Yes, indeed. Introducing new Technology to the market can be the main part of Innovation Strategy.
Apple with the brilliant Steve Jobs has been a notable example of using this strategy with its introduction of iPod personal music players, and iPad tablets.
Well, technology can not be strategic (meaning giving competitive advantage) if it is freely available in the market; because then any one can buy it from the market. it can give competitive advantage in the short-run till others are able to acquire it.
Employee commitment on the other hand is built over the years, and largely becomes a part of the organizational culture, which is very difficult to copy by others.
That is precisely what is happening in Toyota, which has a unique culture. Other automobile manufacturers are trying hard to copy Toyota production system, but they do not succeed fully because they are not able to build exactly the same culture that Toyota has built.
Likewise, a large number of companies in India are wanting to adopt the culture of Tata Steel, which has had no-strike during the last 75 years with 80, 000 (now reduced to 40,000) workers. But they are not able to do so, though they all can, and have, bought the new technology that Tata Steel acquired sometime back.
It depends how we define technology. If technology is considered synonym to only machines then the answer is no. However if technology is considered machines + skills to use them in an efficient manner, then the answer will be yes.
Definitely. Technology always provides a great advantage if used properly. It should be ready and used in proper manner to take full advantage.
Mollins 24 system developed in 1971 to demonstrate full automation. Though it was great for technology, but failed because it is too expensive and the technology was not ready then. Today those concepts are now fully used and successful.
Mollins - Automated machine tool installation with storage means – Patent US 4369563 A – 1971- http://www.google.com/patents/US4369563
I would just like to mention one thing. When you talk about technology you are referring to every single thing men have " fabricated" in order to develop any concept. In other words, things like pens, pencils, calculators, sheets of papers, etc are all technology. Now, what you want to ask is whether the new Information and Communication Technologies (ICTs) generate competitive advantage. Now what I think is that ICTs have a great impact on comparative advantages first of all, as they affect your resources( human, physical, knowledge,capital, and others). Of course all of this will change your competitive advantage but only after it affects comparative advantages. And as for sales, ICTs may help you with marketing and online sales for example, but this will also depend on the business you are leading. For example, if your business sells nationwide ICTs can be a great asset. However, if your business sells its services for a specific local target market ICTs may not be as useful. However, in the vast majority of the cases ICTs are really helpful and enterprises should invest in these issues.
I agree with @Debi on that technology will not be a strategic advantage (on the long run) if it is freely available in the market. However, it will be a great competitive advantage to those adopting it early. For example, the use of e-commerce technology helped many to be the first or to grow up from small business in rural areas to world wide business. The example of "Sew What? Inc is given to MIS students as an example of the role of information technology in small business success (see Management Information Systems, O'Brian Marakas, 9th ed). Sew what was in early 1990’s a small part time business of a lady (Megan Ducket) who makes draperies to school theaters in her area to becoming an international theatrical -custom made- backdrops designer and manufacturer thanks to the early adoption of web technology ( see also http://www.sewwhatinc.com/ ). Of course, e-commerce is the norm nowadays but this entrepreneur made use of being one the first to adopt e-commerce tools. Other than adopting the technology early and ahead of others, some companies made use of adopting its own technology and secrets. Examples are many.
There are also cases in which adopting new information technology tools, such as new ERP or CRM products, has negatively impacted the competitive advantage of some companies (at least for a while before recovering). Introducing technologies should be carefully aligned with developing the skills and commitment of the employees (and the administration) to using it properly and efficiently as also said by some colleagues above (@Jalal, @Nageswara). I will give a simple example, I know universities which invested in smart boards in all lecture rooms but very few faculty members are using their full features and many don't even use them with some of them became defective shortly. Thanks. @AlDmour.
@ Costas, I think we have to distinguish between advantage and strategic advantage. Technology does give an advantage as ours may be the latest technology; but if others can do the same, Then it ceases to give us competitive advantage.
