Innovation, technology and international Business

Innovation, Technology and International Business

• Introductory topic for Claude Chalem's introduction to the integration of innovation, technology, and international business.
• Presented between 04/11/2024 and 20/11/2024.

The Interconnection Of Innovation and Internationalisation

• Innovation and internationalization have become increasingly interconnected.
• They are considered central drivers of development since the First Industrial Revolution, up to today's Information Age.
• This is according to John Cantwell of Rutgers Business school, Rutgers university, Newark, NJ, USA.

Innovation Defined

• Innovation is creating and implementing new ideas, products, technologies, or processes.
• It provides value to individuals or organizations.
• Innovation includes technological advancements, business models, marketing strategies, and organizational processes.
• It often involves creative thinking, challenging norms, questioning assumptions, and taking risks.
• It requires a deep understanding of the problem or opportunity at hand, along with the willingness to explore new possibilities.
• Innovators need an open mindset and curiosity.

The Essence of Innovation

• Innovation is an iterative process that requires collaboration, experimentation, and adaptability.
• These traits help navigate failures and setbacks
• Innovation is crucial for individuals, businesses, and societies to drive progress and growth.
• It leads to improvements in efficiency, productivity, competitiveness, and overall quality of life.
• Organizations can differentiate themselves in the market and stay relevant by innovating.
• Innovation is a dynamic, transformative process that solves problems and adds value.
• It requires curiosity, creativity, collaboration, and a relentless pursuit of improvement.
• Embracing innovation helps individuals and organizations thrive and shape a better future.

Innovation vs. Invention

• Innovation is the process of creating and implementing new value-adding ideas, products, technologies or process.
• Invention is the act of creating a completely new and original idea, product, or technology.
• An invention is coming up with something that did not exist before.
• An invention is a breakthrough discovery or a novel creation that introduces something entirely new.

Creativity's Role in Innovation

• Creativity drives the generation of new ideas.
• It helps identify needs, envision possibilities, and imagine approaches
• Creativity is needed to address challenges and solve problems
• It allows approaching problems from different angles.
• Creativity also facilitates adaptation in a rapidly changing world by fostering flexible thinking.
• It fosters the development of innovative solutions
• Creativity differentiates in competitive environments by developing ideas that set entities apart.
• Creativity fuels continuous improvement of existing ideas and processes.

Types of Innovation

• Product innovation: Focuses on improving or creating new products/services. -Involves developing enhancements for customer experience. -It results either in inventions, modifications to products, or new offerings.
• Process innovation: This improve efficiency, effectiveness, or the quality of processes. -It aims to streamline operations, reduce costs, eliminate waste, or enhance productivity. -It may include using technologies or redesigning how things are done. Business model innovation: Involves the way a business operates, creates value, and generates revenue. -It can involve alterations structure, distribution channels, segments, or propositions
• Incremental innovation: Making improvements to existing products, processes, or business models. -It builds existing ideas and technologies through continuous efforts.
• Radical innovation: Developing new products, services, or disrupting existing markets/industries. -It often involves a fundamental paradigm shift.
• Open innovation: This involves collaboration with external sources such as customers, suppliers, etc to develop ideas. -It can involve crowdsourcing or strategic partnerships for joint innovation
• Social Innovation: Focuses on addressing societal challenges. -It involves creating innovative methods of resolving social, cultural, or environmental issues. -It occurs across sectors such as healthcare, education, and may involve multiple stakeholders including govt and businesses.

Importance of Innovation

• Innovation is a vital driver of economic growth and prosperity and job creation.
• In a globalized world, businesses must innovate to maintain a competitive edge.
• Innovation enables organizations to differentiate themselves in the market.
• Creativity and fresh approaches can help solve societal, environmental and technological challenges
• Innovation is how businesses evolve to better understand and meet various customer needs -This leads to customer satisfaction, loyalty and retention
• Innovation plays a crucial role in adapting to new technologies and changing consumer preferences. -Businesses can stay relevant and resilient
• Innovation encourages more effective and productive processes. New tech maximizes output.
• Innovation increases sustainable practices as well as renewable energy usage, and the optimization of resources

Importance of Innovation - Continued

• Innovation fosters continuous improvement, allowing companies to grow, improve, and remain ahead.
• It also provides employees the opportunity to engage in significant and creative tasks, encouraging career satisfaction, motivation, and retention.
• Innovation improves society and addresses social issues by enhancing the well-being of communities.
• Breakthroughs in healthcare and education can result from this progress
• Innovation drives success for organizations and also provides extensive benefits for society.

