Technology Adoption at MTN Group (Essay Sample)

Technology Adoption at MTN Group
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Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc421632970 \h 3Company Background PAGEREF _Toc421632971 \h 3Key Factors for Technology Adoption PAGEREF _Toc421632972 \h 4Firm Size PAGEREF _Toc421632973 \h 4Financial Strength PAGEREF _Toc421632974 \h 5Compatibility PAGEREF _Toc421632975 \h 5Support from the Management PAGEREF _Toc421632976 \h 6Government Support PAGEREF _Toc421632977 \h 7General Macro Environment PAGEREF _Toc421632978 \h 7Models of Technology Adoption PAGEREF _Toc421632979 \h 8Technology Acceptance Model PAGEREF _Toc421632980 \h 8Unified Theory of Acceptance and Use of Technology (UTAUT) PAGEREF _Toc421632981 \h 9Data Used PAGEREF _Toc421632982 \h 10Skill Requirement PAGEREF _Toc421632983 \h 12Challenges Faced PAGEREF _Toc421632984 \h 12Conclusion PAGEREF _Toc421632985 \h 13References PAGEREF _Toc421632986 \h 14
Introduction
As the world develops in terms of technology, so are businesses. The business environment has become competitive in almost all aspects today, including at the national, regional and global levels (Makhmudov 2004). Companies have to be on point with regards to technological advancement. It is for this reason that this paper focuses on the adoption of technology by organizations today. This paper is an analysis of technology adoption by Mobile Telephone Network (MTN) Group, a South African company that is among the top players in its market segment. It focuses on the known modes used for technology adoption, and those that are relevant to MTN’s strategy. In addition to this, the paper also focuses upon the key factors, relevant data, skills that were applied by the firm, and various difficulties that the company faced in the process of technology adoption. The above aspects would help in discussing the reasons behind the firm’s technology adoption strategy in an approach that sheds lights on the merits of technology adoption against its disadvantages.
Company Background
The MTN Group is a South African firm that operates in the telecommunications sector (Swanepoel, Erasmus and Schenk 2008). It was started in the year 1994 and since then, it has grown to become a force to reckon with in the African and Middle East markets (Swanepoel, Erasmus and Schenk 2008). The company recently introduced cable connection in various parts of Africa including East Africa, to further expand its market reach in the region (Pan 2010). The group has been able to control mobile subscription market since its induction decades ago. It is a top competitor and arguably the largest company in the telecommunications industry in Africa (Pan 2010). Since the laying of the cable in 2010, profits for the MTN Group have increased as the firm has been able to offer more services to other clients, than just cell phone subscribers.
Key Factors for Technology Adoption
Due to its necessity to a firm, and the amount of investment that goes into it, technology adoption is influenced by a number of factors (Suebsin and Gerdsri 2011). Such factors give the organization reason to invest in technology adoption or not. A firm that needs to adopt any form of technology in its market has to carry out a cost-benefit analysis (Pagani 2005). The analysis will help the business to understand the merits and demerits of adopting any given new technology and whether or not it is necessary at all (Al-Qirim 2004). Many companies have found themselves incapable of implementing technology adoption due to lack of planning, one the basis of facts (Pagani 2005). They end up shelving their plans when it is still too early due to the many demerits encountered along the way (Al-Suqri and Al-Aufi 2015). Due to this; therefore, Pagani (2005) argues that there is the need to identify some of the factors that are necessary for successful technology adoption.
Firm Size
The size of a firm is an important factor that requires consideration for any company that wishes to adopt a new technology (Pagani 2005). According to a study carried out by Pagani (2005), the smaller firms tend to shy away from investing in technology adoption. One reason for this is the efficiency of an expensive installation in a small business (Pagani 2005). The small enterprise could opt for an alternative way of dealing with service efficiency other than going for an expensive technology system such as communication systems. It is a fact that a small business always focuses on expansion and has no ambitious plan to invest in a huge installation such as technology adoption (Al-Suqri and Al-Aufi 2015). This scenario is usually common for small businesses around the globe.
