Innovation and Business Development

Innovation and Business Development

INNOVATION AND BUSINESS DEVELOPMENT 10Innovation and BusinessDevelopment

Table of Content

Part A:

  • Technology and Business development

  • Technology and organizational changes

  • Levels of innovations and their influence on business

  • The influence of rapid technological changes on business

  • Managing the consequences of rapid technological changes on business

Part B: Leasing

  • Leasing

  • Abuses related to leasing

Innovation refers to the process of generating new ideas andimplementing them. Innovations improve the development andapplication of new ideas whose goal is to improve the way things aredone in business operations. Innovation leads to changes in variousareas such as society, environment, and technology and communityhealth. In businesses innovation involves creating positive outcomesthrough new products, services, marketing segments, marketsmanagerial and operational processes. Innovation is essential aspectin improving and growing business since innovation means makingchanges that improves efficiency, profitability and ultimately theviability of business (Davila, Epstein and Shelton, 2006).Innovations are not entirely revolutionary but take place throughincremental bases. Innovation is essential in creating an effectiveorganizational behavior by building an environment in business thatfosters innovative thinking and action (Utterback, 1994). Innovationfosters organization behavior by enhancing the creation of creativeculture that encourages employees in their innovative contributionsto the business.

Technology and Business development

Technological innovations define how goods and services are producedtechnology dictates how goods and services are produced within anorganization (Utterback, 1994). In organizations context, innovationespecially technological changes leads to positive changes byenhancing efficiency, productivity, quality, competitiveness andmarket share. Changes in the world innovation enables organizationstranslate into innovative entities that produce tangibleperformances. In the evolving world of technology, technology is nowa necessity foal al businesses. Unlike in the olden days, technologyplays an essential role in facilitating business development bysupporting various organization tasks (Utterback, 1994). Technologyhelps organizations manage various tasks such as accounting,information, sales and other tools that are used to achieveorganization goals. In all aspects, changes in technology help insupporting various business functions allowing for higherproductivity and efficient use of resources (Davila, Epstein andShelton, 2006).

In addition, technology supports business development by linking itwith the external world. The increased innovative communication andtransportation helps in connecting businesses and processes withother entities. Innovation in technology has led to increasedglobalization and this means that anyone can conduct business in anyplace and enable business reach wider markets. The internet is nowused to reach suppliers and consumers across the globe efficientlythan before (Davila, Epstein and Shelton, 2006). In addition, as moreinnovation takes shape in technology, business development isenhanced more as business operations are harmonized leading to greateconomic savings.

Technology and organizational changes

Every organization needs technology and innovative changes intechnology leads to the necessity of firms to adapt to changes tosuit business demands. Beyond the simple technology used in offices,organizations utilize advanced technology to enhance the smoothrunning or operations leadings to the reduction in time used tocomplete given tasks. The need and desire to increase productivitydrives innovation in technology and this in turn influencesorganization operations (Murphy, 1994). As more technological changestake effect, organization structures adapt to these changes.Innovation in technology leads to changes such as restructuring oforganization departments, modifying job requirements to suit netechnology. In some cases, organization changes may take the effectof training employees on the use of new technology (Davila, Epsteinand Shelton, 2006).

Organizations that rely on web based business, changes in technologymeans changes in organization departments. In other cases, changes intechnology leads to trimming of departments to suit the changesbrought about by new technology. For employees, technological changesespecially that requires organizations to use more technology incompleting certain organization tasks, leads to reduction in thenumber or employees (Davila, Epstein and Shelton, 2006). In addition,the decision to embrace new technology leads to significant changeson how company finances are used. However, technology that leads toimproved operations helps in offsetting certain costs and therebyincreases profits (Utterback, 1994).

Technology enhances more innovation within firms, allowing them totest and implement new ideas with ease and cheaper prices. Today itis possible for firms to include certain features in their websiteand assess how customers respond and thus make more improvements.Innovations that used to last long to implement, coordinate andlaunch are initiated faster than before (Davila, Epstein and Shelton,2006). In addition, firms that wish to try out new things are able totry them out at cheaper prices without the challenge of facing loses.Improved technology within organizations helps in creating moreavenues for business expansion, more output and better prices forcustomers and improved pay for employees (Murphy, 1994).

As more technological changes takes place in the world, organizationscompetitive advantage strongly depends on their ability to benefitfrom innovational activities. Innovation is one aspect leading tocompetitive advantage and is essential for company growth (Murphy,1994). Fast technological development, combined with risingglobalization and changes in customer demands leads to thecompetitiveness of organizations. Businesses put more effort inbeating competition and in improving their market game throughinnovations (Utterback, 1994).

Levels of innovations and their influence on business

There are various categorizations of innovations and their effects onbusiness. The categorization of innovations is based on the level ofsustainability. Some innovations can be categorized as incremental,semi-radical or radical innovations. Radical innovations lead to highprofits and greater competitive advantage for businesses but requireconsiderable higher levels of risks (Davila, Epstein and Shelton,2006). Incremental innovations have modest returns, demands lowrisks, level of efforts and resources are more generally successful.Based on the trajectory of business sustainability, some innovationsare sustaining or disruptive. Sustainable innovations range fromincremental, radical to disruptive innovations. Sustaininginnovations are those that improve existing business products orservices while disruptive innovations create vast growth creating newtrajectory in performance (Murphy, 1994).

