In the global economy, the use and refinement of information are central to progress. Technological developments allow communication and data sharing in ways previously unimaginable. However, alongside this rapid technological progress comes a challenge: the adoption of technology is neither simple nor automatic. Although technology itself offers efficiency and new opportunities, its benefits do not always materialize quickly or completely. This phenomenon is aptly described by the term technology friction.

What is Technology Friction?

Although technology friction is not yet a widely recognized term in economics or organizational studies, it refers to the phenomenon where the adoption of new technology is delayed or faces resistance within organizations. This ”friction” is not due to the technical limitations of the technology itself, but rather the inability or unwillingness of people and organizations to fully embrace and utilize it.

The term has been used by Antti Mikkola to describe the challenges organizations face amidst technological change. He points out that the introduction of a new technological innovation does not automatically lead to increased efficiency, as its benefits may initially be ”consumed” by the friction. This is caused by employees’ resistance to change, doubts about their ability to learn, and skill gaps between those who quickly adopt technology and those who are alienated by it.

Elements of Technology Friction

Technology Friction in the Information Economy

In the information economy, a competitive advantage comes from effectively leveraging data and technology. In such an environment, organizations that can reduce technology friction and quickly and flexibly adopt new technologies are the ones that thrive. Digital tools, AI solutions, and automation can significantly improve business performance – but only if employees are skilled and willing to use them.

Managing technology friction requires investment in training, change management, and the development of organizational culture. This also requires leadership commitment and vision, as technology adoption is a strategic decision that impacts the entire organization.

Can Technology Friction Be Reduced?

While technology friction cannot be entirely eliminated, it can be reduced through deliberate actions:

Conclusion and Future Outlook

Although technology friction is not yet a well-established term, it accurately describes a phenomenon that impacts the efficiency and competitiveness of many organizations. As technology evolves rapidly, the concept may gain more attention, as organizations must increasingly adapt to new tools and practices.

Organizations that recognize and actively reduce technology friction will be in a better position to leverage the opportunities technology offers and respond to the challenges of the information economy. This, however, requires not just technical solutions, but also attention to human and organizational factors.

Reducing technology friction is ultimately about leading people through technology – a skill that will only grow in importance in the future. (translated with chatgpt)