulation process, in turn, determine the effectiveness of the implementation of the strategy in achieving the desired performance. The causal relationships amongst these variables were then analyzed by structural equation model using LISREL 8.30 program. The primary data for this study were collected through structured interviews with the Marketing Managers of 219 Indonesian companies. The results of the study not only strengthen the notion of the influence of external business environments on the actions of organizations, such as the credibility of marketing strategy, but also confirm the belief of the importance of an innovative culture in implementing strategic marketing planning. The study also identifies that marketing managers play a pivotal role in the formulation and implementation of the strategy. Within the scope of the strategy formulation, marketing managers as boundary spanners of their companies provide the decision makers with current and up to date strategic issues, which in turn enhance the credibility of the formulated strategy. On the other hand, within the strategy implementation, the managers with their autonomy conduct evaluation and control of the marketing strategy, and adjust the strategy to any significant environmental changes to achieve the desired performance.
These findings not only support the view that it is inappropriate to separate the strategy formulation from its implementation aspects, but also corroborate the importance of the fit between marketing strategy and its external and internal environments to gain the desired performance. Finally, the use of Indonesian companies as the sample of this study and the consistencies of most of the results of the study with the existing findings reveal that the results are applicable in both industrialized and newly industrialized countries.

Title: Digital business strategy - The driver for change in internal and external business environment Authors: Sumera Magsi and Sarah Shaaban Advisor: Andrea Fried Master thesis, 30 credits Background:The effects resulting from a more intense use of digital technologies in companies is visible in the integration between business and IT strategies which creates an urge for digital business strategies to emerge. Thesis aim: The aim is to investigate the current state of digital business strategies which includes highlighting benefits and challenges. By doing that we also are aiming towards answering, in what way ITBA can be questioned due to DBS. Methodology: A qualitative research based on a multiple case study by conducting semi- structured interviews. All the selected case companies are using digital business strategies as a part of their internal and external business environment (IEBE). The respondents have a role in the chosen case companies of being responsible for the implementation and use of strategies, digital business strategies and digital technologies. Findings: This study identifies that their exits a linkage between business strategy and ITBA. The main finding about the current state of DBS involves both internal and external DBS activities. Further findings show that benefit of digital business strategy to be the opportunity to levering costumers and challenges to be connected to the different IT maturity levels of the employees. The way that digital business strategy can question ITBA is based on that it is the driver for change for the case companies.

The aim of this thesis is to outline the process of setting up a new small business. The theoretical part is focused on definition of basic concepts, analysis of the legal environment of business in the Slovak Republic and the specification of small and medium enterprises. Subsequently, it reveals the essential assumptions for success and defines the steps to be performed before starting the business. The practical part consists of three circles - a brief introduction of own business idea, analysis of the external business environment and practical establishment of the company.

This study develops a conceptual model for managerial control of environmental scanning behavior in their subordinate organizations. It is developed within a boundary-spanning framework where the boundary of the organization is part of the conceptualization of the environmental scanning process. Aggregate and individual effects specific to the organizational boundary layer are included in the conceptual model. Environmental scanning behavior is stimulated and focussed by managers like a "push-pull" pump. Subordinate perceptions of managerial communication are central to the "pump mechanism." Perceptions of strategically important themes for the organization supply the push to engage in environmental scanning. Perceptions of managerial receptivity to external information on strategic themes supply the pull. In concert these factors draw environmental information across the organizational boundary, then vertically in the organization, making environmental information available to senior management.

A variety of factors are the reasons for adjusting or changing company’s strategy, such as the change of customer demand, company’s internal financial factors, the influence of external environment and so on. This research is to find out the link between the change of external environment and the adjustment of internal strategy. Choose the suspension of one flight in SAS as the case to state this point. Show the strategy change of SAS when they were facing the serious impact of financial crisis.

SAS as the biggest airline in North Europe it could be a typical firm to investigate this kind of situation. A deep-interview and reading the published reports of SAS are the main data collection approached. Some resources were from the internet because it is real-time news and the reports from the company are published on their website. The interviewee is from the top of the company who is familiar this area and has full experience in international business. The study used lots of theories from different books and journals to integrate the information that we collected to analysis and achieve our final conclusion.

