Learning Objective – Chapter 15
LO1 – Decisions about technology and innovation are strategic, and managers need to approach them systematically. Assessing the technology needs of a company usually begins with benchmarking. Benchmarking compares the organization’s practices and technologies with those of other companies. Then the company will look at the environment through scanning’s. These scanning’s focus on what can be done and what is currently being developed. Both of these practices still might not be enough to stay ahead of the innovation curve and use disruptive innovation which refers to a process by which a product, service or business model takes root initially in simple applications at the bottom of a market and them moves “up market.” Managers should make an effort to be aware of disruptive innovation that could potentially displace established competitors in their industry.
LO2 – After managers have thoroughly analyzed their organization’s current technological position, they can plan how to develop or exploit emerging technologies. Managers must consider several criteria when planning how to develop or exploit emerging technologies. To begin a manager must consider the market potential. Many innovations are stimulated by external demand for new goods and services. Next they should consider whether technological innovations are even feasible. After that they must carefully consider whether there is a good financial incentive for doing so. Then they must link technology and innovation strategies to their organization’s core capabilities. Finally, a manger must decide whether to adopt technological innovations while also taking into account the culture of the organization, the interests of managers, and the expectations of stakeholders.
LO3 – Developing new technology may conjure up visions of scientists and product developers working in research and development laboratories. In many industries, the primary sources of new technology...
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