Why might large corporations be more likely to support development of sustaining technology rather than emerging technology?
A. The risk factors are too low.
B. It’s more expensive to develop.
C. The technology is already aligned with main revenue streams.
D. They want to differentiate themselves from their competition.
The Correct Answer and Explanation is :
The correct answer is C. The technology is already aligned with main revenue streams.
Explanation:
Large corporations are more likely to support the development of sustaining technology rather than emerging technology because sustaining technologies are those that improve upon existing products and services. These technologies are generally designed to enhance the current offerings of a company, making them more efficient, effective, or appealing to customers. In contrast, emerging technologies are new and untested innovations that may require significant changes to a company’s business model, operations, and customer base.
Here’s why C is the correct answer:
- Alignment with existing revenue streams: Sustaining technologies tend to align with a company’s existing products, services, and markets. Since these technologies build on the company’s current offerings, they carry a lower level of risk. A company can continue to generate revenue while gradually introducing improvements. For example, in the smartphone industry, companies like Apple regularly update their devices with improved features, battery life, and processing power—sustaining innovations—rather than developing entirely new types of devices.
- Lower risk and faster ROI: Emerging technologies, on the other hand, often involve higher levels of uncertainty and risk because they require significant research and development (R&D) investments. Companies may be hesitant to invest heavily in technologies that could fail to gain traction in the market. Sustaining innovations allow companies to build upon existing knowledge and customer bases, leading to a more predictable return on investment (ROI).
- Resource allocation: Large corporations typically have established processes, supply chains, and customer bases. Sustaining innovations do not require drastic changes to these systems, which is why companies prefer to invest in them. Emerging technologies may necessitate the creation of new infrastructure, partnerships, and distribution channels.
In summary, sustaining technologies offer established companies a way to enhance profitability with lower risk by improving existing products, while emerging technologies introduce potential disruptions that may require substantial investments with uncertain outcomes.