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The Impact of Technological Innovation on Organizations, Work Environment

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Article · July 2006

DOI: 10.1109/PICMET.2006.296680

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 PICMET 2006 Proceedings, 9-13 July, Istanbul, Turkey (c) 2006 PICMET
The Impact of Technological Innovation on Organizations,
Work Environment and Personal Lives
Nouri Beyrouti
Lebanese American University, School of Business, Beirut-Lebanon
Abstract--New Technologies have become an intrinsic
component of our working lives. They are infiltrating every
facet of our lives and adopting an increasingly organic quality as
they become, literarily, part of us, rather than something “out-
there”, as they have been through out human history.
These technologies will certainly make it easier, quicker,
and less expensive for all people to communicate with one
another. They may contribute to the globalization of not only
trade and commerce and to greater international political, social
and cultural integration and a move away from the tribal and
ethnic conflicts that have dominated human history.
The “virtual corporation” and “Visual Workplace” will
become an increasingly common organizational form.
Furthermore, mechanisms to “manage” technological changes
have been historically unsuccessful, as technological
development has always out passed the ability of governments or
business to regulate its use. The transition from nation-based
industrial age to a global digital age will require people other
than technical specialists to provide input into developing new
management and leadership skills.
This paper describes these new and emergent technologies.
It then looks at their effects on organizations and management
practices and their potential impact on global organization of
the future. Also, this paper examines how leaders and leadership
can deal with the impact of new technologies on their
organizations, employees and work environment.
I. INTRODUCTION
As organizations and societies sail into the twenty first
century, there is a growing interest in the ways that
technology affect business firms work environments and
human behavior. The psychological and sociological factors
involving the quality of work and organizational
environments impact on the demands placed on workers and
managers in the corporate world, and on individuals in
various societies. But today’s environment is full of
uncertainty, market challenges, changing workforce
demographics, social and political pressures and not least of
all technological advances making today’s organization one
of the constant changes. One way technological innovation is
changing the grand rules is the increasing capacity to
generate more information than people can absorb, faster
more interdependencies than anyone can manage, and
accelerated change faster than anyone’s ability to keep pace
[20]. Organizations in the global marketplace continue to
experience tremendous change. Technology is crucial for
both nations and firms, and technological innovation becomes
critical to enable organizations to survive the global
competition.
This study complements existing research by focusing on
describing new and emergent technologies and future
1133
possibilities. It contributes to the intelligence of empirical
technological innovation research and management practice.
First, it discusses the impact of technologies on organization
culture and performance. In addition, it explores the
associations between technological innovation and work
environment performance. Lastly, it investigates the impact
of technologies on people lifestyle and quality of life.
II. TECHNOLOGIES AND THE FUTURE
New technologies are revolutionizing the world of work.
They have already become an integral part of organizations
throughout the world, driving the growth of the two most
powerful new forces in the global economy-cyberspace and
computing power. In turn, these technological innovations are
creating formidable new changes for organizations and
employees. A technology or a process will be implemented
within an organization either because a performance gap
leads to a managerial need to change technologies or process
(i.e. managerial pull), or because a promising new technology
emerges (i.e. technology pull) [2]. The underlying objective
for the implementation of a new technology or process
typically is the anticipated contribution to the performance or
effectiveness of the adoption organization [6].
In recent years, our working and home lives have been,
quite literally, invaded by technology. This invasion is only
the precursor for more radical changes as the very nature of
organizations and even “work” in the Taylorist sense is
irreversibly changed. Tom Peters captured the possible
impact of these changes when he observed, “Thanks to
technology, the world is going bonkers. And its going to get
more bonkers cubed on the way” [23].
There are many factors driving the wave of technological
innovation. The most important of these are the human race’s
insatiable curiosity about its environment combined with its
unique ability to both utilize tools and innovate with them.
Other factors include the globalization of increased
competition for markets and changing consumer and
customer demands [10].
Organizations now have the flexibility to restructure
rapidly to suit fast changing competitive environment and
customer needs. Technology provides organizations with the
opportunity to communicate and transact business more
efficiently and effectively than at any time in history [7].
Technology will no longer be “external” to us. It will be
part of the furniture, the walls, the urban fabric, and the cloth
we wear and even our bodies. Intelligent networks will link
all facets of our lives. We may soon be able to enhance our
memories and learning capabilities both through designer”
 PICMET 2006 Proceedings, 9-13 July, Istanbul, Turkey (c) 2006 PICMET
mind” drugs and intelligent entities to do more managing for
us; or “techno mentoring”.