For example, a company may efficiently implement kaizen (continuous improvement). It definitely gives you an advantage as it helps reduce cost and improve quality. But others can do the same, as kaizen has been adopted by thousands of employers world over.
But the word strategic refers to the long-term direction a company adopts that gives it competitive advantage and help it realize its vision and goals; because competitors can not do the same so easily. They may succeed doing it something similar in the long run.
Likewise, if technology is based on your own R & D, which obviously is patented, like in case of Apple, then it will give you competitive advantage as others can not copy it. But soon competitors may come out with some alternative through their own R & D, then your competitive advantage will be diluted or even wiped out.
But there are some unique features of some companies that are difficult to copy. For example, the supply chain of Hero MotoCorp Ltd. in India which just operates on 90 minutes supplies. It has been able to do so after establishing a unique organizational culture; others are not able to copy that so easily. So it gives it competitive advantage.
I am attaching Professor Jay Barney's seminal article that lays down conditions in which a resource (like technology in our case) can give strategic/competitive advantage to an organization (Barney is one of the most-quoted author in the history of management literature)
Today SKILLS & COMMITMENT are buttered with TECH and directly proportional. In the modern world there is a lot of opportunity to get the S&C exhibited.... which has a better REACH with effective use of technology. Technology enhances the right required AUDIENCE population.
Technology is a set of techniques and tools derived from science and engineering. The engineering of the science fundamentals are suitable to enable advanced tools and techniques when the processes are fully mastered. New technologies affect social dynamic through consumers' needs which help increasing the productivity. However the cultural behavior of business doing is a key factor for competitive innovation and market place target.
Technology is a normative resource that cannot generate competitive advantage unless combined with other resources. Such resources may be human, financial, tacit knowledge...etc. Technology can help achieve competitive advantage if inserted into the overall organisational strategy where it would interact with many other things to produce the desired outcome.
People now a days run behind new technologies, so technology can definitely help in generating greater sales and increasing business efficiency but we cannot neglect employee's skills and commitment too. Both are needed and both go side by side.
@Debi: Dear Debi, your point of view is that of a professional in these matters. I rspect that. However I have a problem: should we reinforced firms to get "competitive advantage", and have nice products, like apple's, or should we have a strategic purpose to keep "peace" in the world? In Bretton Woods (http://en.wikipedia.org/wiki/Bretton_Woods_system), John Maynard Keynes, suggested, that in order to have no more war, we have to have an international consortium, which will transfer the overpluses of certain countries to be invested in deficit countries. This is a different politic form competitive advantage. The other politic has as a results the imposed poverty in Greece and many other countries.
Yes it can due to mass media and multi-individiuals attention, time saving way and getting knowledge and information on click of a mouse and within no time. It has improved sills due to effective and fast communications, results and processing of data / any material like scientific papers and discussions and solving different problems in a better way, avoiding duplication / plagiarism, having many checks and controlling ways.
Yes, technology does increase efficiency of production. But it has to be supported by the employees commitment to the work. If this lacks, then it may be rendered useless in a very short while despite its efficiency. The two work in synergy for the best output
There are two dimensions to the issue of the impact of technology affecting competitive advantage through employees' skills and commitment ...
Let us take the case of a IT Development, with the advent of a new tools in the market, which the employee is naive to it. The skill acquisition is facilitated by Organization / self invested.
Facilitation associated with Employment.
Improves Performance
Increases benefits associated with Employment.
Improves self Image and acceptance among colleagues / customers / "placement consultants - potential candidate"
Hurdle associated with Employability.
Builds pressure on Skill enhancement
Disturbs Psycho-social balances on NON-FULFILLMENT of certification criteria.
If, self Investment then the cost of Training, time devotion, Certification Fees etc., are huge and burns the pocket (in many cases)
I agree with you about the two dimensions to the issue of the impact of technology affecting competitive advantage through employees' skills and commitment.