Inter-relationship between Innovation and Entrepreneurship
Entrepreneurship is an essential industrial development factor in a country. It is the basic character of an entrepreneur. It initiates novel products and develops means of production and organizations to make them marketable. Entrepreneurship leads the quantum leap in technology and forces resources reallocation away from current uses to productive and new users. Entrepreneurship is a micro driver of innovation. Therefore, entrepreneurship entails innovation. Entrepreneurship and innovation concepts contain multiple meanings. The two are mostly considered as overlapping concepts. This was first insinuated by Schumpeter’s definition of entrepreneurship, where entrepreneurs are regarded as people who conduct innovations (Nagaraju, 3).
The entrepreneurship concept is closely related to the innovation element, as it involves doing something new or doing existing things differently. It involves new production processes, the introduction of novel products, new market creation, and the discovery of novel and more improved forms of industrial organization. In the quest to improve the quality of services and goods, and to be more competitive in the market, entrepreneurs end up focusing on being innovative. They find new ways of doing this to remain differentiated in the market. They always focus on solving new and existing problems in society, creating a new market, or be more competitive in the existing market. This makes all entrepreneurs innovators (Nagaraju, 3).
The Risks and Benefits of a Social-Organization as it Related to Change and Innovation
Social organizations mostly focus on solving social problems to improve the living condition of targeted people. Social organizations perceive innovation as a means of solving social issues, based on a novel form of economy that employs aspects of current logic linked to other elements that focus on contributing to social welfare. Social innovation addresses changes in the social environment where new social systems and institutions are developed in a logic that shifts from the individual to the collective. The benefits of innovation and change in the social environment are that they introduce better ways of solving social problems in terms of cost and effectiveness. Innovation enhances inclusive growth as it enhanced the implementation and development of novel ideas that aspire to generate chances that enhance economic and social well-being for marginalized members of society. The main risks of innovation and change are that they are full of uncertainty (Bittencourt, 1). Innovation involves doing a new thing or an existing thing differently. It is highly based on ideas and projections. There is no guarantee that things will turn as anticipated. It is therefore of a process of taking risks. In a situation of failure, this may result in a huge cost that may be hard for social organizations to bear. Where change is inevitable, social organizations have to employ risk mitigation while implementing innovative ideas.
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Speculation on How Artificial Intelligence (AI) and Robotics will Influence Organizations in the Next 10 Years
Artificial Intelligence (AI) and robotics have brought a great change in our organizations today. They have taken over most of the repetitive tasks from humans, doing them more efficiently than humans ever did. They have also taken over some of the high risks tasks especially in military and security agencies and helped in reducing operational risks in hospitals. Generally, AI and robots have enhanced work accuracy, safety, and efficiency. They have also helped in reducing the cost of operation and increasing the general output due to minimized errors and the ability to work repetitively for a long time without negative health impacts demonstrated by human workers (Dirican, 2).
Moreover, robots reduce the safety demands and other human labor welfare demands that must be accomplished in a company. This means less chaos and go-slow incidences in an organization. Consequently, most organizations are working hard to implement AI and robotic technology. With the competitive advantage offered by AI and robots, it is likely their use in organizations will have increased from the current rate by a huge value, in the next 10 years. Most organizations will have more robots than human workers. Only fields related to developing and maintaining robots may remain marketable for humans in the future. The labor cost will go down in most of these organizations, increasing the production rate and profitability.
Risks that the New Technologies May Present to Existing Industry Models and Economic Systems
The main risk of the new technologies especially AI and robots is loss of livelihood for the majority of the working class. These technologies have highly replaced human workers in most industries. This results in an increase in the level of unemployment in countries implementing them. Consequently, the majority of workers in semi-skilled and administrative levels have been replaced by technology. AI ensures that tasks are accomplished by fewer people than before, with high accuracy and high time efficiency. This makes them more preferred by most organizations. This means more organizations will opt for the use of these technologies in the future, phasing out a huge number of workers, and reducing the significance of the human resource department. Although such organizations are likely to cut on cost, increase their production rate, this may cause low human purchasing power due to a high level of unemployment. Consequently, the anticipated financial benefits may be unattainable to all in the future, after the technologies dominate the industrial model. This means in the long run the technology may affect the social system and the economy negatively.