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Innovation, Technology, and International Business: An Introduction

• This is an introduction to innovation, technology, and international business, presented by Claude Chalem from 04/11 - 20/11/2024

Interconnection of Innovation and Internationalisation

• Innovation and internationalization have become increasingly interconnected.
• These are central development drivers since the first industrial revolution through the information age.
• John Cantwell from Rutgers Business School, Rutgers University, Newark, NJ, USA, is mentioned in connection.

Seminar Overview

• The course is a six-day seminar over two weekends in November 2024.

• 04/11: Focus is on innovation, with articles including:

  • "Generative AI-anxiety" by Reid Blackman
  • "What Is Disruptive Innovation" by Clayton

• 05/11: Focus is on technology and business.

• 06/11: Includes synthesis and conclusions articles and articles:

  • "Innovation and international business" by John Cantrell, https://doi.org/10.1080/13662716.2016.1257422

• 18/11: An introduction to international business:

  • Includes a presentation article day 3: synthesis and conclusions, individual

• 19/11: Innovation and international business

  • Articule 2 Présentation and Discussion

• 20/11/2024: Group presentation: Is innovation always disruptive?

Defining Innovation

• Innovation is the process of creating and implementing new ideas, products, technologies, or processes offering value to individuals or organizations.
• Innovation occurs in various forms: technological advancements, business models, marketing strategies, or organizational processes.
• It often involves thinking creatively, challenging existing norms, assumptions, and risk-taking.
• Deeply understanding the problem or opportunity, a passion to explore new possibilities, with an open mind, and strong curiosity are required.

Understanding the Essence of Innovation

• Innovation is a continuous, iterative process of generating, testing, refining, implementing, and scaling successful ideas.
• Collaboration, experimentation, and adaptability are necessary to navigate failures and setbacks.
• Innovation is crucial for progress and growth.
• It improves efficiency, productivity, competitiveness, and overall quality of life.
• Innovation enables organizations to differentiate themselves and stay relevant in an ever-evolving market.
• It requires curiosity, creativity, collaboration, and a relentless pursuit of improvement, creating a better future.

Differentiating Innovation from Invention

• Innovation involves creating and implementing new ideas, products, technologies, or processes that provide value to individuals or organizations.
• Invention refers to the creation of a new and original idea, product, or technology that did not exist before.
• Invention involves creating something that did not exist before.
• It can be a breakthrough discovery or a novel creation that introduces something entirely new to the world.

Creativity in the Context of Innovation

• Idea generation is the driving force, helping identify unmet needs and envision alternative approaches.
• Innovation addresses challenges and solves problems.
• Creativity fosters flexible thinking and helps adapt to change.
• In competitive environments, creativity differentiates through the development of unique ideas, products, services, and processes.
• Creativity plays a role in continuous improvement, generating entirely novel ideas, and improving existing processes.

Types of Innovation (1)

• Product innovation focuses on improving or creating new products or services, enhancing customer experience or meeting unmet needs.
• Process innovation improves the efficiency, effectiveness, or quality of existing processes.
• Business model innovation involves redesigning how a business operates, creates value, and generates revenue.
• Incremental innovation refers to making small improvements to existing products, processes, or business models.

Types of Innovation (2)

• Radical/disruptive innovation involves developing entirely new products, services, or business models disrupting existing markets/industries.
• Open innovation involves collaborating with external partners to develop new ideas, products, or solutions.
• Social innovation focuses on addressing societal challenges or enhancing well-being.

Importance of Innovation (1)

• Innovation drives economic growth by creating new industries, products, and services, generating jobs, increasing productivity, and stimulating economic activity.
• It allows companies to offer unique products or services for competitive advantage.
• Creative thinking and fresh approaches provide answers to complex problems.
• Understanding customer needs, improving products/services, and user experiences through innovation enhances customer satisfaction, loyalty, and retention.

Importance of Innovation (2)

• Adaptation to Change: Crucial for organizations to adapt to new technologies, market shifts, and changing consumer preferences.
• Efficiency and Productivity: Innovation leads to more efficient and productive processes.
• Sustainable Development: Drives environmentally friendly practices, renewable energy solutions, and resource optimization.

Importance of Innovation (3)

• Continuous Improvement: Innovation fosters continuous improvement within organizations.
• Employee Engagement: Innovation provides opportunities for creative work, boosting satisfaction, motivation, and retention.
• Impact on Society: Innovation improves lives, and addresses social challenges.

