Smart Technology: Outcome of Institutional Context and Human Choices - Essay Sample

Introduction

Smart technology is created by actors in a social situation and socially constructed through attaching a different meaning to it, that is, smart technology is the outcome of the contemporary interaction of institutional context as well as the current human choices. According to the previous research on smart technology, it is an objective and an external force with a deterministic effect on the properties of the organization, including its structure, as well as the result of a strategic choice and social actions (Dawson et al. 2016). For instance, the Technology Acceptance Model (TAM) has been employed in explaining the utilization of technology in the organization. The behavior has been perceived to be influenced by the intention and attitude of people. However, the model has faced criticism for being incomplete since it considers only part of the attribute of the process of innovation; hence it should be integrated into a broader model that comprises the process of social changes (Dawson et al. 2016). The paper seeks to critically analyze the organizational and economic challenges which are faced due to the adaptation of smart technology among organizations.

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Organizational Challenges

Concerning the use of big data as one aspect of adopting smart technology in the organization, data leaks may adversely affect individual privacy by disclosing some sensitive information, including financial and personal habits. Therefore, adopting the use of smart technology within the organization requires the prevention of access by authorized people and avoiding the misuse of such information (Gurbaxani and Whang 1991). While big data may provide the necessary information needed for the previous unforeseen insights, the challenge of the smart technology would be for the organization to covert the big data into simple information whilst ensuring privacy for individual information (Dawson et al. 2016). Also, as the big data improve on the quality of data, the velocity and veracity of such data may cause difficulties in interpretation.

Similarly, it is unusual for the smart technology system to, directly and indirectly, integrate with the available organizational applications. For instance, the RFIDs are directly integrated by an embedded server and indirectly integrated through a reader (Gurbaxani and Whang 1991). The smart technology may be heterogeneous based on its capabilities and protocols. Even though some studies reveal tremendous benefits of data heterogeneity, the challenge is that at the device level, it can hinder the adoption of smart technology as a result of the interoperability issues. Also, the adoption of smart technologies introduces the demand for new skills who offer such skills, which may present a bigger challenge in finding such qualified individuals because there is a greater shortage in education and training options that has led to limited skilled staff in many organizations (Porter and Heppelmann 2014).

Based on the openness of smart technology, the adoption of such technology requires that the system should permit other people to access and be able to utilize things that have been published on the internet. Many organizations believe that it is important for the operators to utilize information in their applications in a way that is permitted by their owners (Drucker 2005). Most of the studies that are based on the openness of information have learned towards the provision of data. But the duality of the openness of the system means that a mature technique is needed to publish and share information, as it ensures the accessibility and availability of the data (Fitzgerald et al. 2014). Therefore, the scalability, search locality, and real-time processing are the critical challenges that avert the implementation of smart technologies among organizations. Additionally, the duality of perpetual monitoring a vast range of information within different situations shows that various regulatory and technological challenges should be addressed before the implementation process.

The other important challenge that is faced by the organization in their effort to adopt smart technology is that organizations require safe innovation and tend to avoid risky sites. Notably, there are fundamental motives for conducting pilot operations before the implementation of innovation through the adoption of smart technology across the board of an organization; for example, it requires the approval of technical feasibility to the senior management, and that the system should be a credible demonstration model used in all the departments within the organization (Fitzgerald et al. 2014). If the adoption of the system has to succeed at the pilot site, the implementation team has to choose the site that does not pose any risk but the system that offers tremendous benefit to the organization and improves productivity.

Compatibility issue is another challenge for the adoption of smart technology within the organization because of its focus on the ability to interact, communicate, and share data across software and networks. Therefore, a lack of software and appropriate system in the adopted smart technology would prevent the exchange of compatible data. The proposed smart technology needs to be compatible with the available system, and that should be addressed in the planning process (Porter and Millar 1985). The rapidly changing technology may cause challenges in the adoption of smart technology because it creates difficulties in managing the system. The nature of technology is the basic cause of various technological management conflicts from its development up to the implementation process (Porter and Millar 1985).