III. REVOLUTIONARY TRENDS
Kurzweil contends that human beings will no longer be
the most intelligent capable type of entity on this planet. For
the first time people can afford to realize even their wildest
dreams. The potential resources at human kind command
already exceed anything they might need to create a Utopian
future. People already have found, energy and mineral
resources which are needed for the immediate future, and
those needed for the longer term await development in space
if not on Earth. The development of society and changes will
affect the very fabric of the society. Thus, work, leisure and
even the hallowed institution of the family are not
disintegrating but are all metamorphosing into radically new
forms because of the adoption of new technologies. Above
all, the individual is gaining control of his/her own destiny
[19].
Kurzweil sees computer melding with humans to make
flesh and blood an optional (though not necessarily optimal)
choice for truly intelligent life. Stock believes inheritable
genetic enhancements will boost human memory, strength,
and life span to produce a super race, perhaps within the
present generation. Drexler envisions tiny machines capable
of building any molecule to order one atom at a time, making
it easy to produce any substance on demand. These machines
might manufacture table-ready food to feed the hungry, turn
water to wine, or change lead into gold. Collectively, such
visionaries foresee the present headlong rush of new
discoveries and technologies creating a “heaven” of affluence
for all humankind. [18].
Nanotechnology and today’s nanoscale technologies,
whatever its proximate goals – is leading in one general
direction: toward the ability to build things smaller, with
greater precision. Thus, all the different paths ultimately lead
to the same place: a technology where we can design things
atom by atom, and build them as specified.
Such a technology: biotechnology. The DNA
“blueprints” and all the molecular machines inside the cell
are built with atomic precision. So we know its possible [11].
Nanotechnology could turn sewage into breakfast;
transcontinental flying cars are another distinct possibility.
Total, all-senses virtual reality, done by injecting signals into
our sensory nerves or brains, is on its way. Towers not just
miles high, but hundred of miles high, are quite feasible. The
countertop synthesizer or “matter printer “will revolutionize
the way we acquire household objects and food [11].
Consider the fact that your waste stream – garbage and
sewage alike – is transformed into enriched soil by decay
bacteria. Grass and trees grow on the soil. Cows eat the grass.
The same atom you discarded is rearranged into steak, milk,
wood, and apples by natural molecular machinery.
1134
Turning sick bodies into healthy ones or aging bodies
into young ones is another transformation involving the
rearrangement of atoms [11].
People design and produce technology for other people
with different purposes. Most of us in the world do not ask
where the technologies come from and why they are designed
in a special way. But the development and use of technology
emanates from and remains linked with human values,
dreams, needs and circumstances prevalent in society. The
designers’ visions of the future system are created within
discourses where gender and technology are both (re)
conceptualized and (re) constituted since system designers
“act and are inside this world, not some other” [13]. That is,
an unequal world (society). Erik Sloterman [21] contends that
visions into view very near the beginning of the design
process before the present domains or situation is analyzed.
The designers’ ideas, values and understandings are
intertwined with their visions of the choice of a certain
functionality, structure or technology of the future system,
service or artifact. But the result, a new system that is not
always what the producers expect when they introduce it,
people do not always do what the developers expect them to
do [11]. The usage of text messages (SMS) offered in the
Global Mobile System is an example of an unexpected use of
a technology or mobile service [3]. The telephone was the
first electronic network prosthetics [22] and mobile
Telephones (cell phones) can be seen as something which are
similar but also something completely different to the
conventional telephone, because they help to create a
different lifestyle, values, another type of communication.
To have a cell phone is also about fashion, as with
clothes, the discussion being for many about the latest model
and all the new technology available in the latest brands. This
discussion about fashion seems nonetheless to be more
common amongst the young, becoming an important
instrument for them to define their personal space [17]. The
incorporation of technologies in peoples’ everyday lives
could be interpreted as a process of domestication whereby
technologies and services are tamed and cultivated [15]. Yet
this image or metaphor of technology runs the risk of
portraying the developers of IT as modest witnesses without
responsibility for the kind of technologies and services they
design [13]
The Internet has a number of features that make it unique
and revolutionary. It is not “owned” by anyone – in spite of
the recent efforts of Microsoft. It is largely open and non-
proprietary and anybody with the appropriate hardware and
software can link up with it. Businesses are now registering
Internet domains and designing sites on the World Wide Web
with great speed, recognizing that cyberspace will be a
primary driver of economic growth in the new millennium.
