Technology changes by innovation

TECHNOLOGY CHANGE: INNOVATION
Technology change can be described at two levels. at the level of the individual firm or at the level of the technology.
FIRM LEVEL:
It may be described as four stages in process of problem solving.
1. Problem recognition: Successful technological change begins when a firm recognizes the potential of a technology for new products or process, or when it recognizes a market need that needs to be fulfilled. When technical feasibility dominates design, we call the process as “technology push”. When market demand drives the process we call it “market pull”.
2. Technology selection: During this stage, the firm formulates several design concepts which are based on different technologies that will serve the market needs.
3. Solution development: In case of products, the may involve the development of prototype. In case of process innovation this may finalize a general approach or a blueprint for organizational change. Problem solving may be in two ways. A new solution is formulated within the innovation firm. or A ready made solution is adopted by the firm from outside.

4. Commercialization/Implementation: The economic benefits of an innovation are never fully realized until an item is actually introduced into the market or cost reductions from the process change are achieved.


PROBLEM
RECOGNITION
TECHNOLOGY
SELECTION
SOLUTION
DEVELOPMENT
COMMERCIALIZATION



Triggers Alternatives Mode of implementation Forms of change