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Enhancing Product Innovation through Technology Strategy

Introduction

Product innovation and technology strategy is pivotal in the ever-changing business world. Failure by an enterprise in the economy to embrace the role of technology in product innovation would soon be faced out due to the intense competition. There are firms in the market which have been able to develop innovative products by incorporating the essential role the technology in product innovation. Such companies have been able to disrupt the market and are beating the pioneers in their own game. Product innovation by inducing technology may not necessarily usher in new products to the economy. Rather it serves to change the way the existing products are offered to the consumers in the market. Firms should embrace a clear strategy on how they would make use of technology to attain product innovation to keep up with the changing market dynamics.

Developing a product innovation and technology strategy

An organizations strategy should aim at highlighting the key objectives, the overall direction and the set of priorities which would enable the company to attain its vision. A firm should also ensure that it sets a clear strategy which will ensure that it is able to attain growth and keep pace with the changing times in the economy. A production innovation and technology strategy could easily shape the future of the company. It could serve as a breaking point for the company where it will define the future of the company activities (Nambisan, 2013). Embracing ideal business strategies by the business will make it feasible for the business to be able to create more value for the customer, grow their market share, enter new markets and enhance the profitability of the business. The product innovation and technology strategy serves to serve as a bridge between the developments efforts of the company and the business strategy for the enterprise. A proper execution of the product innovation and technology strategy enhances the competitive advantage for the company.

Monitoring the product innovation and technology strategy is a necessity as it helps to ensure that the business can attain its goals and objectives. An ideal approach towards monitoring the production innovation technology may entail the use of the new product portfolio management. The approach will ensure that there is a vision for the pipeline of the new products and technology that the company could offer to the public (Nambisan, 2013). The model enables the management to undertake project selection, prioritization and makes wise spending decisions which will enable the company to attain its goal and objectives.

The ability of the business to attain a high level of efficacy in the management of product innovation and technology strategy will highly depend on how the management can dissect the elements of product innovation and technology strategy. The aspects of objectives and role should be clear in the product innovation and technology strategy. It should make clear the objectives of the new products or possibly what challenge the innovation will help eliminate in the current set of products in the economy (Nambisan, 2013). It should state the role that technology will play enabling the business to attain the objectives of product innovation. Such a move will be substantial in enabling the firm to come up with a robust product innovation and technology strategy.

Setting the arena and the strategic thrust for the product innovation and technology strategy is essential in ensuring the success of the strategy. Focus is a key requirement for there to be an effective strategy. The focus will make clear what aspects of the business model need rapid change to enable the company to attain success in its product innovation and technology strategy. The strategic arenas will help shape the new products in the economy. It will make clear that technologies which will be critical in enabling the company to attain its goals and objectives. Specifying the arenas is a critical step towards setting out the strategic thrust of the enterprise. Failure to take into consideration the implications of the business enacting its strategy could have a detrimental effect on the performance of the company. There could be several strategic arenas which the company could venture into. However, it would be prudent for the company to venture into the arena which would offer the maximum return while at the minimum risk possible. Some of the factors under consideration which could be critical in evaluating the arenas include the attractiveness of the market. The possible market size could be a vital factor in guiding the management on the attractiveness of the market venture (Nambisan, 2013). The growth rate of the market should is a key factor to consider whenever analyzing the arenas. A market which depicts a high propensity towards growth is a highly attractive arena. The level of competition in the arena could also influence the likelihood of opting for a certain arena. A firm should opt for s market where the level of competition is moderate and healthy as such would present an opportunity to operate profitably. A consideration of the margins made by other players in the market could also be a guiding factor in analyzing the attractiveness of the arena. It may not be wise to venture into an arena where the profit margins are minimal. The technological considerations also come in handy as they determine the likelihood of success of the strategy. An arena that provides a rapid change of technology could have been a more viable approach. The elasticity of the technology should also be under consideration. The location of the technology on the s-curve determines the effectiveness of a certain technological approach. The strength of the business should be a guiding factor whenever choosing an ideal arena (Nambisan, 2013). Under consideration would be factors such as the level of technology leverage for the business. It would entail putting in mind the ability of the business to develop skills in the given technological field and also a measure of fit between the fit of technology in the production process. The aspect of competitive advantage should be under consideration whenever making considerations for an ideal arena (Nambisan, 2013). The firm should gauge whether the new products would be different from those in the market and whether they would meet the expectations of the customers. A consideration of the above factors would be critical in the bid to ensure that the management would end up with the best possible arena for implementing its product innovation technology strategy.