Cyberspace has revolutionized the way people communicate
with each other and the way information is disseminated in
organizations. We are enveloping our planet with a global
network in which all humans can be connected, work and do
business together. Everyday, new technologies are born that
 PICMET 2006 Proceedings, 9-13 July, Istanbul, Turkey (c) 2006 PICMET
transform our world and the world of multifamily housing.
Bringing to life innovations in security, electronics and
communication [1].The apartment of the future will have new
and innovative designs, especially for communities in urban
areas. Communities will include more places for public
interaction, such as internet cafes and outdoor meeting places
[1].Residents will be able to customize their homes: walls
will fold back; beds will be inflated and deflated and turned
into desks. Interiors/ furniture/accessories will be transformed
or tucked away so the entire apartment can be opened up for
get-togethers [1].The apartment of the future will focus on
two primary areas: security and wireless technology, which
will work in harmony through a central point of management
at the leasing office [1].Once residents have signed their
lease, biometric readers will complete fingerprint and retinal
scanning for tenant access to individual units, parking areas,
exercise rooms, pools and entertainment facilities. This will
insure the highest level of security, while allowing
management to monitor common area usage. It will also
eliminate the need for new locks and keys [1].The apartment
for the future will be fully wireless with internet- ready
appliances, which will all be controlled from the biometric
remote control provided. The remote could also be used with
child GPS or K.I.D.S systems (kid-identification/detection
system). Residents will be able to view the location of their
children from an “aerial “view/map of the apartment
property, ensuring their safety[1].
Current mechanical enhancement – filling in teeth,
pacemakers, hearing aids, contact lenses- are likely to be
joined in the years ahead by many more parts designed not
just to replace our natural abilities but to extend them. These
include contact lenses and cochlear implants that serve as
wireless interfaces to the global internet, and implanted nano-
bio-computers that extend the brain’s memory and expand
cognitive powers. The field of biological research and health
sare are likely to intersect intimately with electronics and
software development .human bio-enhancement promises to
be a very big field with crazy soundings hyper job
opportunities, such as bioaesthetic coaching, somalectronic
integration, experience design, and personal genome
optimization. to create the hyper job you want , network with
like- minded peers [18].
The trend of healthy lifestyles, coupled with technology,
will continue to gain momentum during the new millennium,
redefining the role of healthcare professionals and shaking
the health industry to its foundations.
Information available on the internet and e-health will
enable patients to become full participants in their healthcare,
leading in turn to collaborative treatments and “homework”
for the patients.
Technology will play an even greater role in the new
healthcare paradigm. Telemedicine and e-health will allow
patients to personally manage their medical records and
health needs. They will access the finest healthcare in the
world just by traveling to a telemedicine-enabled clinic or
health center in a nearby town or across the nation.
1135
New devices such as WEBTV may accelerate the
acceptance of the internet by the elderly. A challenge for the
future is that the internet – empowered patient movement has
only begun to reach the oldest old and the dying.
Care, management technology will be widely used to
monitor and advise the chronically ill. By allowing
technology to manage the repetitive aspects of healthcare, the
physician will able to concentrate on the emotional and
sociological needs of the patient.
Communication in the information age no longer
requires employees to be in physical contact with each other,
their customers or even the companies that employ them.
People can communicate directly and instantaneously, not
only on the one-to-one basis common to traditional forms of
communication but also one-to-many and many-to-many,
simultaneously. These information networks will
revolutionize organizations in other ways. Computer
technologies are further accelerating the evolution of
communications systems. In the near future, it may become a
normal feature of the working environment. To enter this
environment, a person “virtu-commutes”, by donning virtual
clothing that includes a light-weight head-mounted display,
and data-gloves. Others appear in the environment as
holographic images, which are closely matched to their real
appearance. All indications suggest that virtualization is
inevitable and its effects on all organizations will be
profound. Virtual environments have the potential to break
down the barriers that have always divided humans and
machine technologies. Cybernetics is also emerging as
another new frontier of technology. This represents the
merging of technology with biological systems. Electronic
devices are now routinely implanted into the human brain. In
the digital world, the boundaries that once separated physics,
poetry, metaphysics, and other disciplines are beginning to
blur. Nanotechnology is emerging as a world transforming
science, bringing together physics, chemistry, and biology.
