Innovation as an Important Part of the Modern Organization - Essay Example

Introduction In a world where technological advancements seem to be occurring at an amazing rate, it is quite important for such technology to be effectively managed. Indeed, technology management has become a major concern in the present world considering the constantly emerging new technologies. The challenge is further compounded by human resistance to change and the often existing assumption that any new technology might affect the status quo. In this respect, organizations are increasingly facing the challenge whenever they introduce new products based on new technologies. Most companies will always need to keenly evaluate any technological product before actually accepting to use it. This arises because most of these products are always expensive and the risk creates the need to effectively evaluate the products before accepting to purchase or use them. In the introduction of a new product based on a new technology in a risk-averse market, the sales department must drastically change to suite the situation. The sales people will shift from taking orders to building relationships with the potential clients and becoming educators and coaches. They must keenly understand all the risks involved and work towards mitigating such risks. They must recognize that clients are always scared of change and must therefore be totally convinced on the importance of the new product. It is further important to share as much research as possible about the industry with the clients in order to give them your own perspective on why they need to adopt the new product. Challenges of introducing new technology Technology Indeed, technology has a rage of definitions all of which highlight a number of factors about its characteristics. In a way, technology is basically a type of knowledge which is usually embodied in a physical artifact such as a component, machine or a system. The difference between this knowledge and the general knowledge is the act that technology is applied and therefore focuses on know-how. Technology is usually associated with science and engineering. To enhance its effective application within a system, technology must be understood in the context of new product development and innovation. More importantly, it should be considered with respect to factors like organizational development and structures and knowledge networks. While technology can be very helpful for an organization, a failure to manage it properly can always be detrimental to the very organization. In this respect, it must be understood that managing technology involves both explicit and tacit knowledge. Explicit knowledge involves understanding the theoretical functionality of the technology through reports, user guides and other procedures. On the other hand, tacit knowledge involves knowledge that cannot easily be articulated and is obtained through experience and training (Betz, 2005). Why new technology The world is presently experiencing a wave of new technologies and organizations that can quickly leverage the new technology will usually have a competitive edge in the market. The essence of new technology in this respect is to help in delivering real business value to the clients. New technology often has different connotations. It can be new commercial software or a new system comprising of new hardware platforms. In whichever form it might come, new technology is very important because they often come with improved functionalities and better technical characteristics. The need for new technology can further be triggered by the advent of service orientation such as an emerging trend. Such trends usually come with the new requirements and organizations are therefore expected to effectively adjust to the demand patterns. Business Process Management (BPM) is a new trend which calls for better business management through the application of latest technology to enhance automation and ensure better monitoring of current events. Introducing new technology There is always a major challenge in handling the introduction of new products characterized by new technology. While the process is always seen to have a definite lifecycle, it is important to realize that challenges often emerge. In some cases, the process is managed conventionally like in the case of introducing a new product. This conventional lifecycle usually presents a number of challenges considering that most new technology will create the need for a total overhaul of the existing processes and systems (Verburg, 2005). Considering the cost implications, it becomes a challenge to implement most technological solutions and some organizations often prefer to remain with the status quo. The whole process should basically entail monitoring, capacity building and the identification of problems. The focus here is to ensure that the new technology runs and operates as planned without many challenges in the process. Most new technology requires to be tested before they can be fully implemented into an organization. Most of these technologies come in the form of business applications and will usually create the need to be tested well before deployment. This might need new ways of monitoring to be developed in addition to a range of new operational procedures in order to ensure efficiency (Treat, 2011). Usage and adoption rates In most cases, it is realized that when a new form of technology is introduced into a business setting, many people will quickly adopt the application for a while before reverting back to the old habits. In this case, the technology is viewed as disruptive and people will get back to the old ways with which they are more comfortable. This challenge always arises out of several situations mostly in relation to the new technology or as a function of the nature of people. For instance when a new business application is introduced in an organization and it appears too complicated, people will try using it for a while and before going back to their usual ways (Betz, 2005). The complexity of a new technological application is therefore an important matter of concern and technology managers should ensure that every new technology becomes easy and simple to understand across the organization. In the same way, the essence of any new technology should always be the creation of efficiency and limiting challenges with the current process. As such, people might be much reluctant to adopt a new application if it seems to add no value to them or the organization (Jolly, 2003). Compliance