Innovations contribute to the success of a particular business. It makes the company relevant and capable of surviving the competitive market. Change is essential for propelling economic growth, and as a result, it increases the gross domestic product. Additionally, it makes man’s work easier hence leading to increased production. Moreover, technological innovations have advantages and disadvantages. The benefits include escalated profits, opening to new markets, effectiveness in operations, reduced costs, more accessible information storage and retrieval. However, the disadvantages comprise dependency on technology, unemployment, vulnerability to change, high maintenance costs and the lack of a personal touch. As good as innovations maybe they may fail due to wrong decision making, lack of priority, lack of market orientation and the bureaucracy in decision making, especially for large companies. Technical and market uncertainty may lead to a product not giving economic returns due to the deficiency in understanding what we offer and the lack of knowledge on consumer needs.
Importance Of Innovation
Innovation is very crucial for the triumph of a business entity. Notably, 84 per cent of company executive suggests that prospective success depends on the presence of innovation, which makes the business relevant in the economic market (Kylliäinen, 2019). Innovations facilitate the solving of important problems. Therefore, developing countries need it the most. As change is the creation of new ideas without it, progress is not present. A non-progressive business cannot withstand the competitive market. For instance, technological advances propel economic growth. This is the escalation in inflation-adjusted market value for goods and services formed by an economy over time, thus increasing the gross domestic product. Increasing outputs for an economy can be done by raising the number of inputs in the production process or developing new ways of getting more yield for the equivalent number of inputs. Therefore innovation that results in increased productivity produces better output for the same input. Innovation brings about transformation; for instance, the agrarian economy progressed to the industrial economy as an outcome. Moreover, the move from handmade to machine-made commodities increased productivity that raised the living standards and development. Therefore man was able to use less time while increasing production. Additionally, innovation increases people’s welfare when the standards of living rise. It is because the result is developed solutions to combat hunger, poverty and disease.
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Advantages Of Technology Innovations
The increase in technological innovation has affected businesses positively. The presence of lower prices and boosted power for computers has enabled even small companies to exploit electronics in the practices (Kazmeyer, 2019). Therefore a company that uses technology can escalate profits and reorganize operations besides opening up to new markets. With technology, a business can advance in productivity. The adoption of mobile computers ensures collaboration among workers even over far distances. The computers also facilitate automation of processes, thus relieving employees to focus on other duties. Machines also guarantee effectiveness operations. Technological innovations, such as phones have heightened effective communication. The presence of the Internet correspondingly allows diverse communication channels such as online meeting. It can also enable a company to operate globally. Furthermore, technology is advantageous when it comes to storing information and making an analysis. For example, scanning documents reduces the amount of storage space hence making recordkeeping and document searching easy. Machinery also reduces the cost of doing business as it lets companies operate with fewer staff, therefore, decreasing payroll expenses. It also reduces costs made on travelling as the use of the Internet can allow non-physical meetings if necessary.
Disadvantages Of Technology Innovations
Technological improvements may be substantial, but it carries along with some difficulties. The dependency on modern technology can limit peoples need to think (Ismail, 2019). Additionally, the adoption of technology reduces the need for human capital, therefore, increasing the rates of joblessness. This is because some of the devices used to replace the human mind. It results in machines doing most of the work and people’s jobs become redundant. Another disadvantage of technology is that it is prone to change. Company has to regularly update its technology to keep up with the changing standards and developments (Thibodeaux, 2019). The company will also incur maintenance costs for the technology and also it needs to pay the professionals who will monitor it. The adoption of technology also displaces personal touch in business, which is a factor in ensuring its success as a personal atmosphere is eliminated. Therefore it might result in losses instead of profits. Moreover, overdependence on a particular technology may affect the business operation if the service is not available. For example, a company that solely depends on online functionality will find it difficult to operate in situations where the servers fail.
Why Innovative Products Fail
Innovative products are meant to be revolutionary, but in some case, they fail. One of the causes the failure is making the wrong decisions. As a result, wrong decisions affect the prioritization of thoughts and product strategies for innovation (HENGSBERGER, 2018). Additionally, it can be caused when selecting variations as one develops the products. Bad decisions are instigated by the lack of corporate innovation strategy and inadequate information. Another reason for innovation failure is lack of priority over the innovation. The innovation ought to be prioritized regarding problem-solving and resource allocation. The management should be committed to ensuring they coordinated the process. Additionally, it is not usually highlighted in the job description; hence, employees focus on matters that will lead to the awarding of prizes rather than focusing on innovation. Lack of market alignment may additionally lead to failure in innovated products. For its success, there is a need to understand what the customers need. It should provide a convincing power to clients and needs to be distinguished from existing products. Lack of this orientation causes the company to focus on too much technology and pay little attention to the clients’ wants and needs. It can also be as a result of having no information on the customers. A failed product may have made assumptions on the clients’ needs, which does not reflect their actual needs. Another contributor to failed products is the presence of slow structures, especially among large companies. The bureaucratic process in decision-making may take a toll on the speed of product development.
Technical And Market Uncertainty
The failure of a product to generate economic return may be as a result of market and technical uncertainty. When innovations have a poorly defined outcome, which is a technological uncertainty, it is likely to fail (Marr, 2016). Therefore they need to understand the type of product or service they need to create. They should also consider how disruptive the solution ought to be. The company should have a clear idea of what the product will be and the impact it will address. For instance, a company seeking to advance their customer service should be aware of what ideal customer service looks like. Additionally, it should address the indicators of success and how high is the customer satisfaction. Lack of this understanding will be a cause of failure. Moreover, in relation to market uncertainty, the business needs to be aware of what the clients want and are willing to buy. A product may fail to produce returns if there is a lack of testing and gaining feedback from the consumer. For instance, when launching a new product, one is usually unsure of the users’ reception. They may embrace it or not, therefore introducing a new product without the right market understanding may lead to failure. The principle goal of a business is to make a profit, which is enhanced when customers are satisfied with their products.
In conclusion, it is vital for a business to get into innovation, as it helps the company become relevant and competitive. However, the changes need to understand and deliberate on the market and technical uncertainty for it to achieve economic returns. It is significant that when making innovations, one ought to have an elaborate corporate and innovation strategy to ensure right decisions are made and priority is considered. Nevertheless, adequate resources should be channeled on innovation projects to guarantee their achievement. Furthermore, innovations are essential to the business, but they may cause unemployment as human labour is replaced by machine labour. However, the advantages of changes outweigh the disadvantages because they lead to business success and effectiveness.
Reference
HENGSBERGER, A. (2018). 4 reasons why innovations fail. Retrieved from https://www.lead-innovation.com/english-blog/why-innovations-fail
Ismail, N. (2019). Modern technology: advantages and disadvantages. Retrieved from https://www.information-age.com/modern-technology-advantages-disadvantages-123465637/
Kazmeyer, M. (2019). The Advantages of Technology in the Business World. Retrieved from https://itstillworks.com/advantages-technology-business-world-2035.html
Kylliäinen, J. (2019). The Importance of Innovation – What Does it Mean for Businesses and our Society? Retrieved from https://www.viima.com/blog/importance-of-innovation
Marr, B. (2016). Are These The 7 Real Reasons Why Tech Projects Fail? Retrieved from https://www.forbes.com/sites/bernardmarr/2016/09/13/are-these-the-real-reasons-why-tech-projects-fail/#276c810d7320
Thibodeaux, W. (2019). What is the Disadvantage of Technology in Business? Retrieved from https://bizfluent.com/about-6318754-disadvantage-technology-business-.html