Digital media combine text, graphics, sound, and data in
such a way that we experience things in a much more
integrated format- multisensory, multimedia, and
multinetworked. As a result, boundaries separating
disciplines, organizations, structures, and people begin to
dissolve. We see convergences of things.
In a digital environment, things that might take decades
to surface within natural systems can show up within
minutes. Convergence is perhaps the key characteristic of the
coming digital era. Convergence is an inherent property of
our digital medium of information and communications,
because all its many forms (text, image, and data, sound) can
exist on a single medium. As a result of digital media, our
basis of knowing and understanding is shifting to an
interactive, global, anytime, anywhere, multimedia
experience with countless sources to explore and test.
 PICMET 2006 Proceedings, 9-13 July, Istanbul, Turkey (c) 2006 PICMET
IV. ORGANIZATIONS AND TECHNOLOGIES
The impact of these technologies on both employees and
organizations will be profound and the challenge for
managers now is to anticipate and ameliorate the impacts of
these [16]. A range of factors, including technical innovation,
the globalizations of business, increasing competition and the
growth of new consumer markets, are driving rapid advances
in new technologies. The future does not look good for
traditional jobs- or “regular activities performed in exchange
for payment,” as dictionaries and public perception define
them. Their days are numbered. But wonderfully new and
better kinds of work lie on the near horizon: hyper jobs [18].
Technology is, by its very nature, a job killer. The whole
idea of tools, machines and systems is to do things more
easily, faster, or better than barehanded humans can. White-
collar workers may currently feel comfortable about their
own prospects, but in fact service occupations- including the
most technical and intellectually demanding- are the new
targets of technological advance [18].
Everyday we see new evidence of service-sector job
erosion: grocery checking taken over by self-service checkout
stations; telephone directory assistance taken over by speech
recognition and response systems; air terminal counterwork
taken over by increasingly sophisticated sophtware
applications [18].
New technologies, in symbiotic fashion, are driving the
development of cyberspace, virtual reality and a new
generation of self-learning intelligent computers. Therefore,
we must start to think about the potential impact of these new
technologies on organizations. Organizations will continue to
fragment and die with ever increasing frequency and
unpredictability. “Merger mania” will continue inexorably
amongst large bureaucratic second-wave organizations that
are unable to maintain their competitive advantage in a third-
wave economy. The “virtual corporation” will become an
increasingly common organizational form. Many more
employees will become highly mobile through the use of
smart-phones and other devices that integrate PC
technologies with e-mail, mainframe computing and satellite
systems. In financial services, advertising and consulting,
working away from the office most of the time will become
the norm. Forecasters have predicted that 60 per cent of
professionals in the USA will be doing this by 2010, marking
a return to working patterns that last prevailed in the pre-
industrial age [8]. The Internet will be the primary
communication medium of the twenty-first century – e-mail,
work, TV, banking, medical consultations, education at all
levels, learning, creativity and design and even dating will be
conducted through this medium. Personal communication
devices will be integrated into our bodies. Through bio-
technologies humans will acquire a cyborg-like quality. It is
even possible that future employment may depend on the
willingness of employees to undergo surgery designed to
increase the brain’s processing speed or to increase their
memory capacity. Fitness, health and cosmetic surgery are
1136
already huge businesses in the USA, as older employees try
to stay ahead of younger colleagues. Companies in the USA
already make promotion, hiring and firing decisions on the
basis of appearance, fitness, health and personal lifestyles
[14]. Intelligent networks will link all facets of our lives.
Cyber-communities, embracing all these technologies, will
become more commonplace. New technologies may make
work even more flexible. People can work away from the
office much of the time. In the past when the door was
closed, business was closed. This delineation between work
and home is now a thing of the past for many employees.
Whilst this may improve productivity and efficiency for
companies, it also has the potential to increase stress and
reduce the opportunities that employees have to “re-charge”
after work. Physiological pressures and stress-related illness
claims have already increased at an alarming rate in all
industrialized societies over the last decade, causing
increasing absenteeism, lower productivity, high staff
turnover and increased job-burnout [3]. Companies may need
to offer programs and policies that help employees to better
balance their work and family responsibilities, in order to
retain them [9].
