4. Technology and Innovation

Part A How should a corporation scan the external environment for new technological developments? Who should be responsible?

Part B What is technology research and how does it differ from market research?

Part C What is the importance of product and process R&D to competitive strategy?

Part D What factors help determine whether a company should outsource a technology?

Part E How can a company develop an entrepreneurial culture?

ANSWER

Technology and Innovation

Part A

Corporations rely on environmental scanning, a process of systematically surveying and interpreting essential data to understand the new technological developments (Tang, 2016). There are various ways of scanning the external environment through both primary and secondary research techniques. Primary research entails obtained data directly from the source by compiling information through surveys, technology research, and benchmarking. Surveying and monitoring demographic data offer essential information on technology and industry trends. Technology research ensures that the business is informed about the innovations and trends that suit for business solutions. The corporate executives can also have informal conversations with other executives as well as benchmarking activities within the industry (Jain, Tripathi, Agarwal and Murthy, 2020).

Secondary research entails gathering data through studies and reports, newspapers, magazines, and journal articles. For instance, business news provides information regarding the industry trends as well as the company-specific business information about the trends and shifts in business processes. Therefore, through trend research on different sources, a corporation can effectively identify new technological developments. The management and research and development team within the organization are responsible for scanning the external environment to identify the new technological developments and trends.

Part B

Technology research is considered as research aimed at producing new, improved, and better products. On the other hand, market research is referred to as the process of gathering data about the target audience, consumers to examine the viability of a new product or service in the market, and how it’s progressing in the industry (Mooi, Sarstedt and Mooi-Reci, 2018). Technology research differs from market research since it focuses on the development of better products and services as well as offering solutions to various technical issues. In contrast, market research focuses on examining the viability of the new service or product. Market research is directed to potential customers and enables the company to understand the demands and interests of the target market. For instance, market research can identify how the potential and existing customers view the business and evaluating the gaps in consumer expectations. Technology research involves activities that the corporation undertakes to introduce and innovate new services and products. Therefore, the main goal of technology research is to acquire new knowledge that might be used to create new services and products.

Part C

Research and development entail scientific and technical research in the development of existing and new products, services, and processes. R&D is a competitive strategy since it enables innovation, which ensures that the corporation remains competitive in the changing market. Management of product and process R&D activities is essential to the achievement of future growth. Eventually, this leads to increased company knowledge, which boosts company capabilities. Corporations gain competitive advantage through R&D efforts, which lead to better and improved business processes as well as an increased margin of the products, which is an easier way of outpacing competitors (Lenka, Gupta, and Sahoo, 2016). A company has to stay ahead of the technology curve to remain competitive and develop better products that facilitate growth and success.

Part D

Businesses compete on a constant race to adapt and evolve through technology become the trend become irrelevant. One of the ways of adopting technology is through outsourcing technology. However, there are factors that a company needs to consider while outsourcing technology. To facilitate the success of integrated technology, the organization should consider the expertise of the outsourced firm. It is essential to consider the skills and experience of the outsourced firm since they impact the success of the technology. Evaluating the operational and governance control of the firm is essential to understand the framework of operation and the extent to which the corporation has the power to control the business functions (Suweero, Moungnoi & Charoenngam, 2017). While outsourcing a technology, it is vital to understand that security and confidentiality of information are at risk. Therefore, the corporation needs to examine the security and confidentiality of information in the outsourced company. The corporation should identify the initiatives the outsourced firm will undertake to guarantee the security of information and consumer data. The corporation should think about collaboration and communication, which are critical pillars for outsourcing endeavors. Collaboration and communication facilitate the adoption of technology due to reduced communication hurdles between the two corporations.

Part E

As businesses focus on increased competitiveness for competitive advantage, developing an entrepreneurial culture has been of importance in building a competitive edge. Ideally, individuals tend to take from their leaders, which means that their leaders guide their actions, values and priorities. Creating an entrepreneurial culture requires a company to incorporate the four elements of entrepreneurial culture; adaptability, openness, rewards, and results. The first step in developing an entrepreneurial culture is strategizing with the corporate stakeholders to ideate around entrepreneurial culture and establishment of entrepreneurial vision, goals, and objectives (Noke and Mosey, 2017). The company needs to create an environment that empowers employees, such as offering opportunities for education and training on entrepreneurial thinking as well as rewarding employees to encourage a sense of ownership. The corporation needs to focus on providing constructive and ongoing feedback to implement changes. Communication practices need to be considered to encourage the involvement of everyone. Encouraging people to speak and share information freely will foster an entrepreneurial culture. The company needs to offer employees autonomy and independence to make decisions. To embrace an entrepreneurial culture, employees need to act like entrepreneurs by giving them the authority to make decisions that affect their responsibilities.

References

Jain, R., Tripathi, M., Agarwal, V., & Murthy, J. (2020). Patent data analytics for technology benchmarking: R-based implementation. World Patent Information, 60, 101952.

Lenka, U., Gupta, M., & Sahoo, D. K. (2016). Research and development teams as a perennial source of competitive advantage in the innovation adoption process. Global Business Review, 17(3), 700-711.

Mooi, E., Sarstedt, M., & Mooi-Reci, I. (2018). Market research. The process, data, and methods using stata.

Noke, H., & Mosey, S. (2017). 4 Entrepreneurial culture and leadership. Building an Entrepreneurial Organisation, 47.

Suweero, K., Moungnoi, W., & Charoenngam, C. (2017). Outsourcing decision factors of building operation and maintenance services in the commercial sector. Property management.

Tang, T. W. (2016). Making innovation happen through building social capital and scanning the environment. International Journal of Hospitality Management, 56, 56-65.