Technology and innovation (management of new technologies)

“Technology” includes all the methods, processes, systems and skills used to convert resources into products. Any change and evolution in technology (leaving the old and traditional ways of doing things) is referred to as “innovation”. Among the most important types of innovation, we can mention “product innovation” and “process innovation”.
Innovation in the process means creating effective changes in the methods of producing outputs and products. Product innovation also includes changes and developments in the outputs themselves (both products and services).
Technology life cycle
This cycle begins with the identification of a need and is followed by providing methods to solve them through science or applied knowledge.
Diffusion of technological innovations: people who choose new technologies are divided into the following five groups:
1. Innovators: This category of people are usually adventurous, so that some people consider them self-righteous and single-minded or even extreme.
2. Leading (early) adopters: The success of new technologies is very important for these people. Because they often have innovative and idea-oriented leaders.
3. Leading majority (early): this category of voters ponders more on issues and their decision to use new technologies requires more time.
4. Late majority: This group is pessimistic towards technological developments and their approach to innovation is accompanied by great caution and they often accept new technologies due to increased economic needs or social pressures.
5. Laggards: This group is also often very pessimistic about innovation and change due to their isolation and conservative views.
Technological innovation in a competitive environment
Decisions about technology and innovation are very strategic and should be approached in a completely systematic way.
a. Technology pioneers:
Being a leader in technology requires bearing many costs and risks, therefore, it is not necessarily the best approach for an organization.
The advantages of being a leader in technology: What attracts innovators and leaders in technology is the possibility of earning very high profits and the benefits of being the first. If this leadership in technology increases the efficiency of the organization compared to its other competitors, it will create an advantage and a cost advantage.
b. Technology satellite:
None of the organizations are equally prone to be the leader in technology, nor that the benefits of being the leader are the same for all of them.
Adherence in technology can be used to support your low cost and differentiation strategies.
The time to accept technology depends on the strategic needs of the organization and the existing technological skills in the organization (the basis of the potential benefits of new technology).
Assessment of technology needs
The evaluation of technology needs of an organization includes the estimation of existing technologies and the evaluation of effective environmental trends in the industry.
Assessment of existing technologies: technology audit allows to identify the key technologies that the organization depends on. The most important aspect of a new technology is its competitive value. One of the techniques for measuring the competitive value is to categorize technology in one of the following groups: emerging technologies, evolving (progressive) technologies, key technologies and fundamental technologies.

· Evaluation of environmental technological trends: just like all types of planning, decisions related to technology must balance between the organization’s internal capabilities (weaknesses and strengths) and external opportunities and threats.
1. Benchmarking: During this process, the experiences, knowledge, and technologies of the organization are compared with other companies. It should be noted that in different industries, the alignment of the technologies of an organization with other competitors is different.
2. Global monitoring: This process focuses on everything that is possible and can be done in the field of the organization and what is being developed. In this activity, an effort is made to discover and identify new and emerging technologies in an industry through observing and monitoring the world.
How to make decisions about technological innovations
Deciding on technological innovations should balance many related factors. The most effective approach to technology depends not only on the technology’s ability to support and meet the organization’s strategic needs, but also on the organization’s abilities and capabilities in the successful use of technology.
Market acceptance rate (expected): The first issue that must be addressed in formulating a strategy for technological innovations is the market potential.
1. When estimating the amount of market demand, executives should specify two things: first, it should be provided in the short term, an application that shows the value and importance of the new technology. Another thing is, there must be a set of applications in the long term that show that new technology is a definite means to meet those market needs.
· Technological Feasibility: Some technical obstacles may cause roadblocks or interruptions in progress.
· Economic justification: this is also closely related to technological feasibility. Executives should also consider whether the project includes a good financial incentive (probable return) or not.
Development of future competencies: Organizations are required to formulate their strategies based on their core competencies. This issue is also true for technological and innovative strategies.
· Organizational fit: The last things that should be addressed when making decisions regarding technological innovations are: the culture of the organization, the interests of managers and the expectations of stakeholders and shareholders. Usually, technology-driven organizations choose technology strategies based on “aggressive competition” and “being first”. In many cases, executives who are concerned about costs prefer not to enter the business rather than being in a situation of failure.
How to get new technologies
In many industries, the main sources of new technology are the organizations that use the technology in question. Basically, how to acquire new technology is a decision between buying or building technology.
· Internal development: The development of new technology in a company makes it possible to create and maintain technology exclusivity for the company.
Purchase: Almost most technologies can be found in products and processes that are easily and freely purchased.
· Development contract: If the desired technology is not available or the company does not have enough resources or time to develop it, it can develop the desired technology by concluding a contract (with the help of external sources).
Obtaining privilege: technologies that cannot be easily purchased in the majority of a product (or a part of a product) can be obtained by paying a fee under the privilege (license of the manufacturing company).
Trade of technology: Another method of obtaining new technology is trade or exchange of technology.
· Research collaborations and joint venture investment: collaborations are formed in line with the development of new technologies.

· Acquiring the owner of the technology: If a company does not have the desired technology and at the same time wants to acquire the ownership of that technology, it can buy the company that owns the technology.
Technology and managerial aspects
Usually, in large organizations, technology issues are part of the responsibilities of research and development assistants. Recently, many companies have created a new position called “Chief Technology Manager”. The range of responsibilities of the Chief Technology Officer is very comprehensive and consistent, and at the macro level of the company.
· In an organization, the people who play a key role in acquiring and developing new technologies are: technical innovator, product manufacturer champion and chief executive champion.
1. Technical innovator: develops new technology or has the key skills needed to install or use technology.
2. The hero of the product producer: is a person who often risks his position or dignity to promote the idea in the organization, in addition, he tries to attract the support of the organization for it and the plan is accepted.
3. Senior Executive Champion: The final and complete support of the project will be realized by the senior manager of the organization who has the necessary conditions, powers and financial resources to support the project and the champion of the product manufacturer.
Organize for innovation
This organization requires creating a balance between the flourishing of energy and creative abilities of people and controlling the results in order to meet the market requirements according to a schedule.
Flourishing of creativity: organizational culture should encourage innovation.
Eliminate bureaucracy: Bureaucracy is the enemy of innovation. As much as bureaucracy can maintain order and increase efficiency, it can also completely oppose innovation.
· Implementation of development projects: One of the powerful tools for managing technology and innovations in the organization is development projects. A development project is a focused organizational activity aimed at creating a new product or process through technological advances.
Development projects usually fall into one of the following four groups:
1. Research or advanced development projects, which are defined in order to create new sciences for use in a specific project.
2. Leap development projects, which are designed to create the first generation of a product or process.
3. Structural development projects, which build the basic structure or architecture of projects that will have a collection of several projects at their heart.
4. Partial development projects, which have a more limited scope of activity and are defined in order to create improvements and gradual progress in an existing product or process.
· Technology, job design and human resources: Choosing a new technology often requires us to make changes in the way we design jobs. Usually, the goal of such a method of redesigning and redefining jobs is to align people with the requirements and needs of technology in such a way as to maximize the performance of technology. But often such works are not successful in maximizing total productivity because they ignore the human part of the equation.
The approach of socio-technical systems in the redesign of affairs and jobs (in particular) deals with the redesign of tasks in a way that optimizes the social (human) and technical efficiency of work.