After analyzed the study it found the SAS used the retrenchment strategy as their new international strategy to reverse the negative situation. The financial crisis affected the customer demand badly not just in China also around the world and forced them to change the strategy. The report ultimate believed there were still a lot of other factors, beside the financial crisis, caused the adjustment of strategy in SAS.

The modern economy is characterized by a high level of dynamism of the factors of the external and internal environment of enterprises, influencing the possibility of their stable development. With the transition of the Russian economy to market methods of doing business, in which enterprise management must take into account various scenarios, risk becomes an integral element of socio-economic relations. Risk is present in all spheres of life, regardless of whether its presence is taken into account in the situation of choosing an alternative method of managing a business entity or not. The presence of risk is a significant factor in the development of business and the economy as a whole. To minimize and neutralize risks, the enterprise must constantly ensure its safety. In modern conditions, due to the pandemic and economic downturn, enterprises are forced to revise their methods of safety management and risk neutralization. This monograph, dedicated to modern problems of business security management, is the result of the joint work of teachers and students of the Department of Economic Security, Accounting and Law of the Don State Technical University.

The textbook discusses the theoretical, methodological and practical aspects of strategic management in the current interpretation of the XXI century. The vision of the strategic process as proactive management in conditions of a high level of complexity of the external environment is presented. The tools of strategic management, the technology of strategic analysis, the procedure for the development and implementation of the strategy, the principles of management of strategic business units are considered. To consolidate knowledge, self-control questions, practical tasks and test simulators are provided at the end of each chapter. Meets the requirements of the federal state educational standards of higher education of the latest generation. For students of the direction of training 38.03.02 "Management", graduate students, researchers, specialists.

The textbook discusses the theoretical and methodological foundations of the organization of strategic accounting and analysis. The place of strategic accounting and analysis in the enterprise management system is determined, their goals, tasks and functions are disclosed. The publication describes in detail the special methods and technologies of accounting and analytical support of strategic management, allowing to expand the horizon of management decisions in a dynamic external and internal environment of the company. Special attention is paid to strategic accounting and cost analysis, issues of methodological support for strategic cost formation. Meets the requirements of the federal state educational standards of higher education of the latest generation. For master's degree students, the system of additional professional education, training centers for advanced training, studying in economic areas, as well as for a wide range of readers — scientists, graduate students, teachers of economic universities, accounting workers, analysts, auditors, managers and consultants on strategic business management.

This article aims to reveal the essence of the economic security of enterprise, the origin of this concept. This study is necessary due to the difference of interpretations of the economic security. By analyzing and systemizing results of scientific studies, there can be distinguished five main approaches to its definition. Main threats that affect enterprises are identified and presented. Uncertainty and changeability of external and internal environments, under which enterprises operate, makes the topic relevant. At the present time, economic security of enterprise is an important factor of improving its economic condition and ensuring its sustainable development.

This paper presents the case study of a pilot partnership between a Doctoral Program in Design and a Science and Technology Park located in Porto, Portugal. The partnership has been in effect since 2013; the Doctoral Program has resided within the premises of the Science and Technology Park, as an immersive research environment, in order to foster knowledge transfer and collaborations through gradual, mutual and informal recognition of reciprocal assets. We contextualise the premises and stakeholders in this partnership, outline the empirical methodologies employed, and provide examples of selected projects that illustrate the implementation of these methodologies. Furthermore, we provide an inventory of challenges detected throughout the development of the partnership, as well as information on how these challenges are being overcome. We conclude by summarising the main accomplishments of this partnership, as well as outlining validation by various external agents and opening up prospects for future development. These will include thorough materials that may be of use for implementation in other academic, scientific and entrepreneurial environments. Keywords: Design research; entrepreneurship; knowledge transfer; creative industries.

