2. WHAT IS TECHNOLOGY INNOVATION
Definition for Technology:
The dictionary meaning for technology is “the application of scientific knowledge
for practical purposes” or “ the branch of knowledge concerned with applied
sciences”.
Definition for Innovation:
“Innovation is evolutionary and is a response to an unsolved problem and
unexploited opportunity”
“Innovation is the effort to create purposeful, focused change in an enterprise’s
economic or social potential”
3. WHAT IS TECHNOLOGY INNOVATIOM
Creativity and Innovation:
At this point, we have to make a distinction between creativity and innovation. It can
be said that creativity results in innovation. In other words, creativity is idea phase and
innovation is action phase.
“Innovation is the act of introducing something new”. In this definition, the word “new”
relates to creativity and the term “act of introducing’ relates to innovation.
CREATIVE:
Involving the use of the imagination or original ideas in order to create something.
INNOVATIVE:
Introducing new methods or ideas or products.
In this unit, the focus is on innovation and technology
4. WHAT IS TECHNOLOGY INNOVATION
Invention and Innovation:
Invention is a creation of new product or service or process, innovation is the
introduction of new product or service or process into the market place. Invention
may have economic or non economic motives. Innovation has always economic
motives. Invention precedes innovation or innovation follows invention.
An invention is based on a new idea that is turned into some kind of conceptual
model that demonstrates the feasibility of that idea. Innovation is concerned with
the development and implementation of new systems, products or services and is
typically based on invention.
5. WHAT IS TECHNOLOGY INNOVATION
R & D and innovation:
Innovation is broader than R & D. R & D is more an organizational effort either at
macro level (national) or at micro level (enterprise). Innovation can also come
from customer or vendor.
The above discussions make it clear that creativity, invention and R & D are all
different dimensions of same type of activities, all leading to innovation.
6. CHANGE IN ORGANIZATION DUE TO
INNOVATION
Change in organizations due to innovation:
The next step to innovation is taking the new product or service or process
to manufacturing and then to markets. This shift or transaction is the
commercial use of innovation. The changes due to adoption of innovation
embraces all the functional units of an organization. The anticipated
changes are discussed below:
7. CHANGE IN ORGANIZATION DUE TO
INNOVATION
Changes due to innovation - production department:
Change in Machinery
Change in process
Training Employees
Change in tools
Changes due to innovation - Marketing Department:
Changes in Product mix
Changes in Marketing strategies
Changes in sales force
Changes in packaging
8. CHANGE IN ORGANIZATION DUE TO
INNOVATION
Changes due to innovation - HR Department:
Changes in HR Planning
Changes in productivity norms
Changes in compensation packages
Changes in training programs
Changes due to innovation – Finance department:
Financial commitments to buy new machinery
Disposal of old machinery
Changes in working capital requirements
9. TYPES OF INNOVATION
Incremental Innovation:
These are small but important improvements in a product, process or service. Such
innovations are associated with enhanced customer satisfaction.
Example:
Intel Pentium III to Pentium IV
LAN to WAN
Modular Innovation:
These innovation do not alter the overall product structure, but change can occur in
the component technology.
Example:
Change in a car engine technology will not change any other features.
10. TYPES OF INNOVATION
Architectural Innovation:
These innovations take existing technologies and link new technologies in novel
ways; they are built not on new technological break through but on integrating
competencies, i.e. Change of product structure with no important effect on
component subsystems.
Example:
Change of shape of a car with no change in engine.
Honda’s smaller motor cycles.
11. TYPES OF INNOVATION
Radical Innovation:
These innovations are revolutionary in nature. Railroads, electricity, computers,
internet can be termed as break through innovations. Railroads changed the way in
which goods and people were transported. Electricity totally changed the way people
lived and used equipment’s. Computer changed the way in which organizations
worked. Internet changed the way in which people communicate, acquire knowledge
and do business.
Radical innovations are also known as break through innovations and discontinuous
innovations.
Example:
Digital imaging(polaroid)
Quartz movements(watches)
Radial tyres
12. ADVANTAGES OF INNOVATION
Advantages of innovation
Innovation may be linked to positive changes in efficiency, productivity, quality,
competitiveness and market share, among other factors.
Innovation is advantageous because it create changes.
13. ADVANTAGES OF INNOVATION
Advantages of
innovation
Increase
profit margin
Satisfying
consumer
needs
Market
development
Increase
competition
Increase in
demand
Employment
opportunities
14. DISADVANTAGES OF INNOVATION
Disadvantages of innovation
Innovation create changes, sometimes these changes create negative effects
which becomes the parts of disadvantages of innovation.
Innovation is advantageous because it create changes but sometimes it become
disadvantageous when the changes create negative effects.
