Any company offering a product or service to consumers must take into account that these elements will not last forever. The needs are changing, both in the citizens and in the industry itself, and it is therefore essential that companies are updated from time to time. It is in this context that we need to talk about technological innovation, a very well-established concept today that encompasses many more things and aspects than we can imagine, not just those related to the improvement of technology itself.
What does technological innovation mean?
Technological innovation refers to the creation of a new product or service always aimed at consumers. In other words, what we mean is that there is innovation when companies present new elements on the market or, failing that, improve existing ones. Although this innovation is often aimed at marketing the product or service, it can also be related to the production processes within the company. In short, innovation has to do with change within industry.
But despite being called technological innovation, it does not only address changes within technologies, here changes occur in many other sectors that are also important within the company. We refer to scientific, financial and commercial activities. The aim of this innovation is that new products and services can be offered on the market (local, national or international). It also affects the creation of new production processes, as well as new methods for organising and managing the company. Although the word innovation focuses on novelty, it is also related to the improvement of what already exists, BE IT services, products or other systems.
Types of technological innovation
Technological innovation is a concept that encompasses a large number of elements and actions, but depending on the specific task carried out we will name it one way or another. In this sense, we can differentiate between four types of technological innovation. First we’ll talk about the radical type. As its name suggests, they are innovations that allow us to reach new markets, although they can also be Industries or other sectors where we can develop some activity. Radical innovations usually take place in the public administration, the service sector or in cultural matters.
On the other hand, we are faced with technological innovations of an incremental type, which are more progressive, since this time instead of opening up new fields, what is done is to improve the technological processes, although always based on the primitive characteristics of them. It is therefore an innovation to offer better technologies, but not to create new ones.
We can finally come across two other types of changes. On the one hand in technological systems and on the other in paradigms. With regard to the former, it has to be said that they encompass both radical and incremental innovations, although they also include innovations in relation to the company’s organizational systems. And as for paradigms, it should be mentioned that this is the change that occurs in preconceived ideas regarding technological and production systems. In other words, a paradigm shift would be an industrial revolution, for example.
Characteristics of innovative enterprises
In order for a company to succeed, it has to carry out technological innovations from time to time that allow it to adapt to the New Times and the needs that are emerging in society. Therefore, any industry that wants to introduce innovation within it must respond to three essential characteristics. We are talking about efficiency, competitiveness and quality.
By having these three aspects, every company can create or improve the products or services it offers, in addition to making the investment that has been carried out economically profitable, increasing the sales of them. This is particularly relevant for professionals who have completed specialized studies as a master in innovation, from which they obtain all the necessary knowledge. Of course, it is fundamental to detect possible improvements that can take place in a future in face of the demands of the consumer and to the own production processes of the company.
In short, an innovative company must be able to create or renew new products, services and even the production techniques it uses. Similarly, it also has to make changes to the company’s organizational system and modify the requirements for the recruitment of professionals, asking for different qualifications for adaptation to the New Times.