Larger companies usually tend to take up new technology trends at higher rates than smaller enterprises (Pagani 2005). For this matter; therefore, MTN Group was capable of adopting a new technology to make it more competitive in its market, and enable it rise to greater heights. Having many departments due to its diversity, it would be ideal for the firm to take up better technological processes that will enhance efficiency and quality of its products as a global market player. The company had more to gain from enhancing its technology than what it could lose. In addition to this, MTN Group is a big company that can effectively install and sustain an upgraded technology system.
Financial Strength
The other important factor is a company’s financial capabilities (Karolyi 2015). Technology adoption requires a company to have enough money to put into it. For a company in a large market as MTN Group, there is the need to ensure that all departments and company branches are served. This process requires the purchase of equipment and outsourcing of staff, as well as training employees. There is the need for a firm to ensure that it sources enough money both internally and externally from sources such as savings and bank loans (Pagani 2005). It is a fact that companies with financial capabilities are the only ones that can adopt a new technology (Pagani 2005). MTN Group is capable of adopting new technologies due to its financial strength (Goldstuck 2006). The company has acquired a lot of capital by building on its subscribers market and buying shares in major companies, such as in Nigeria (Goldstuck 2006).
Compatibility
Compatibility stands for the extent to which a given technology can integrate into the firm’s daily operations (Pagani 2005). For a company to be capable of taking in any given technology, it has to be able to understand how such technology might fit into its regular operations (Pagani 2005). The firm, for instance, needs to bring in new technologies that will enhance its vision and mission and not try to change them (Pagani 2005). The firm also needs to observe the ability of a new technology to be adopted by the subscribers. MTN Group deals with subscribers from different regions and requires ensuring that its new technologies are compatible at all times to avoid problems. According to Pagani (2005), the new technology needs to align to the firm’s IT strategy too, in order to enhance efficiency.
Support from the Management
The level of support that a new technology6 can attract from various quarters, especially within the organization affects the success rates of that new technology (Pagani 2005). An organization must have the management’s support for any new technology to be a success. In situations where the management of a given firm is not ready to take up a new technology, it becomes difficult for any such innovation to take off. Due to this; therefore, there is the need for the proponents of an innovation to win the managers’ support through proposals and other means (Arvanitis and Ley 2012). Management at MTN Group has been supportive of technological innovation (Menachemi and Singh 2012).
This approach has made it possible for the firm to take up new technologies as early as possible, due to the need to lead the way in the telecommunications sector of Africa and in the Middle East (Menachemi and Singh 2012). Sticking in the past and being too conservative, makes it impossible for companies to adopt a given technology, making it disadvantaged against competition. A company with an ambitious competition plan will always try to develop new trends to win more clients and gain a competitive advantage in its market (Menachemi and Singh 2012).
Government Support
State support and monetary incentives make it possible for certain technologies to be adopted (OECD 2010). In addition to this, government laws on technology make it possible for firm like MTN to develop new innovations to shape up markets to their own advantage. In Africa and Middle East, governments are embracing new technologies faster than before (OECD 2010). They are creating opportunities for companies to expand their presence in markets, as well as improve their competitive advantage. Governments provide information for companies on new technology trends as well as support their bid to adopt those technologies (Solo 2014). MTN’s cable technology has been growing over the recent years, spreading from South Africa to East and Western Africa (Solo 2014).
General Macro Environment
Apart from the government, other macro environmental factors also influence the rate at which a given technology can be adopted (Pagani 2005). For instance, the competitors in a market affect the rate of adoption of a new technology. In a situation where a given business operates in a highly competitive market, there is the need for it to constantly keep up with the pace (Betz 2011). One way through which this can be done is by constant innovation (Betz 2011). In addition to competition, customers also have an effect on the rate of technology adoption by a company. They ability to learn new trends, as well as accept change, enhanc...