The interrelationship among technology, innovation and quality

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The interrelationship among technology, innovation and quality

Introduction

The advancements and the continuous developments in the field of technology have changed the world completely. The organizational structures, the production departments, the mobilization, everything has modernized due to the advancements in technology. The developments in technology have provided many advantages to every sector in which technology is implemented. Innovation and quality control are two main points which have been addressed relatively successfully by the introduction of technology. The innovation has a direct relation with the technology implementation. The organizations which have aligned themselves with the growing technology have shown remarkable results (Lall, 2000).

The quality, which has been a long discussed concern since past, has been resolved a bit due to the innovation that technology has brought to this era. The management of innovation that technological changes bring is very important for proper functionality of the whole system. The implementation of ERP systems have enabled the organizations to work with more integration and with more effectiveness. As a result, the quality has improved over the last decade as shown in the past and present literature. The Management of Innovation is a continuous and structured process that enables an organization to glimpse new ways to create value and to anticipate demands and social and technological trends (Politics & Government Business, 2011).

Concept of Innovation and its link with technological changes

Innovation in business is the exploration of new ideas to improve business, creating competitive advantages and creating market success. It can be performed by the company, either individually or in partnership with other institutions and also adapting ideas from other domestic and foreign companies (Politics & Government Business, 2011). The Oslo Manual, prepared by the Organization for Economic Cooperation and Development - OECD, in its third edition, defines innovation as the implementation of a product (or service) new or significantly improved, or a process, or a new method of marketing, or a new organizational method in business practices, the organization of the workplace or external relations (Anderson, & Felici, 2012).

The Importance of Innovation

Innovation is essential for firms and economies can be more competitive in the face of competition from other countries, like China, that invade the world with cheaper products. What deal with the reality of the globalized economy? How compete beyond efforts to reduce costs and increase quality? (Dodgson, 2000) Intensifying trade relations with countries around the world, the Chinese market is extremely competitive, able to produce on a global scale, at low cost and with growing technological standards. Brazilian businessmen know that, especially in sectors such as textiles, footwear and electronics, among others (Anderson, & Felici, 2012).

How to compete?

To be competitive, companies have traditionally been concerned with two main factors: price and quality. Reduce costs to lower prices, especially with regard to labor, has always been a strategy to try and win the competition (Dodgson, 2000). Another traditional way has been to increase the quality, if you could not win on price, if ...