Strategic Management of Technological Innovation
( PowerPoint slides)
Author Name:Melissa Schilling
Whatsapp +1 (949) 734-4773
Importance of Technological Innovation 1
Technological innovation now the single most important driver of competitive success in many industries.
- Many firms earn over one-third of sales on products developed within last five years.
- Product innovations help firms protect margins by offering new, differentiated features.
- Process innovations help make manufacturing more efficient.
Advances in information technology have enabled faster innovation.
- CAD/CAM systems enable rapid design and shorter production runs.
Importance of innovation and advances in information technology have lead to:
- Shorter product lifecycles (more rapid product obsolescence).
- More rapid new product introductions.
- Greater market segmentation.
Impact on Society
Innovation enables a wider range of goods and services to be delivered to people worldwide.
- More efficient food production, improved medical technologies, better transportation, etc.
- Increases Gross Domestic Product by making labor and capital more effective and efficient.
- However, may result in negative externalities.
- For example, pollution, erosion, antibiotic-resistant bacteria.