Capabilities-Based Organizational Learning Framework Of Technology Strategy
Introduction
Both creativity and innovation have been very crucial to the technology growth and development. Creativity and innovation have a close association with human beings. Creative thinking has been a crucial survival skill since mankind creation. It helped people to go past what worked in the past as they try to come up with new advances.
Currently the scenario is represented by concepts like shortening of the techno-economic life cycles, enhanced frequency of innovations, trans-nationals globalization, rapid generation and commercialization of new technologies strategic large firms’ alliances, setbacks in access of critical technologies, intensive R&D programs and large countries being threatened by freshly industrialized countries. In regard to this the strategic technology management, driven by strategic decisions on innovation rule organization’s possessions. This paper is aimed at explaining the technological capabilities of firms; it also describes the technology strategy of firms and also offers a technological learning experience.
Technological capabilities
Technological capabilities can be defined as conceptual-level elements capturing what can be done by a technology. The capability of technology is used for understanding whether two technology types are basically doing a similar thing and for identification of where there is duplication in the technology portfolio. The technological capability and competence are corresponding notions. Capability is not just individual assets; if this was the case then the firm would turn to be just a form of bilateral contracts between the employees and the owner. Am organization ought to have a memory or have a tradition practice, so that personnel losses can be compared with fresh employees who can be trained in the routines of a firm (Kim, & Nelson, 2000, p16).
Organizations’ resources, innovative capabilities and competencies interact via learning which gives them a competitive advantage. The key elements of technology capability include strategic capabilities, internal capabilities, and external capabilities. Strategic capabilities entail understanding and managing the fit between the capabilities of a firm and the needs of the market and searching of the market opportunities.
Internal capabilities entail managing of tangible technology base and developing and managing the appropriate intangible resources. The external capabilities comprises networking whereby there access to external knowledge and managing of producer/user relations, that is, accessing partners with the required complementary assets (Tidd, Bessant, and Pavitt, 2001, p26)
Technology strategy
Technology strategy entails a function of quality and quantity of the technological competencies and capabilities. The experience that is obtained from enactment of technology strategy normally feeds back to technology strategy and technological capability. The technology strategy is a crucial part of the overall strategy of an organization. Innovation is a broad process that does not at all the times require technology.
If innovation is defined as the new combination of the production factors, this can then entail use of results of technological or scientific research and can include much more routine things like changing the product packaging design, laying out a machine in the floor of the factory in a better manner, or using ideas from a distant producer so as to create a local advantage. However, a major observation is that innovation is basically an economic process whereby technology may play a lesser or greater role (Teece, 2009, p35).
Technological learning experience
It is argued by some economists that considerably high rate of investment that enables movements the functions of production is the key to success. Higher portions of increase in output can be explained by increase in human as well as physical capital that brings along modern technology as a routine by-product. On the other hand economists have placed learning and mastering new technologies to be central in their analysis and gives focus on what was entailed in the given achievement. (Schilling, 2010, p24)
Most of skills needed in reverse engineering have been easily changed into research and development activities since most of the organizations have been approaching the technological frontier. The activities and skills needed in these processes are actually similar to the process of innovation in the research and development. Most of industries have stretched their research and development activities to transform themselves into efficient creative innovators and imitators. The drive of innovation of freshly industrializing economies in current selective industries has been marked by increased in-house research and development activities (Arnold, & Thuriaux 1997, p36).
Conclusion
The key elements of technology capability include strategic capabilities, internal capabilities, and external capabilities. The technology strategy is a crucial part of the overall strategy of an organization. Innovation is a broad process that does not at all the times require technology. Research and development has contributed a lot in integration of technology which in turn increases the innovation rate.
Reference
Arnold, E. & Thuriaux B. (1997) Developing firm’s technological capabilities: Supporting companies technological capabilities, Retrieved on July 19, 2012 from http://technopolis.keymedia.info/resources/downloads/reports/094_Capabilities_970707.pdf
Kim, L. & Nelson, R.R. (2000) Technology, learning and innovation; Cambridge: Cambridge University press retrieved on July 19, 2012 from http://catdir.loc.gov/catdir/samples/cam032/99040248.pdf
Schilling, M.A. (2010) Strategic Management of Technological Innovation, 3/e, New YorkUniversity, McGraw Hill New York, NY
Teece, D.J. (2009) Technological know-how, organizational capabilities, and strategic management: USA: World Scientific Pub Co Inc
Tidd J., Bessant, J. and Pavitt, K. (2001) Managing innovation: Integrating technological, Market and organizational change, 2nd Edition Canada: John Wiley & Sons
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