Technology and Its Implementation on Business Model Analysis

This essay examines the transformative impact of technology on business models, with a specific focus on general-purpose technologies (GPTs). The essay begins by defining business model innovation and highlighting the role of technology in driving it, emphasizing the importance of managers adapting to market changes. It then reviews an article discussing the implications of GPTs on industry structure, emphasizing the shift from product-based to technology-based competition and the need for firms to balance innovation strategies. The essay further explores the commercialization of knowledge-based assets and the importance of understanding customer needs, particularly in the context of GPTs. The implementation section details technology licensing as a strategy for market entry and the commercialization of knowledge assets, including the identification, management, and application of knowledge within an organization. The essay concludes by highlighting the potential benefits of incorporating GPTs into business models, while acknowledging the challenges in implementation. Overall, the essay provides insights into how businesses can leverage technology and knowledge to gain a competitive advantage and adapt to the evolving market landscape.

Running head: TECHNOLOGY AND ITS IMPLEMENTATION ON BUSINESS MODEL
Technology and its implementation on business model
Name of the Student
Name of the University
Author’s Note

1TECHNOLOGY AND ITS IMPLEMENTATION ON BUSINESS MODEL
Introduction
Business-model innovation has entered the market arena in the recent decades and has
significantly contributed to the transformation of the business world. The newest entrant under it
is the general-purpose technologies. In recent years, GPTs have had a remarkable effect on
business innovators and new technologies have further given an impetus to it (Gambardella &
McGahan, 2010).
The given essay provides an explanation of general-purpose technologies for innovative
business model. It also discusses the implications of GPTs on industry structure as highlighted in
the article. The focus is on the uncertain yet expected consequence of implementing GPTs.
Further, the essay provides an overall understanding of the business innovative model applied by
the leading firms in order to stay ahead in the race.
The essay also tries to outline how managers can benefit from the arguments mentioned
in the article.
Review of the article
The article begins with a description of the business model. Here it states that a business
model is a firm’s advancement towards creating returns at a rational cost and integrates
suppositions about how the approach is going to generate and incarcerate value. Every firm has a
business model and managers are constantly in the process of improving or transforming the
model to meet market needs (Schaltegger, Lüdeke-Freund & Hansen, 2012). Businesses in recent
years are looking to improve their business model by incorporating innovation and innovation
comes from the smart use of technology. A manager amongst other things has the responsibility

2TECHNOLOGY AND ITS IMPLEMENTATION ON BUSINESS MODEL
to create and apply budgets and arrange information for senior administration as well. Keeping
this in mind, the managers can learn greatly from this article.
The growth of technology-centered markets might prompt supplementary business-model
innovation in opposite markets (Serrat, 2017). The results of the increase in technology markets
might boost the contest for downstream product-market. Many firms have adopted the licensing
of technology in the past but the rules and regulations for technology licensing have changed
with a shift in the market competition. Earlier, the rival firms used to compete on product quality
and quantity but now they compete on the use of technology. However, sensing the vulnerability
of this strategy, firms are now investing more on technology that has general pertinence.
Managers can establish a balance between these strategies and strike out a plan that supports and
promotes innovation.
The article further draws connection between commercialization of knowledge-based
possessions and business-model innovation. The market today is apparently more inclined
towards the fusion of knowledge-based economy and technology. It can be asserted that never
before has the commercialization of advanced services and products been so rapid and
demanding as it is now. Firms are willing to invest time and money on the long processes of
attaining information or knowledge about the possible use and advantage of the technology.
Managers of big firms can take a cue from this and keep in mind these points before drafting a
budget report or introducing a new idea.
Businesses today have realized the potential of the end user and they target these users
through every possible platform. The applicability and importance of the general-purpose
technologies (GPTs) in this regard cannot be denied (Coccia, 2015). However, firms are finding