Innovation in Various Sectors and Industries (1)

• Technology: Companies like Apple, Google, and Microsoft innovate to revolutionize communication and work using AI, cloud computing, and VR.
• Healthcare: Medical devices, diagnostics, pharmaceuticals, and digital health innovations improve treatment and efficiency.
• Energy and Environment: Renewable technologies like solar, wind, and hydropower reduce reliance on fossil fuels.

Innovation in Various Sectors and Industries (2)

• Retail and E-commerce: Platforms, recommendations, and payment systems revolutionize the shopping experience.
• Financial Services: Solutions, platforms, and FinTech services streamline transactions.
• Transportation and Logistics: Electric/autonomous vehicles, smart logistics, and apps revolutionize movement.

Summary of Innovation's Impact

• Innovation is essential across all sectors it fosters growth, shapes industries, improves efficiencies, and addresses challenges.

Technology in Business

• Technology enhances efficiency and productivity by streamlining communication, automating tasks including data management.
• Project management, remote work flexibility, system integration, and connectivity are all faciliated.

Technology in Business Operations

• Repetitive tasks are automated, freeing employees for strategic activities. Automation includes data entry, processing, and customer support via chatbots.
• Seamless communication and collaboration are powered through email, messaging, video conferencing, and project management software.
• Centralized management: Physical paperwork isn't needed, lowering risk of data loss/duplication.
• Advanced analytics allows insight into data for data-driven decision making, monitoring performance, and improved effectiveness.

Enhanced Business with Technology

• Effective project management is enabled through task assignment, progress tracking, and resource allocation tools.
• Mobile technology enables a flexible and healthy work environment.
• Integration and connectivity of software streamlines workflows and eliminates redundant tasks.

Digital Revolution: Key Impacts (1)

• Digital tools such as email, video conferencing and project management software have transformed business communication/collaboration.
• Remote work and global collaborations have also helped efficiency.
• Data generated by digital technologies provide insights for better decisions.

Digital Revolution: Key Impacts (2)

• Automation and Efficiency: Digital tools such as inventory management have allowed automation in business process.
• Innovation and Disruption: Netflix and AirBnB have used digital innovation to establish market dominance.
• Business investments into data protections to safeguard their assets and maintain customer trust.

Digital Revolution: Key Impacts (3)

• Digital technology revolutionizes customer interaction through social media, mobile apps, and personalized marketing.
• E-commerce has made it easier for businesses to reach more customers.
• Digital technology has become essential for businesses to thrive in the modern era.

Technological Convergence

• Technological convergence shapes industries by merging separate technologies into unified solutions.

Technological Convergence: Definition

• Technological convergence merges technologies, functionalities, to a single device, platform, or system.
• Advancements such as digitalization enable the process.

Technological convergence implications (1)

• Communication and media's technological convergence is exemplified by smartphones.
• Smartphones converge telecommunication, broadcasting, and computing.
• In Entertainment, smart TVs converge TV, internet, and computing capabilities.

Technological convergence implications (2)

• Publishing and e-readers: Convergence of printing and digital tech = e-readers revolutionizing the publishing industry.
• Healthcare: Convergence improves patient care through wearable trackers for remote monitoring/diagnostics.

Technological convergence implications (3)

• Internet of Things (IoT): Convergence of tech creating interconnected devices and applications in manufacturing, healthcare, transportation, and at home.
• Smart homes connect devices using automation, sensors, voice control, and AI for convenience and efficiency.

Technological Trends

• They are the prevailing patterns and advancements in technology that can shape our future.
• Individuals and organizations must understand these trends to make informed decisions.
• These trends present opportunities, and require ethical consideration.

Current Tech Trends (1)

• Artificial Intelligence (AI) & Machine Learning are revolutionizing industries, enabling machines to reason, learn, and make decisions.
• Internet of Things (IoT) refers to the network of interconnected devices and sensors that collect and exchange data.
• Blockchain is a secure system that records and verifies transactions, potentially transforming supply chain management and healthcare.

Current Tech Trends (2)

• 5G promises faster speeds, lower latency, and increased network capacity.
• Augmented Reality (AR) & Virtual Reality (VR) enhance digital and physical world interaction for applications in gaming, entertainment and training.
• Automation and Robotics streamline tasks in manufacturing, healthcare, and agriculture for increased productivity.
• Nanotechnology manipulates materials for electronics, medicine, energy, material science, and environmental applications.

