The Importance Of Technological Innovation In Today’s Environment

The Importance Of Technological Innovation In Today’s Environment

The current global context is dominated by significant volatility, uncertainty, complexity, and ambiguity. In this hostile environment, the survival of companies is not easy: to make a company work, it is essential to take into account the factors that can help it surf the waves, and in this sense, technological innovation takes on brutal importance. But do you know why? We will explain it to you below, so pay attention!

What Is Technological Innovation, And Why Is It Important?

One of the most exact and accurate definitions of the concept of technological innovation is that provided by the economist Experts, who explained it as ” the introduction of new products and services, new processes, new sources of supply and changes in the industrial organization, continuously, and oriented to the client, consumer or user ”. 

 Following this definition, technological innovation is determined by four factors: 

  • The renewal and expansion of the range of products and services offered by a company
  • The renewal and expansion of the production processes of said company
  • The revival and updating in the organization and management of the same
  • Updating the qualifications of employees and workers

In sum, these four factors that have novelty in typical result in technological innovation. Technological innovation does not only refer to the invention of new products (technology) never seen before but covers a much broader spectrum, namely: 

  • The creation of new products and services or also the improvement of those that already exist
  • The creation of new production processes or the improvement of those that already exist
  • The creation of new forms of business management and organization or the improvement of those already exist.

That is why technological innovation translates into an increase in organizations’ competitiveness, which thus responds to the continuous change in the needs of both industry and consumers. Therefore, for a company to survive and function optimally, it must carry out periodic technological innovation that allows it to catch up and adapt to the new conditions of the industry, the market, and society. In this sense, all companies must have a Technological Innovation Department dedicated to researching and developing improvements. The ultimate objective of all technological innovation is to invest in profitable changes. 

Types Of Technological Innovation

The technological innovation processes can be classified into three categories, depending on the nature thereof: 

  • Radical: It is entirely original and novel that allows reaching new markets. The paradigmatic example was the creation of the Internet. 
  • Incremental: This allows you to improve current products or services gradually. As an example, we can cite the appearance of mobile banking, which made use of the pre-existing Internet.
  • Paradigm Shift: This type of technological innovation refers to a change in perception regarding technologies. An example is the current perception of social media as a digital marketing tool rather than a mere entertainment tool.

As you can see, technological innovation is essential to adapt to changes and stay ahead of the market.  

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