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Introduction
Organizations believe that adoption of a new technology or an external source of technology will help improve the technical processes as well as the manual undertakings in the business. Appropriation of an external technology by the organizationtherefore is a process which the managers should be very keen with so as to ensure that the technology will fit in the system and bring better results. They should also put into consideration the requirements needed for appropriation and the problems faced during and after the acquisition. (Mehdi 2000).
Challenges to be addressed during the appropriation of technology from external sources
There are many challenges that an organization faces during the appropriation of an external source of technology. The managers therefore should identify them and take care of them to avoid problems during or after the appropriation of technology.
One of the challenges faced is the need for new skills. The external technology may require use of skills by the employees which they might not have. The organizationwill therefore be required to seek training of employees or even get new persons who have the knowledge of the new source so that it becomes operational. Lack of the skills and knowledge of the external technology may cause conflicting requirements between the technology and its users therefore the organizationshould ensure that its adaptability is easy by ensuring good training of employees to enable them gain skills and knowledge of the external source, it can also hire professionals who have ready knowledge and skills to operate it. (Stuart, Martin, Gregory & Bruce, 2003).
Another challenge faced by the organizationis resistance to the technology by the employees and the organizationat large. An organizationusually has an already established technology which is used by the employees and used to run the processes in the business, adaptation of an external technology may therefore be met with a strong resistance because the employees may find it as a disruption of the already learned skills and running process of the form. They may feel that the current technology is okay with them and feel unprepared for a new one.
The organizationtherefore has an obligation to explain the importance of acquiring the external technology, show the benefits it will bring to both the organizationand the employees and ensure that it increases motivation, production and general outcomes in the organisation. (Mehdi 2000).
The third challenge is the cost of external technology appropriation. There are many costs that are involved during the appropriation of an external technology in an organisation; training costs, cost of technology acquisition and installation costs are examples of the costs. The organizationshould be well prepared with the finances required, ensure that there is enough money for the whole process and also ensure that the organizationis in a good financial position to prevent shortage of finances as a result of the acquisition of the external technology.
Another challenge is obsolesced of technology. In the recent times, technologies are changing frequently as the technological needs are increasing with time. The organizationshould be aware of these changes and try to adapt an external technology that will not be beaten by time in the near future. It should acquire a lasting technology which may just ensure good management and minimum updates. It should also be able to meet the needs of the present technological world so that the business processes and its usage are up to date.
Another challenge is gap creation. An external technology can create a gap between the ‘haves’ of the society and the ‘don’t haves’. This means that the technology can create a gap between those who are able to afford the technology and those who cannot afford it; the organizationshould therefore ensure that it brings equity in the organizationand the society at large to enable good communication and relationships in the business and the society at large.
The logical time for a firm to choose external sourcing over in-house development
There gets a time in an organizationwhen a great need of external technology arises over the in house development.
One of the instances is when the organizationwants to adapt to external outsourcing is when it wants a flexible technology. Externals sourcing is usually flexible and provides various support options in the firm such as release, licensing, distributions and developments. An organizationthat needs a flexible system of information and technology should therefore choose an external technology for running the business. (Paap 2008).
Another instance is when the in house development is unreliable. An organizationmay be faced with a problem of unreliability of the already existing source due to insolence; the organizationcan therefore adapt external; sourcing at the instance because it is more reliable in its operations and processes and it fits well into the system. (Webb & Cleary 2004).
Another instance is when in need of a maturity and longevity of a technology. When the current technology source is short-term, an organizationcan opt for external sourcing because although it is slow at first, it gains momentum as it goes on and ends up bringing long term results and maturity of the organizationsystems. (Joe & Martin 2007).
An organizationmay be pressurised by its competitors or clients to produce better results at a much less time span; in such case, the organizationcan choose to adopt external sourcing over in house development because it is more efficient and it is able to bring better results within a given time range. The external sourcing also simulates innovation and a new way of thinking in the firm and it is innovative in terms of resources, risks and resistance in the business. It is also able to overcome challenges and pursue innovation for better results and innovativeness. (Samsons 2000).
The reasons for organisations to replace a technology
There are many reasons that may make an organizationdevelop a need of replacing existing technology in the firm with an external technology.
One of the reasons is due to change in time. The existing technology in the organizationmay be worn out with time and does not match up with the current technological needs in the business; the organizationtherefore needs to replace the existing technology with a more advanced technology which is up to date and is able to handle the current needs of the clients and also keep up with competitors and time. (Suzuki 2003).
Another reason for technology replacement in an organizationis due to a need for a fitting and user-friendly technology. The existing technology may be strenuous to the users making their work hard. The organizationwill therefore see the need to replace the technology with one which is user-friendly, more comfortable when using, motivates the users and brings favorable results to both the organizationand the users.
Organisations can also replace technology when they require more experience, skills and knowledge in the organisation. Replacement of the existing technology therefore means that the users will have to get more experience from the new technology which will be for the benefit of the users and the organisation. (Hoag & Cooper 2006).
In conclusion, an organizationshould be aware of the challenges that come as a result of acquisition of an external technology in the firm and find ways of overcoming them. It should also be aware of the appropriate time to adapt external sources over in-house development and also when the replace an existing technology in the organisation.
Bibliography
Hoag B & Cooper C, 2006, managing value based organisations, Edward Elgar publishing, ISBN: 184064981X.
Mehdi K, 2000, challenges of information technology, idea group Inc (IGI), UNITED STATES.
Stuart E J, Martin C.L, Gregory F T, Bruce W B, 2003, new challenges, Rand Corporation, ISBN: 0833032895.
Paap E J, March 2008, technology scouting to accelerate innovation; implementing an external out sourcing program, Cambridge Massachusetts.
Joe T & Martin T, 1997, R&D management, 24(4), p359-375, Blackwell publishing, United States.
Samsons P A, 2000, the outsourcing R&D kit, Gower publishing ltd, ISBN: 0566083140.
Suzuki K, 2003, policy logistics and institutions of Europe, Ashgate publishing ltd. Europe.
Webb J & Cleary D, 2004, organisational change and management of expertise, Routledge, Europe.
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