Business Model Innovation-Oriented Technology Management for Emergent Technologies

Business Model Innovation-Oriented Technology Management for Emergent Technologies

Sven Seidenstricker (Fraunhofer Institute for Industrial Engineering, Germany) and Ardilio Antonino (Fraunhofer Institute for Industrial Engineering, Germany)
Copyright: © 2018 |Pages: 10
DOI: 10.4018/978-1-5225-2255-3.ch396
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Abstract

The diffusion of new technologies into the market challenges technology management in research and practice. Technology commercialisation and detecting markets at an early stage of technology development have been considered in the research on technology management in recent years; however, all technologies, when it comes to the market, need to be embedded in sustainable business models. The research and concepts of business model innovations might offer support to identify market gaps which fit emerging technology and define requirements for its development; hence, the diffusion rate for new technology, as well as its scope for competitive advantage, can be increased. This paper elaborates three main steps for developing new business models for emergent technologies through the management of technologies and influencing their development at an early stage.
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Objectives Of Business Model Innovation-Oriented Technolgy Management

The diffusion of new technologies into the market, even if they have a large potential, is difficult. Many technologies require a period of years before they are adopted by the social system. In some cases, technologies never make it into the market (Baden-Fuller & Haefliger, 2013; Gómez & Vargas, 2012).

The diffusion of emergent technologies into the market needs to aim at increasing the diffusion rate (quantity) and decreasing the adoption time. The diffusion rate is the relative speed at which an innovation is adopted by members of a social system (Rotolo, Hicks & Martin, 2015; Planing, 2014; Rogers, 2003). A good technology diffusion rate implies a bigger market demand and, therefore, greater potential for the company or institution in terms of marketing their technology. Decreasing the adoption time brings advantages in terms of competition as competitors need to develop their technologies and/or adopt their business models in order to address the same market. However, if the gradient is too high, companies and/or institutions can face problems with the provision of the technology to the customer. In this case, the demand is much higher than existing resources can handle. The big challenge for research institutions and companies is to achieve these objectives successfully. Smart Home Technologies or Green Technologies are examples of how commercialisation has had a huge impact on the success of technology as a whole (Karakaya, Nuur, & Hidalgo, 2016; Bohnsack, Pinkse & Kolk, 2014).

Key Terms in this Chapter

Emergent Technology: Emergent technology is new and coming to the fore.

Business model: Business model describes the logic of the value generation for customers, stakeholders and the company or research institution.

Business Model-Oriented Technology Management: Business model-oriented technology management integrates the concept of business model innovation, which means identifying, developing and analysing business concepts, in the management of technologies and technology knowledge.

Diffusion: Diffusion describes the accumulated level of a technology in the market.

Diffusion Rate: Diffusion rate refers to the current quantitative scope of a technology’s diffusion.

Technology: Technology uses physical principles and scientific laws to realise technical functions.

Business Model Innovation: Business model innovation is a new way to generate value for customers and stakeholders and enables the establishment of competitive advantage for the company or research institution.

Technology Management: Technology management covers all aspects of organising technology knowledge, technology forecasting, technology development, technology commercialisation and technology usage through the technology life-cycle.

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