During stepping into an era of rapidly changing world and constantly disruption, companies need to generate new value to unlock opportunities and drive the growth (Lee et al., 2009). Innovation is a key initiative for competitive advantage as the main driver of economic growth (Lopez, 2012). Nevertheless, as the environment changes, regulations evolve, new technologies emerge, and even consumer behavior changes, businesses may not have a clear picture of how they will survive or succeed. Companies should increase individuals' futures literacy capacities in order to strengthen firms' sensing dynamic capabilities (Rhisiart et al., 2015). UNESCO has addressed the urgent need to enhance people's capacities and skills by empowering everyone to better use the future to prepare for potential crises or overcome major challenges (UNESCO, 2021). However, there is no established approach for developing these competencies in service innovation. Therefore, we aim to enhance individuals ability by cultivating future literacy, which is a basis of human skill for future service design (Bell, 2009; Miller, 2018).Kononiuk et al. (2021) stated a future study by providing tools to facilitate futures thinking, including trend and scenario analysis. Rohrbeck (2011) listed future-oriented capabilities as the ability to gather external data, and apply creativity to find opportunities and take risks. Therefore, we believe that the global and business scanning, such as megatrend, technology trends or research direction through intellectual property, will be an essential part of enhancing future literacy. Technology trends alone usually cannot cover all organizational scenarios (Lee, 2013). Predicting the future requires not just recognizing and assessing opportunities, but also taking into account potential risks (Morris et al., 2013; Dannenberg and Grapentin, 2016; Haarhaus & Liening, 2020). In addition to considering the potential and impacts of technology breakthroughs, the climate change also influences business and financial decisions (TCFD, 2021). Unexpected business losses may caused by climate-related economic costs, such as rising global temperatures or natural disasters. Firms will be better able to take responsibility and foresight if they are aware of the challenges (TCFD, 2020). Based on the background, we developed knowledge-based service innovation workshop. We have presented megatrend, technology trends and relevant patent information to demonstrate the likelihood of technological advancement. As a reference for comprehending possible scenarios, we also present probable climate-related economic costs. Then, leveraging the future vision as a starting point to generate innovative ideas.This paper discusses the success of promoting future literacy for corporate innovation with the knowledge-based service innovation workshop. We conducted an idea generating workshop for employees at various levels to help them in developing innovative ideas for both internal and external environments. We developed our brainstorming workshop in conjunction with providing of megatrend, technology trends, business-related intellectual property, and trustworthy climate-related financial information. It also considers employee feedback on how to motivate creativity through the provision of future opportunities. The outcomes of this study will contribute to the enhance human resource competencies in order to cope with the future, which will lead to sustainable service innovation development.

The Professional Doctorate (ProfDoc) is attracting increasing attention because of its perceived greater than the Doctor of Philosophy’s (PhD’s) focus on meeting the needs of the knowledge economy. The paper examines the nature of the ProfDoc vis-a-vis the PhD and identifies significant characteristics of the ProfDoc, especially in respect of relevance and performativity. It then analyses these characteristics in the context of the professional Doctorate in Business Administration (DBA) in Information Systems (IS) at an Australian university. An ethnographic approach is used to examine the internal (university) and external (student) environments of the DBA(IS). Recommendations are made to increase its effectiveness for the knowledge economy, including moving to a greater student and industry centred approach. Finally, conclusions are drawn to determine its relevance to the knowledge economy.

Purpose – to propose an assessment tool of the environment of FinTech sector. Research methodology – systematic analysis of scientific literature has been carried out to form a methodology for FinTech sector environment assessment, which consists of quantitative methods used for the empirical research of the study as follows: PEST analysis, expert evaluation, determination of indicators’ values, normalization of data, multi-criteria assessment (the Simple Additive Weighting (SAW) method). Findings – the practical application of the developed assessment tool is verified by completing an empirical study on the example of the leading FinTech countries as well as the Baltic States. Recommendations for further Lithuanian FinTech sector development are provided. Research limitations – research is based on an assessment of the significance of external environmental indicators of FinTech sector development on a country level. Due to the large number of indicators and countries, only a fraction of factors and countries were selected for research. Therefore, the object of the research requires a more detailed study in the future. Practical implications – the development of FinTech sector has been growing dramatically in the recent years on a global scale, with some countries leading the way due to a more favourable environment. The results show that the proposed assessment tool for the development of the FinTech sector can be used by policymakers in different countries to identify the external environmental factors to improve in order to create better conditions for the development of the FinTech sector. Originality/Value – a new methodology and tool for FinTech environment assessment is developed by the authors as a contribution to the formation of better environment for FinTech sector development. The developed tool provides an opportunity to study the strong and weak sides of the environment development of the FinTech sector, to compare the good practices of other countries and to get ideas for changes in order to create a more favourable environment for the FinTech development on a country level.