Technology and Innovation Across Sectors

• Technology: Companies like Apple, Google, and Microsoft are innovative and change how people communicate, work, and live.
• Healthcare: Innovation in healthcare is significant for patient care, treatments, and results through medical devices and diagnostic tools.
• Energy and Environment: Innovation is playing a critical role in sustainable energy sources and environmental preservation -Includes innovative waste management and pollution-reducing methods.
• Retail and E-commerce: There's been considerable innovation in these industries, utilizing online platforms and augmented reality
• Financial Services: Innovative payment solutions include digital platforms and tech services like mobile banking.
• Transportation and Logistics: Ongoing innovation includes electric vehicles, delivery drones, and ride-sharing apps -The aim being to improve environmental impact, efficiency and safety

Innovation and Technology

• Technology enhances efficiency and productivity in businesses.
• It streamlines communication, automates tasks, and improves data management.
• Technology also enhances project management and provides mobile work flexibility.
• Businesses can automate common mundane tasks, freeing up time for other priorities.
• Technology streamlines communication and collaboration, enabling quicker decision-making.
• Centralizing data eliminates the need for physical documentation, reducing the risk of data loss
• Analytics are more accessible with technology, leading to better company-wide efficiency

Embracing Technology

• Technology helps plan, track, and manage businesses -Features may includes task completion, progress checks, etc.
• Technology enables mobile work through smart devices
• Businesses can intergrate data more easily, and reduce human entry errors.

Digital Revolution

• Digital tools such as Email and conferencing have changed how businesses collaborate.
• It enables remote work, and global co-operation due to increased flexiblity
• There is an increase of data gathered due to the digital evolution -Businesses can analyize more data in order to enhance consumer satisfaction.
• Technology facilitates the automation of various business processes.
• Areas like accounting and supply chain have benefited.
• Innovation and disruption are driven by the digital revolution. -Uber and Netflix have disrupted traditional standards due to digital innovation
• Companies can avoid data breaches through increased cybersecurity.

Technology: Key Concerns

• Digital technologies has revolutionized how businesses engage with their customers.
• Mobile apps and online customer support have become essential
• It supports building consumer relationships
• E-commerce has been paved the way for businesses online.
• Online platforms have opened new markets, reduced costs, and increased revenue
• The digital platform is an important aspect for businesses to stay competitive

Technological Convergence

• This shapes and transforms industries by bringing together previously separate tech functionalities into solutions
• Technological convergence refers to the merging technologies, functionalities, and capabilities merged in a device.
• Convergence is driven by improvements such as digitalization, wireless communication, miniaturization.

Technological Convergence in Specific Sectors

• Communication: Technologies are combined in cellphones-
• Entertainment: Smart TVs can stream online content and access social media.
• Publishing: Electronic reading leads to easier accessibility and digitalization of content.
• Healthcare: Combining tech with medical devices leads to better monitoring and diagnoses.
• IoT: Combinations of Tech, sensors and analytics are improving the areas of automation.
• Smart Homes: AI and tech are being integrated to lighting and security services through automation features
• Understanding these trends also requires handling the ethical issues that comes with technological expansions. The issues of privacy, ethical concerns, etc.

Current Technology Trends

• AI/Machine Learning: These tech can learn, reason, and make decisions in order to improve automative practices.
• IoT: Exchanging data can transform the areas of healthcare and manufacturing.
• Blockchain: This secures systems of record in order to verify transcations. The areas of cryptocurrencies can be used for transparency.
• Augmented Reality (AR) and Virtual Reality (VR): These are reshaping our interactions with the world and online.
• Automation and Robotics: These are improving productivity by automation procedures and tasks.
• Nanotechnology: Can have possible impacts in the delivery of medicine, electricity and clean water sources.

Impact of Technology - Healthcare

• Technological advancements have been made specifically in digitizing patient information. Remote consulations and monitoring also allow doctors to track patient health in real time at a distance.
• Technological advancements help to provide AI assisted practices.

Impact of Technology - Others

• Manufacturing: Automation has increased precision at a faster rate, increasing worker safety.
• Retail: Online platforms and advanced personalization has led to enhanced digital customer experience.
• Transportation: A shift to self-driving and electronic models promise higher environmental safety, as well as taxi industries and the automation of directions.
• Banking: Tech in banking promotes secure transactions and mobile payments, with blockchain being studied as the key means of secure transfer.

Impacts of Technology - Summary

-Technology has the potential to drive innovation, increase efficiency and make business opportunities. -The challenges of cyber security and displacement of workers have been noted in order to grow appropriately while keeping standards.

Managing Technological Change

• Vision: It provides a guide stakeholders on the overall goal and plan that'll be put in place.
• Communication: Use a proper strategy that will be used to execute change
• Employee Involvement: Involve worker and provide training that'll equip them with the proper usage practices.
• Monitor Progress: Review progress and evaluate impact of organizational change.
• Encourage Innovation: Encourage openness in changes, and reward to those who can use the technology efficiently.
• Anticipate Challenges: Be ready to execute change in new technological process.

Ethical Issues and Considerations

• Data: Storing and personal data raises concerns of privacy. As such, the responsible use of customer data must be used.
• It protects from abuse.
• Cybersecurity: Increased cyber attacks raise the concern of cybersecurity. -With increased emphasis on data safety, it is critical to consider how it affects others.
• AI/Automation: Ethical concerns with AL and automation include data privacy, job displacement, etc. -Organizations should consider how AI is programmed.

