While technological innovation can provide a hugecompetitive advantage, there are downsides for both the organization and theconsumer that must be considered.

  New technologycosts a great deal to obtain and set-up. The organization may also need to purchase additional equipment andsupplies necessary to support the new technology, especially if it’s hightechnology that is most advanced and developed.  Once the new technology is implemented,usually training for employees is required for them to become familiar with thechanges.  This could be time consuming,taking employees away from their normal tasks, and costly because it’d requireadditional pay for employees as compensation. All of these added costs for the organization likely would result in higherprices for consumers to pay.

  Initially,a consumer may not have had to think twice about purchasing from a certain company,but increased prices may cause them to reconsider their purchase or possiblynot buy at all.  This would result indecreased sales for the organization until the consumer adjusts to the changes,and accepts the product or service despite the higher price.