Developing an attack and entry strategy should be at the core of the product innovation and technology strategy. It is essential to have a solid plan for attacking the current market conditions in the market. One could either opt to be aggressive and lead the innovations in the industry. One could also opt to unleash the innovations progressively depending on the performance of the existing products in the market (Foss, & Knudsen, 2013). Having a global dimension for the attack plan will be instrumental in enabling the company to expand its markets by possibly venturing into new markets. Some of the strategies could focus on being cost effective on the global scale or finding a specific niche in the market and capitalizing the opportunity by either developing new products or innovating the existing products. All along when developing the attack plan on the global scale, one should offer a consideration for the glocal or regional strategies towards the product innovation. Such a move will enhance the likelihood of success of the product development and technology strategy.

Deployment of the product innovation and technology strategy may be necessary for laying the foundation for the basics. A strategy will only become a reality the moment that the management commits to spending to execute the strategy. It may be necessary to have solid budgets which will serve as a guide towards the product innovation process and the relevant technology which will enable the company to attain its goals and objectives.

Coming up with strategic product roadmap is key to the management committing to finance the strategy. The roadmap plan will serve to communicate the initiatives which should be undertaken in the attack plan. It will offer guidance on the implementation of the strategies and the right timing which would enhance the likelihood of the success of the strategies (Foss, & Knudsen, 2013). It may guide on the platforms which could be necessary for aligning the development of the innovative products. The approach would form the blueprint for the course of action to ensure the effectiveness of the product innovation and technology strategy.

Technology Explorations

Technology exploration process refers to the practices which will enable a firm to gather knowledge on new technologies which could have a positive bearing on the product innovation process. It may not be a simple task to gather knowledge on such technological considerations. Some of the factors which could determine the success of the technology exploration process include the level of customer involvement. Customer involvement is key factor ass it helps the management to understand the expectations of the customers under the prevailing market conditions. The needs of the customer should be a number one guide in the product technology exploration process. Ideally, the firm should aim at developing technologies which will be useful in meeting the needs of the customers (Foss, & Knudsen, 2013). Such a move would offer clear direction for the innovation process. It will enable the firms to minimize the investments costs and time spent in research work. There is a trend in the market where the customers are urged not to be just passive adopters of the products and services offered in the economy. They are urged to take an active role in the development process of the products by offering valid input which could help attain better results. It may thus be necessary for the management to make it clear to the customers that their input is highly valued in the evaluation of the product innovation process. Some of the ways the consumers are able to impact positively on the product innovation process include availing complementary knowledge, making clear user requirements and availing solicited information on their ever-changing needs and perceptions and how the product innovation process may improve (Foss, & Knudsen, 2013). However, the level of customer involvement could vary significantly from one industry to the other depending on the type of product innovation that the company could be aiming. It will also depend on whether the product under questions would be an extremely new product in the market or an improvement of the existing products in the market.

Incremental product innovation would be attained in the case where the customer’s complaints are handled effectively and serve as a source of feedback on how to possibly improve the products in the future. Radical product innovation would require an active application of the consumer knowledge on the innovation process. It could target the entire production process or the nature of technology that is utilized by an entity. In the case a firm has an encounter with innovative concepts from the customers, a move to avail the necessary resources and technological competence would increase the likelihood of the firm bringing forwards new products or improving on the existing products (Baden-Fuller, & Haefliger, 2013). The role of customers in contributing to the innovation process is similar to that of inventor or co-producer in the innovation process. The approach is ideal for small SMEs in the community as they tend to have a close connection with their customers. Elimination of barriers barring the customers form sharing their ideas with the management could be enhanced by improving the production process.

A plausible venture whenever carrying out technological exploration whenever developing the product innovation may entail external participation. In such an approach, the firm will invest in equity to gain access to knowledge of another business and how it utilizes technology in improving the product innovation process. Investing in start-ups could be an ideal approach in such a case. Equity investments enhance the level of external cooperation for business in the cases where the technology employed by the other firms proves to be highly valuable.

External corporate venturing is also an ideal practice in promoting technological explorations. Under such an approach, the firms are keen to leverage external partners in equity and also non-equity relationships (Baden-Fuller,, & Haefliger, 2013).There are some codes which seek to regulate the venture practices such as the corporate venture capital investments, and equity alliances for the development of new business. Such approaches are vital in enabling a firm to gain the necessary insight on some of the technologies that it could adopt so as to enhance the performance of the business. However, corporate venturing may not be practiced in exclusivity. In most a times it may be necessary to carry practice it alongside external networking. External networking is associated with all the practices that aim at creating connections which will make it viable for the business get an external source of social capital either from individuals or other organizations. The practice enables the firms to fill necessary knowledge gaps without spending a huge amount of capital on research initiatives. Alliances among non-competing firms are taking shape in the economy as they reduce the costs associated with the acquisition of certain technological capabilities. There are cases where the complexity of the technology does not allow it to be handled by one firm alone where the necessary knowledge on how to handle the technology could be scattered among the different firms in the economy (Baden-Fuller,, & Haefliger, 2013).Collaboration would be necessary in such cases so as to achieve success in the acquisition and implementation of the technology.

