Recent Researches in Sociology, Financing, Environment and Health Sciences
Effect of technological innovation with changes on the internal environment of an organization HANA MOHELSKÁ Faculty of Informatics and Management University of Hradec Králové CZECH REPUBLIC
[email protected] Abstract: - The paper is generally focused on organizational change induced by the application of ICT mobile devices, and explores the effects of technological innovation on change of the internal environment of an organization. Deeper elaboration of the issue for business models with mobile-oriented architecture, were made between the years of 2008 2010, under the grant by the Grant Agency of the Czech Republic (GACR), project No. 402/08/1046 “Models of Businesses with a Mobile-Oriented Architecture”. The issue of organizational change induced by the application of mobile devices and the effects of technological innovations on change of the internal environment of an organization, is found only a few times in the literature, and is often only very general, which can be regarded as one of the factors, why many companies in the Czech Republic still consider the introduction of ICT mobile devices into multiple processes of a company. Key-Words: - internal environment , mobile device, technical development, technological innovation organization can afford to ignore technological development, while believing that they can maintain high business performance. But, mismanagement of a new technology is usually not the cause of decline in business performance and organization, and neither will its perfect mastery generally, lead to a sharp increase. The cause of the failure of number innovative projects, is the fact that the management of implementing organizations ignore the fact, that innovation is primarily a business phenomenon. Technological innovation is successful only if an organization can translate the new technical solution into a competitive advantage, and its successful commercialization, as is evident from the scheme for development of an innovative project, suggested in Fig. 1, to increase their business performance. Thus, to increase revenue from sales, to enhance its position in target markets and improve its image in the eyes of customers and the wider public.
1 Introduction Innovation, is often perceived as the result of using of new knowledge to develop new products, or to upgrade existing products, which have better performance, operational and user features. With this view, the innovation is generally considered as essential, or at least the continuous change of technical solution of existing products, a technological innovation based on the application technical-scientific development results Error! Reference source not found.. This narrow view, is the cause of the fact, that many organizations in their efforts to innovation, fall into the trap of technical development. Due to the fear of being behind the pace of scientific-technical development in the industry, they heavily invest in use of its results in their innovation. Usually these investments are unprofitable, innovation does not address customers who are either not ready for that, or it does not yield a higher value than the existing range of products and services. Losses from reckless investments in use of technical results, mainly shows the inability of organizations to change their business conduct, under the influence of technical development.
2 Technological innovation is primarily the business phenomenon Using the results of scientific-technical development is important for succesful result of innovation! No
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Recent Researches in Sociology, Financing, Environment and Health Sciences
Processing Business Plan
Innovation can be considered successful if by a decision to implement an innovative project, it fulfills the aims pursued. Innovation causes an increase in business performance of the organization, usually assessed according to the results of its operations. There is nothing to object. Innovation should not only improve the current economic situation of the organization, but must also contribute to the creation of conditions, that ensure a healthy long-term management of the organization. Innovation is therefore fully successful if it is a means for further business development of an organization. In other words, if it contributes to ensuring the long-term prosperities of the organization.
Commercialization
Marketing measures
Area of result´s use
Technical solution
Product-technical measures
Production-technical measures
Fig. 1 Directions of development of an innovative project Error! Reference source not found., own processing.
In this context, it is necessary to answer the legitimate claim that if we consider innovation as a business phenomenon, from the consideration of technological innovations we exclude non-business organizations such as schools, hospitals, institutions of basic research, etc. And in these, technological innovations also have an important place. The current progress of education, medicine, development of new disciplines mainly raised from technological innovations. More: investment in technological innovations in these areas. And a company put these investments to obtain social benefits, leading to its development.
In the case of technological innovation, the strategic intention of it entering the market, is conceived as the use of new knowledge to create a new product or service. Set of production-technical measures, that will lead to the fulfillment of this strategic plan, is not sufficient for successful commercialization of the initial technical design of innovation. Innovative projects must be supported by a set of production-technological measures and a set of marketing measures Error! Reference source not found. Error! Reference source not found.. Innovative activities of an organization, are based on the use of results from science and research, and scientifictechnical development, but it's not natural, as is evident from the scheme in Fig 1. The essence of innovation, is to find new business approaches to gain consumer interest in buying products or services offered. This interest does not only have to be induced by excellent performance (quality) of each item of the organizations offer of assortment, but also by the option of easier use, providing favourable guarantees, free upgrade, easier accessibility and better price. Innovative activities are always associated with the changing of business behavior of an organization, which runs through the synergistic links:
4 Business opportunities induced by the arraisment of new technologies Business opportunity arises around an organization, due to changes in its condition, and the consequent requirements for the presentation of the performance concept, of long-term organization's mission. Change of surrounding is mere change, yet the organization's approach to possible reactions to this change, leads to its designation as an opportunity or a threat. External change is an opportunity, if offers an organization the opportunity to gain a competitive advantage, to apply its strengths to gain advantage over competitors. It becomes a threat if the organization does not have enough power for its convenient use, and conversely, some of its competitors have the possibility to convert external change to strengthen its business position.