Different internal and external causes make differences in doing business. Changes within an organization may be caused by mergers and acquisitions, crises, organizational culture, and application of new technology, but also by external changes such as sustainable development, digitalization, and COVID19. Changes in business environment affect the change in behaviour, competencies and values as well as in business activities, all in order to achieve organizational goals. Sustainable development brings sustainable practice into business. Each organization considers economic, social, and environmental dimensions of their business and implementation of ESG (environment, social, and governance) criteria. Digitalization affects business by adapting and combining different technologies that provide the creation of new products/services, processes, decisions, relations between companies, employees and customers, and business performance. There are also relations between the causes. Digitalization impacts sustainability and vice versa. Moreover, sustainable development and digitalization influence how an organization adapts and runs its business.

The ability of business outfits to successfully connect end-users to their goods and services determines their success. Business success in this sense is regarded as the longevity, profit, ability to be constantly engaged, among others. Like other professionals, the quantity surveying practice is bound by different ethics, which include how QS firms can carry out marketing. This study aims at investigating how the different marketing strategies adopted by QS firms and the factors affecting the adoption. Data was solicited through well-structured questionnaires. 74 formed the respondents; this is a mixture of indigenous, expatriate and mixed ownership. The factors were divided into internal and external microeconomic and macroeconomic environmental factors. The results showed that business philosophies of the owner (internal environment), national economic blueprint (external macroeconomics environment), competitive conditions of the market and state of the economy (external microeconomics environment) are the most important factors affecting the adoption of marketing strategies by quantity surveying firms. The study, therefore, recommends that Quantity surveying principal managers should be versed and open in their business philosophies so as to be able to change with the technological trends and changes in the economy (external microeconomic and macroeconomic factors).

Abstract In a highly sensitivity oil and gas upstream conditions, there is a need for a real-time interaction platform to cope with harsh environment. The oil and gas business faces data validity constraints in terms of reliability, accuracy, and repeatability to name a few. The Internet of Sensors (IoS), with appropriate utilization, will play a major role in the industry's digital transformation. Predetermined IoS platforms with applicable characteristics are functioning in critical oil and gas environment applications. For example, some oil and gas wells produces harmful gases, like hydrogen sulfide (H2S). Fiber-optic sensors can be used as a leak detection tool for H2S resistance to inform oil and gas curfew if harmful gas is detected at the well site using cloud computing. Scale and corrosion monitoring of external pipelines is one of the integrity challenges. Ultrasonic sensors are embedding for real-time scale thickness feedback and corrosion monitoring by utilizing wireless transmission directly to end-user devices. A paradigm shift is happening with the IoS applications in oil and gas operations for sensitivity, reliability, and accuracy that will add intelligence, smart decisions, and control to the operational landscape. A comprehensive review of the art in oil and gas IoS presented in this paper. The target is to evaluate state-of-the-art IoS platforms for hazardous environments such as oil and gas facilities in terms of type of sensors used, applicability, functionalities, linearity, and accuracy, type of output signals, outputs range, and materials used. This work establishes classification and comparison of the IoS for better data collection, communication, connectivity, observation, and reporting in the world of oil and gas sensors. The IoS platforms classified and compared in tables consisting of different characteristics for the best-suited IoS platform designs in oil and gas appliance applications. This will provide references for IoS design engineers.