3TECHNOLOGY AND ITS IMPLEMENTATION ON BUSINESS MODEL
it hard to commercialize the GPTs, as they are yet to identify the technical specifications
required for the integration. Moreover, implementing GPTs also require refined set of skills in
science and research in order to understand how and where this technology can be utilized
(Ardito, Petruzzelli & Albino, 2016). To the managers, having a market insight and
understanding of the pulse of the customers is extremely vital. Once they realize the importance
of proper commercialization of GPTs, they can plan to develop their business-model as per the
requirement of the customers.
Implementation
Technology licensing is considered as the best way for the firms to enter the market they
could not on their own. This licensing allows third party to use, modify and resell the property in
exchange of an amount of compensation. Hence, using this type of licensing will help the
companies to enter a much larger market. Moreover, it will help the business to utilize the
business skills required for operating in the market. It will enable them to utilize these
experiences from the more experienced companies to compete in the larger market. The bigger
operating companies with whom the small company will be licensing with is responsible for
controlling the downstream of the assets required for the large scale production.
The managers using this innovative business model can evade the problem of only being
license to specialists. They can further exploit the applications that may be commercially viable
across a range of market. This model also provides opportunity for the innovator to utilize
multiple downstream manufacturers by licensing. It gives manufacturer the bargaining power to
the technological firm. Furthermore, the bargaining power of the licensee remains constant in
this case. However, it hardly matters as they now will have to opportunity to sell their technology

4TECHNOLOGY AND ITS IMPLEMENTATION ON BUSINESS MODEL
to a number of firms. Hence, the use of their technology in multiple applications will increase
their overall profit.
The managers can further commercialize their knowledge based assets or intangible
assets in their business innovation. These assets are the intangible assets existing within the
organization. The manager requires identifying and evaluating the existing knowledge assets and
managing them for achieving the competitive advantage in the market. The knowledge
management involves a set of process concerned with the usage, development, renewal and value
creation of knowledge. However, it is important for the manager to identify the knowledge assets
of an organization. The process of identification and assessment involves knowledge generation,
knowledge codification, knowledge application, knowledge storing, knowledge mapping,
knowledge sharing, and knowledge sharing. These processes are interrelated to each other.
Managers can easily manage the organization’s knowledge assets by adopting these processes.
The next step for the manager is to commercialize the knowledge assets for gaining
competitive advantage. Manager requires following a series of steps for implementing the
managed knowledge assets in the organization for accessing success. The first step is to identify
the present business issues in the organization. Manager can do it by running an internal analysis.
Manager will not be able to align the knowledge assets with the organizational goal unless the
problem areas are identified. The next step is to prepare for transition. Transition means a
complete change in organizational level and not only in the technological level. The following
step involves evaluation, assessment, and prioritization pf the technological need of the
company. Moreover, it is important to identify the costing of implementation, expertise and
technological tools required for implementation of knowledge system. Next one is the
determination of aspect required in the organization. There exists various aspects like open,

5TECHNOLOGY AND ITS IMPLEMENTATION ON BUSINESS MODEL
distributed, measurable, customizable, and secure (Serrat, 2017). These aspects needs to be
considered during implementation of knowledge management system in the business model. The
manager then requires linking the knowledge with the people or employees. Two major way are
present to complete the process that are knowledge directory and content management. The
former one acts as a platform where the employees can find out the list of experts who are most
capable of performing particular task. The later asks the manager to gather, edit, and update the
information for ensuring the accuracy of the information. Following these steps can potentially
generate accountable success in the business organization.
Conclusion
It can be concluded form the above general process technology is potentially beneficial
for business organization if incorporated in the organization’s business model. However,
managers are finding it difficult implementing the technology in the model. These technologies
are the knowledge based assets or the intangible assets. The proposed method of implementation
of knowledge-based assets of the organization can bring potential benefit to the organisation.

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References:
Ardito, L., Petruzzelli, A. M., & Albino, V. (2016). Investigating the antecedents of general
purpose technologies: A patent perspective in the green energy field. Journal of
Engineering and Technology Management, 39, 81-100.
Coccia, M. (2015). General sources of general purpose technologies in complex societies:
Theory of global leadership-driven innovation, warfare and human
development. Technology in Society, 42, 199-226.
Gambardella, A., & McGahan, A. M. (2010). Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning, 43(2),
262-271.
Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2012). Business cases for sustainability:
the role of business model innovation for corporate sustainability. International Journal
of Innovation and Sustainable Development, 6(2), 95-119.
Serrat, O. (2017). Business model innovation. In Knowledge Solutions (pp. 499-507). Springer
Singapore.