Organizations can develop technology and innovation internally rather than relying entirely on outside suppliers or partners. This lesson focuses on research and development (R&D), its advantages and risks, and how an organization can use it to respond to changing needs. The Guidance Software example shows how internally developed tools can address emerging challenges in a technology-driven world.
All flashcards
What is internal R&D?
Research and development carried out through creative efforts within a firm to seek and develop technologies, products, or processes.
What are two important benefits of internal R&D?
It can give the firm ownership of an innovation, potentially supported by legal protections such as patents or trademarks, and build knowledge that helps with future innovations.
What are the principal risks of internal R&D?
It is often slower and more costly than alternatives, and its progress can be disrupted when key personnel who hold important expertise or provide creative leadership leave.
What does digital-forensics software help investigators do?
It helps them search for, identify, recover, collect, and examine digital information in a forensically sound manner.
What should managers consider when a technology firm is acquired?
Potential benefits such as broader resources and reach, as well as risks such as reduced independence, altered priorities, disruption, and loss of specialized expertise or innovation culture.
Quiz questions
What is research and development (R&D) in the context of internal innovation?Answer: A firm's creative effort to seek and develop technologies, products, or processes.
Which outcome can internal technology development provide to a firm?Answer: Ownership of the innovation and knowledge that may support later development.
Why can the departure of key personnel disrupt internal R&D?Answer: Important expertise or creative leadership may be concentrated in those individuals.
What is one potential benefit of acquiring a technology firm?Answer: The acquiring organization may gain broader resources, distribution, or complementary services.
When may internal development be especially useful to an organization?Answer: When its strategy depends on early innovation or its needs lack suitable external solutions.
Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.