Operations Management: An Integrated Approach, 5th Edition

STRATEGIC ROLE OF TECHNOLOGY

Over the last decade we have seen an unprecedented growth in technological capability. Technology has enabled companies to share real-time information across the globe, to improve the speed and quality of their processes, and to design products in innovative ways. Companies can use technology to help them gain an advantage over their competitors. For this reason technology has become a critical factor for companies in achieving a competitive advantage. In fact, studies have shown that companies that invest in new technologies tend to improve their financial position over those that do not. However, the technologies a company acquires should not be decided on randomly, such as following the latest fad or industry trend. Rather, the selected technology needs to support the organization's competitive priorities, as we learned in the example of FedEx. Also, technology needs to be selected to enhance the company's core competencies and add to its competitive advantage.

Types of Technologies

There are three primary types of technologies. They are differentiated based on their application, but all three areas of technology are important to operations managers. The first type is product technology, which is any new technology developed by a firm. An example of this would include Teflon®, the material used in no-stick fry pans. Teflon became an emerging technology ...