Innovation refers to the transformation of an idea into entirely new or modified products, business procedures, and method or service. However, inventions and innovation should not be confused invention involves the process of coming up or producing new ideas while change transforms these ideas into marketable products and services. Therefore, technological innovations majorly based on technology (Bruton and White, 2010).
Every organization needs to mostly invest in innovations technology so as to make a positive change which is necessary for the companys growth. In this dynamic and ever-changing business environment, various organizations need to be at pace with the dynamism through investing their resources to support innovations technology so as to both prepare for the future uncertainties and also to make a difference in the companys products and services.
Strategic managers should always be in a position of analyzing the business environment to determine the upcoming market trends which are significant in promoting the survival of the firm in the highly competitive business environment. Moreover, strategic managers should always incorporate technological factors within their strategic decision making in the organization. In fact, the technological innovations should be given more weight in the strategic plan of the organization. Therefore, innovation technology and strategy are inseparable for the success of the team.
Moreover, technological innovations s critical in defining companys strategic thinking by assisting in the elaboration of the organizations range of possibilities. Also, it gives a better portion of the way by which the decided strategy can be implemented.
Further, the successes innovations greatly depend on the roles of good communications, strategic allocations of resources, support from the top level managers, and the exact relationship of technology with the end market of the products and services. Thus, effective strategies should be developed in the organization to support the factors during the implementations of the business strategy.
Additionally, the innovation technology and policy are related when top level managers the technological factors of the production operations in their strategic thinking. The strategic managers should ensure that proper technological innovations that provide reduced costs, refined product design and promotes differentiated strategy which is now significant for the success of the company by increasing the companys revenues or profits. Besides, with innovation technology, the process of manufacturing becomes more efficient and productive thereby increasing value in the organization.
The group also develops a strategy that will enable the organizational employees to support the innovation and technology in the society is a clear connection between strategy and innovation technology.
Apparently, most organizations are now majoring more on strategic innovations technology since they are more logical and in line with the group strategy. Therefore, there is a strong relationship between strategy and innovation technology since when they are both put together the company can increase their profitability, growth, and development.
Therefore, strategic decision on innovation technology is of fundamental value to the firm and, therefore, it must be incorporated in the complete context of each companys strategic thinking. Thus, effective strategies should be adopted to foster innovation technology.
Is it essential to have an innovation strategy, a business strategy, and a technology strategy?
Indeed, for the success of the organization, innovation, business, and technology strategies are the key to the organization. Managers should consider the various business environments through conducting the SWOT analysis to formulate and implement effective strategies that would enable the organization achieve its competitive advantage and also increase its market share.
Innovation strategy in the organization
Innovation strategies used in different organizations can be classified as proactive, active, reactive and passive (Khosrowpour and Khosrow, 1996). Organizations such as Apple adopt the proactive innovation strategies by involving a thorough research orientation and a breakthrough advantage to be an innovative leader I the market. Conduct extensive research to gain knowledge thereby taking high risks in the implementation of the innovative idea. However, the ongoing strategy entails protecting the existing technologies and innovations in the market while preparing to respond once the markets and technologies are confirmed quickly. Besides, the reactive strategies used by organizations that imitate the proven innovations, therefore, they are mostly the market followers who avoid taking high risks and always adopts the wait and see the strategy. Lastly, the passive innovation strategy is used by firms that wait until the market demands change in their products and services.
Importance of innovative strategy
Successful organizations will confirm that to maintain its market share and increase its profitability, and it is critical to adopt efficient innovation strategy. The creation of an effective innovation strategy gives organizations an outline or insight to successfully develop innovative products and services that would ultimately increase the customers satisfaction. However, lack of innovation strategies in the organization increases chances of customer dissatisfaction leading to their defections to companies that are innovative and up to date with the products and services.
Notably, innovation has developed to be the primary differentiator in this competitive business environment. Innovation strategies are very critical as it will enhance the competitive advantage of the company thereby strategically positioning itself in the industry and also ensure sustainability in the competitive market.
