Technology changes

At the level of technology
1. Technology developers which are firms involved in innovation in their pursuit of competitive advantage.
2. Technology facilitators who provide the resources for financing and executing the innovation efforts.
3. Customers who are interested in fruits of technology development.
4. Regulatory agents, government bodies who shape the firm of products and processes by establishing standards or specifications.
5. Stakeholders who may be the beneficiaries ( e.g. suppliers to the innovating firms ) or victims of technology change ( e.g. Industry become obsolete by technology change )
Technology change – Innovation, Imitation and adoption lies significant learning by firms both individually and collectively. Three ways of learning are:
1. Environmental surveillance through technical and market Intelligence. Technical Intelligence creates awareness within a firm about the availability of scientific and technical knowledge. Market Intelligence creates awareness of customer needs and market potential.
2. Experimentation within firms where by firms can learn problem solving by simulation and by trial and error. Both failures and successes during innovation provides rich avenues of learning about what works and what does not.
3. Imitation through competitive Intelligence means learning from competitors about successful and unsuccessful attempts may enable a firm to learn without investment.



IMITATION Supply side (Competitors )



ADOPTION


INNOVATION





Demand side (Consumers )

INNOVATION means to renew to make new or to alter.
· A technology change new to both enterprise and economy (e.g. PC by Apple )
· A change that has diffused into economy and is adopted by the firm ( adoption of computers by printing firms to typesetting services )
· Innovation refers both to the output and process of arriving at a technologically feasible solution to a problem triggered by a technological opportunity or customer needs.
· Innovation refers to the process by which individuals or organizations arrive at a technical solution
· Innovation refers to a product or service.
COMPONENTS OF INNOVATION:
· A hardware component consisting of the physical aspects of innovation.
· A software component consisting of information based that is needed to use the innovation.
· An evaluation information component consisting of information that is useful for decisions related to adoption of innovation.
PROCESS OF INNOVATION :
Market pull : It is the advancement of technology oriented primarily toward a specific market need and secondarily towards technical performance.
Technology push : It is the advancement of technology oriented toward increased technology performance secondarily towards specific market needs.

CLASSIFICATION OF INNOVATIONS :
INCREMENTAL INNOVATIONS MODULAR INNOVATIONS

Product tech : Microprocessors Product tech : Mobile phones
Process tech : Continuous Improvement Process tech : Quality circles


ARCHITECTURAL INNOVATIONS RADICAL INNOVATIONS

Product tech : Interior decorations Product tech : CDS, Pen drives
Process tech : Just-in-time Inventories Process tech : Robotics in manufacturing