TECHNOLOGY &

INNOVATION

Subject

Technology

Management

Professor

Ahmad

Salman

Program

MIT

Bahauddin Zakariya university

Multan

FAKHER HUSSAIN

AMJAD SAEEDI

MUHAMMAD SAJJAD

SAMIA HUSSAIN

FARHAT AMEER

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”

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

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.

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.

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:

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

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

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.

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.

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

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.

ADVANTAGES OF INNOVATION

Advantages of innovation

Increase profit margin

Satisfying consumer

needs

Market development

Increase competition

Increase in demand

Employment opportunities

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.

DISADVANTAGES OF INNOVATION

Disadvantages of innovation

More time

Costly

Not acceptable

No capacity to implement

Business depend on

product

Employees training