Moreover, the companys innovation strategy will ensure there is improved productivity while the costs of productions are also reduced. Every companys objective is always to maximize the profits while minimizing the cost of production. To achieve this, the organization can implement innovative strategies that promote production capacity and business flexibility to enhance the business economies of scale (Pinson 2004, p. 41).
Innovation strategy can be significant in addressing legal and environmental challenges in the business environment. The company can come up with an innovation strategy that is geared towards reducing the carbon emissions and adoption of recycling as a method of controlling dumping of wastes. Also, the company can adapt to the changes in the product legislation.
Lastly, efficient innovation strategies enable the company to establish a unique selling point (USP) for its products and services. The USP prompts customers even to pay more the product thereby allowing the business to differentiate itself from other competitors in the industry.
Disadvantages of innovation strategies
Although, the innovation strategies may result in significant benefits for the company, there are also disadvantages of the same.
Firstly, some innovative products are not easy to legally protect thereby other competitors may adopt and replicate the innovation strategy thus the business may lose its customers to the competitors.
Lastly, there are a lot of uncertainties in financial returns from the innovated products and services. The company may not be in a position to gauge the potentiality of an added value of the results of the strategies.
Business Strategy: advantages and disadvantages in the organization
A companys business plan is the method or means by which lit sets out to achieve its anticipated objectives or goals in a given period for instance 3-5 years. The two most critical of business strategies includes the generic strategies and competitive strategies (Denning, 2015). The retrenchment, globalization, and growth strategies are the example of the generic strategies. However, the product differentiation and economies of scale are the competitive strategies.
Importance of the business strategy
Firstly, the business strategy will guide the internal business performance in an organization. Moreover, the business performance against the competitors is also defined in the corporate strategy. The strategy also recommends the best actions a company should develop to stay relevant in the future.
Secondly, a strategy is fundamental in identifying future trends and opportunities in the business environment. Through PESTEL analysis the company can examine and analyze the changes in the political, economical, social, technological, environmental and legal environment surrounding the business. From the analysis, the company can come up with strategies that can modify and develop the business to suit the future changes in the environment.
Thirdly, a business strategy enables a company to have a vision and a direction that guides the organization. It is critical for employees to have well-defined goals and objectives that are in line with the organizational mission.
Fourthly, the business strategy enables efficient allocation of resources in the organization. The company can prioritize and decide on what products and services need immediate resources and at which level.
Lastly, development of a business strategy enables the company to create a competitive advantage thereby strategically position itself in the marketplace.
However, the disadvantages of companies strategies include; the robust implementation involved. The business strategy is likely to fail if there is no proper communication among the employees who are critical in implementing the strategy. The organization needs to convince all employees to accept and support the strategy otherwise the strategy fails.
Technology strategy: advantages and disadvantages
Technology strategy involves a set of strategic decision associated with the application and development of technology in the organization. Technology strategy is a competitive strategy of the organization. Today, the strategic management of technology is regarded as one of the most vital issues in literature (Sinofsky and Iansiti, 2009).
Through technology strategy, a company uses technology to develop a competitive advantage through the creation of barriers that prevent entry of the rival firms. Moreover, the company can introduce a novel of products and services or technology processes that attracts new customers thereby increasing the market share.
Additionally, a company can use the technology strategy to tackle the threats in technology and opportunities in its macro environment. Besides, technology strategy is significant in product and process development in the business. Moreover, the technology strategy used as a method of technical support that serves as means of cooperation between the various players in the value chain. The technology strategy also increased the chances of reducing costs in productions at the same time growing the capabilities that are the key to their future growth.
However, there risks associated with technology strategy. The implementation of technology strategy leads to unemployment. As a result of technology, organizations will always downsize and outsource the employees in the organization. Therefore, the middle and lower level jobs have been done away with thereby many people becoming unemployed.
Innovation, business, and a technology strategy and if they should they be at comparable stages of alignment.
The innovation, technology, and business should be at similar stages of alignment for the success of the organization. The alignment will enable...
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