Ques: Evaluate scope of managing Technology & Innovation to ensure effectiveimplementation of strategy
Role of managing Technology in strategy implementation
Technology can be defined as the knowledge, tools, equipment, and work methods used by anorganization in providing its goods and services. The technology employed must fit the selectedstrategy for it to be successfully implemented. Companies planning to differentiate their producton the basis of quality must take steps to assure that the technology is in place to producesuperior quality products or services. This may entail tighter quality control or state-of-the-artequipment. Firms pursuing a low-cost strategy may take steps to automate as a means of reducing labor costs. Similarly, they might use older equipment to minimize the immediateexpenditure of funds for new equipment.The four “structural levers” for strategy implementations are actions, programs, systems, and policies. There is an importance of involving all levels of the company in strategyimplementation. “Programs” refers to the need to place innovation throughout a company, particularly with regards to how an organization learns. “Systems” emphasizes the importance of information technology to strategy implementation. The final structural lever, “policies,” pointsto the need for companies to have formal policies that are in harmony with the overall strategy.
Role of innovation in strategy implementation
The term innovation refers to both radical and incremental changes in thinking, in things, processes or in services (McKeon 2008). Innovation is an important topic in the study of economics, business, technology, sociology, and engineering. Since innovation is alsoconsidered a major driver of the economy, the factors that lead to innovation are also consideredto be critical to policy makers.In the organizational context, innovation may be linked to performance and growth throughimprovements in efficiency, productivity, quality, competitive positioning, market share etcwhile innovation typically adds value, innovation may also have a negative or destructive effectas new developments clear away or change old organizational forms and practices. Organizationsthat do not innovate effectively may be destroyed by those that do, hence innovation involvesrisk. A key challenge in innovation is maintaining a balance between process and productinnovations where process innovations tend to involve a business model which may developshareholder satisfaction through improved efficiencies while product innovations developcustomer support however at the risk of costly Research and Development that can erodeshareholder return.In the 21st century competition has occupied the centre of strategic thinking. Most strategic prescriptions redefine the ways companies build advantages, outperforming their competitors.Companies need advantages over the competition to sustain them in the marketplace. Companiesstrive to do better than their competitors. Companies who are not innovation driven are spendinga lot of time and resources on incremental improvement/imitation rather than innovation.Companies need to be wary of this as they can miss opportunities to capture the mass market.