and security One of the major challenges relating to the introduction of new technology is the question of compliance and security. Like in the case of information technology, it is important for the management to study and conduct thorough research on the technology before introducing it within the organization. This is done to ensure the compatibility of the technology with the systems within the organization. There are several cases where technology has been introduced only become incompatible later. More importantly, security has become a major concern especially in relation to information technology (2006). As advancements in IT continue to gain root, fraudsters are also finding new ways and means of debasing some of these systems for their gains. The security of any new technology must therefore be ascertained before it is implemented in the organization. This is a major challenge because any miscalculation on the part of the organization can always become detrimental to the organization considering that it becomes expensive to overhaul a system that has been put into place. Corporate culture Every organization usually has some form of organizational culture which defines the relationships and behaviors of individuals within the organization. In most cases, the corporate culture affects how the employees will adopt and accept new technology within their areas of operations. There are usually a number of characteristics which constitute the corporate culture of an organization. Some of these characteristics are only realized when a new technology is introduced into the organization. It is therefore important for the management to be savvy of all these factors in order to anticipate any objections that might arise once the new technology is introduced. Most end-users of technology are never the super tech type and cannot therefore fully appreciate the importance of introducing new systems of operations. The organizational culture should always create an environment where people are willing to accept changes and can easily understand the importance of new technology. Technology managers are therefore tasked with the great responsibility of ensuring that all employees understand all the imperatives of the new technology and are willing to accept and adapt to the changes. Language and integration One major challenge and limitation in implementing technology is the aspect of complexity. Unlike most aspects in the operations of an organization, technology is basically a domain of specialists. Many people in the organization do not understand all the functionalities of any new technology. These end users are therefore only concerned with the tangible benefits they can realize out of the technology. For instance, when implementing a new accounting system within an organization, the accountants will generally gauge the whole system on the superficial functionality and not on the technological point of view. However, it is very important that laymen in technology are given the opportunity to at least understand some of the basic issues related to the functioning of the new technology. There should be a “common language” which can effectively bridge the gap between the specialists and the common employees in the organization. The essence here is to ensure that every party understands the basic specialist issues related to the new technology so as to understand its importance and need. Selection In a world characterized by technological advancements, organizations are usually faced with several options when selecting a new technological product. The selection process will always present a great challenge since some of the products might be totally new in the market. For instance when selecting a new financial management system, an organization might get offers from several vendors and might have hard time in selecting the best option. The challenge is further compounded by the fact that the option selected will lead to the commitment of large financial and human resources which might totally limit any future options of the organization. There should be proper selection criteria within the organization which is charged with the responsibility of selecting the best technology option out of the various offers that might be present in the market. The selection criteria should focus on competence analysis. Acquisition The trouble in implementing a new technology does not really end with the selection of the best alternative. Once the right technology has been selected, it should then be acquired by the organization in order to be used. The acquisition process usually involves a number of activities and processes. The acquisition of technology can occur internally of through R&D activities. On the other hand, such technology can be acquired externally through the use joint venture agreements or licensing (Steele, 2007). There are usually a number of technology owners who are willing to partner with organizations in order to develop their technologies. Other organizations also acquire technology by the outright purchase of the organization which owns the technology. All of the acquisition options have their own advantages and limitations and the organization should always find the best way through which to acquire the technology. The decision should be guided by financial considerations, time and efficiency of the whole process (2004). Exploitation The beauty and importance of technology is not simply its application within an organization but the ability to be converted into marketable products. The value of the technology should be realized once it is implanted within the organization. There must be a formalized way through which the technology will be exploited in order to enable the organization to realize its benefits. Considering the high costs involved in acquiring and implementing technology, it is very important for the organization to realize the maximum returns. There must be a strong link between the products, platforms, technology and markets. In line with the exploitation of technology is the concept of technology fusion best demonstrated through Japanese corporations. In such corporations, discrete technologies are usually infused together and used in the creation of new functionalities altogether (Kangas, 2003). The high costs of technology investments create the need for technology infusion in order to create better products and quickly relies the returns. More importantly, it is very important for companies to closely monitor the operations of their technologies to avoid any leakage