V. FUTURE MANAGEMENT AND LEADERSHIP
Another potential effect of these new technologies is the
increasing isolation of individual employees. The virtual
environment still looks and feels very artificial and cannot
provide a sense of social connectivity that underpins all
traditional approaches to managing people. With reduced
human interaction, people may become de-sensitized and
detached from others. There is a real potential for people to
turn their backs on the real world and become “contented
zombies”: wandering around synthetic artificial worlds.
There are indications that this is already happening. These
technologies will certainly make it easier, quicker, and less
expensive for people to communicate with one another. They
may contribute to the globalization of not only trade and
commerce and to greater international political, social and
cultural integration and a move away from the tribal and
ethnic conflicts that have dominated human history. The
transition from a nation-based industrial age to a global
digital age will require people other than technical specialists
to provide input into developing new management and
leadership skills.
Furthermore, mechanisms to ‘manage’ technological
changes have been historically unsuccessful, as technological
development has always outpaced the ability of governments
or business to regulate its use [29].
New technologies mean that employees are increasingly
able to work for organizations where the work environment is
the employee’s home or anywhere else they happen to be.
The isolation of individuals within virtual organizations may
lead to feelings of alienation or anomie amongst employees
who feel they don’t belong either to a team or to a larger
organization. To ameliorate the impact of isolation or cyber-
 PICMET 2006 Proceedings, 9-13 July, Istanbul, Turkey (c) 2006 PICMET
stress, organizational leaders need to understand that almost
all humans are genetically hard-wired to be social [5].
This has profound implications for the teaching ob
traditional models of leadership and management in business
and management departments.
Working in this environment will also create enormous
challenges for employers and employees. New strategies are
urgently required to effectively manage the impact of these
emerging technologies. successful management in a high tech
virtual organization may well utilize some of the principles
of best practice in traditional organizations [4]
however, there is little doubt that new technologies will not
only continue to accelerate the pace of change in
organizations but they will begin to do more “ thinking “ and
“managing” for us.
VI. CONCLUSION
World trends seem to show such rapid progress in so
many areas of technology that it almost certainly brings us
incredible new feats and human achievement.
The trends indicate that humans will be better off
economically. Wealth will increase due to rapidly improving
technology throughout the world economy. Brought together
by telecommunications, people around the world will work
together more efficiently than ever before.
The rapid pace of change will mean that workers must
increasingly reinvent themselves for the workplace.
Permanent jobs may largely disappear. Temporary jobs, short
term projects, and consultancies will become increasingly
common.
Scientists in general make poor futurists. The job of
scientists is to establish facts by careful experimentation,
documentation, and repeated testing until that fact is as
certifiable as human inquiry can make it. If futurists waited
for the kind of verification that scientists require, they’d be
historians. In fact, a historian- particularly a historian of
technology – makes a much better futurist than does a
scientist. Beyond the immediate horizon of what’s in the lab
today, the future is shaped by the same forces that shaped the
passed, and the past is one of our best guides for prediction.
Future technology is shaped by what people want. It’s
also shaped, of course, by what is possible. But a lot more is
possible than people, scientists in particular, realize[11].
The implementation of new technologies will mean that
increasing numbers of employees will spend more time in
virtual reality, suggesting that employees will be out of sight,
if not out of the minds of their managers. Managers will no
longer have employees down the corridor or within the same
building, available for unscheduled meetings or briefings.
This raises two important questions. Why should trusted
employees devote energy and time to a disembodied
organization? How do managers relate to employees who
they may not see for extended periods? Both issues can only
be addressed by developing strong elements of trust in both
directions. In short, high-tech has to be balanced by high-
1137
touch in order to build high-trust organizations [23]. Handy
suggested, a few years ago, that the development of trust in
virtual organizations needs active bonding and contact
between employees and the leaders of organizations. This can
only be achieved through personal human contact for now
[12]. We also have little idea what their impact will be on
what we currently describe as “management”. We need to
start developing a new paradigm that is able, conceptually
and practically, to get to grips with the possible effects of
these new technologies on both people and organizations.
Hence, one of the most important roles for leaders is to
be able to predict the effect of the new technologies on their
organizations. Traditionally, the primary role of leaders is to
define reality. Leaders of organizations need to develop an
awareness and understanding of the reality of new
technologies but also to recognize their limitations.
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