WISDOM COLLEGE

DEPARTMENT OF BUSINESS MANAGEMENT

ASSIGNMENT FOR INNOVATION AND TECHNOLOGY
MANAGEMENT
Individual Assignment

NAME OF STUDENT ID/NUMBER

1.SAGNI DEMESA JIRU...............................................101/19

Date of submission ; 22/04/2023 G.C

 WISDOM COLLEGE

1. Why is innovation so important for firms to compete in many industries?

Innovation is a product, service, business model, or strategy that's both novel and useful.
Innovations don't have to be major breakthroughs in technology or new business models;
they can be as simple as upgrades to a company's customer service or features added to an
existing product.

Globalization has generated important changes and innovation: companies have become
much more competitive since the last decade. To remain in the market and increase market
share, companies must continuously innovate in the product, process and service provided to
customers. Technology has grown very rapidly and with this, customer expectations and
preferences are also changing at a fast and growing rate. Therefore, several innovations are
often required for the company to prosper in the market.

 Innovation is important to avoid the downward movement of GDP levels due to

economic cycles.
 Companies to stay in the market and compete with several competitors, an
organization must continue to innovate.
 Businesses require innovation to explore various opportunities.
 Client has generated changes according to the need and innovation is required to be up
to the needs of customers.
 Many products can become reinvented due to the innovation of technology.
Innovation in products must go with innovation in technology
 
2. What are the advantages and disadvantages of technological innovation?

Technology innovation increases knowledge and makes more options available. Evidences
suggests that technological innovation has increased GDP and standads of living worldwide.

advantages of Technological Innovation:

 Make communication easy and fast.

 Information exchange become easy
 Improved education and business
 online and mobile education
 Provide social networking
 Convenience in travelling
 Improved efficiency and productivity
 Capture a better market share and leads to market expansion.
 Earn fame and prosperity for the organization and represent themselves as market
leaders.
 
 Encourage a culture of innovation and creativity in the organization.  
 WISDOM COLLEGE
 Creates mobility of resources
Disadvantages of Technological Innovation:
 Increased competency
 Agricultural and fishing technologies can result in the erosion, elimination of natural
habitats, and the depletion of ocean stocks.
 Medical technologies can result in unanticipated consequences such antibiotic-
resistant, strains of bacteria and viruses, or moral dilemmas regarding the use of
genetic modification such as externalities.
 Job decreased due to increase in machine
 Better technology may result in less man-power requirement and this may lead to
concerns with employee lay-offs
 Transition phase of shifting to the new technology may disrupt normal operations.
 Huge initial investments required.
  Relationships with suppliers and other third parties may get affected as the
organization may not require their services anymore.

3. Why do you think so many innovation projects fail to generate an economic return?

Reasons for failure of innovation projects to generate an economic return.

Most innovation projects are characterized by both technical uncertainty and market
uncertainty. In their eagerness to innovate, firms are at risk of undertaking too many projects,
overestimating their potential returns and underestimating their uncertainty.
 Technical uncertainty
 Will the project result in a technically feasible product or service?
 Market uncertainty
 
What features will customer prefer and what will they be willing to pay for them?
 
 Overestimating potential return
 Underestimating uncertainty
 Costs and expenses are associated with the project in the initial phase.
 Limitations of capital may lead to projects being disrupted before completion.
 Focus on long term projects maybe futile as the idea / technology may become
outdated by the time the project is completed.