Abstract
Innovation is the commercial application and successful exploitation of the idea. This means introducing something new into the business for improving or replacing business processes to increase efficiency and productivity. Development of entirely new and improved products and services for changing customer or consumer demands or needs, adding value to existing products, services, or markets is called business innovation. It is critical for any forward-thinking organization that technology plays a major role. Choosing technologies that will empower an organization is challenging. Today, technological innovations like internet-enabled mobile devices have allowed businesses to innovate news ways of doing things that were previously unthinkable. Innovation must be more than just technologically feasible and economically profitable. The successful exploitation of new ideas is crucial to a business being able to improve its processes, bring new and improved products and services to market, increase its efficiency, and most importantly, improve its profitability.
TopIntroduction
Innovation is critical for any forward-thinking organization. This is where technology plays a major role. Choosing technologies that will empower an organization is challenging. Even a good development strategy needs to be implemented properly. Successful business leaders catapult growth and development with the help of an experienced technology partner. The pace of technological advancement is creating enormous potential to create and deliver better customer experiences through technology-enabled process innovation. For instance, today, technological innovations like internet-enabled mobile devices have allowed businesses to innovate news ways of doing things that were previously unthinkable.
To innovate enough, start thinking about what kind of technology is actually required in order to be benefited with outcomes. Information technology (IT) innovation in an enterprise involves using technology in new ways to create a more efficient organization and improve alignment between technology initiatives and business goals. IT innovation can take many forms like turning business processes into automated IT functions, developing applications that open new markets, or implementing desktop virtualization to increase manageability and cut hardware costs. Many companies try to institutionalize the process of innovation by creating innovation teams from diverse segments of the company. Other firms rely on individual employees to flourish in an environment where innovation is encouraged.
Information and Communication Technologies (ICT) are emerging as a promising paradigm for creating a profound change in digitizing technologies (Chetna Gupta et. al., 2021). Technology innovation can take many forms, for instance, novel software implementing new algorithms and data processing models; or new hardware components (sensors, processors, components); or improved user interfaces offering seamless experiences; it can also happen at a higher level, in the form of new processes, business models, monetization engines, and so on. Management of technology and innovation must balance short-term efficiency with long-term effectiveness in the market if the firm is to add value and thrive in a changing environment. Strong dynamic capabilities are needed if the organization is going to be able to address the challenges of innovation and dynamic competition (Teece. D & Leih S. 2016). Business prototypes of varying degrees of fidelity and interactivity could be a powerful tool for early stage startups to validate their business model assumptions especially product value proposition (Varun Gupta et. al., 2021)
To bring in technology into business model entrepreneurs must involve themselves into research and development (R&D), generating new ideas, conducting experiments, designing and implementing new changes into the system. To achieve better performance appropriate strategy has to be followed. To bring in technology into business the first step of the entrepreneur must be recognizing the unanswered or unresolved customer needs. Before changing the business model the entrepreneurs must analyze the financial requirement, risk involved as well as opportunity that will be gained in the market. By considering the above factors business model can be modified or fully changed. The best tool must be selected for the business model as it depends on the nature of business and the competition. To successfully improve the business model the organization must think on setting up the values and establishing a network with all stakeholders.
To sustain in the competitive world the business model proposed must be innovative and should include new technological progress. Entrepreneurs must come up with new innovative ideas for products, services, marketing strategies through various experiments and should explicitly analyze the risk factor involved in it. Sustainable business development can contribute not only to the firm’s growth but also for society and the economy as a whole.
Technology business model involves combined experimentation and production of products in consideration of the technological and scientific advancement which many technology firms belong to. Technology entrepreneurship searches solutions for problems through opportunity exploitation from emerging technologies, organization, management, and risk bearing. This is based on value creation and capture, target organizations, mechanism of delivery, and the interdependence of these mechanisms, which are interrelated through the business model. (Run Wang, 2021).
Key Terms in this Chapter
Business model: A business model describes how an organization creates, delivers, and captures value, in economic, social, cultural, or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.
Ambiguity: There is a lack of clarity or awareness about situations.
Artificial Intelligence (AI): Is intelligence demonstrated by machines, as opposed to natural intelligence displayed by animals including humans. It is the study of “intelligent agents”: any system that perceives its environment and takes actions that maximize its chance of achieving its goals.
Augmented Reality (AR): Is an interactive experience of a real-world environment where the objects that reside in the real world are enhanced by computer-generated perceptual information, sometimes across multiple sensory modalities, including visual, auditory, haptic, somatosensory, and olfactory.
Uncertainty: The present is unclear and the future is uncertain.
Innovation: Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services.
Virtual Assistant: An intelligent virtual assistant (IVA) or Intelligent Personal Assistant (IPA) is a software agent that can perform tasks or services for an individual based on commands or questions. The term “chatbot” is sometimes used to refer to virtual assistants generally or specifically accessed by online chat.
Cognitive Devices: Devices like a Brain Computer Interface (BCI), sometimes called a brain–machine interface (BMI), is a direct communication pathway between the brain's electrical activity and an external device, most commonly a computer or robotic limb. BCIs are often directed at researching, mapping, assisting, augmenting, or repairing human cognitive or sensory-motor functions.
Natural-Language User Interface (LUI or NLUI): Is a type of computer human interface where linguistic phenomena such as verbs, phrases, and clauses act as UI controls for creating, selecting and modifying data in software applications.
Value Creation: Business value creation is an informal term that includes all forms of value that determine the health and well-being of the firm in the long run. Business value expands concept of value of the firm beyond economic value (also known as economic profit, economic value added, and shareholder value) to include other forms of value such as employee value, customer value, supplier value, channel partner value, alliance partner value, managerial value, and societal value. Many of these forms of value are not directly measured in monetary terms.
Virtual Reality (VR): Is a simulated experience that can be similar to or completely different from the real world. Applications of virtual reality include entertainment (particularly video games), education (such as medical or military training) and business (such as virtual meetings). Other distinct types of VR-style technology include augmented reality and mixed reality, sometimes referred to as extended reality or XR.
Disruptive Technology: Disruptive technology is sometimes called disruptive innovation which is the name for a technology or innovation that changes the market by creating a new market. These new markets are small at first, which makes them uninteresting for established market players. If disruptive innovation is used, the market will grow at a high speed. Eventually, they will replace existing technology.
Complexity: Many different, interconnected factors come into play, with the potential to cause chaos and confusion.
Volatility: Change is rapid and unpredictable in its nature and extent.