Technological innovations

From CEOpedia | Management online

Technological innovation is a new or improved product or process whose technological characteristics are significantly different from before. Implemented technological product innovations are new products (product innovations) or processes in application (process innovations) that have been brought to market. The product or process is considered to be an innovation if it achieves specified advantages for the enterprise concerned; these need not be new from the point of view of other companies or the market.

Types of technological innovations

According to Pérez (2004) the main types of technological innovation based on novelty are:

  • Radical innovation (New product never before seen in the market or new production processes in an industry. Something completely original and novel.)
  • Incremental innovation (Gradual changes that companies implement progressively aimed at increasing the functionality and benefits of the products or services offered.)
  • Innovation in technological systems (Radical innovation & Incremental innovation).
  • Paradigm shift (The most important paradigm shifts can be said to have been the industrial revolution and now the digital age.).

According to Azar, G. And Ciabuschi,F. (2017) the main types of technological innovation based on its nature are:

In industry, the following definitions are distinguished:

  • Product innovation involves the development and implementation of technologically new or improved products. The introduction of a new product is defined as a radical product innovation if it concerns a product, the intended field of application of which, functional characteristics, properties, construction or used materials and components significantly distinguish it from previously released products. Such innovations can be based on fundamentally new technologies or on a combination of existing technologies in their new application. Technological improvement of a product (incremental product innovation) affects an existing product, the quality or cost characteristics of which have been significantly improved through the use of more efficient components and materials, partial changes to one or a number of technical subsystems (for complex products).
  • Process innovation is the development of technologically new or significantly improved production methods, including methods of transferring products. Innovations of this kind can be based on the use of new production equipment, new methods of organizing the production process or their combination, as well as on the use of research and development results. Such innovations are usually aimed at increasing the efficiency of production or transfer of products already existing in the enterprise, but can also be aimed at the production and supply of technologically new or improved products that cannot be produced or supplied using conventional production methods.

In the service sector, the following definitions apply to this group of innovations:

  • Product innovations include the development and implementation of fundamentally new services, improvement of existing services by adding new functions or characteristics, significant improvements in the provision of services (for example, in terms of their efficiency or speed).
  • Process innovation encompasses the development and implementation of technologically new or significantly improved methods of production and service delivery.

Examples of Technological innovations

  • Autonomous Cars: Autonomous cars are vehicles that are capable of sensing their environment and moving with little or no human input. They use a variety of sensors, such as cameras, radar, and lidar, to detect their surroundings and navigate accordingly. Autonomous cars have the potential to drastically reduce the number of accidents on the road, as they are programmed to follow traffic laws and are equipped with advanced safety features that can react more quickly than a human driver.
  • Robotics: Robotics is the science of designing, building, and operating robots. Robots are machines that can be programmed to perform complex tasks, such as assembling products or performing surgery. Robotics has become increasingly important in the manufacturing industry, where robots are used to increase efficiency and reduce costs. Robotics can also be used in other industries, such as healthcare, to assist medical staff in performing medical procedures.
  • Artificial Intelligence: Artificial intelligence (AI) is the ability of a computer or robot to think and learn. AI systems can be used to automate tasks and make informed decisions, such as recognizing patterns or detecting anomalies. AI can be used in a range of applications, from chatbots and virtual personal assistants to self-driving cars and medical diagnosis.

Advantages of Technological innovations

  • Technological innovation can lead to increases in efficiency, productivity, and output. By introducing new technologies, companies can automate processes, streamline operations, and reduce costs. This can improve the bottom line and allow for more competitive prices.
  • Technological innovation can also lead to improved customer service. New technologies can improve customer experience by increasing speed and accuracy of processes. By introducing new technologies, companies can improve the customer experience, resulting in better customer retention and loyalty.
  • Technological innovation can also lead to improved safety. By introducing new technologies, companies can reduce the risk of human error, as well as reduce the risk of accidents and injuries. This can lead to fewer workplace incidents and improved safety for employees.
  • Technological innovation can also lead to improved sustainability. New technologies can reduce the environmental impact of production processes and energy consumption, resulting in less waste and more efficient use of resources. This can lead to reduced emissions and a smaller carbon footprint.

Limitations of Technological innovations

  • Cost - Technological innovations are often expensive to develop and implement, meaning that the investment may be too large for small businesses or organizations.
  • Complexity - Technological innovations require complex systems, processes, and infrastructure for proper implementation, which can be difficult and costly to build.
  • Downtime - When introducing a new technology, there may be a period of downtime while the new system is being implemented and tested.
  • Security Risks - New technologies often bring with them a range of security risks and vulnerabilities, so companies must be prepared to manage these risks.
  • Change Management - Implementing a new technology often requires a significant change in the organization's operations and processes, which can be difficult for employees to adjust to.
  • Cultural Resistance - Employees may be resistant to the introduction of new technologies, making implementation and adoption more difficult.

Other approaches related to Technological innovations

  • User focused innovation: It focuses on providing users with a more convenient and enjoyable experience when using a product or service.
  • Design-driven innovation: It is an approach to innovation that puts design at the center of the process. It focuses on creating products and services that are aesthetically pleasing, efficient, and user-friendly.
  • Platform-based innovation: It is an approach to innovation that uses existing technologies and platforms to create new products and services. It involves leveraging existing technologies, such as software and hardware, and combining them in new and innovative ways.
  • Open innovation: It is a strategy that encourages organizations to collaborate and share ideas, resources, and capabilities with external partners to create new and innovative products and services.
  • Process innovation: It involves the development and implementation of new processes or processes that improve existing processes. It is focused on improving the efficiency, effectiveness, and quality of a product or service.

In summary, there are various approaches to technological innovation, such as user-focused innovation, design-driven innovation, platform-based innovation, open innovation, and process innovation. Each approach focuses on different aspects of the innovation process, from the user experience to the efficiency of processes. All of these approaches can be used to create new and innovative products and services.


Technological innovations — recommended articles
Example of radical innovation — Innovation 4.0 — Innovation process — Innovation — Organizational innovation — Resources and capabilities — Incremental innovation — Innovative technologies — Innovation and change

References

  • Perez, C. (2004). Technological revolutions, paradigm shifts and socio-institutional change. Globalization, economic development and inequality: An alternative perspective, 217-242
  • Azar, G. And Ciabuschi, F. (2017). Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness. International Business Review 26 (2): 324-336.
  • Mihaela Diaconu (2011) Technological Innovation: Concept, Process, Typology and Implications in the Economy.
  • Moradeke Olaniyan (University of Greenwich, UK) and Deryn Graham (University of Greenwich, UK) (2014) Media Streaming for Technological Innovation in Higher Education

Author: Gonzalo Martinez-Cañavate Gomez-Millan, Andrii Proskurniak

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