The issue of training is specifically critical, regardless of the level of the system being used within the organization. Because technology forms part of the current organizational operation, it is important to have adequate training for all the employees to ensure the success of smart technology adoption within the organization (Verhoef and Bijmolt 2019). Notably, a lack of proper training for the employees may hinder the implementation and efficacy of smart technology. Another challenge is based on the internal leadership of the organization concerning adopting smart technology. One of the crucial challenges in the workplace is that not all employees, including leaders and the management at all levels, will be ready and willing to form part of a smart technology-based workforce. More precisely, both managers and co-workers can enhance the efficient and effective implementation process; especially managers may lead in promoting, developing, and implementing smart technology, which is a great challenge in the current organizational settings.

Economic Challenges

Several economic challenges have discouraged the adaptation of smart technology within organizations. For example, the insufficient fund is a major challenge for many organizations, especially those that are newly established. Research conducted by Smart Cities World (SCW) has shown that finance is a critical challenge in the implementation of smart technology because innovations involve the deployment of complex and smart infrastructure to implement digital technologies as well as the integration of smart devices to foster the achievement of the organizational innovation goals (McFarlan and DeLacey 2004). Also, the installed hardware and software require frequent auditing to ensure the safety of the information, thereby demanding a huge amount of capital to adopt smart technology (Drucker 2005). The other important challenge is that many organizations lack experienced professionals who can prepare and implement the project and those who operate the devices as well as technology experts (McFarlan and DeLacey 2004). Therefore, the adaptation of smart technology would require the stakeholders to hire a skilled team to help in the implementation processes.

The other economic challenge is that smart technology substitutes millions of jobs around the world; thus, causing unemployment, especially to those who are involved in the routine tasks. For instance, it has been projected that algorithms and machines will replace numerous jobs in the future with the increasing demand for skill sets (Hammer 1990). Therefore, the concern is whether there will be employment or people will lose jobs. Hence, the fact that smart technology may lead to job loss becomes a challenge for many organizations and many economies to adopt the system.

Conclusion

It worth noting that the adoption of smart technologies has faced overwhelming organizational and economic challenges around the world. For instance, the implementation of big data with the organization has been a hurdle because data leak may negatively affect people's privacy as it opens sensitive information, including financial status and personal habits. It is also true that the type of technology to be adopted may not directly or indirectly integrate with the existing applications or system used by the organization; thereby discouraging such organizations from adopting and incorporating such technology in their production. The other challenge to many organizations has been lack of technology expert who will operate the system and ensure that its operation is aligned to the organizational objectives. The issue of training has also been a challenge for organizations attempting to adopt smart technology because some organizations may not afford the cost of training all the employees regardless of the type of system to be adopted. Notably, money has always been a problem because the system may automatically require funds for regular auditing of the system as well as the installation cost.

References

Dawson, A., Hirt, M. and Scanlan, J., 2016. The economic essentials of digital strategy. McKinsey Quarterly, 3, p.45.

Drucker, P.F., 2005. Managing oneself. Harvard Business Review, 83(1), pp.100-109.

Fitzgerald, M., Kruschwitz, N., Bonnet, D. and Welch, M., 2014. Embracing digital technology: A new strategic imperative. MIT sloan management review, 55(2), p.1.

Gurbaxani, V. and Whang, S., 1991. The impact of information systems on organizations and markets. Communications of the ACM, 34(1), pp.59-73.

Hammer, M., 1990. Reengineering work: don't automate, obliterate. Harvard business review, 68(4), pp.104-112.

McFarlan, F.W. and DeLacey, B., 2004. Otis elevator: Accelerating business transformation with IT.

Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming competition. Harvard business review, 92(11), pp.64-88.

Porter, M.E. and Millar, V.E., 1985. How information gives you competitive advantage.

Verhoef, P.C. and Bijmolt, T.H., 2019. Marketing perspectives on digital business models: A framework and overview of the special issue.