Technological innovation

economic-dictionary

Technological innovation is the change of a technical or scientific nature that is introduced to the good or service offered by a company or organization, to the processes that are developed within it. This, in order to achieve greater competitiveness.

That is, this type of innovation corresponds to any technological modification in the product offered by the organization or within its processes. Thus, the idea of ‚Äč‚Äčintroducing this new element is to achieve better results.

A technological innovation is a type of innovation related solely to technology. That is, it does not include, for example, those new non-monetary incentives created to make employees more efficient.

Technological innovation and research in companies

The technological innovations that are implemented in a company come from research and development. This term refers to investment in scientific and technical knowledge to achieve new products, materials or processes.

Research and development activity is characterized by creativity and novelty, while pursuing the objective of improving the organization's results.

Technological innovations and creative destruction

Technological innovations can force creative destruction in certain companies or sectors. The latter refers to the change in the business model as a result of an innovation.

This is the case, for example, of the media and the Internet. Since people can watch the news by surfing the web, the sale of paper newspapers is on the decline.

Faced with this, the journalistic media should focus more their attention on selling advertising space on their Internet portals, to compensate for the lower interest of advertisers for the physical copy.

Types of technological innovation

Technological innovations can be classified in different ways:

  • Radical: It is completely original and novel. It allows to reach new markets. For example, when it came across the internet it was something never seen.
  • Incremental: It allows to improve the products or services currently offered. In other words, it is an innovation that is based on something already existing. For example, mobile banking that made use of the Internet.
  • Paradigm shift: It alludes to a change in perception regarding technologies. For example, social media may begin to be seen as a channel for advertising, rather than perceived as something distant and unnecessary.

Example of technological innovation

An example of technological innovation can be that of mobile banking. This has allowed users to make transactions such as transfers and payments for services from their cell phone.

Likewise, mobile banking represents another sales channel for financial institutions to offer products such as loans or savings alternatives.

Tags:  economic-dictionary Colombia Business 

Interesting Articles

add