1.1 Macroeconomic summary Economic recovery has consistently outperformed the technical staff’s expectations following a steep decline in activity in the second quarter of 2020. At the same time, total and core inflation rates have fallen and remain at low levels, suggesting that a significant element of the reactivation of Colombia’s economy has been related to recovery in potential GDP. This would support the technical staff’s diagnosis of weak aggregate demand and ample excess capacity. The most recently available data on 2020 growth suggests a contraction in economic activity of 6.8%, lower than estimates from January’s Monetary Policy Report (-7.2%). High-frequency indicators suggest that economic performance was significantly more dynamic than expected in January, despite mobility restrictions and quarantine measures. This has also come amid declines in total and core inflation, the latter of which was below January projections if controlling for certain relative price changes. This suggests that the unexpected strength of recent growth contains elements of demand, and that excess capacity, while significant, could be lower than previously estimated. Nevertheless, uncertainty over the measurement of excess capacity continues to be unusually high and marked both by variations in the way different economic sectors and spending components have been affected by the pandemic, and by uneven price behavior. The size of excess capacity, and in particular the evolution of the pandemic in forthcoming quarters, constitute substantial risks to the macroeconomic forecast presented in this report. Despite the unexpected strength of the recovery, the technical staff continues to project ample excess capacity that is expected to remain on the forecast horizon, alongside core inflation that will likely remain below the target. Domestic demand remains below 2019 levels amid unusually significant uncertainty over the size of excess capacity in the economy. High national unemployment (14.6% for February 2021) reflects a loose labor market, while observed total and core inflation continue to be below 2%. Inflationary pressures from the exchange rate are expected to continue to be low, with relatively little pass-through on inflation. This would be compatible with a negative output gap. Excess productive capacity and the expectation of core inflation below the 3% target on the forecast horizon provide a basis for an expansive monetary policy posture. The technical staff’s assessment of certain shocks and their expected effects on the economy, as well as the presence of several sources of uncertainty and related assumptions about their potential macroeconomic impacts, remain a feature of this report. The coronavirus pandemic, in particular, continues to affect the public health environment, and the reopening of Colombia’s economy remains incomplete. The technical staff’s assessment is that the COVID-19 shock has affected both aggregate demand and supply, but that the impact on demand has been deeper and more persistent. Given this persistence, the central forecast accounts for a gradual tightening of the output gap in the absence of new waves of contagion, and as vaccination campaigns progress. The central forecast continues to include an expected increase of total and core inflation rates in the second quarter of 2021, alongside the lapse of the temporary price relief measures put in place in 2020. Additional COVID-19 outbreaks (of uncertain duration and intensity) represent a significant risk factor that could affect these projections. Additionally, the forecast continues to include an upward trend in sovereign risk premiums, reflected by higher levels of public debt that in the wake of the pandemic are likely to persist on the forecast horizon, even in the context of a fiscal adjustment. At the same time, the projection accounts for the shortterm effects on private domestic demand from a fiscal adjustment along the lines of the one currently being proposed by the national government. This would be compatible with a gradual recovery of private domestic demand in 2022. The size and characteristics of the fiscal adjustment that is ultimately implemented, as well as the corresponding market response, represent another source of forecast uncertainty. Newly available information offers evidence of the potential for significant changes to the macroeconomic scenario, though without altering the general diagnosis described above. The most recent data on inflation, growth, fiscal policy, and international financial conditions suggests a more dynamic economy than previously expected. However, a third wave of the pandemic has delayed the re-opening of Colombia’s economy and brought with it a deceleration in economic activity. Detailed descriptions of these considerations and subsequent changes to the macroeconomic forecast are presented below. The expected annual decline in GDP (-0.3%) in the first quarter of 2021 appears to have been less pronounced than projected in January (-4.8%). Partial closures in January to address a second wave of COVID-19 appear to have had a less significant negative impact on the economy than previously estimated. This is reflected in figures related to mobility, energy demand, industry and retail sales, foreign trade, commercial transactions from selected banks, and the national statistics agency’s (DANE) economic tracking indicator (ISE). Output is now expected to have declined annually in the first quarter by 0.3%. Private consumption likely continued to recover, registering levels somewhat above those from the previous year, while public consumption likely increased significantly. While a recovery in investment in both housing and in other buildings and structures is expected, overall