Impact of Technology

• Improved healthcare: EHRs, telemedicine, medical devices and AI are improving healthcare.
• Manufacturing with automation, robotics, the iOT and 3D printing.
• Online marketplaces and marketplaces provide efficiency and data analytics in the retail sector.

Examples of tech advancement impacts

• Transportation improvements via electric and self drving cars are underway.
• The banking industry sees increased efficiency with mobile technology.

Impacts of technological evolution

• Technology can drive innovation and efficiency but presents challenges
• Cybersecurity and job displacement must be managed.

Managing technological change (1)

• Vision: Develop a compelling picture of how tech can contribute to goals.
• A change management plan for steps and resources.
• Employee engagement helps adoption through feedback and training.
• Communication to explain how change will affect the employees.

Managing technological change (2)

• Training to help use the new tech.
• Monitoring of the progress and its impact.
• Fostering innovation by rewarding those who embrace change.
• Anticipate and address any possible upcoming challenges.

Ethical challenges in tech (1)

• The collection, storage, and use of personal data raises concerns about privacy and data protection.
• Cyberattacks on organizations require security of systems to protect against unauthorized access, data breaches, and theft.
• The Al application raises employment concerns that must be considered.

Ethical challenges in tech (2)

• Bias: Algorithms are created by people and can reflect biases.
• Social media can be misused with false information and cyberbullying.

Ethical challenges in tech (3)

• Accessibility and digital divide: Technology has unequal access.
• The production, use, and disposal of technology can have environmental consequences.

Dual-Use Technology

• Some technologies can be used for both beneficial and harmful purposes.
• The potential negative consequences of technologies must be understood.

Privacy and Data Protection: General Guidelines

• Handling data properly is a consideration.
• There need to be safeguards against unauthorized access and disclosure.
• Data needs to be used properly.

Privacy Considerations: GDPR

• The GDPR is a comprehensive data protection regulation that applies to organizations in both EU and EEA.
• It applies to individuals residing in the EU and EEA.
• It took effect on May 25, 2018.

GDPR Requirements for Organizations

• Consent needed before organization collects any personal data.
• Users must be able to request rectification, erasure, restrict processing, and data portability.
• Implement data protection from the start for all data processing activities.

RGPD requirements

• Breach notification required if a data breach poses risk to individuals' rights and freedoms.
• Orgs must conduct DPIAs for high-risk activities.
• Strict rules apply to organizations that require external transfers of data.

Data Privacy & Security with Technology

• With more data being collected and stored, safety is essential.
• Measures must safeguard data which includes encryption and protection regulation adherence.

Ethical Tech Considerations

• Technology has ethical challenges/
• Businesses must consider their choices in Al and automation decision making, especially around fairness, bias and discrimination..

Responsible Tech: Sustainability

• Has a significant footprint, from power consumption, to electronic waste.
• Practicing sustainability is essential.

Responsible Tech: Innovation

• Leaders must be responsible to society through technology.
• Societal impact must be known.

Trust and Reputation with Tech

• Trust builds when ethical and responsible practices are used.
• Consumers are more conscious about data and use of technology.

Intro To International Business

• International Business: Program Overview
  • Introduction to International Business
  • Entry Modes
  • The Global Business Environment

International Business Defined

- Exchange of goods, services, and resources between multinational individuals, organizations, or governments.

Multinational business, Perspectives

• Expansion of markets helps companies reach new customers beyond their countries.
• Global operations can access resources and talent not availble in home countries.
• Diversification and risk mitigation help the businesses if working in multiple markets.

Multinational Competition

• Business innovation fosters ideas, technology, and best practices across countries.
• Businesses can continue in innovation and stay competitive.
• Cultural understanding and trade cooperation improve relations, leading to diplomatic and political cooperation.

Multinational Contribution

• Contributes through foreign investment, technology transfer, and economic development.
• Economic development leads to growth for all countries.

International Business Factors

- Can vary from country to country, impacting the success or failure of a company's ventures.

International Business, PESTEL: Political & Legal

• Political stability, government regulations, and related topics can have a major impact on international business operations.
• Barriers to entry include protectionist trade policies.

International Business, PESTEL: Economic

• Economic factors that impact multinational business include: GDP growth, inflation rates, and exchange rates.
• Stable economy and financial markets can improve investment, whereas downturns can present challenges.
• Bilateral/multilateral trade can assist in the reduction of barriers.