• the innovation of the products and services offered; • the innovation of processes of production, distribution, sales and service; • the innovation of busines strategy or model of an organization business; • the innovation of management methods and techniques of an organizations business activities.
5 Selected results of the investigation what types of mobile devices are used by a company
3 Conditions for successful implementation of technological innovation
ISBN: 978-960-474-287-5
For this project, electronic polling was used, with the use of their own creation of standardized questionnaire´s and email communications. The sampling unit defined - legal
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Recent Researches in Sociology, Financing, Environment and Health Sciences
conducted in 2009, and it would be interesting to resurvey and by comparative analysis, compare the received results. We can only speculate that the mobile operators by offering cheaper mobile Internet, and continuously refining mobile phones, have affected the largest group that uses only a single mobile phone.
entities (companies) located in the Czech Republic. Size of organization is not defined. The probability of the inclusion of the unit into choice were the same for all units. The scope of the basic sample, was due to cost terms and return of the selected polling techniques, determined by the ”blind guess“ method. In this method, we use the subjective experience, intuition. With prior experience of investigators of this or similiar projects, sufficient basic samples were set on 90 - 100 respondents Error! Reference source not found. Error! Reference source not found..
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
0
1
1,0
1,0
1,0
Micro enterprises
12
12,4
12,4
13,4
Small enterprises
22
22,7
22,7
36,1
Middle – enterprises
45
46,4
46,4
82,5
17
17,5
17,5
100,0
97
100,0
100,0
sized
Exceeding classification
EU
Total
6 Conclusion When deciding which of the offered opportunities an organization should be focused on, its leadership must clarify what are the benefits of each offered opportunity. Therefore an analysis of the organization´s possibilities must be done, to create conditions to meet requirements of accessibility of these business opportunities. The emergence of these conditions, are subject to generating the desired effects through the operation of the business organization system. It has a limited capacity and limited options - hence the organization's management must decide which business opportunities the organization should focus on (which can be used by disposable forces of the organization), and which one it will not respond to Error! Reference source not found.. The management of an organization must anticipate the emergence of external opportunities in advance. And respond to them before they occur. Responding to the opportunity after its occurrence is not very effective, an organization needs to respond sooner than its competitors. Success favours the prepared. The company management must decide on what basis to build a competitive advantage, even before this opportunity occurs. This, exposes the risk that it will respond in advance to a situation that may never happen. This risk must be accepted. Losses associated with the fact that a newly arisen business opportunity is taken by a better prepared competitor, are in fact much higher and for innovation activities of the organization much more severe.
Fig 2 – Respondents classification according to EU classification (SPSS Statistics)
Freq uency 0
Valid
< 10.000 inhabitants < 50.000 inhabitants 100.000 inhabitants Total
Missing Total
System
Cumula
Percent
Valid Percent
1
1,0
1,0
1,0
31
32,0
32,3
33,3
24
24,7
25,0
58,3
19
19,6
19,8
78,1
21
21,6
21,9
100,0
96
99,0
100,0
1
1,0
97
100,0
tive Percent
Acknowledgement Fig 3 – dependence of business community size on size of company (SPSS Statistics)
This article was made with the targeted support from grants issued by the Grant Agency of the Czech Republic (GACR) under Project No. 402/08/1046 “Models of Businesses with a Mobile-Oriented Architecture”.
This question, gave respondents a selection of a total of 5 mobile devices, which we expected that the companies to be using. The results show that the largest combination of mobile devices along with mobile phone. The largest group of respondents only use a single mobile phone. The second largest group is a combination of a mobile phone and a Netbook. The third group according to frequency is the mobile phone with PDA and GSM. Only 3 respondents did not include mobile equipment Error! Reference source not found. Error! Reference source not found.. Data collection was
ISBN: 978-960-474-287-5
References: [1] Coyne, K.P., Clifford, P.G. a Dye, R. Breakthrough Thinking from Inside the Box. Harvard Business Review. December 2008, stránky 70-78. [2] Christiansen, C.M. a Raynor, M.E. The Innovator's Solution. Boston : Harvard Business School Press, 2003. IBSN 1-57851-852-0.
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Christiansen, C.M., Marx, M. a Stevenson, H.H. The Tools of Cooperation and Change. Harvard Business Review. October 2006, stránky 72-80. Pitra, Z. Inovace procesů řízení. Moderní řízení. leden 2009, stránky 30-34. Management inovačních aktivit. Praha : Professional Publishing, 2006. ISBN 80-86946-10-X. Slabý, Antonín, Kozel, Tomáš a Mohelská, Hana. Mobilita v podnikovém prostředí. Hradec Králové : Gaudeamus, 2010. 978-80-7435-094-8-1035. Kozel, T. a Mohelská, H. Modely firem s mobilně orientovanou architekturou. Ekonomie a Management E+M. Prosinec 2010, stránky 135-142. Value of ict mobile means in an increase of company competitiveness. Mohelská, Hana. Athens : World scientific and engineering academy and society, 2009. AEBD 2009. stránky 137-140. 978-960-474-091-8.
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