Management and Marketing of Technology - Report Example

Management and Marketing of Technology Management and Marketing of Technology Introduction In the modern business environment, technology is a key driving force that is aligned with the fundamental competency for all industries. It follows, therefore, that the impact of technology on management has given rise to the need of a new type of leadership and management. Ideally, technology management entails the integrated design, planning, control, operation and optimisation of technological services, processes and products for the sake of human advantage. Therefore, the new type of leadership and management must guide their businesses into the future, unconstrained by the ongoing technological advancements as well as the growing dependence on technology in order to remain competitive. From the perspective of the Eco-Res initiative, technology management should be geared towards creating a planet with a socially, economically and environmentally sustainable future. This report will discuss innovative technology management and describe for such initiatives as those devised by Eco-Res might lie by developing a five year roadmap for technology. It will further develop a proposed marketing strategy that will promote the use of the Eco-Res initiative among university students who live on campus to reduce the use of energy over the next five years. The paper will be divided into management and marketing for the purpose of discussion. Management Innovative Technology Management from the Perspective of Eco-Res An essential foundation for creating successful organisations over the long term is identifying technological trends and exploiting them from an early stage. However, the technologies’ dynamic nature poses a barrier to comprehensively identifying and harnessing opportunities related to technology in a manner oriented to organisational goals and objectives. Therefore, the key prerequisite for an organisation to successfully develop technologically lies in its ability to rapidly and efficiently develop the capacity to manage innovation (Volberda, Foss & Lyles 2010, p. 936) as reported below. In summary, organisations need to develop and implement technology and innovation strategies; increase organisational capacity for innovation; identify, evaluate and exploit new technologies; and organise innovation and research and development efficiently and effectively (Huizenga 2014, p. 112). Technology Solution In the modern business world, the competitive imperative is to develop a culture of innovation and technology. According to Eco-Res, the key drivers of competiveness as well as economic success are education, entrepreneurship, innovation and technology. A crucial part of developing a technology foundation for an organisation’s sustained competitive advantage will entail building the capacity to successfully manage innovation. This perspective places technology management at the point of intersection of an organisations operations, technology and strategy. That means that technology management provides managers with an insight on how technology works in the process of innovation, which further facilitates sound decision making. For organisations that operate in competitive markets, it is imperative to continuously seek to enhance their competitiveness by developing and innovating technology as well as factors such as distribution systems, design and markets. New products are agreeably the most perceptible results of innovation, but that does not mean that innovation is only found in new products and technology. Rather, it is crucial for leaders and managers to acknowledge that innovation is also found in the activities and processes that lead to the successful creation of products (Wong & Kam 2012, p. 710). Therefore, they must guide their organisations towards adapting to technological changes and advancements by creating appropriate information and communication technology structures. This may include, for example, finding new means (such as text, voice and video) of communicating with both employees and customers. Type of Change Management Required Key Drivers When an organisation intends to modify or update its processes and technology, it must consider the purpose of why it is looking at the modifications and updates. Such considerations include the customer, internal organisational environment, return on investments and the financial implications (Chang & Hsieh 2011, p. 2346). However, according to the Eco-Res perspective, even the best and most advanced processes and technology may not be launched and implemented successfully in cases where the receivers in an organisation or market are not ready to adopt it. Ideally, implementing innovative technology management requires significant changes to be effected in organisational capability. On the contrary, an attempt by the organisation to exceed its existing capability could in itself be an impediment to innovative activities. The use of both hard and soft systems methodologies must be encouraged. While soft systems will provide a loose outline of tools with a focus on improving organisational problems, hard systems will provide rigid procedures and techniques with clearly defined solutions to equally clearly defined problems (Checkland & Poulter 2006, p. 69). Further, soft systems are beneficial because of their participatory nature while hard systems are informed by environmental analyses. The ideal type of change would be incremental where the organisation is afforded time to adapt and evolve rather than sudden reconstruction and revolution of processes. Theoretically, the resource-based approach is the prevalent perspective in strategy as it is more focused on organisational abilities to manage competences and resources. Therefore, innovative technology management requires that an organisation has the capacity to not only manage but also modify its resources and capabilities according to external influences. Also known as dynamic capability, this capacity enables leaders and managers to integrate, develop and reconfigure external and internal competencies so that they effective address the rapidly changing business environment. Hence, the organisation will have the capacity to purposefully create and modify or extend its resource base (Kotler & Keller 2006, p. 64). An appropriate example would be when an organisation can sense and seize opportunities as well as sense and shape or modify threats. Further, it should have the capacity to maintain its competitiveness by transforming, protecting and combining both its intangible and tangible assets. Resistance to Change It is expected that not all innovation will readily be accepted by both employees and customers (Tidd & Bessant 2009, p. 83). This is mainly because change often disrupts the processes that employees are accustomed to and can be stressful. When changes are imposed, those who did not participate in the change process or have a contribution towards it are most likely to have negative attitudes and opinions towards