Question

Subject: Innovation and technology management

When new technologies arrive, only a few customers adopt such technologies. A large number of customer remain sceptical about the product. The cost of the new technology remain high. As a result it take long time for the businesses to focus on the new technology until the dominant design comes and the price become affordable by the large number of consumers. From your point of view, what might be the reasons established firms might resist adopting a new technology.

Answer 1

Some of the reasons are as below:

1.For new technologies it is very hard to find expert developers or experienced person.

2. Fo the new Technology project,if the company stuck at some point,there are less resources for clearing their problem.

3.New Technology cost will be high,so they can not provide quality solution at customer's budget.

4. Many customers want to stuck at the old Technology.Sometimes because of lack of knowledge or sometimes because customers don't trust the reliability of that new technology.

5.It will take extra time to adopt new technology,in the learning process.

6.The company have to invest resources in learning process of new technology,while they can use that resources for providing solution in old technology.

7.There will be need to hire new people for new Technology , money and resources will be used to hire good people for the organization.

8.There is always money and cost risk.

9.There is no guarantee of future of that technology, if the demand will not be high then all the hard work and money will be wasted.

10. Some people are very frightened for change.They cannot adopt change very easily.

So,above are reasons,Hope it will help.If you have any query or doubt feel free to ask in comment section.