MANAGING TECHNOLOGY AND INNOVATION

A Research presented to

The Business Administration Department

University of Mindanao Tagum Campus

In Partial Fulfillment of the Requirements

In Purposive Communication with Interactive Learning

Jozel A. Culangan

Jerlo Kim Patac

Jane Marie Jumagiun

December 2020
 Abstract

This study explores the management of technology and innovation. This

paper will serve as an overview on the said topic. We present the benefits and

downfall of adhering to technology and innovation. The result based on the

readings we’ve done is that technology and innovation is vital in any business

especially nowadays but not everyone successfully implemented it. The

recommendation includes thorough studies in this area and apply innovation not

only in business but also in the different sectors.

Keywords: Management, Technology, and Innovation.

 Introduction

Innovation continues to play a vital role in helping companies to expand and

retain their share of the market. Innovation takes place in various sections and

functions of the organization and it is necessary to consider how it can be

successfully produced and managed. Technological innovation management is both

an art and a science; the process includes, on the one hand, know-how and key

technological skills to provide functionality, and on the other hand, the ability to

detect technological developments to come up with new technologies. In high-end

technical and creative companies, innovation and technology management is an

inevitable issue.

Today, most of the inventions are restricted to developed countries such as

the USA, Japan and Europe, although in the area of innovation and technology

management, developing countries such as the Philippines are still behind. But in

developed countries, it is also becoming a focus of rapid change and growth.The

climate of innovation and technology in developing countries is fundamentally

problematic, marked by weak business models, political instability and governance,

low levels of education and a lack of world-class research universities,

underdeveloped and mediocre physical infrastructure and a lack of sound

technology centered on qualified human capital or in other words, poor

management skills.
 Review of Related Literature

To address the complexity of innovation management, an increasing amount

of academic papers have been written in the “innovation studies” field (Fagerberg

and Verspagen, 2010). According to the authors, because of the lack of elements

that classify scientific disciplines understood as 'traditional' such as graduate and

postgraduate teaching, consolidated curricula and textbooks, this is a new area of

scientific knowledge still undefined as a formal scientific discipline. The application

of methodologies for technology innovation management is a crucial factor for

organizations where technology change meets customers’ demands by developing

proprietary technologies (Quadros, 2008). The process of innovation is working and

cranking out the new products that the company needs to develop.

However, technological innovation is a process fraught with uncertainty and

risks, creating the need to establish and incorporate very precise methods of

management. Technological innovation is the most essential form of innovation for

businesses due to its ability to enhance performance, resolve problems, and

provide added value (Lee et al., 2013). Innovative technology also empowers

administrators, executives, and staff to run their organizations more efficiently.

Technological innovation is related to changes in products, services, and production

processes (Chen et al., 2012; De Castro et al., 2010) but while it is perhaps the most
evident and charming type of innovation, not all businesses are able to

technologically innovate (Zawislak et al., 2012).

Trends in technology seem to come and go with terrifying regularity, some of

which have a lasting effect on industry. There are those who change the way

corporations work and provide dramatic enhancement for those that embrace

them. Such innovations enable companies to become lean, agile and flexible

operationally, to increase performance and to enhance results. Technological

innovation does not need to be complex in order to be considered ‘innovation’ and

many define innovation as ‘something new’ or a ‘new idea’ (Carayannis, et al., 2015).

Innovation management, however, is highly challenging and risky: the majority of

new innovations do not transform into goods and services and the majority of new

products and services are not commercial successes.

The fact is that over half of the businesses out there are disappointed with

their creativity. The reaction is always to install new processes of product growth,

expecting to make major gains. But the outcome is typically just paperwork, more

overhead, and confusion, leading to a mechanism that businesspeople are always

looking for a way around. Innovation in technology advances quickly and does not

conform to the annual plan of evaluation and support that most organizations

observe. This makes it difficult for businesses to determine which transformative

technologies to implement, when to adopt them, and how to incorporate or even

substitute them with existing systems. In short, innovation can enhance

competitiveness, but it requires a different set of management knowledge and skills

from those of everyday business administration. (Tidd, Bessant and Pavitt, 2005:

xiii).

Conclusion

This study explores how to manage technology and innovation. As we go

over, we discover that technology and innovation has positive and negative impacts

on business. For the positive impact, it helps the businesses to succeed in its field

because it brings new and improved products and services to market, increases

efficiency, and most importantly, improves profitability. On the other hand, it is still

risky and uncertain. It is also costly and with the innovation of new technologies,

the business has become more streamlined which has led to job reduction of staff,

downsizing of organizations, and outsourcing in other countries. This has created

unemployment at the lower and middle level of many organizations.

But such problems can be prevented if innovation is handled properly. In

order for a firm to develop a successful management of technology and innovation

strategy, it is imperative that the organization be readied for the effort. This

requires agility because changes and adjustments to products and processes are

filled with risk and uncertainty. The management of technology and innovation

must balance short-term efficiency with long-term effectiveness in the market if the
firm is to add value and thrive in a changing environment. Strong dynamic

capabilities are needed if the organization is going to be able to address the

challenges of innovation and dynamic competition.

Recommendation

Some of the reasons why developing countries like the Philippines are still left

behind when it comes to technology innovations, are due to low levels of education

and lack of world class research universities. To solve this problem the government

must send some scholars to developed countries like the U.S, Japan, and Europe to

study and make a research about it. The government must also allocate budget for

technology innovation to meet with the manufacturers aims to set up new

production and encourage them to develop advanced manufacturing industries.

Likewise industries respond to market demands. Lastly, the government must put

an importance on technological innovation especially in farming because it brings

ideas to market better, faster, cheaper, and more sustainably than ever before

possible. Through technology innovation in farming, farmers will be able to increase

yields and reduce the environmental damage caused by traditional pesticides.

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