the change. At the minimum, it is up to the leadership and management to communicate the significance of the proposed changes rather than allowing the employees’ self interests to misguide them. The organisational culture the employees are accustomed to may not have implemented any changes before. However, it must be acknowledged that the fear and, most importantly, the misunderstanding of new technology, must be addressed in a way that will enable employees to cope. Insecurities and uncertainties must be eliminated by, for example, the leadership and management clearly communicating to employees that the changes are meant to improve customer satisfaction and provide competitive advantages. The table below summarises the means and effectiveness of overcoming problems associate with resistance to change in an organisation. Style Means/Context Benefits Problems When effective Education & Communication Group briefings Internalisation Management trust Overcoming lack of information Time pressure Unclear Incremental change or long time horizontal transformational change Collaboration / Participation Involve taskforce in setting strategy or resolving strategic issues Ownership May improve quality Time pressure Solution within current model Intervention Change agent to coordinate/control: i.e. Delegate elements of change Process is guided but with involvement Risk of perceived manipulation Incremental or non-crisis transformational change Direction Use of authority to set direction and means of change Clarity and speed Risks lack of acceptance & ill conceived Transformational change Coercion / Edict Explicit use of power through edict May succeed in crises/state of confusion Least success unless crisis Crisis, rapid transformation or autocratic culture Source: adapted from Johnson & Scholes, 1999, Exploring Corporate Strategy, p.511 As can be seen, education and communication are the most effective means of overcoming resistance to change, but they are also faced with pressure in the form of time of implementation. As stated earlier, this can be overcome by using the soft system methodology that will allow horizontal and incremental change over a period of time. While each of the five styles summarised in the table above have their own challenges, involving the entire organization is the most effective way to ensure that they work towards successful implementation of change. Major Risks or Downsides for the Initiative The initiative discussed here, which is the capacity to manage change and innovation, is also prone to some risks and disadvantages. As the table above shows, the most significant risks are time constraints and the employees’ perceived manipulation. However, the organisation’s dynamic capability framework can mitigate the risks if it is appropriately designed to sense, seize and transform both opportunities and threats. Basically, sensing will entail the searching and scanning of activities within the organisational environment. More specifically, it must be extended to include processes that tap supplier as well as complementary innovation, developments in exogenous technology, identifying targeted market segments, changing the needs of customers and customer innovation. Since technological advancements are not slowing down, these tasks will logically entail the envisioning and leadership capacity of the top management in guiding their organisations into the future. However, it must also be acknowledged that overemphasis on sensing can result in unrealistic expectations of seizing and transforming within an organisation. Essentially, this will cause a capability gap as concerns the innovations that cannot be assimilated by the organisation and, consequently, hinder it from adapting to the environment. On the other hand, the selection and development of opportunities will be a function of seizing, which basically improves and maintains competences, routines, support systems and resources. Transformation, on its part, will entail decentralisation, knowledge management and governance. Decentralisation will strictly call for an optimised balance between organised coordination and the autonomy for accurate and rapid adoption of change. In the absence of coordination, the necessary innovation activities to leverage new technologies will not be matched. It is imperative that before leaders and managers embark on reconfiguring and developing their current resource base, they must have a clear understanding of its applicability, reach and value. Five Year Technology Roadmap With the current rate of innovation and technological advancement, it is within acceptable limits to assume that there will be further developments in the next five years. It is expected that there will be more internet connectivity and, more specifically, mobile devices will have undergone further innovations. Hence, there will be more online learning and teaching, which means that, even as students will have more appropriate means of accessing learning materials, they must equally strive to conserve energy that makes it possible. There is expected to be more online activities after official lecture hours as students work on their assignments in their hostels. However, this must also go hand in hand with the need to switch off all appliances once they are not in use. It is also strongly believed that as the industry players anticipate an overdrive of innovation in technology, they will also develop more energy efficient means of living on campus. This implies that solar energy, which is proposed as the key initiative to save energy, will also have undergone more innovation in terms of , for example, energy storage, higher output and, more importantly, affordability. Marketing Proposed Marketing Strategy to Encourage the Use of Eco-Res Solution by University Students According to the Eco-Res perspective, a university campus will be considered as an eco-friendly accommodation only after its structure is significantly improved in a manner that will minimise its environmental impacts. Essentially, it must be an environmentally responsible institution that adheres to the practices of green living such as focusing on renewable energy and avoiding waste. The most effective ways to reduce the wastage of energy are, in that order, installing solar panels, wind turbines, biomass and geothermal sources of energy. This report recommends the use of solar PV because of the ease of installation and commercial availability as well as its reliable technology. This recommendation is further informed by the convenience and flexibility of the selection of the site of the solar PV station, which can be installed on roof tops or any other open spaces (Kotler 2012, p. 93). Conveniently for the campus environment, solar PV installations do not have mechanical moving parts, which is a considerable contribution towards noise reduction as well as safety purposes. Market Research Since the majority of students displayed willingness towards eco-friendliness, a marketing strategy to encourage the use of the Eco-Res solution must be founded