investment levels in this case likely continued to be low, and gross fixed capital formation is expected to continue to show significant annual declines. Imports likely recovered to again outpace exports, though both are expected to register significant annual declines. Economic activity that outpaced projections, an increase in oil prices and other export products, and an expected increase in public spending this year account for the upward revision to the 2021 growth forecast (from 4.6% with a range between 2% and 6% in January, to 6.0% with a range between 3% and 7% in April). As a result, the output gap is expected to be smaller and to tighten more rapidly than projected in the previous report, though it is still expected to remain in negative territory on the forecast horizon. Wide forecast intervals reflect the fact that the future evolution of the COVID-19 pandemic remains a significant source of uncertainty on these projections. The delay in the recovery of economic activity as a result of the resurgence of COVID-19 in the first quarter appears to have been less significant than projected in the January report. The central forecast scenario expects this improved performance to continue in 2021 alongside increased consumer and business confidence. Low real interest rates and an active credit supply would also support this dynamic, and the overall conditions would be expected to spur a recovery in consumption and investment. Increased growth in public spending and public works based on the national government’s spending plan (Plan Financiero del Gobierno) are other factors to consider. Additionally, an expected recovery in global demand and higher projected prices for oil and coffee would further contribute to improved external revenues and would favor investment, in particular in the oil sector. Given the above, the technical staff’s 2021 growth forecast has been revised upward from 4.6% in January (range from 2% to 6%) to 6.0% in April (range from 3% to 7%). These projections account for the potential for the third wave of COVID-19 to have a larger and more persistent effect on the economy than the previous wave, while also supposing that there will not be any additional significant waves of the pandemic and that mobility restrictions will be relaxed as a result. Economic growth in 2022 is expected to be 3%, with a range between 1% and 5%. This figure would be lower than projected in the January report (3.6% with a range between 2% and 6%), due to a higher base of comparison given the upward revision to expected GDP in 2021. This forecast also takes into account the likely effects on private demand of a fiscal adjustment of the size currently being proposed by the national government, and which would come into effect in 2022. Excess in productive capacity is now expected to be lower than estimated in January but continues to be significant and affected by high levels of uncertainty, as reflected in the wide forecast intervals. The possibility of new waves of the virus (of uncertain intensity and duration) represents a significant downward risk to projected GDP growth, and is signaled by the lower limits of the ranges provided in this report. Inflation (1.51%) and inflation excluding food and regulated items (0.94%) declined in March compared to December, continuing below the 3% target. The decline in inflation in this period was below projections, explained in large part by unanticipated increases in the costs of certain foods (3.92%) and regulated items (1.52%). An increase in international food and shipping prices, increased foreign demand for beef, and specific upward pressures on perishable food supplies appear to explain a lower-than-expected deceleration in the consumer price index (CPI) for foods. An unexpected increase in regulated items prices came amid unanticipated increases in international fuel prices, on some utilities rates, and for regulated education prices. The decline in annual inflation excluding food and regulated items between December and March was in line with projections from January, though this included downward pressure from a significant reduction in telecommunications rates due to the imminent entry of a new operator. When controlling for the effects of this relative price change, inflation excluding food and regulated items exceeds levels forecast in the previous report. Within this indicator of core inflation, the CPI for goods (1.05%) accelerated due to a reversion of the effects of the VAT-free day in November, which was largely accounted for in February, and possibly by the transmission of a recent depreciation of the peso on domestic prices for certain items (electric and household appliances). For their part, services prices decelerated and showed the lowest rate of annual growth (0.89%) among the large consumer baskets in the CPI. Within the services basket, the annual change in rental prices continued to decline, while those services that continue to experience the most significant restrictions on returning to normal operations (tourism, cinemas, nightlife, etc.) continued to register significant price declines. As previously mentioned, telephone rates also fell significantly due to increased competition in the market. Total inflation is expected to continue to be affected by ample excesses in productive capacity for the remainder of 2021 and 2022, though less so than projected in January. As a result, convergence to the inflation target is now expected to be somewhat faster than estimated in the previous report, assuming the absence of significant additional outbreaks of COVID-19. The technical staff’s year-end inflation projections for 2021 and 2022 have increased, suggesting figures around 3% due largely to variation in food and