Innovations that take place outside the business influences businesschanges especially in the market and competition. When productinnovations take place, these innovations have strong influence inthe market. Process innovations have internal focus that requiresbusinesses to develop new competences and routines of operations(Davila, Epstein and Shelton, 2006). Changes from external innovationleads tochanges in processes within businesses in order to improveeffectiveness, compliance to the processes strategy. Organizationsbehavior is constantly influenced by processes and productsinnovations that take place within and outside businesses (Murphy,1994).

The influence of rapid technological changes on business

The influence of rapid technological changes has had great impact onorganization behaviors such as learning. Global changes intechnological innovation forces businesses to upgrade existingtechnologies in line with new technologies. Technology is not just ameans of achieving business goals but as a vital component oforganization culture. As illustrated by historical experiments suchas the Hawthorne study, the technological innovations the enginesbehind development. The use of technology in businesses whetherrational or irrational results in greater competitiveness of abusiness, enhances productivity and serves as a measure of internaland external control. Taylor advanced the first form of scientificmanagement through technology in managing organizations processes.

Managing the consequences of rapid technological changes onbusiness

The world is facing great unprecedented technological changes. Globalsocieties are no longer separated as they now operate on ‘openspace.’ Rapid technological changes have enhanced theinterconnectedness of economic interests among business. The resultsof this interconnectedness are that they influence business behaviorsthrough adoption of values such as ethics, human rights and morestandards on business. Over the last century, there has been anincreased technological adoption leading to increased changes inbusiness. However, these innovations sometimes occur at high ratesthan expected leading to business problems related to coping. Theeffects of increased technological changes are crippling of businessoperations and thus it is imperative for organizations to considerand speculate technological advancements to avoid negative effects onbusinesses. Although technological changes are important for businessdevelopment, lack of effective management approach may ruin businessprocesses (Tushman and Anderson, 1986).

Humanity is a long-term stakeholder of technological changes and thusit is important to adequately prepare for rapid technological changesbefore they affect business operations. Human beings are importantparts in organization and rapid changes in technology may lead tophysical and mental disturbances. Based on this, businesses shouldhave a plan that is established to help organization manages andworkers cope with consequences caused by rapid technological changes.It is imperative that businesses be prepared and aligns organizationscapacity for technological changes through plans, training andlegislation. Rapid technological changes have revolutionized the waybusiness conduct their economic activities and this also influencesorganization behavior and cultures (Tushman and Anderson, 1986).

Leasing

Leasing is a contractual agreement or arrangement between the userswho pays the lessor (owner) some amount for using the assets.Broadly, in business a lease is a contract between two people inwhich the lessee obtains legal rights to use a given asset afterpaying the rental sum. In some cases, leasing is a rental agreementthat involves tangible property between the leasee and the lessor(Badenhorst, Juanita, Hanri, Silberberg and Schoeman`s, 2006). Theuser rents the tangible property for use over a given period of time.However, there are various forms of lease these are fixed,periodic, tenancy at will and tenancy at Sufferance.

Abuses related to leasing

In business, lease contracts are abused just like other commercialcontracts in businesses. Most assets business owners violate leasecontracts by evicting clients from leased assets. Cases of lesseeabuse are common in tenant leases especially if no written recordsare kept for the lease contracts. Tenants or asset lessees shouldnever rent a home or an apartment without a proper written agreement.This also applies to other lease contracts for tangible assets suchas land and equipments. In business, common abuses for lease arisesdue to disagreements in lease payments. In business, business ownerscharge leases’ for property repairs even when no damages have beenmade and this is wrong according to lease contracts. At times, theproperty and business owners fail to give back security deposit andthis creates conflicts.

Some business owners and other lessors are known to set strict rulesagainst alterations or prohibit outsiders from assessing the leasedproperty and this may affect the lease business in the event therented property. In other cases, lessors as in some cases the lessormay engage in domestic abuse especially violence, sexual assault orunwarranted eviction and these aspects may adversely affect businessclients (Badenhorst, Juanita, Hanri, Silberberg and Schoeman`s,2006). Other forms of abuse involve, imposing liability on tenantsfor causes beyond their control and at times the landlord might forcethe tenant to pay legal fees. Exorbitant fees demanded by propertyowners are harmful to business operators as they decrease businessprofits while increasing operating costs. However, with a goodwritten lease agreement, all these aspects can be addressed to avoidfuture abuse and disagreements.

References

Badenhorst, PJ, Juanita M. Pienaar, and Hanri Mostert. Silberberg andSchoeman`s. (2006). The Law of Property. 5th Edition. Durban:LexisNexis/Butterworths.

Davila, T., Epstein, M. J., Shelton, R., (2006). &quotMakinginnovation work: how to manage it, measure it, and profit from it&quot,Warton School Publishing, New Jersey

Murphy, E., (1994). &quotCultural values, workplace democracy andorganizational change: emerging issues in European businesses&quot,In: Coulson-Thomas, C. (Ed.) &quotBusiness Process Re-engineering:Myth &amp Reality&quot, Kogan Page, London, 201-210.

Tushman, M., Anderson P., (1986). &quotTechnological discontinuitiesand organizational environments&quot, Administrative SciencesQuarterly, Vol. 31, No. 3, 439-465.

Utterback, J., (1994). &quotMastering the dynamics of innovation&quot,Boston, Harvard Business School Press. Higón, D., Driffield A. N.,(2007) &quotExporting and innovation performance: analysis of theannual small business Survey in the UK&quot, Economics and StrategyGroup, Aston Business School, Aston Universitywww.etsg.org/ETSG2007/papers/higon.pdf