Multinational Business, PESTEL: Socio Political

• Success can be impacted upon by varying socila standards, norms, and preferences.
• Market entry, product customization, marketing, and customer engagement can effect business.
• Continuous operation can be impacted upon by unrest, corruption, and conflicts.

Multinational Business, PESTEL: Tech & Logistics

• Facilitates communication, Info, Transporation with technology, and access to more.
• Edge/time zones for distance can both have advantages.
• Effienct logistics helps with chain management, and timely delivery.

Multinational Business, PESTEL: Environmental

• Sustainability awareness and compliance impacts international business.
• Complying with rules and sustainability standards is essential.

Global Market Trends & Challenges

• Constant evolution, and constantly evolving trends, must be navigated.
• Adapting to change is essential to remain competitive.

Markets: Trends and Challenges

• It's essential to have Ecommerce as a global market place and a digital changeover.
• You can also get market saturation.
• Companies are expected to demonstrate their social responsibility in these modern times.

Modern Threats

• Monitor rising protectionism and trade wars.
• Always adapt to consumer preference changes.
• Develop contingency plans must be developed for operations.

International Business: Entry Program

• International Business: Program Overview
  • Introduction to international business
  • Entry Modes
  • The Global Business Environment

International Business: Entry Modes

• Six Main Entry Modes to be considered
  • Exporting
  • Licensing
  • Joint venture
  • Foriegn Direct Investment
  • franchising
  • Wholly Owned Subsidiary

Modes of Entry: Exporting

• Exporting has simple and less risky entry mode in the foreign markets for companies that produces their products in domestic places.
• They can use distributors or 3rd parties as well.

Modes of Entry: Licensing

• Under licensing, a company grants rights to other companies in foreign markets, for a royalty.
• The licensor maintains technology, and the licensee risks are assumed.

Modes of Entry: Joint Venture

• A joint venture forms an alliance with a local company.
• They split profits/resources and operate the business together, mitigating all the risks.

Modes of Entry: FDI (Foreign Direct Investment)

• Direct investment in foreign subsidiaries and companies from overseas markets are considered foreign direct investment.
• Increased market control leads to risk and better access.

Modes of Entry: Franchising

• Expansion for companies that sell their business by granting rights to anothe company and replicate its model.
• This can also includes know-how and royalties for the company support.

Modes of Entry: Wholly Owned Subsidiary

• Establishing a company in new market that a fully owns and controls.

Entry Models: Consideration Factors

• Company objectives, risk tolerance, financial resources, cultural differences, legal requirements, and market knowledge are what companies must consider with entry models.

Exporting: Pros and Cons

• Pros: Minimal investment, quick market entry, market testing.
• Cons: Limited control, high costs, trade barriers.

Licensing Pros and Cons

• Pros: Inexpensive, low risk.
• New market access and leveraging local expertise.

Joint Venture

- Pros: Access to local market, split resources, ability to navigate local regulations.
- Cons: Communication needs, and the sharing of profits.

(FDI) - Foreign Direct Investment

Pros: Increased control and long terms gains.

Cons: Can have market cultural challenges.

Franchising Entry Pros: Rapid expansion, local effort, cons: potential disputes, low quality

Wholly owned Entry Options

pros: complete control, access and integration of subsidiary
cons: cultural adaptation and many responsibilities

Market consideration

• the selection of an entry based in analysis of market conditions, risk and resources

International business

Program

Global Business Environment

Understanding cultural, political, and legal differences 3 main differences to consider-1 Cultural Differences:

Cultural notes and considerations

Communication: Understand language barriers and cultural norms. consumer: Buying habits a d cultural habits. Business Etiquette: Gift giving and decision making can require to be local.

Political understanding laws a and regulation including trade, and tax policies stab;ity: assessing th ecoliticla risks. government: navigting red tape.

legal differences to keep in mind intellectual property: must understand trade an dcopy rights for markets. Frameworks: Varying contractual needs including enforcements the labolrws: working hour and wages etc,

Understanding market differentiation. Thorough market researc h is essential including legal and political nuamces Local talent has to be leveraged as well as understand th elocal laws to ensur ehtst compliance is kept.

Managing cultura diversity in organizations requires the following The unique value of a specific culture and recognize.

encouraging employees to learn more about diverse cultures and create communication lines.

training and support from various cultures must be included in the training programs/.

cultural intelligence to encourage employees. Fostering a collaborative envirometn helps with a team base. Addressing barriers to provide a helping enviroenmt. Be a lead by example. a

fostering a colabortaovei environemtn helps with teamwork. communication must be addressed

Leading by example helps set expectations. International collaboration can improve globalized organization with overcoming geographical, cultural and communication barriers.