Ethical Issues - Continued

• There is an emphasis that data is ethically gathered when using social media
• The issue of misinformation should be addressed immediately

Ethical Issues - Continued

• Accessiblity: A call for accessibility in digital areas comes from the digital divide. The concern must be addressed.
• Organizations are encouraged to minimize the ecological footprint of tech usage to promote sustainability
• Technology should be used for the betterment instead of harm
• It is imperative to protect data and privacy under all conditions
• In any data operation. Companies need to be transparent, and in compliance with international standards (GDPR)

Using Data Securely and Responsibly

• Data Security: Protect data and inform individuals of how the data is being processed. GDPR: Enhance regulations in EU/EA to promote safety by protecting indiviauls residing withing it.
• Organizations operate carefully with legal advice must be in mind from its members
• Data Breach Notification: Notify affected individuals from potential harms
• Transparent action and compliance, should operate in accordance with a responsible business conduct. -This helps to build consumer trust.
• Using AI technology and maintaining a safe supply and value framework

International Business

• International business involves the exchange of goods, services, investments, finance, and technology transfers between countries.
• International Business allows a company to expand its markets, consumer base. -Which inturns leads to increased profitablity
• International companies can access more raw materials through the labor and access of intellectual property to be competitive and at the same time,
• Diversification: Allows the risk to be spread across different economies and reduce vulnerability

More on benefits of International Business

• International Business improves cultural relations while improving companies
• It also fosters competition, pushing businesses to constantly innovate and improve upon itself

International Business Economic Contributions

• It attracts the Foreign Direct Investment (FDI), creates domestic infrastructure, the growth of international standards, -It also allows the spread of technology and infrastructure

PESTEL: The Factors

• These factors are what influence a companys operation, and they can be variable and significant for determining a company's long term venture.
• P - Political
• E - Economical
• S - Sociocultural
• T - Technological
• E - Environmental
• L - Legal
• It is important to take all of these factors into consideration so as to avoid trade barriers, and possible increase to business risks.

Market Conditions

• Economic conditions affect GDP markets.
• Stable financial markets improve the condition of business.
• Regional agreements improve business opportunities. All of these fall under an overall strategy called the economic environment.
• Social Factors: Understand what consumers prefer culturally and socially.
• Socio-pointical risk is a priority in assessing long term market plans.
• These all fall under the PESTEL analysis.

More on PESTEL

• The world is ever evolving, and adapting to the conditions of the world can be achieved through agility, change, and consumer centric ideas
• Digital Transformation - Transforming to digital can help businesses get to know customer bases and market more efficiently.
• Market Saturation - A market can become too abundant with offers leading to a requirement for developing innovation for your product or plan.
• Protectism - There is a rise of it around the globe, so it's important to monitor and act accordingly as a business operator.

Defining International Business

• International business encompasses the program of studying markets of entry and the global environment

6 Entry Modes of International Business

• Export - This is the easiest and lowest risk, and can be done by different platforms.
• Licensing - A more foreign method is licensing in which the business grants another company in the foreign market the right to reproduce
• Joint Venture - A more advanced strategy that has a joint partnership wit a local company to lower the amount of possible risk.
• FDI (Foreign Direct Investment)- A riskier means where there's direct investment through building subsidiaries etc.
• Franchising - a franchisor expands its brand by granting another company
• Wholly Owned Subsidiary - A maximum controlled means where the business has complete control of the operational aspects of a company.

General Considerations

Companies must consider market conditions, financial resources, risk tolerance, laws, cultural and competition issues.

• This should align to the specific objectives of the specific company's plan.
• Each method has has trade-offs as well as costs. There are Pros and cons for each of the strategies from control to the costs.

Environmental Considerations

Cultural, political and legal parameters need to be understood so as to communicate and be aware of sensitive information.

• A comprehension of market values help build relationships. The rule of law in the host location needs to be recognized.
• Complying and analyzing the risk of regulations is a requirement for lasting success.

Navigating Cultural Differences

• It's important to understand cultural norms, create cultural sensitivity training programs, and foster a culture of communications.

Managing Cultural Differences

Building cultural intelligence is key to adapting to different cultural contexts. Communication and perspectives are important.

Keys to International Success

1. Communication: Have clear goals and expectations
2. Technology: Use tech to bridge geological standards
3. Trust: Build trust with people and time zones to promote a good culture for all workers.

-There must be understanding for those in new cultural settings

• Collaboration leads to innovation when the conditions for communication are good
• Have means to resolve the differences
• Understand the different cultures the business will engage.
• Constantly evaluate the process and improve business strategies.

Innovation and IB

• Continuously research and implement new international markets.
• Facilitate market expansion through new technologies. Successfully can help expand across different cultural practices

Technology and IB

• All businesses should seek new avenues when expanding the range of new products and services
• Understanding diverse culture can help be scalable and stay ahead of the curve in the long term.