This document provides an overview of technological innovation. It begins by defining innovation as changes that significantly increase the value or usefulness of a process or product. Innovation can occur in various fields like technology, politics, agriculture, and society. The document then discusses different types of innovation including radical vs incremental, competence-enhancing vs competence-destroying, architectural vs component, and disruptive innovation. It also outlines the stages of technological innovation from basic research to marketing. Finally, it briefly discusses trends like digital transformation, platforms/sharing economy, and the rise of digital products and e-commerce innovations.

1. MANAGEMENT OF TECHNOLOGY
BTMU 1023
Lecture 6
Technological Innovation
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2. At the end of the lesson, the student should be able to:
• Understand the context of TLC
• Describe how TLC is essential for strategic planning and strategic
analysis.
Lesson outcome
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3. • Comes from the Latin, innovare, and is all about change
• The practice of changing a process or product that significantly increases its value or usefulness.
• It can happen in technology, politic, agriculture, environment, social and legal
• It is not always necessary to use technology.
• NOT ALL INNOVATION ARE TECHNOLOGY BASED
• Example of innovation in politics
• Allowing the younger generations to represent themselves at the national level,
• A new method of engaging the citizens.
• Example of innovation in social
• Baby hatch
• Example of agricultural innovation
• Durian triple planting
Innovation

4. new or improved product or process whose technological characteristics are different from the previous
version.
It is a process that converts knowledge into useful products and services that have socioeconomic impact. It
requires the integration of inventions and existing technologies to bring innovations to the marketplace
Development of a flat screen tv
( technology based innovation)
Development of new sales channel for flat screen tv
( marketing/ non-technological innovation)
First car invented Model T by Ford Improved the production to mass production so that it can become
available and affordable to the people.
Technological Innovation

5. Basic research- study and research technology that has impact on the organization
Applied research –research towards solving customer need
Development- prototyped is developed and tested
Engineering- turn it into a scalable product and service
Manufacture- finding the best way to deliver effective and quality product to the customer
Marketing- concept testing , market research
Promotion – rapid launching of the product and service
Continuous improvement – constantly measured, analyzed and improved
Stages of technological innovation

6. Types of technological innovation

7. • A service is “placing a bundle of capabilities at the disposal of the consumer”. There are
four dimensions of service innovations:
1) New service concept: the creation n and development of an entirely new kind of
service.
2) New client interface: major changes in the interaction between the service provider and
the client.
3) New service delivery system: finding a new way of delivering the service.
4) Technological options: when the emergence of new technologies make a new service
possible.
Service innovation

9. • Radical versus Incremental Innovation.
The radicalness of an innovation is the degree to which it is new and different from
previously existing products and processes.
Incremental innovations may involve only a minor change from (or adjustment to)
existing practices.
The radicalness of an innovation is relative; it may change over time or with respect
to different observers.
• For example, digital photography a more radical innovation for Kodak than for Sony.
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Radical and incremental innovation

11. • Competence-Enhancing versus Competence-Destroying Innovation
• Competence-enhancing innovations build on the firm’s existing knowledge base
• E.g., Intel’s Pentium 4 built on the technology for Pentium III.
• Competence-destroying innovations renders a firm’s existing competencies obsolete.
• E.g., electronic calculators rendered Keuffel & Esser’s slide rule expertise obsolete.
• Whether an innovation is competence enhancing or competence destroying depends on the
perspective of a particular firm.
Competence-Enhancing versus Competence-
Destroying Innovation

13. • Architectural versus Component Innovation
• A component innovation (or modular innovation) entails changes to
one or more components of a product system without significantly
affecting the overall design.
• E.g., adding gel-filled material to a bicycle seat
• An architectural innovation entails changing the overall design of the system
or the way components interact.
• E.g., transition from high-wheel bicycle to safety bicycle.
• Most architectural innovations require changes in the underlying components
also.
Architectural versus Component Innovation

15. Disruptive Innovation
Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a
product or service takes root initially in simple applications at the bottom of a market and then
relentlessly moves up market, eventually displacing established competitors.

16. PLATFORM INNOVATION

17. • Digital transformation is the integration of digital technology into all areas of a
business, fundamentally changing how you operate and deliver value to
customers
• Customer eccentricity
• Digital technologies will drive globalization to the next phase
• COVID-19 is the driving force
• Effecting small business and enterprises ( ADOPT OR DIE
• Continuation of innovation and development of artificial intelligence (AI), the
internet of things (IoT), virtual and augmented reality (VR/AR), cloud computing,
blockchain, and super-fast network protocols like 5G.
• Hybrid work place( even post covid)
• enterprises to adopt different digital tools to manage their operations smoothly
Megatrend in business – transformation towards
digitalization

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Rising number of technoprenuers
Digital innovation – App revolution

19. Disney.com
MyDisney experience to book in park dining reservation
FastPass allows park guests to skip lines for three attractions
per day. Using the My Disney Experience smartphone app in
the park, guests can check and change their FastPass choices
and check other attraction wait times while on the go
MagicBands are used as room
keys. Just tapping your wristband
unlocks the door. Guests can also
order food with their wristbands
at Disney restaurants and food
carts.
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Omnichannel experience
Digital innovation – App revolution

20. Digital products
“Synthetic Media” functions as a collective term for media
such as video, images, and audio that are manipulated or
even created using technologies from the field of Artificial
Intelligence (AI).
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21. • The Rise of Platforms, the Sharing Economy, and Crowdsourcing
• Example UBER, ETSY, Apple, Alphabet, Amazon, Facebook, Tencent,
and Alibaba.
• New business that facilitate connections between relevant parties.
• Interactions
• Transactions
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Digital innovation – for Ecommerce. From B2C to
C2C