that might render such technologies obsolete. There must be proper mechanism through which the technology is maintained and enhanced within the organization without giving room for outside parties to come to terms with its functionalities. Protection Protection in the context of technology refers to the preservation of the knowledge and expertise that is attached to the products and manufacturing systems. It is more prudent to incorporate product features that do not enhance the functionality of the technology but effectively protects the knowledge and subsequently the huge investments that might have gone into its creation. The traditional form of protection usually involves the use of licensing and patenting. However, the actual protection of the technology should transcend the legal forms (Khosrowpour, 2000). There should be a routine protection in the development, acquisition and in the implementation of the technology within the organization. However, while protection of technology is always challenge managers have to face, the technology developers should ensure that the protection does not limit the functionality of the technology within the organization. For instance, in the computer industry, many manufacturers have devised a number of protective measures in order to protect their technology. However, such processes are normally done with a lot of caution in order to ensure the compatibility of the various computers despite the different manufactures. Protection in this respect is therefore to convince the technology buyers that the product is safe and can be relied upon without any fear of the technology leaking and limiting the effectiveness of the technology (Drucker, 2000). Organizational learning The challenge of managing technology is certainly a major concern across the world. Organizations are increasingly facing the challenge of getting the maximum returns out of investments in technology. However, through organizational learning, many companies can effectively address this challenge and realize success out of such investments. Indeed, there are many corporations across the United States and in Japan which have achieved much success through this process. The focus of organizational learning is to broaden and extend the involvement of technology development across the whole organization as opposed to a situation where it’s a preserve of the R& D department. Indeed, technology should never be a preserve some specialists within the organization. It should be noted that technology can always be developed by anybody as long as they can understand what the business needs. In most cases, the greatest contributors to technology are never the specialist but the end-users who use the technology and therefore understand its strengths and limitations (2001). Scientific and technological ideas have become highly mobile and organizations can now learn and reconfigure their technologies in order to suite their requirements. For the effective management of new technology in an organization, there should be wide involvement of people in the whole process of developing or acquiring the technology so that everybody can understand the importance and need to bring that change. This will create an environment that can readily accept the changes that might be associated with the new technology. Open innovation and Closed Innovation Open innovation is a paradigm of thought which proposes that organizations should use both internal and external ideas in the process of advancing their technology. It basically involves bringing partners on board in the process of innovation in order to share the risks and the rewards. Indeed, the boundaries between organizations and their environment have become very loose in the recent pasta and organizations are increasingly collaborating with one another in the process of innovation. The importance of innovation in the present technological world cannot really be overemphasized. In this respect, it is impossible for organizations to purely rely on their own knowledge and research. As such buying of patents and licenses has become very common as a ways of sharing innovative research and ensuring that organizations can mutually benefits from their researches. Considering that many organizations have established very active R&D departments, many of the research innovations are rarely used within the organizations and are either sold or licensed to other companies that might be interested in developing them. Procter & Gamble has been at the forefront in open innovation by collaborating with several organizations across the world thorough its “Connect &Develop” (C&D) program. Through these platforms, the organization has greatly improved its research productivity. Closed innovation on the other hand, refers to the form of innovation that occurs in closed environments and performed by scientists or employees of an organization. According to this concept, innovation is a process which requires close monitoring, control and ownership of the intellectual property. In this case, a company should closely guard the development and creation of ideas without involving other parties in the process. Closed innovations systems have existed in may organizations for a long time and are characterized by the self-sufficiency in ideas where research institutions such as universities do not collaborated but conduct their researches under closed environments. The roots of closed innovation are traced back to the aftermath of the World War II and during the cold war when there was a lot of suspicion across the world and research was therefore conducted under much closed environments. Ina way, closed innovation is always geared towards eliminating the threat of competition and is mostly practiced by private firms. In a system where closed innovation thrives, there is always a feeling of distrust on other innovations coming from outside and such innovations cannot easily be accepted. Closed innovation is often driven by the mentality that once an idea is created ad not shared with the industry, the organization can easily win in the market. Nevertheless, there is a general shift from closed innovation towards open innovation given the many challenges associated with the former. It should however be stressed that open innovation cannot be practiced in industries which deal with strategic matters such as security out of the fear that such innovation might leak into the wrong hands. Both form of innovation therefore have their share of advantages and limitations (Szakonyi, 2010). Closed