Effective communication between teams as well as technologicaly. trust also helps keep open and honest and the culture and distance must be accounted for.

Cultural awareness also helps and is important! Roles are responsibilities with communication are important

And encourage those who are different and help include team members

• Establish a shared visiion and mechanisms resolve differences.

Collaborating with those of similar vision. Adjust for time zones and other practices Be mindful.of disagreeements and culture when communicating.

Asses success. learn form others and make sure there is change is needed.

• Innovation and international business

The Role of Innovation in International Business Technological Innovation in the Global Economy

Managing Innovation in International Business The Role of Innovation in International Business

Help companies gain a competitive edge, Adapt to changing market dynamics, Expand into new markets Innovation enables companies to develop new products or services that can address the needs of international markets. Innovation allows companies to differentiate themselves from competitors by offering unique and attractive products or services. Innovations in process optimization, automation, and supply chain management can help companies enhance their operational efficiency and reduce costs.

Managing new talents helps innovation for international businesses. learning what works helps share with other members.

New ideas and support locally helps meet the proper requirements. This flexablity helps with operations border.

International expansion involves inherent risks. Innovation can be used to develop risk management strategies and tools to mitigate potential challenges. This can include creating contingency plans, conducting thorough risk assessments, and embracing agile methodologies to pivot quickly when necessary.

By continuously seeking new ways to improve products, processes, and strategies, organizations can seize global opportunities. Innovation can enable companies to better understand and serve the unique needs and preferences of international customers. By implementing customer-centric innovation processes, companies can develop offerings that resonate with different cultures and deliver exceptional value and experiences.

This will enable companies to succeed! idenitfy with the markets of world around them. create support. adapt as needed

helps to understand innovation . Innovation fosters risk mitigation and operational efficiency International expansion involves various risks such as legal, political, economic, and cultural uncertainties. Innovation enables businesses to assess and mitigate these risks by analyzing data, building contingency plans, and developing adaptive strategies to navigate international markets more effectively. Innovation helps businesses streamline their operations and improve efficiency, which is crucial for successful international expansion. Through the implementation of innovative technologies, processes, and supply chain management strategies, companies can optimize their operations and reduce costs. Innovation, particularly in technology, has provided businesses with tools and platforms to expand internationally. Digital technologies such as e-commerce platforms, mobile applications, and online payment systems facilitate global reach, enabling businesses to connect with customers all over the world. Innovation often occurs through collaborative efforts. International expansion requires building relationships with local partners, suppliers, distributors, or government agencies. Collaborative innovation fosters knowledge sharing, access to local expertise, and effective market entry strategies.

Innovation is key to achieving sustainable growth in international markets By continuously seeking new opportunities, improving processes, and staying ahead of emerging trends, businesses can build a strong foundation for longterm success and expansion. Innovation fosters a culture of adaptability and flexibility within organizations, allowing businesses to respond to changing market dynamics, consumer preferences, and competitive landscapes. This enables companies to sustain and grow their operations in international markets.

Maximizing market penetration, customer satisfaction, and overall success in diverse global markets. Market Research: identify specific product or service features, pricing strategies, marketing channels, and messaging that resonate with local customers Localization: Customize the product or service to fit the cultural, regulatory, and linguistic nuances of each market. This may involve translating content, adjusting packaging, or incorporating local tastes and preferences into the product design. Design innovation with scalability in mind. Consider the potential for adaptation across different markets, taking into account variations in infrastructure, resources, and technological capabilities. Build flexibility into the innovation process to accommodate market-specific requirements.

International management is not that different from native operations Co-creation: Engage with customers and local stakeholders in the innovation process. Collaborate with them to gather insights, co-develop ideas, and test prototypes or concepts. This ensures that innovation is guided by local expertise and needs. Form strategic partnerships or alliances with local companies, organizations, or experts in each target market. Collaborating with them can help understand market dynamics, access distribution networks, and gain insights into customer needs for effective innovation adaptation. Feedback and Iteration: Continuously gather feedback from customers, partners, and employees in each market to identify areas for improvement and opportunities for innovation adaptation. Use this feedback to iterate and refine the product or service to better align with local needs. Leverage digital technologies to enable customization and personalization of products or services for individual markets or customer segments