on their opinions. Electricity, gas and water, in that order, are the most preferred initiatives of saving energy according to the findings of the case study by Eco-Res. Life on campus can by all means be described as modern living, which requires electricity, gas and water in abundant and continuous supply. However, this proposal suggests that these three requirements that drive modern living should originate from naturally replaceable sources within a timescale that will address human requirements. With 92% of the student population aware of energy conservation initiatives, they only need an implementation plan to make them actively participate in the said initiatives. According to Maslow’s hierarchy of needs, the adapted diagram below places the marketing of energy saving solutions under four general categories. These are safety, belongingness, esteem and cognitive needs. Under safety needs, this concept calls for order and limits, which the students on campus must practice in their bid to control consumption of energy. Under belongingness, the entire campus population will be considered as a work group and must be encouraged to promote the common objective of efficient use of resources and amenities. The marketing strategy will also seek to address the students’ esteem needs because by participating in energy saving initiatives, it will build on their sense of responsibility and reputation. These three needs are driving factors towards realising cognitive needs, since they will build self-awareness and meaning of being part of a positive initiative. Motivation Theory Psychologically, motivation is a force that will initiate, guide and maintain behaviours oriented with goals (Murphy 2009, p. 103). To enable students living on campus to save energy, they need to be motivated by, for example, rewarding positive behaviour that contributes towards the initiative. Since most students are already facing difficulties with accommodation fees and are not willing to give extra payment towards saving energy, those that support the initiative should be rewarded via subsidised accommodation fees. Deriving from the expectancy theory, this report expects students to conduct themselves according to their conscious expectations that certain behaviors will lead to certain desirable outcomes. It is imperative that students on campus are motivated towards planned behaviour by modifying their attitudes and behavioral control in ways that will alter and improve their intentions towards saving energy. For instance, specifying that the cost of energy must reduce to a certain level within five years will generate higher performance levels than simply setting general goals. This will further build on the belief of the students that their efforts will lead to attaining desired performance goals apart from their belief that they will be rewarded for meeting the performance expectations (Checkland & Poulter 2006, p. 21). Market Segmentation According to the cases study conducted by Eco-Res, higher-level students and particularly those taking science disciplines were more aware of, and actually participated in, the initiatives to save energy. Therefore, the proposed plan must specifically target lower-level students as well as those from other disciplines apart from sciences. Essentially, this will ensure that awareness is equally instilled within the campus population so that the initiative is also equally driven by all students after they realise the need for energy saving products. Therefore, the proposal is designed with an acknowledgement that a significant proportion of the student proportion does not consider it to be their responsibility to live sustainably but they expect energy saving infrastructures to be implemented by the university. The Marketing Mix This will entail the planned mix of the promotion, place, price and products (Banting & Ross 2010, p. 11). Being controllable elements, these four must be adjusted to a point that the right combination that serves both the needs of the students and the university is realised. As consumers of energy, students will be able to compare competing alternatives, hence the need for optimally priced energy saving products. Apart from installing solar panels, the use of low wattage energy saving light bulbs must be encouraged. Agreeably, energy saving light bulbs cost more than the traditional high wattage bulbs, but that cost is significantly compensated in terms of the energy consumed. Further, the lifecycle of the energy saving light bulbs is much higher than the traditional ones and does not have any weaknesses over them. For the needs of students living on campus, lighting companies can offer customised lighting solutions that are affordable to the students. According to this report, there are four practical sources of cheap and renewable energy (solar, wind turbines, biomass and geothermal), but for the university campus environment, solar energy is recommended as the best and most appropriate option. It is also strongly recommended that the main source of heating, which is the central boiler house, be replaced since it has been in use for almost five decades. Clearly, that is old technology that does not efficiently serve the initiative of saving energy. The use of renewable energy is recommended because the waste heat will be used to supply indoor heating systems. While old facilities must be replaced, the university should not emphasise on billing out the cost of energy from students’ accommodation fees. Instead, rewarding positive behaviour that contributes towards saving energy should be rewarded. It should also be the responsibility of the university to place advertisements at appropriate locations that remind the student to switch off lights, heating systems and any electric appliances that are not in use. References Banting, P & Ross, R 2010, ‘The marketing mix: a Canadian perspective’, Journal of the Academy of Marketing Science, vol. 6, no. 1, pp. 11-12. Chang, W & Hsieh, J 2011 ‘The dynamics of intellectual capital in organizational development’, African Journal of Business Management, vol. 5, no. 6, pp. 2345-2355. Checkland, P & Poulter, J 2006, Learning for action: a short definitive account of soft systems methodology and its use for practitioners, teachers and students, Wiley, New York. Huizenga, E 2014, The knowledge enterprise innovation lessons from industry leaders, University of Amsterdam, Amsterdam. Kotler, P 2012, Marketing management, Pearson, London. Kotler, P & Keller, K 2006, Marketing and management, Pearson, New Jersey. Murphy, J 2009, Inner excellence, McGraw, New York. Tidd, J & Bessant, J 2009. Managing innovation: integrating technological, market and organizational change, Wiley, Chichester. Volberda, H, Foss, N & Lyles, M 2010, ‘Absorbing the concept of absorptive capacity: how to realize its potential in the organization field’, Organization Science, vol. 21, no. 4, pp. 931-954. Wong, S & Kam, S 2012, ‘The role of management involvement in innovation’, Management Decision vol. 51, vol. 4, pp. 709-729. Read More