Technology, Strategy and Innovation Essay Example | Topics and Well Written Essays - 1000 words

Technology, Strategy and Innovation - Essay ExampleIn Europe, firms with less than 10-49 employees ar termed small firms, whereas firms with 50 to 249 employees fall under the definition of SMEs. SMEs usually tend to have greater foodstuff power than small firms and constitute around 99% of the total global enterprises (Shapira, n.d.). Despite their strength in numbers, a heavily competitive and globalized business environment is causing SMEs to struggle in order to fight effectively with walloping corporate companies. Particularly so because large companies have greater resources to influence the commercialise power of SMEs. Their vast resources of manpower, materials, machines and money can be used to counter any competitive holy terror from SMEs. Under such circumstances, cornerstone in new products and business strategies becomes the only way for SMEs to survive. fit in to Fagerberg (2004), vicissitude is the form through which firms create and develop knowledge to deve lop new and improved products and serve. On the former(a) hand, Bordia et al. (2005) define innovation as the ability to define and develop new products and services and deliver them to market. According to Susman et al. (2006, p.16), innovation usually takes place in products, mouldes and markets. This paper discusses the importance of innovation in SMEs and how it is practiced. Innovation in small enterprises Innovation in firms is usually practiced through six channels product, process, activities, non-technological, organisational, and marketing. The chart to a lower place provides a comparison of the popularity of various innovation channels in SMEs and large organizations. (Shapira, n.d., p. 2) From the chart, it is evident that process and organizational innovation in large organizations is carried aside on a larger scale than in SMEs. In all other innovation channels, SMEs are not far behind large organizations. Product and process innovation together are termed as techn ological innovation because utilization of new technology is an all important(p) characteristic of both. Product innovation utilizes new technology to develop advance(a) products. The iPhone is a good sheath of product innovation. When all other mobile phone manufacturers were concentrating on manufacturing traditional mobile phones, Apple came out with a touchscreen phone and created history. Many people have the illusion that technological innovation is the sole monopoly of large organizations. However, such innovation is possible in SMEs too. Bennet (1994, p.147) points out that smaller organizations are even more than technologically advanced than the larger ones. It should be noted that when Hotmail was first introduced by Sabeer Bhatia and Jack Smith it was an innovative service. After witnessing its popularity and realizing its potential, Microsoft acquired Hotmail later. Companies such as Google and Apple are busy acquiring the patents of many innovative products and ser vices from SMEs. In short, product innovation in SMEs is not facing any barriers. On the other hand, process innovation in SMEs is taking place at a slower pace. Process innovation refers to improvements in production and delivery methods. Six Sigma implemented at Motorola is an example of process innovation. The core of process innovation is to eliminate or reduce costs of production, reduce waste, improve marketing and logistics operations, etc. Process innovati