There is seldom a shortage of hype surrounding new technology, but hype is equally seldom much use to managers seeking to determine whether a technology is actually valuable to them or not. Research from ETH Zurich highlights how managers can more effectively hone in on the real uses for such innovations.

After a five-year study of the industrial drone market, the researchers found that a rigorous “use case” approach that is underpinned by straightforward questions, such as whether the technology would allow firms to be more efficient or would it add a layer of complexity, would help managers to understand whether the technology would address real problems or be window dressing.

Assessing the technology

“Managers are caught in a potential bind — they face the hype and excitement of new technology but their conventional linear approach of ‘make a business case, pilot the technology, implement and scale’, may restrict a firm’s ability to engage quickly with genuinely value-adding innovation” the researchers explain.

Drones were chosen in part because many applications of the technology are in the leisure sector, which can make it hard for managers to assess industrial applications.

“The ubiquity of drones as a consumer technology and their visibility in marketing — we’ve all been wow-ed by aerial shots and the videos showing the futuristic promise drones seem to hold — mean that nearly all managers and engineers will most likely be aware of drone technology and ponder, that’s interesting, what can we use it for?” the researchers explain.

“But there is a major challenge for managers here — when emerging technologies are discussed, it is often unclear whether a problem needs a technological solution or a technology seeks a problem to resolve.”

The best approach, the researchers conclude, is to test a few alternative technologies before there is any certainty regarding their value, before then creating a business case to match the uses that are identified. This iterative approach could also help managers manage the pace of change in many technologies and also any unrealistic expectations that may be emerging within their company.

“Managers have, for decades, faced the demand, ‘We want to see the business case for that before we hand over the cash’. But this is very challenging with new technology, particularly where there is considerable public hype and inflated expectations in areas like drones, blockchain or artificial intelligence, or where prominent public figures or ‘disrupters’ are involved. Better to focus on the use case and let the business case develop as those uses are identified,” they conclude.