Among the responsibilities of a firm’s management, some of the most important is related to the company’s development and strategic planning. Decisions on using new technologies or keeping and developing the existing ones are an indispensable part of strategic management as they directly address the issues of progress and general success. Technologies may assist in incorporating processes or directly concern the company’s product, but under any circumstances, their adoption means undergoing some changes. The role of managers implies evaluating how justified new technologies might be or whether it is more rational to remain loyal to the existing state of affairs.
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Any change in a company suggests preferring one scenario to another, bearing losses, taking risks, and gaining something in return. To decide which route to follow, the management should estimate the current situation, determine what exactly needs changes and explore opportunities for improvement, weigh all the options, their possible outcomes, and risks. It is a multifaceted undertaking because “the work organization, structural, and employment aspects, as well as the actual process of adoption itself, are crucial matters in affecting what is achieved with technology” (Preece, 2018, p. 7).
Choosing a proven and well-known technology might be a good and rather a conservative step for those who do not want to take chances and invest money and other resources in unpredictable initiatives. However, it might be a way to stagnation because modern technologies develop too quickly, and those who do not follow the latest trends stand a chance to stay behind their competitors and miss profit.
Competition and technology are closely related in the contemporary business environment because they both stimulate each other and contribute to globalization. According to Dubey (2017), “technology-led innovation of products or services of any firm is a pre-requisite to participate effectively in globalization; those firms that ignore this aspect of conducting their business will seriously be impacted” (p. 47).
Choosing the revolutionary path will give the advantage of being first in the transforming environment but might entail certain dangers too. Sometimes it might be more profitable to take some time and watch competitors test new technologies, watch them do it, afterward study their experience and, eventually, integrate the technology in question more effectively.
Factors that define managers’ decisions can be governed by both internal and external circumstances, short-term and long-term goals, and perspectives of each available route. The study, conducted by Gutierrez, Boukrami, and Lumsden (2015), has revealed the four most significant factors: the pressure of competitors, complexity, technology readiness, and trading partner pressure. To go through this procedure gradually and minimize potential losses, the management should identify and evaluate alternative options and new technologies from the point of view of company policy and their effect on the business. When the choice is made in favor of tested technologies, the company should have a thorough understanding of how to utilize it by way of effective translation of their strategy into performance.
The question of adopting new technologies arises for any company that wants to keep up with competitors, become more successful, cut costs and raise profit. Adopting new technologies can be compared to investments when one sacrifices something to gain more in the long-term perspective. The choice always depends on the current internal and external environment and the company’s goals, and these factors should define whether the management would choose progressive technologies or less risky proven methods.
Dubey, S. S. (2017). Technology and innovation management. Delhi, India: PHI Learning Private Limited.
Gutierrez, A., Boukrami, E., & Lumsden, R. (2015). Technological, organisational and environmental factors influencing managers’ decision to adopt cloud computing in the UK. Journal of Enterprise Information Management, 28(6), 788-807.
Preece , D. (2018). Managing the Adoption of New Technology. Abingdon-on-Thames, UK: Routledge.