regulated items prices. The projection for inflation excluding food and regulated items also increased, but remains below 3%. Price relief measures on indirect taxes implemented in 2020 are expected to lapse in the second quarter of 2021, generating a one-off effect on prices and temporarily affecting inflation excluding food and regulated items. However, indexation to low levels of past inflation, weak demand, and ample excess productive capacity are expected to keep core inflation below the target, near 2.3% at the end of 2021 (previously 2.1%). The reversion in 2021 of the effects of some price relief measures on utility rates from 2020 should lead to an increase in the CPI for regulated items in the second half of this year. Annual price changes are now expected to be higher than estimated in the January report due to an increased expected path for fuel prices and unanticipated increases in regulated education prices. The projection for the CPI for foods has increased compared to the previous report, taking into account certain factors that were not anticipated in January (a less favorable agricultural cycle, increased pressure from international prices, and transport costs). Given the above, year-end annual inflation for 2021 and 2022 is now expected to be 3% and 2.8%, respectively, which would be above projections from January (2.3% and 2,7%). For its part, expected inflation based on analyst surveys suggests year-end inflation in 2021 and 2022 of 2.8% and 3.1%, respectively. There remains significant uncertainty surrounding the inflation forecasts included in this report due to several factors: 1) the evolution of the pandemic; 2) the difficulty in evaluating the size and persistence of excess productive capacity; 3) the timing and manner in which price relief measures will lapse; and 4) the future behavior of food prices. Projected 2021 growth in foreign demand (4.4% to 5.2%) and the supposed average oil price (USD 53 to USD 61 per Brent benchmark barrel) were both revised upward. An increase in long-term international interest rates has been reflected in a depreciation of the peso and could result in relatively tighter external financial conditions for emerging market economies, including Colombia. Average growth among Colombia’s trade partners was greater than expected in the fourth quarter of 2020. This, together with a sizable fiscal stimulus approved in the United States and the onset of a massive global vaccination campaign, largely explains the projected increase in foreign demand growth in 2021. The resilience of the goods market in the face of global crisis and an expected normalization in international trade are additional factors. These considerations and the expected continuation of a gradual reduction of mobility restrictions abroad suggest that Colombia’s trade partners could grow on average by 5.2% in 2021 and around 3.4% in 2022. The improved prospects for global economic growth have led to an increase in current and expected oil prices. Production interruptions due to a heavy winter, reduced inventories, and increased supply restrictions instituted by producing countries have also contributed to the increase. Meanwhile, market forecasts and recent Federal Reserve pronouncements suggest that the benchmark interest rate in the U.S. will remain stable for the next two years. Nevertheless, a significant increase in public spending in the country has fostered expectations for greater growth and inflation, as well as increased uncertainty over the moment in which a normalization of monetary policy might begin. This has been reflected in an increase in long-term interest rates. In this context, emerging market economies in the region, including Colombia, have registered increases in sovereign risk premiums and long-term domestic interest rates, and a depreciation of local currencies against the dollar. Recent outbreaks of COVID-19 in several of these economies; limits on vaccine supply and the slow pace of immunization campaigns in some countries; a significant increase in public debt; and tensions between the United States and China, among other factors, all add to a high level of uncertainty surrounding interest rate spreads, external financing conditions, and the future performance of risk premiums. The impact that this environment could have on the exchange rate and on domestic financing conditions represent risks to the macroeconomic and monetary policy forecasts. Domestic financial conditions continue to favor recovery in economic activity. The transmission of reductions to the policy interest rate on credit rates has been significant. The banking portfolio continues to recover amid circumstances that have affected both the supply and demand for loans, and in which some credit risks have materialized. Preferential and ordinary commercial interest rates have fallen to a similar degree as the benchmark interest rate. As is generally the case, this transmission has come at a slower pace for consumer credit rates, and has been further delayed in the case of mortgage rates. Commercial credit levels stabilized above pre-pandemic levels in March, following an increase resulting from significant liquidity requirements for businesses in the second quarter of 2020. The consumer credit portfolio continued to recover and has now surpassed February 2020 levels, though overall growth in the portfolio remains low. At the same time, portfolio projections and default indicators have increased, and credit establishment earnings have come down. Despite this, credit disbursements continue to recover and solvency indicators remain well above regulatory minimums. 1.2 Monetary policy decision In its meetings in March and April the BDBR left the benchmark interest rate unchanged at 1.75%.