Entrepreneurial Innovations - Research Paper Example

Entrepreneurial Innovations Introduction In the past few years, the field information technology (IT) has experienced an amazing pace of advancement and innovations. In fact, these developments and advancements of information technology have caused a considerable transformation in the understanding, thoughts and ways of thinking of the people. It is an admitted fact that information technology has brought countless innovations to every walk of life. In addition, these advancements of information technology have made it essential for business organizations to make effective use of this technology with the intention of surviving in this ever-increasing competitive world. On the other hand, these information technologies are not capable of bringing perfection in the organizational culture if they are not effectively utilized and implemented (Ellahi & Manarvi, 2010). This paper discusses the concept of innovation with respect to two different aspects: innovations and organizational culture and technology risks. It is an admitted fact that innovations and developments in information or computer technology have always been continued since the invention of the first computer. Actually, most of the ways organizations and people perform their daily tasks are measured with the huge web of electronic networks that is normally acknowledged as the Internet (Turban, Leidner, McLean, & Wetherbe, 2005). In addition, the wide-ranging availability of the Internet for performing business related tasks of the businesses, sellers and buyers is the primary reason behind the development of electronic commerce (or simply e-commerce). Actually, “electronic commerce is the method of selling and purchasing services and goods and products performed electronically by means of computerized business transactions over the Internet, networks, and other digital technologies” (Laudon & Laudon, 1999, p. 25; Stair & Reynolds, 2003, p. 19). There are different kinds of innovations in the context of IT, which can be implemented by an organization to upgrade their business processes. For instance, an organization can automate their business process, implement an e-commerce portal or use the Internet for marketing strategies and so on. Innovation and Organizational Culture Innovation in context of organizational change also plays a significant function in the business organizations. No matter, whether a business organization is going to formulate or launch a new product, or going to introduce a new service, or going to invent and put into practice a technological invention that can change the business processes or a new management tool or technique, innovation and organizational change helps the business organization develop and put into operation a business strategy and infrastructure. In fact, many business organizations invest a higher proportion of their finances in forming and implementing an innovation strategy than others. However, this kind of investment highly depends on the structural aspects that can have an effect on the business as well as the level of influence altering consumer choices, preferences and tastes can have on a business organization. In addition, the majority of business organizations assign a large amount of their resources for bringing innovation and organizational change in an attempt to deal with competitive challenges as well as the expected period of the product life cycle. In this scenario, the health, software and pharmaceutical industry normally spend a higher percentage into research as well as development for new product construction. Additionally, in these sectors, competitive challenges to build new solutions in order to get together the needs of always changing consumer choices and the severe environment of the competition puts pressure on these industries to keep on very responsive to market needs or risk of losing market share to competitors who distinguish their products and services or provide excellent solutions. Moreover, the challenge and difficulties industries face while bringing innovation and organizational change heavily depend on implementation and response from the organizational environment for accommodating new initiatives. It is an admitted fact that, when an organization decides to implement a new technology, it is forced to weigh up and plan how to effectively implement it. In fact, the process of implementing innovation engages a high amount of preventative style planning for the reason that a lack of assessment studies exists. For instance, working in 'unchartered waters' requires cautious thinking of the expected effects on an organization’s strategy, environment and equivalent organizational implications. Furthermore, initiating, communicating and successfully supervising innovation and organizational change requires accurate direction to implement and maintain the plans. However, organizations can do it by uniting organizational resources and engaging human resources who can be most affected by the change. In this scenario, organizations can adopt a counseling approach to encourage contribution in the process and reduce the likelihood that separation, nervousness and conflict will take place inside an organization’s boundary. In addition, adopt the vision to put into practice and responding to realistic real life opinion are significant aspects for the success of innovation and organizational change (Organizational Changes, 2012). Technology Risks Though, every technology brings a lot of advantages and opportunities for business organizations but they also bring certain risks. If an organization brings innovation to its environment by automating the business processes there must be a risk that staff members may not accept this change. They might be comfortable with the traditional way of working and this change can affect their working capabilities (Turban, Leidner, McLean, & Wetherbe, 2005). In addition, various security risks are also associated with technology implementations. For instance, if an organization implements an e-commerce platform there would be a risk of hacking, virus attacks or information theft (Turban, Leidner, McLean, & Wetherbe, 2005). Moreover, sometimes organizations do not take full advantage of the innovation. In fact, they are unaware of the consequences of adopting a technology for the business. In addition, every technology implementation requires considerable research and planning. References Ellahi, A., & Manarvi, I. (2010). Understanding Attitudes Towards Computer Use In The Police Department Of Pakistan. The Electronic Journal on Information Systems in Developing Countries, Volume 42 Issue 1, pp. 1-26. Laudon, K. C., & Laudon, J. P. (1999). Management Information Systems, Sixth Edition (6th ed.). New Jersey: Prentice Hall. Organizational Changes. (2012). Innovation And Organizational Change Essentials. Retrieved May 10, 2012, from http://www.organizational-change-management.com/innovation-and-organizational-change.php Stair, R. M., & Reynolds, G. W. (2003). Principles of Information Systems, Sixth Edition. Toronto : Thomson Learning, Inc. Turban, E., Leidner, D., McLean, E., & Wetherbe, J. (2005). Information Technology for Management: Transforming Organizations in the Digital Economy . New York: Wiley. Read More