Three Kinds of Technologies in the Organization
To understand how technology has transformed different businesses across the world, one only has to look at how Starbucks has grown over the years due to the integration of digital frameworks into its core business processes. Decades of evidence reveal that there is an increasing awareness among business leaders on the need for integrating technological frameworks in corporate decision-making ( Al-Henzab et al., 2018). Notably, technology and strategy are intractably intertwined. A critical examination on the impact of Starbuck’s various technologies on its overall strategy will shed more light on this vital relationship.
First, the adoption of mobile applications in marketing its products and services has opened innumerable growth opportunities for businesses. As Garthwaite et al. (2017) argue, it is no secret that Starbucks has always been the to-go place in the coffee industry. But what has cemented its place at the top in the face of cut-throat competition in the marketplace in the recent past? That would be the firm’s foremost mobile engagement (Garthwaite et al., 2017). In this 21 st century, it has become a golden rule among fast food and beverage enterprises to give their clients the convenience of mobile ordering. Because of this assessment, the company sought to develop an app that would allow its customers to remain loyal and attached to its unique service offerings. To that end, the business has ensured that the mobile application provides an exceptional user experience with not only a wide range of mobile payment channels but also a variety of features that offer real substantial value.
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Second, social media technology can attract and retain customers while striving to increase sales, and Starbucks has leveraged these tools to increase efficiency. According to Garthwaite et al. (2017), it would be an understatement to claim that the company is killing it in social media. To give you a clear picture of how well this coffee chain has established itself in the social media space, Starbucks has 38 million likes on Facebook, 12.2 million followers on Twitter, 18 million Instagram fans, and 250K subscribers on YouTube ( Garthwaite et al., 2017). Such staggering statistics speak volumes on how the organization has used the digital tools to expand its customer base. Although there are isolated instances where social media utilization has had a downside on its business, these platforms have undoubtedly revolutionized how the company engages with its customers.
Third, the Internet of Things (IoT) is the new buzzword in the realm of technology, but for Starbucks, the reality of connected coffee machines is here. In most establishments, it is not uncommon to see the cloud-based Clover coffeemakers in action. Fundamentally, this novel technology's adoption has caught the business’s competitors unawares as it seeks to track its customers’ preferences. What makes these capabilities fascinating is their ability to alert store personnel when a milk package in the refrigerator is about to expire. As Al-Henzab et al. (2018) observe, this does facilitate the extensive gathering of operational data, a key element in its business strategy.
How Different Types of Technology Create Different Competencies
Technology improves the process automation capability; that is, organizations can save a considerable amount of time on processes that were previously done manually. Much of the automation has focused on improving employee productivity in workplaces. Yet, some organizations such as Starbucks use the automation competency to improve customer experiences in its stores. For instance, it uses Artificial Intelligence (AI) to remotely detect mechanical and electrical faults in its equipment, and even remotely repairing them.
Besides process automation, technology also creates the customer knowledge management competency. In light of emerging evidence in Knowledge Management (KM), firms increasingly recognize the necessity of establishing amicable relationships with their customers ( Al-Henzab et al., 2018). Starbucks has used social media to continuously generate new customer knowledge and effectively handle client knowledge assets, which undoubtedly offer the firm a competitive edge over its rivals.
How Technology Impacts Organizational Culture
The type of technology an organization deploys for various purposes may not single-handedly build or change organizational culture. While this is true, technology has the potential of exacting a huge impact on the day-to-day operations of companies. Workplace flexibility is a critical element of corporate culture that is significantly influenced by technology. One only needs to look at how the workplace culture has been disrupted by the current Covid-19 pandemic to understand how technology comes in handy during such unforeseen circumstances. Today, working from home is the new norm, and organizations are compelled to modify their processes to adapt to the changing times. Technology, therefore, allow employees to work remotely from the comfort of their homes. Some companies such as Starbucks are shifting away from large-scale enterprise systems and instead adopting technology that is interconnected with in-house systems and processes. Thus, core business processes can continue without compromising on corporate performance.
How Technology Can Help Organizational Effectiveness
Indeed, Technology has the potential of influencing the ability of an organization to measure its success or failure in achieving organizational objectives. Typically, a CEO is tasked with the role of scanning the competitive landscape and determines when it is suitable to execute new strategies ( Wischnevsky & Damanpour, 2006). In the same vein, he/she should evaluate and address internal factors that are curtailing the company's growth. For instance, through customized software, employees can track the progress of a project even when they are not actively participating in a particular section of it. Given this utility, it then becomes clear that without such technologies, organizations would experience numerous setbacks in evaluating their performance. Wischnevsky and Damanpour (2006) also argue that technological professionals' involvement in identifying the most appropriate best ways of safeguarding the business and shareholder information would significantly improve the effectiveness capability of organizations.
The need for buy-in from the executive leadership cannot be overemphasized in an organization's efforts to use technology to refine organizational effectiveness. More often, the business makes a sizable investment in a lengthy undertaking devised to bear valuable insights. Simply put, modern enterprises seeking to meet their milestones in the most timely manner need existing and emerging technologies in their business processes. Whereas the conventional approach's fundamental tenets are reliable, these technologies offer business executives a less awkward, more responsive way to acquire a complete view of their organization’s current market position. Technology also frees business leaders from protracted timelines that lead to narrow insights. Above all, this tech-centric visualization of organizational effectiveness through artificial intelligence tools should become more familiar in today’s workplaces.
How Technology can propel an Organization’s Global Expansion Strategies
Companies seeking to penetrate international markets are arguably facing more challenges than ever – especially when considering expanding into transnational markets (Al-Henzab et al., 2018). Why is this so? Expanding into these landscapes means contending with various constraints that may not be present in their domestic markets. Such issues often include unnecessary bureaucracies, complex legal frameworks, limited raw materials, and other issues. What these organizations should then consider is using technology as an enabler in their global expansion efforts. Since many of the emerging economies are still lagging in technological infrastructure, businesses rely on their ICT capability to support their business. For instance, Starbucks utilizes Big Data to understand the local markets’ supply chains and consumer preferences.
References
Al-Henzab, J., Tarhini, A., & Obeidat, B. Y. (2018). The associations among market orientation, technology orientation, entrepreneurial orientation and organizational performance. Benchmarking: An International Journal .
Garthwaite, C., Busse, M., Brown, J., & Merkley, G. (2017). Starbucks: A story of growth. Kellogg School of Management Cases .
Wischnevsky, J. D., & Damanpour, F. (2006). Organizational transformation and performance: An examination of three perspectives. Journal of Managerial Issues , 104-128.