innovation has become very unpopular in the recent years due to a number of challenges. The present business environment is characterized by an increased mobility of skilled workers from one organization to another. It is therefore very difficult to maintain a purely closed innovation process since the workers will always move ahead and share the innovation across organizations. The expansion of venture capital across the word has enabled many organizations and individuals to access funding for innovation which is only possible through open innovation. In addition, there are many organizations which specialize in the formulation of ideas and offer these ideas for sale. Such organizations must therefore collaborate with one another in order to find market for their ideas and strategies. Outsourcing has become a very common practice in the business world and organizations have greatly adopted the practice. Outsourcing is only made possible through open innovation where an organization uses the results of its research to the benefit of another organization which pays for the service. Open innovation is always driven by the principle of taping and pooling together in order to share knowledge and expertise. It is recognized that smart people exist in different sectors and it is not possible to bring all of them into the organization. However, it is possible to borrow from their work through collaboration with the organizations where they work. External R&D can further create significant value to the organization. More importantly, organizations today focus on building proper business models as opposed to getting their products to the market first (Loader & Biggs, 2002). By making use of both external and internal ideas, it becomes possible to win in the market as opposed to solely depending on internal research which might be limited through finances and human resource. In light of these factors, there is general shift towards open innovation in most sectors as organizations are more concerned about future survival and building better business models as opposed to making names as the inventors of a business idea. Open innovation is further characterized by the reduced cost of R&D which is presently one of the most expensive operations for most organizations. However, open innovation is also has its own share of challenges. For instance, there is a greater possibility of sharing confidential information through open innovation. Similarly, many organizations have lost their competitive advantages through open innovation in situations where intellectual property is revealed. In an environment where open innovation is the norm, it usually becomes very difficult to manage the innovation across the sectors. It is important to stress that various organizations have managed to succeed on either models of innovation. For instance Apple Computer is known across the world on the quality of its products which are basically a product of the research culture at the organization. Innovation at Apple basically occurs in a closed system. Indeed, most of the smart people in the computer industry work for Apple and the organization believes in its own research and development as the only way to maintain its quality and market position. The organization believes that quantity and quality is the only way to win the market. To enhance quality and win the market simultaneously, the company considers closed innovation as the best approach. Closed innovation at Apple is used to control intellectual property in order to limit any loss of its competitive advantage (Szakonyi, 2010). Google and IBM on the other hand, operate in a similar industry but depend on open innovation. The companies believe that no single company can have the monopoly on the best talents in the market and collaboration in research is therefore crucial. As such, research does not have to be an internal affair but can be borrowed from outside the organization. According to IBM, success in the market is not really about formulating the best ideas but making use of the best ideas irrespective of their source. It also considers research as an important way through which an organization can profit by extending its research to other organizations. In a way, the approach used by an organization for its innovative process might not have much influence if the innovative ideas are not put into proper use. Research is one thing and making use of the research product is the most important consideration. Both open and closed innovations come with their own share of limitations. Across the world, open innovation has been characterized by many conflicts arising from the ownership of intellectual property. Similarly, considering that such innovation is always carried out as a joint affair, there is always a challenge in terms of monetization. Some of organizations will claim a larger portion of the monetary benefits arising from the joint innovation. It is basically about the challenges that come with any form of collaboration especially between organizations which seek to achieve similar objectives (Loader & Biggs, 2002). Open innovation is being adopted fast across the world and its critics feel that it might as well be abandoned fast overtime. While closed innovation has been the primary approach of research over the years, it is presently posing many challenges to many organizations especially smaller ones. Innovation is a very expensive process and many organizations cannot single handedly handle any major innovation by themselves. In the same way, closed innovation might be very inappropriate due to the increased risks involved. In conclusion, innovation is certainly an important component in any modern organization. It facilitates the generation of new ideas in addition to creating a competitive advantage for the organization. The management of such innovation should therefore be a priority in the organization. As such, organizations should be very cautious in their dealings with other organizations in the course of open innovation. While closed innovation is characterized by several disadvantages, it can always be an option in certain situations. However, in conventional organizations, open innovation is the only way forward in keeping pace and ensuring survival in the market. References Betz, F. (2005). Managing technology: competing through new ventures, innovation, and corporate research. Englewood Cliffs, N.J.: Prentice-Hall. Drucker, P. F. (2000). Technology, management & society: essays ([1st ed.). 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