The rise of information revolution in the community has created a scenario whereby skills and knowledge are a long-term approach towards enhancing competitive advantage for the company. Intellectual property could either enhance the success of the failure of the companies in the economy. Initially, firms were willing to share out their technology as it did not seem to be their only source of success. However, with the changing times where product innovation and technology strategy lies at the center of the success of the company, firms could easily relent to share such information with the competitors in the economy. However, that should not deter firms from carrying out technological exploration in the bid to effectively impact on the product innovation strategy. Firms that are likely to engage in technological exploration end up having a competitive advantage in the product innovation strategy.

Context

There are a number of firms in the economy whose success stems primarily from their product innovation and technology strategy. They have completely revolutionized the industries in which they operate. One such firm in the economy which enjoys its success from the product innovation and technology strategy is Uber Technologies Inc. The firm has revolutionized the transport segment. The firm specializes in the development marketing and operation of the Uber transportation and food delivery mobile app. The drives use their cars upon entry into an agreement with the company. It may also be possible for the drivers to rent out cars to use with Uber. The company is a pioneer in the sharing economy. It does not own the cars but gets into partnerships with car owners and drivers. The move has been a success due to the enactment of the successful product innovation and technology strategy. The technology has targeted a number aspects regarding the transportation business. The company has been able to revolutionize the pricing and payments modes upon rendering the transportation services. One can benefit from the services upon installation of a mobile app makes it possible for one to request the services. The app offers flexible pricing where the operator is aware of the expected charges way before benefiting from the services. The firm has also been able to promote dynamic pricing where fares are flexible depending on the level of demand for the services. They are higher whenever the demand is high and adjust well in the times when the demand for the services is relatively low. The firm also makes it possible for one to offer their ratings to drivers. The rating scores serve as a motivation to the customers (Bashir, Yousaf, & Verma, 2016). The firm could deactivate or punish drivers who receive below average ratings. The experience aims at improving customer experience. The firm is currently working on technology which will make it possible to take real-time selfies before accepting customer requests. The approach will help with the identification of the drivers’ accounts so as to prevent it from being compromised. It may also introduce driverless vehicles to promote the safety of the passengers by minimizing accidents. The approach will help enhance efficiency in the rendering of services. Uber is a perfect example of how an enterprise in the economy can make use of technology to attain successful product innovations.

Uber’s success can be derived primarily from its ability to make use of technology to enhance product innovation. The company has utilized partnerships to enhance the success of the business model. The ability by the company to ensure that the customers are able to receive all the services from the Uber app has revolutionized the taxi industry. Adoption of proper technology strategy could further usher in changes in taxi industry.

(Retrieved from: www.businessmodel.guru)

AIRBNB enjoys its success due to its ability to incorporate technology into the product innovation process. Notably, the firm has risen to be a pacesetter in the hospitality industry. The firm serves as an online marketplace and hospitality service center. It has disturbed the traditional marketplace and the rendering of services in the hospitality industry. The platform enables people to lease or rent their properties for either long term or short term basis for their customers. The firm does not own any lodging facility or hotel. It serves as a mere intermediary between the owners of the facilities and potential clients. It only ends up receiving a service fee for the services it renders (Guttentag, 2015). The platform offers information regarding lodging facilities while promoting safety. It also entails a wish list feature and neighborhood travel guides. It is no doubt that the firm has changed access to services as result of invoking technology in the product innovation strategy which sets it apart from other competing firms.

(Retrieved from: http://www.innovationtactics.com/sharing-economy-business-model/ )

AIRNB business model has attained success primarily due to the enactment of a proper technology strategy. Its role as an intermediary between the hotel owners and potential clients confers it an advantage in the aspect that visitors turn to the company for advice on proper accommodation. All that can be attained through the integration of technology in its business model. It is thus no doubt that adoption of a proper technology strategy could be critical in enhancing the success of a business.

Conclusion

The product innovation and technology that a firm would embrace has a significant bearing on the how it will perform in the economy. It is essential to put more emphasis on the technology that the enterprise will employ in the implementation of the product innovation strategy. Some of the firms which have successfully made use of technology in ushering revolutions in their industries include Uber and AIRBNB whose success lies in the impact of technology on product innovation.

References

Foss, N. J., & Knudsen, C. (Eds.). (2013). Towards a competence theory of the firm (Vol. 2). Routledge.

Nambisan, S. (2013). Information technology and product/service innovation: A brief assessment and some suggestions for future research. Journal of the Association for Information Systems, 14(4), 215.

Baden-Fuller, C., & Haefliger, S. (2013). Business models and technological innovation. Long range planning, 46(6), 419-426.

Bashir, M., Yousaf, A., & Verma, R. (2016). Disruptive business model innovation: How a tech firm is changing the traditional taxi service industry. Indian Journal of Marketing, 46(4), 49-59.

Guttentag, D. (2015). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current issues in Tourism, 18(12), 1192-1217.